HL Deb 09 April 2001 vol 624 cc153-4WA
Baroness Anelay of St Johns

asked Her Majesty's Government:

What is their response to the recommendations by the Confederation of British Industry in its tourism manifesto Targeting Tourism: the agenda for change that the Government should (a) increase the financial resources available to the British Tourist Authority, not only through grant-in-aid but also through matched funding; (b) provide sufficient resources to enable the English Tourism Council to adopt a stronger and more central leadership role for English tourism; (c) address the distorting effects of National Lottery funding and other capital funding boosts; and (d) avoid automatic uprating of the national minimum wage. [HL1397]

Lord McIntosh of Haringey

(a) Following the Comprehensive Spending Review (CSR), the Government provided the British Tourist Authority (BTA) with an extra £5 million grant-in-aid over the three years from 1999–00 to 2001–02. Moreover, last year, as a result of the Chancellor's SR2000 spending review, my right honourable friend the Secretary of State for Culture, Media and Sport announced his intention to continue BTA funding at the present higher level for the period from 2001–02 to 2003–04 (although £1.5 million per year of the allocation, for promoting London as a gateway to Britian, will now be channelled through the GLA with effect from 2001–2002). In addition, the BTA has refocused a further £5 million per year towards directly market-facing activities.

The BTA has a key role to play in delivering the Government's Tourism Strategy Tomorrow's Tourism and the boost in the authority's promotional resources since 1999–2000 is a recognition for the importance and effectiveness of its work.

(b) The English Tourism Council was given additional resources in CSR 2000 and has responded magnificently to the problems the industry is facing during the foot and mouth outbreak.

(c) Lottery funding is distributed on the basis of an assessment of need which the Government require lottery distributors to set out in strategic plans. Capital projects should therefore complement existing attractions rather than compete with them.

Lottery funding is distributed for projects which promote the public good and are not intended primarily for private gain. It is time-limited and applicants for capital funding must present a business plan beyond the period of the grant incorporating provision for associated running and maintenance costs.

(d) The Government have periodically asked the independent Low Pay Commission to monitor and evaluate the impact of the national minimum wage and to consider whether there is a case to increase the minimum wage rates and, if so, to what level, taking account of the likely impact on the economy. On 5 March the Government accepted the commission's latest recommendation to raise the main rate to £4.10 per hour from 1 October 2001.