HL Deb 19 June 1969 vol 302 cc1106-7
THE EARL OF DUNDONALD

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government whilst recognising the need to develop tourism in Scotland, whether they are satisfied that the funds which the Highland and Islands Development Board are proposing to expend on the establishment of a hotel at Craignure are to be well employed, and

  1. (a) what is the lastest cost estimate of establishing this hotel including all services;
  2. (b) over what period will these funds be repaid;
  3. (c) what the Government anticipate potential tourists will do at Craignure.]

THE JOINT PARLIAMENTARY UNDER-SECRETARY of STATE FOR SCOTLAND (LORD HUGHES)

My Lords, we are satisfied that the Highlands and Islands Development Board has done everything possible to ensure that the proposed expenditure will be justified by the benefit to be derived. The latest estimate of total cost is £315,000. There is no question of repayment. The Board will own the hotel, but will lease it to the operators. We hone that the potential tourists will enjoy themselves and that they will spend as much money w they can afford in the process. Craignure is strategically placed for touring in Mull and for trips to Iona. Angling, sea-fishing, shooting, sailing, walking and pony-trekking should also be available.

THE EARL OF DUNDONALD

My Lords, I am grateful to the Minister for his, as usual, very full reply, but may I ask him two questions? Does the latest cost estimate of £315.000 take into account the increased S.E.T. charges, as of almost now; the increased National Health contributions announced for the autumn; and the automatically increased transport costs to get materials to Mull? May I also ask the Minister whether he is aware that the cost of building in Mull is normally rated as being 50 per cent. higher than on the mainland?

LORD HUGHES

My Lords, the noble Lord may have noticed in to-day's Press that the contract has been placed. One assumes that builders in this area are just as prudent as they are anywhere else about taking care of their costs.