§ 3.10 p.m.
§ Viscount MASSEREENE and FERRARDMy Lords, I beg leave to ask the second Question which stands in my name on the Order Paper. In so doing I declare an interest, in that I am President of the Kent Hotels and Restaurants Association.
The Question was as follows:
To ask Her Majesty's Government, whether in view of the number of small hotels being forced to close by the cost of implementing the Fire Precautions Act 1971, they will consider a selective system of grants and/or loans to enable such premises to remain in business for the benefit of the tourist industry.
§ Lord WELLS-PESTELLMy Lords, Her Majesty's Government have no evidence that small hotels are being forced to close solely as a consequence of implementing the Fire Precautions Act 1971. Successive Governments have taken the view that grants from public funds should not be made available to enable commercial undertakings to comply with statutory safety requirements. Hotels and boarding houses accommodating up to 25 persons, as I am sure the noble Viscount knows only too well, are already eligible for low interest loans under the Fire Precautions (Loans) Act 1973.
§ Viscount MASSEREENE and FERRARDMy Lords, I do not know whether I can completely thank the noble Lord for that Answer. I was really thinking of the smaller establishments. No doubt the noble Lord is aware that if they wish to remain open—
§ Several Noble Lords: Question!
§ Viscount MASSEREENE and FERRARDMy Lords, the noble Lord is aware that if they have to implement—
§ Several Noble Lords: No.
§ Viscount MASSEREENE and FERRARDMy Lords, is the noble Lord aware that if they have to implement the Fire Precautions Act it will amount to five or six years of their profits? Is the noble Lord aware that to do this will force a great number of them to close?
§ Lord WELLS-PESTELLMy Lords, again I think the noble Viscount will know that under the Finance Act 1974 tax relief is available in respect of all expenditure on fire precautions incurred by the hotel keeper in obtaining a fire certificate under the 1971 Act. In addition, the local authority loan scheme under the Fire Precautions (Loans) Act is available specifically to help the smaller operators. In the current financial year, the Home Office has received applications from 52 local authorities for loan sanctions of just over £1 million, but at present I cannot say how many loans have been granted.