Office of the Deputy Prime Minister (ODPM)
Zone 5/B1
Eland House
Bressenden Place
London SW1E 5DU 

Dear Sir

Proposed Amendments to the Central Rating List Regulations: National Non-domestic Rates and Local Loop Unbundling

We welcome this opportunity to comment on the proposed amendments to the Central Rating List (England) Regulations 2005 to deal with the rating treatment of fully unbundled local loops in the telecommunications industry.  We are happy for our comments to be made public.

RICS is regulated by its Royal Charter with the objective of promoting the public good.  This requires the RICS to comment independently on matters relevant to its profession.  The RICS numbers has than 110 000 members who work in both the public and private sector and cover all aspects of land, property and construction.  

Our responses to the questions in the Consultation Paper are as follows.

Question 1.
Do you agree that BT should continue to be treated as being in occupation of fully unbundled local loops for the short term?   If no, please explain you reasons.
Yes.  Of the four options under consideration only this one will avoid allegations of differential treatment between BT plc and all other operators. 

Question 2.
Do you agree that two years is an appropriate period for this short-term solution to apply? If no, please explain you reasons?
No.  The interim solution should apply for the whole life of the current rating lists, i.e. until 31 March 2010 and any change should coincide with the next revaluation.  Rating revaluations take place on a five yearly cycle and change to legislation affecting the basis of rating is normally reserved for revaluation years. 

Question 3.
Do you foresee any difficulties if this short-term measure were to be introduced?
Yes.  An unnecessarily short-term approach will create further uncertainty in this sector and is likely to have a negative effect on investment in the rollout of Broadband Britain.  The opportunity should be taken to consult and agree a permanent solution for implementation at the next revaluation in order to provide a “level playing field” for all parties. 

If RICS may be of any further assistance please do not hesitate to contact me.

Yours sincerely,

William Tew
Head of Policy
RICS Public Affairs