Oral Answers to Questions Debate

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Department: Wales Office

Oral Answers to Questions

Elfyn Llwyd Excerpts
Wednesday 4th March 2015

(9 years, 9 months ago)

Commons Chamber
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Alun Cairns Portrait Alun Cairns
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My hon. Friend is absolutely right. Opposition Members talk about some sort of so-called uncertainty, but that so-called uncertainty has given us the fastest-growing economy in the G7 and has made Wales the fastest-growing part of the United Kingdom, which we should be celebrating and marking.

Elfyn Llwyd Portrait Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC)
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3. When he last met representatives of the tourism sector in Wales; and if he will make a statement.

Alun Cairns Portrait The Parliamentary Under-Secretary of State for Wales (Alun Cairns)
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Wales Office Ministers regularly meet representatives of the tourism industry in Wales. Wales is a fantastic holiday destination, and this Government will continue to do all they can to promote Wales at home and abroad.

Elfyn Llwyd Portrait Mr Llwyd
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We are indeed fortunate in that people the world over want to visit the wonderful country of Wales—I and, I am sure, the Minister are very proud of the country—but more should be done in terms of tourism and the Welsh economy. What discussions has he or his right hon. Friend the Secretary of State had with colleagues to implement a 5% VAT rate for the tourism sector, which would bring 5,500 extra jobs to Wales?

Alun Cairns Portrait Alun Cairns
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With permission, Mr Speaker, a gaf i dalu teyrnged i’r Aelod gwir anrhydeddus? I would like to pay tribute to the right hon. Gentleman for his service in this House over many years, and for the way in which he has led his party here.

VAT levels for business are of course set by the Treasury. The right hon. Gentleman rightly points to the importance to the Welsh economy of tourism, which makes up almost 15% of the work force. That is why I am delighted that the number of international visits last year increased by 7.5%, or 26,000 visits.

Elfyn Llwyd Portrait Mr Llwyd
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Diolch i’r Gweinidog am ei eiriau caeredig. I will help Hansard with the spelling later.

In terms of competitive disadvantage, 24 EU states already have a reduced rate of VAT on tourism. In addition, the economic study by Professor Adam Blake, using the Treasury’s own modelling technique, showed that a cut in tourism VAT would increase GDP by £4 billion per annum.

Alun Cairns Portrait Alun Cairns
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A strong tourism sector needs a strong economy. Wales is the fastest-growing part of the United Kingdom, which creates a greater opportunity to attract tourists from not only the UK but beyond. VisitBritain is launching the Countryside is Great campaign, from which I know the right hon. Gentleman’s constituency is set to benefit.