Tourism Industry and VAT

Debate between Anne Marie Morris and Mark Williams

Tuesday 17th March 2015 Westminster Hall

[Mr Williams]

I am grateful for that intervention. My hon. Friend is right: the name “English riviera” speaks for itself about the importance of the tourism sector to his constituency. He is right that more generally it would benefit just about all component parts of the UK: cities and rural areas alike. That is the spirit in which the debate and the Cut Tourism VAT campaign’s call has been made.

[Anne Marie Morris (Newton Abbot) (Con)]

Does the hon. Gentleman agree that there is perhaps a particular challenge in those parts of the country that are overly dependent on tourism? In the south-west, tourism is a substantial part of our economy.

[Mr Williams]

My hon. Friend is right that the debate has a strong, important regional dimension. That is borne out by the representatives here today.

Such is the nature of the debate, with it being a few weeks before Dissolution, that it could be something of a damp squib. However, I would rather raise this matter with the Minister before the Budget than after it. In many ways this is an opportune moment to remind ourselves of the importance of the tourism sector. In Wales, we are celebrating Wales tourism week in which thousands of our local hoteliers and attraction owners will be showcasing what Wales has to offer. What better way is there not just to celebrate what is happening in the industry at the moment, but to promote its opportunities for growth? That is what the debate is all about.

The tourism sector currently contributes £3.1 billion to Wales’s GDP, which is 6% of its total. It also accounts for 8% of jobs in Wales—a huge number. When we add in those supporting businesses down the supply chain, we see that the sector contributes about £7 billion to Wales’s GDP, which accounts for 14% of the Welsh economy and 15% of jobs.

Quite rightly, the promotion of the Welsh tourism sector is a devolved responsibility. Visit Wales does a lot of excellent work in promoting the Principality, but on VAT it is the Treasury and this place that has primacy and that is why we are asking for action. The debate is about sustaining the tourism sector, but, critically, it is also about growing it. I believe that this could give the industry the financial jolt that it needs.

Big Society

Debate between Anne Marie Morris and Mark Williams

Monday 28th February 2011 Commons Chamber

[Mr Williams]

I welcome those resources, of course, but let me go back to my point about the CABs. I was at a meeting last week, and there was genuine concern about the ability of volunteers to carry on doing the work they are doing if resources are cut to such an extent that the training courses they undertake are no longer available.

It is crucial that we address the concept of the big society correctly if we are to achieve its potential in helping to deliver services. As we have heard this afternoon, there is support for giving individuals and groups more power and opportunity to help their communities. I have no difficulty at all with the motion—although I would have perhaps a little more difficulty with the amendment, which was not selected.

What sets the concept of the big society apart is its recognition not simply of the contribution that charities and voluntary groups can make, but of the difference that can be made through allowing groups and individuals to make decisions and take control. St David’s day is coming up, and I want powers and responsibilities to be devolved further to the National Assembly; I want them to be devolved to the community level—to our counties and our communities and our individuals. That may be about minor things such as garden exchange schemes or bigger things such as community energy projects and community broadband.

[Anne Marie Morris (Newton Abbot) (Con)]

Does my hon. Friend agree that in talking about communities we should also consider businesses? In my constituency, we have set up Teignbridge business buddies, under which businesses help each other with small individual problems for free. That is not addressing a state role, but it does show that community is bigger than just individuals; it is also about the businesses within communities.

[Mr Williams]

I am grateful to the hon. Lady, in whose constituency I was briefly at the start of this week. I can testify that there are some very good businesses there, and the ethos she alludes to is very important.

I want to mention one or two projects in my constituency, such as the community-led project Transition Llambed, which works to challenge the issues of peak oil and climate change and to give Lampeter transition town status. That is a perfect example of an organisation run and led by the community for the community that aims to have a positive impact on the world around it. It epitomises the phrase, “Think globally, act locally.” Formed four years ago, Transition Llambed has been extremely well received. It has 400 members—drawn from a town with a population of just 2,500 people—and has support from the town council, the university and local organisations.

Lampeter is also home to the excellent Long Wood Community Woodland group, which I had the pleasure of meeting last week, and which is in the process of securing 300 acres of woodland for local community use. I do not want to reopen the debate about forestry sales and the Government’s climb-down; however, that very good project in Lampeter involves many different groups in the community.

I am never quite sure whether the tentacles of the big society extend beyond Offa’s Dyke, but I do know there have been discussions between the Wales Office and Ministers in the National Assembly. I want to cite last November’s excellent report from the Welsh Assembly Enterprise and Learning Committee, which discussed the role of social enterprises in the Welsh economy. It recommends that

“the potential of social enterprise should not be viewed as a means of mopping up services that need to be developed more cheaply but as a way of developing new, innovative and more effective methods of delivery”.

That committee was dominated by Labour and Plaid Cymru Administration Members—there was a Liberal Member as well—and I very much endorse that view, which is not at odds with what is being suggested from this side of the House. That issue goes to the very heart of this debate.

The committee also called for an improvement in the quality and coverage of business support and advice for the social enterprise sector—a relatively new sector that has sometimes been ignored. All Government Departments must be thinking of ways of fostering volunteerism and social enterprise, and that should mean the availability of advice and support as recommended by the committee. It might mean in some instances relaxing some of the regulations that make life difficult for many of our charities; the hon. Member for Newton Abbot (Anne Marie Morris) might agree with that, given her interest in small businesses. It might mean enforcing some existing laws and regulations more stringently.

The Government have made progress on this issue. For instance, they are looking again at the provisions under the vetting and barring scheme. Although there is of course a need to ensure that children are protected from those who use voluntary groups as an opportunity to gain access to children, those rules must be sensible and proportionate and should not hinder the many volunteers who do excellent work in the youth sector.

There is also the Government’s recent pledge to put money aside to assist mountain rescue teams, who have to pay VAT on equipment. Again, that is money to allow volunteers the breathing space they need to enable them to be more effective.

Many of us will have received representations from Sue Ryder Care, which is concerned that once services are transferred from the public to the voluntary sector, there will be an increased cost for the charity because it will be unable to reclaim much of the VAT. It has been suggested that section 41 of the Value Added Tax Act 1994 should be amended to include charities providing services transferred to them by the NHS. Another charity in my constituency, the Beacon of Hope, would very much empathise with that call.

There is good news. The big society bank is coming, the funding for which is being provided from dormant bank accounts and as part of Project Merlin. I welcome that.

I end with a request. Much of what this debate is about is already happening in our communities. What I am looking for from the Minister and the proponents of the big society—I rather prefer the word “community”, however—is that add-on, that extra. The engagement is there; it needs to be built on.