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WG consults on new planning process

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Connecting communities: WG proposes two stage approach

THE WELSH G​OVERNMENT ​has published proposals to change the way major infrastructure projects are consented.

A new approach is needed because more consenting powers are due to be devolved on April​ 1,​ 2019. The Welsh Government is also taking the opportunity to combine a number of existing processes into a single streamlined “one-stop shop” consenting process.

Two stages are being proposed:

  • An interim solution requiring changes to existing processes; and
  • A long-term solution requiring primary legislation to establish an entirely new form of consent.

The proposals only apply to areas where consenting is devolved.

So for example, in future, projects like the proposed M4 relief road around Newport and the 200 Megawatt (MW) Swansea Bay tidal lagoon would need to be consented through the new process, whereas the 2,700MW Wylfa Newydd nuclear power station would not, because consenting for generating stations with a capacity of over 350MW would remain with the UK Government.

CURRENT SITUATION

Wales currently has three tiers of consenting processes for most infrastructure projects (there are some exceptions):
Smaller projects are decided by local planning authorities;

Larger projects, where consenting is devolved, are decided by the Welsh Government through the Developments of National Significance (DNS) process; and

Larger projects, where consenting is not devolved, are decided by the UK Government through the Nationally Significant Infrastructure Projects (NSIP) process.

Consents by local planning authorities and the Welsh Government are given under the Town and Country Planning Act 1990 (TCPA) – this is often known as planning permission.

NSIPs require a different kind of consent called a Development Consent Order (DCO), which is given under the Planning Act 2008. DCOs can include consents on a range of associated matters – these are often called secondary consents.

NEW POWERS

The Wales Act 2017 devolves further consenting powers which are due to come into force on 1 April 2019:

Energy generating stations with a capacity of up to and including 350MW onshore and in Welsh waters (which is an inshore area out to approximately 12 nautical miles from Welsh shores). This doesn’t include onshore wind which is already devolved with no upper limit; and
Overhead electric lines of up to and including 132 Kilovolts (KV) that are associated with a devolved energy generating project.

In addition, the Wales Act has already devolved consenting for Harbour Revision and Empowerment Orders, which are made under the Harbours Act 1964, for most Welsh ports. These new powers came into force on ​April 1​.

WHY A NEW PROCESS IS NEEDED

The way in which the Wales Act devolves the new powers creates some anomalies which need to be resolved to ensure an efficient and effective approach to consenting.

The consenting powers for energy generating stations and overhead electric lines mentioned above are currently consented by the UK Government through the DCO process.

In devolving these powers, the Wales Act takes consenting for these projects out of the DCO process and places consenting for devolved generating stations in Welsh waters back into the former Electricity Act 1989 process. On land, the consenting of devolved generating stations and associated overhead electric lines is placed into the TCPA process, instead of the Electricity Act. The TCPA has previously not been used to consent this scale of generation project.

For a number of reasons set out in the consultation document, this is seen as a backward step.

In addition, the Welsh Government favours taking a more integrated and streamlined approach to infrastructure consenting. It wants to establish a one- stop shop approach for major devolved projects, similar to the UK Government’s DCO process. This, it argues, would provide more consistent and transparent decision-making, and more certainty for communities and developers alike.

The alternative would be to continue with a number of different processes each with their own requirements, established under separate legislation (including the TCPA, Electricity Act and Harbours Act mentioned above).

The one-stop shop approach also allows a number of secondary consents to be included in the main consent, rather than having to be applied for separately.

Some associated changes to the compulsory purchase process are also proposed.

INTERIM SOLUTION

The Welsh Government says an interim solution is necessary because there isn’t enough time to set up an entirely new process before ​A​pril​ 1,​ 2019.

The interim solution involves amending secondary legislation to include the newly devolved onshore energy generating stations and electric lines within the existing DNS process.

Offshore energy generating stations will be consented under the Electricity Act, with a new fee structure based on full cost recovery. Harbour Revision and Empowerment Orders will continue to be made under the Harbours Act.

Offshore energy generating stations and Harbour Revision and Empowerment Orders can’t be brought into the DNS process because the TCPA, under which the DNS process was established, only extends to the low water mark.

The interim solution is due to come into force on ​April 1,​ 2019 and will remain in place until the new process is established. The consultation document suggests this will be after 2020.

LONG-TERM SOLUTION

The long-term solution is to establish a new one-stop shop consenting process that is bespoke to Wales.

The consent would be called Welsh Infrastructure Consent (WIC) and projects captured by it would be called Welsh Infrastructure Projects (WIPs). The Assembly would need to pass primary legislation to establish the new process.

