Clause 1 - Mandatory rate relief onformer agricultural premises
Rating (Agricultural Premises and Rural Shops) Bill
11:45 am
Mr David Heath (Somerton and Frome, Liberal Democrat)
I listened to the Minister's comments with great care, and am grateful at least for her sympathy with my intentions. She had two objections to my amendment. One was a result of interpreting the amendment in a way in which I had not. Were my amendment agreed to, the problem could be dealt with by consequent amendment, simply by requiring the 183 days stipulated in proposed new section 43(6G)(a) of the Local Government Finance Act 1988 to be a continuous 183 days. That would get round the difficulty of the two three-month periods.
I never set a limit on the ingenuity of lawyers and accountants, so I am sure that someone in the country would contrive to use a building for agricultural purposes three months in each year and so claim rate relief. However, the Government's intention is to allow for diversification and to define a building in agricultural use. Relief is primarily intended not for buildings in use part time, but for ones that have ceased to be used for agricultural purposes in the past year, which will now be used for an alternative business purpose. That was the spirit in which I proposed my amendment, which is why a six-month period within two years was perfectly reasonable. For the provision to be watertight against clever accountants, I accept that a subsequent amendment would be needed.
I do not accept the Minister's second point to the same degree. If our purpose is to support diversification, I maintain that we want to do so not only for those contemplating diversification, but for those who have taken the plunge. I accept that retrospection can go only so far, or one would be dealing with established businesses. Someone who had attempted to start a new business a year or so ago would have had to weather the worst trading conditions imaginable. The Minister may be right to say that only the strongest will survive them. My purpose is to ensure that as many diversified businesses as possible weather that storm. The amendment would be one way in which the Government could assist that process.
My problem with foot and mouth disease is that, even if we take a sanguine view—given the events of the past week, we are by no means convinced in Somerset that the epidemic is near its end—there will undoubtedly be an epidemic of business failures across rural areas of the country in the next few months. If we close our eyes to that, we shall be failing to represent people properly. I agree with what the Minister said on Second Reading about the Bill not being a response to the foot and mouth crisis. However, it could have furnished a mechanism by which to help a little. The time limits will mean the failure of business that might have been helped.
I am disappointed that the Minister cannot accept the amendment. We shall find other ways to pursue the same objective, but for the moment I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.