§ 3.26 p.m.
§ Viscount MASSEREENE and FERRARDMy 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 whether they intend to introduce a tourism tax in the near future.
§ Baroness BIRKMy Lords, a tourism tax would present a number of complex problems, and I cannot imagine the introduction of such a tax without prior consultation with the industry.
§ Viscount MASSEREENE and FERRARDMy Lords, is the noble Baroness aware that I am extremely relieved at that reply? I had heard rumours to the contrary. Would not the noble Baroness agree that it would be madness—and, of course, madness is a condition of mind from which Labour Governments are not always immune—to tax this industry, which is now one of our greatest foreign currency earners? It is estimated that this year the expenditure of overseas visitors, including what they spend on British carriers, will earn this country £2,500 million. If my arithmetic is correct, that is about £7 million 146 a day. I thank the noble Baroness very much for her Answer, because my Question was a fishing Question.
§ Baroness BIRKMy Lords, while I cannot accept the noble Viscount's comments on madness in the brain of the Labour Government, he is right that any talk about a tourism tax could have very grave effects on tourism, which we are all greatly concerned to increase and expand. It is now, as he is aware, the industry fifth in importance so far as our balance of payments is concerned. I am aware of these rumours going around, and I hope this has provided the opportunity to scotch them.