The WIC would consolidate existing consents under the TCPA, Electricity Act, Harbours Act, and a number of other consents made under highways legislation, into one single type of consent. The WIC would also include a wide range of secondary consents, including Compulsory Purchase Orders, Marine Licences and Environmental Permits.

The consenting process would be accompanied by thresholds and policies against which the individual projects can be assessed. Key policies would include Planning Policy Wales, the National Development Framework and the Wales National Marine Plan. The fee structure would be based on full cost recovery.

The WIC process would be designed to be flexible to capture projects of varying types and sizes. It would take a “proportional approach”, enabling certain types of decisions to be made more quickly, and others, which are more complex, to receive greater scrutiny.

This includes introducing a category of optional WIPs that the developer could choose to submit either via the WIC process or to the local planning authority. In the case of offshore projects, where there is no local planning authority, the alternative route for optional WIPs would be via the marine licencing process.

The WIC process would also require developers to engage with local communities before submitting their applications and provide greater opportunity for the public to participate during the examination process. There would also be a specific role for local planning authorities in documenting impact in their areas.

However, the consultation does not address the transfer of regional infrastructure projects away from elected councils and into the hands of unelected so-called ‘City Deal’ boards or their rural counterpart in Mid Wales. The complication of creating a national structure without accounting for looming changes in the delivery of infrastructure services is – as it stands – both unresolved and a likely source of future confusion.

News

Welsh tax plans for 2019 revealed by Finance Minister Rebecca Evans

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FINANCE MINISTER Rebecca Evans has announced the Welsh Government’s Tax Policy Work Plan for 2019.
This year’s plan focuses on developing the government’s approach to taxation in Wales – exploring the scope for continued improvement to tax administration, while further strengthening the links between tax and policy areas, and ensuring taxes remain fair throughout this process.
The plan aims to develop government proposals to build the Welsh tax base, while continuing to make the case for devolution of air passenger duty to Wales, taking forward consideration of land and property taxation, and continuing to work with the UK Government on disposable taxes and other environmental taxes. The Welsh Government will also explore further the funding options for social care in the future, progress plans to devolve powers for a vacant land tax to Wales, and develop thinking on a tourism tax.
Ensuring Welsh taxes are working effectively is a key priority in 2019. Following the successful introduction of land transaction tax and landfill disposals tax last year, and with Welsh rates of income tax going live on April 6, the government will continue to work closely with the Welsh Revenue Authority and HMRC. As part of this coordinated approach the government will also consider options for developing information resources, including data sharing and analysis to strengthen the evidence base for tax policy decisions and improved tax administration in Wales.
Continuing to build on the government’s open and transparent tax policy making process also remains a key priority. A long-term plan to build capacity on tax policy and administration will be developed, and work with the UK and other devolved governments to share best practice and address common challenges will continue. The aim is for Welsh taxpayers to understand the government approach to taxation and be clear how their taxes are supporting public services in Wales.
The Minister for Finance and Trefnydd said: “Our annual tax policy work plan is an important part of the communication process, building on what we have achieved and learned so far and identifying areas we want to explore further.
“I am committed to ensuring our tax policy is developed in an open and transparent manner and this plan is an invitation to anyone who wishes to contribute to our thinking, and help shape Welsh tax policy.”
The Welsh Government’s tax policy is being developed in line with the principles set out in the Tax Policy Framework. A report summarising the main findings will be published alongside the draft Budget in the autumn.
The full tax policy work plan for 2019 is available at: https://beta.gov.wales/tax-policy-work-plan-2019

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Politics

Lib Dems slam ‘botched’ scheme

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THE WELSH Liberal Democrats have slammed the Conservative Government for their “hapless treatment” of EU citizens after the Home Office released guidance on the new EU Settlement Scheme.

The Home Office has confirmed that for the duration of the trial period, until 30 March, EU citizens applying to stay in the UK must either use an Android phone or travel to one of 13 ‘document scanning’ centres instead.

For Holyhead, the closest ‘document scanning’ centre is Trafford.

According to an analysis by the Welsh Liberal Democrats, EU citizens travelling from Holyhead would face costs of £55 on the train for at least a six and a half hour round trip. The drive would be a 224-mile round trip costing around £56 in fuel.

The only document scanning centre in Wales is in Caerphilly. Travelling from Pembroke to Caerphilly and returning the same day by rail would cost £32.10 (the cheapest available fare at the time of enquiry), the cheapest off-peak fare from Aberystwyth would be £77.10 return. By car at an average of 40mpg, the cost of travel would be at least £27 to and from Pembroke, while from Aberystwyth the cost would be at least £25. Both car journeys represent round trips of over 180 miles.

