Covid-19

Alec Shelbrooke Excerpts

Monday 22nd February 2021 Commons Chamber

[Alec Shelbrooke (Elmet and Rothwell) (Con) [V]]

I greatly welcome my right hon. Friend the Prime Minister’s statement today setting out a clear path as to how we end this national/international nightmare, but for some industries it will not end when it does for others, and I want to focus on the travel industry.

Nearly two pence in every pound spent in this country is spent in the travel industry, which employs almost a quarter of a million people. I was glad to hear the Prime Minister say today that we will help everybody for the duration of the pandemic, but for the travel industry the pandemic will last beyond 21 June.

The review taking place into international travel is important, but we must recognise that we may not have control over where people can go. Countries may keep their borders shut, as is happening in the USA at the moment and, of course, in the EU. Whether we need a covid vaccination certificate to go to these countries will very much be up to them.

The industry therefore needs support to carry on. At the moment, its biggest concern is that if it reopens when all the non-essential shops reopen, that is well and good, but it will not have anything to sell. Let me give the example of just three travel agents from my constituency. One has gone from a £4 million turnover to zero, one has gone from a £2.3 million turnover, with £310,000 gross profit, to a £7,000 loss, and the other has gone from between £1 million and £1.2 million turnover, with a 15% profit, down to a £4,000 loss. Yes, staff have been furloughed, but there are still the fixed costs. What is often also overlooked is that the actual business owners are not earning a single penny but still have their costs going forward. We should remember that this sector employs more people than the automotive sector, but businesses are struggling to get coronavirus business interruption loan scheme loans because they have no revenue coming in to meet the banks’ criteria.

We really have to ensure that we support businesses in this sector and carry on with business grant support, business rate relief and the furlough scheme, because it could be three to four months after June before they are actually in a position to earn a living and sell products. Travel is a massive industry in this country, and it employs tens or hundreds of thousands of people, and we need to extend the support a little further. I hope that my right hon. Friend the Paymaster General will take these comments back to my right hon. Friend the Chancellor as we prepare for the upcoming Budget.

Finally, I have mentioned the hospitality industry before, but I hope that we are not going to suddenly cut the legs off pubs that may have the ability to serve outside but that would not be financially viable doing so. We must ensure that the support packages in all these areas remain until businesses are financially viable and can stand on their own two feet.