HC Deb 29 May 1968 vol 765 cc1815-7
30. Mr. Hunt

asked the President of the Board of Trade what further steps he is taking to assist the hotel industry to provide adequate accommodation for tourists in Great Britain, in view of the estimates of demand from 1970 onwards.

The Minister of State, Board of Trade (Mr. J. P. W. Mallalieu)

I would refer the hon. Member to the White Paper (Cmnd. 3633) which my right hon. Friend presented to the House on 21st May.

Mr. Hunt

While the Government appear at last to be waking up to the potentiality of the tourist industry as a foreign exchange earner, may I ask whether the hon. Gentleman would agree that the help now proposed is trivial compared with the withdrawal of investment allowances and the imposition of the S.E.T., which together are costing the hotel industry about £40 million a year?

Mr. Mallalieu

The help proposed now is remarkable in the prevailing conditions and has been generally welcomed.

Dr. John Dunwoody

Is my hon. Friend aware that the recent Government measures to assist the industry are widely welcomed, particularly in the tourist areas? But could he not go still further to help the industry by trying to extend the tourist season so that we use our resources to a much greater extent in the early and late season than at present?

Mr. Mallalieu

We shall do what we can in that respect. This was one of the reasons for the change in the Bank Holidays. But a great deal can be done by the tourist areas themselves to extend their own seasons, and I would welcome that.

Mr. Blaker

In view of the shortage of hotel beds, and since the "Little Neddy" Report said that action by the Government was urgent, is it not unfortunate that the industry must wait until the next Session for legislation?

Mr. Mallalieu

Because of the publication of the White Paper, the industry knows what assistance will be available and can go ahead with making plans on that basis even before the legislation.

Mr. Hector Hughes

Does my hon. Friend realise that the hotel industry is greatly handicapped by discrimination in the application of the S.E.T.? Will he consult the Chancellor of the Exchequer with a view to alleviating the burdens of the industry in that respect?

Mr. Mallalieu

The whole question of the effect of the S.E.T. is being examined now. Some hotels are benefiting from discrimination in the application of the S.E.T.

Mr. Higgins

Is the hon. Gentleman aware that the effects of the S.E.T. are not being examined now because the Government's Money Resolution on the Finance Bill is precluding any effective debate on the subject?

Mr. Mallalieu

Although the S.E.T. is not my direct responsibility, the fact is that we are examining its effect.