Welsh Liberal Democrat Leader Jane Dodds said: “Too many people in Wales are deeply anxious about their right to stay. Many of them fill vital roles in the health service, our schools and the tourism sector. They want to register as soon as possible, but Theresa May’s hapless treatment of EU citizens could result in a new Windrush scandal.

“For anyone who doesn’t have an android phone, this botched scheme means they will have to travel. For people in Holyhead, that means facing a 224-mile round trip and paying over £50 for the privilege. This postcode lottery is simply unacceptable.”

Liberal Democrat Home Affairs Spokesperson Ed Davey MP said: “Following significant pressure, the Prime Minister said there will be no financial barrier for any EU nationals who wish to stay. How long did that commitment last?

“It is Conservative Ministers who have made a mess of Brexit. They should either pay the cost for EU citizens or change the application system and ensure EU citizens are made to feel welcome in the UK.

“Ultimately, the best way to avoid all of this mess is by giving the people the option to remain in the EU with a final say on Brexit.”

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Politics

Retailers’ no deal reality check

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THE HEADS of the UK’s major food retailers, including McDonald’s, M & S and Asda, have written to MPs and dramatically spelt out their view of the risks of leaving the EU without an agreement.

The warning comes shortly after the revelation that Britain has begun stockpiling food, fuel, spare parts and ammunition at military bases in Gibraltar, Cyprus and the Falklands in case of a no-deal Brexit.

With all contingency plans routinely labelled ‘Project Fear’ by those Brexiters stuck on transmit instead of receive, the retailers have taken a significant risk in sticking their collective head above the parapet by trying to address a substantial issue which is rather glossed by those proclaiming the benefits and underplaying the downside of a crash out Brexit.

The letter is backed by the British Retail Consortium, which represents over 70% of Britain’s retailers by turnover.

The Government said that it was taking special measures to minimise the impact of a no-deal Brexit on supermarkets’ suppliers and insisted that food was not going to run out as a result.

“The government has well-established ways of working with the food industry to prevent disruption and we are using these to support preparations for leaving the European Union.”

The Food and Drink Federation, which represents thousands of food processors and manufacturers, has said a no-deal Brexit would be a “catastrophe”, with uncertainty undermining investment and constraining businesses’ ability to plan and export.

DEAL OR NO DEAL: THE LETTER

On behalf of our businesses and the wider food industry, we want to highlight to you the challenges for retailers and the consequences for millions of UK consumers of leaving the European Union without a deal at the end of March. While we have been working closely with our suppliers on contingency plans it is not possible to mitigate all the risks to our supply chains and we fear significant disruption in the short term as a result if there is no Brexit deal. We wanted to share with you some practical examples of the challenges we are facing.

Our supply chains are closely linked to Europe – nearly one-third of the food we eat in the UK comes from the EU. In March the situation is more acute as UK produce is out of season: 90% of our lettuces, 80% of our tomatoes and 70% of our soft fruit are sourced from the EU at that time of year. As this produce is fresh and perishable, it needs to be moved quickly from farms to our stores.
This complex, ‘just in time’ supply chain will be significantly disrupted in the event of no deal. Even if the UK government does not undertake checks on products at the border, there will still be major disruption at Calais as the French government has said it will enforce sanitary and customs checks on exports from the EU, which will lead to long delays; Government data suggest freight trade between Calais and Dover may reduce by 87% against current levels as a result. For consumers, this will reduce the availability and shelf life of many products in our stores.

We are also extremely concerned about the impact of tariffs. Only around 10% of our food imports, a fraction of the products we sell, is currently subject to tariffs so if the UK were to revert to WTO Most Favoured Nation status, as currently envisaged in the no-deal scenario, it would greatly increase import costs, which could in turn put upward pressure on food prices. The UK could set import tariffs at zero but that would have a devastating impact on our own farmers, a key part of our supply chains.

Our ability to mitigate these risks is limited. As prudent businesses we are stockpiling where possible, but all frozen and chilled storage is already being used and there is very little general warehousing space available in the UK. Even if there were more space it is impossible to stockpile fresh produce, such as salad leaves and fresh fruit. Retailers typically store no more than two weeks’ inventory and it becomes difficult to restock stores if the supply chain is disrupted. We are also attempting to find alternative supply routes but there are limited options and not enough ferries, so this could only replace a fraction of the current capacity.

We are extremely concerned that our customers will be among the first to experience the realities of a no deal Brexit. We anticipate significant risks to maintaining the choice, quality and durability of food that our customers have come to expect in our stores, and there will be inevitable pressure on food prices from higher transport costs, currency devaluation and tariffs.

We are therefore asking you to work with your colleagues in Parliament urgently to find a solution that avoids the shock of a no deal Brexit on 29 March and removes these risks for UK consumers.

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