5. How is the Welsh Government supporting tourism in mid Wales? OQ59353

Llywydd, the 'Welcome to Wales' strategy sets out our three key ambitions for the sector: to increase spend in the visitor economy, to spread benefits to all parts of Wales and to extend the tourism season, promoting Wales as a destination to be visited all year round.

Thank you, First Minister, and I am pleased that the strategy does include increased spend. But my concern is that there are huge concerns that remain with regard to the Welsh Government's changes requiring many holiday let businesses to be let for 182 days a year, and making them move from the business rates system to the council tax system, which would then increase their tax burden and make many of those businesses unviable.

Can I say, First Minister, of course, that many of these businesses as well are being encouraged to diversify—farming businesses are being encouraged to diversify into that holiday let sector? Many businesses tell me, and I believe it from the casework that I see, that they will simply fold if further exemptions are not brought forward. I'm afraid, so far, that I do believe that the Welsh Government has paid lip service to the concerns that have been raised. I do welcome very much the exemption that has come forward in regard to planning matters—very much welcome indeed—but when are we going to see further exemptions brought forward?

The specific examples that I would bring forward would be where holiday let properties are co-located, so in the same location as, perhaps, where the owner lives, or where holiday let properties share utilities. Those types of properties can't be used for any other purpose except for holiday lets, or it would certainly make it very, very difficult to change from that position. So, can I ask, First Minister: when are we going to see further exemptions that clarify these matters and make sure that these businesses don't fold?

Well, Llywydd, I think the Minister has shown her willingness to listen to cases made in the industry by the way in which—and I know that Russell George welcomed it—she has provided an exemption for properties that can only be occupied for certain times in the year. But let's be clear about what the changes are there to do. They are there to make sure that proper businesses are able to take advantage of small business rate relief, and when they are properties that are let out on an infrequent basis and are not businesses in that sense, then they pay council tax like anybody else.

If you're a business, then I do not think it is unreasonable to say that you should be making your property available to be let for 252 days and that you should actually let it for 182 days; then you are a business. If you're not operating as a business, it doesn't mean you have to fold; it just means that you pay the council tax like anybody else. I think that is a fair basis on which people can be treated. The Minister has shown her flexibility where a case can be made, but the basic principle that people who seek to be treated as businesses operate as businesses, and people who don't operate in a business way are treated like anybody else, that's the basic principle and I don't think we're going to move away from that.