Tourism Industry and VAT
Debate between Albert Owen and Gregory Campbell(9 years, 8 months ago)
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Albert Owen
I do not speak for the Labour party, and if the hon. Gentleman checks the records, he will see that I do not vote with the Labour party when I think that that is right. I speak for myself. Unlike the sheep in the Scottish National party, who are all herded through one Lobby, I tend to have a little independence of spirit and mind when it comes to these issues. I feel very strongly that the case has been made to cut VAT on this occasion and I will certainly support any amendment tabled in the Budget to ensure that there is a cut. I hope that Conservative Members who voted to put VAT up before but now support a cut will follow their conscience and vote to cut VAT for tourism.
Since 2012-13, there has been growth in tourism right across the four nations of the United Kingdom. It is a resilient industry, but it is the industry itself that is asking for a cut, because it feels that it could contribute so much more in employment and generating wealth for regional economies and the UK economy if there was a cut.
As the hon. Member for Ceredigion said, Ireland has reduced its VAT on tourism to 9%. Only last week, I was in the Republic of Ireland. We were launching the new vessel that goes between my constituency and Dublin. Holyhead to Dublin has been branded the new Dover to Calais, and as Dublin is one of the fastest growing ports in Europe, that benefits my constituency. Also, as we are near neighbours, the vessel takes people, who come from places across the United Kingdom, from Wales to holiday in the Republic of Ireland. My colleagues from Northern Ireland will have experience of this. The crossing from Holyhead to the Republic of Ireland takes only two hours. Many tourism operators that book people going to Ireland overnight say that one reason why they are going to Ireland is that the Irish Government have focused on tourism, focused on the brand and focused on how tax reductions on accommodation help the industry.
Mr Gregory Campbell (East Londonderry) (DUP)
Does the hon. Gentleman agree that many hotels that offer discounts and packages such as short-stay breaks, particularly in Northern Ireland, Wales and on the western fringes of Scotland, find that they are impacted by the very attractive bargains that can be offered by their counterparts in the Irish Republic precisely because of the VAT rate?
Albert Owen
Absolutely. That is the case I am making, and I am sure that colleagues from the south of England will see the same with France and, in particular, northern France and the Dover to Calais route.
This campaign, as I said, has been industry led. It has been led well by the industry, which has made a very articulate case. However, I believe that the campaign should also be people focused, because a lot of jobs could be created and many of the people who would be affected positively by a cut—