Tourism Industry and VAT

Debate between Roger Williams and Jim Shannon

Tuesday 17th March 2015 Westminster Hall

[Jim Shannon]

My hon. Friend is right. Hospitality services—golf clubs, hotels, restaurants and attractions—all suffer as a result of VAT on tourism, and it is important that we try to address the situation. That feeling is particularly tangible in Northern Ireland because we share a border with the Republic, which has a much lower VAT rate. Although we have seen an improvement in visitor numbers over the past year, which is good news, the benefits of a VAT reduction might have assisted those numbers even further. We are four years behind the Republic in implementing this decision, and I ask why. There has been a long-running campaign by the hospitality industry in the United Kingdom to reduce the VAT rate below the standard of 20% for services supplied to tourists, and I re-emphasise the importance of that industry to our economy. Tourism makes up 10% of Northern Ireland’s GDP and provides 40,000 jobs, and the sector is still growing.

[Roger Williams (Brecon and Radnorshire) (LD)]

Does the hon. Gentleman agree that one of the main challenges for tourism in our constituencies is extending the tourist season? A reduction in VAT would make weekend breaks and mini-breaks all the more affordable and attractive.

[Jim Shannon]

That illustrates the case for a VAT reduction. The tourist industry gives so much to us: it gives us global status as a destination, and growth. The industry aims to create more jobs, improve services and enhance the hospitality experience for which the UK is renowned.

The British Hospitality Association, when questioning operators within the industry, received some incredible responses, of which I am sure the Minister is aware. Some 82% of respondents said that, in the event of a reduction in VAT, they would invest more in the service they supply; 67% would create further employment positions; 57% would provide more training; and just under half would increase wages. There is a clear indication from the tourism industry that it could do a lot more. Although I recognise that there are concerns about the restrictions on the room for manoeuvre on public expenditure, a decision to reduce VAT would have long-term benefits, not least of which would be tourism spending spilling over into all areas of the economy in Strangford, across Northern Ireland and across the United Kingdom.

It is important to rectify youth unemployment, and we can do that by expanding the tourism sector. In Northern Ireland we have a large number of enthusiastic young people who are taking tourism, catering and hospitality courses in a number of our South Eastern Regional colleges. There is clear interest and growth in the sector, and all we need to do is kick-start the sector. My local South Eastern Regional college in Ards in my Strangford constituency is training young people to an exceptionally high standard, and it is important to maintain excellence in this area. The launch of the Diageo tourism and hospitality academy, run by Belfast metropolitan college, is another indication of what we can do.

The Cut Tourism VAT campaign emphasises that British families and international visitors who choose a British holiday will pay almost three times as much VAT as they would in a French or German break, and twice as much VAT as they would in a break in Italy, Spain or the Republic of Ireland. Reducing VAT for tourism would help to lower prices all round, and it would incentivise families to take an annual trip that they might otherwise be reconsidering.

I have attended a number of events organised by Pubs of Ulster, and I believe that we should support the UK-wide Cut Tourism VAT campaign. Northern Ireland is home to some 10 breweries, and my constituency of Strangford is home to 63 pubs that support 672 jobs, 138 of which are for 16 to 24-year-olds, whom we should be encouraging. We have the attractions, restaurants, bars and locations, and it is now time to ensure that we can offer even more by asking the Minister genuinely and sincerely to consider reducing VAT.

Poultry Industry

Debate between Roger Williams and Jim Shannon

Tuesday 20th January 2015 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on bringing this matter to the House for consideration. It is very important for my constituency, and across the whole of Northern Ireland, for jobs. The safety of the general public is very important as well. Does he agree that the British Poultry Council has expressed great concern about TTIP because of the issue of the preparation of poultry, where the US has different conditions from the UK? Does not the Minister need to reassure the general public and the poultry industry that our industry can sell all over the world and create jobs and opportunity?

[Roger Williams]

The hon. Gentleman makes a strong point and I hope to touch on those issues later.

I am sure the House will join me in recognising the importance of this sector to rural constituencies such as mine, but also the national contribution that the poultry industry makes. It is consequently of concern that as the TTIP negotiations progress, a number of serious risks to the UK poultry meat sector are emerging. Those risks are rooted in the different standards of poultry production on the two sides of the Atlantic. Let us be clear: the standards in areas such as sustainability, food hygiene and antibiotic usage differ greatly between the UK and US.

Tobacco Products (Plain Packaging)

Debate between Roger Williams and Jim Shannon

Tuesday 3rd September 2013 Westminster Hall

[Jim Shannon]

I thank the hon. Gentleman for his intervention. It is clear that cigarette companies target young people and we need to address that. Cancer Research points to substantial evidence that shows advertising and promotion drawing young people into smoking and that packaging is an important part of tobacco promotion.

Standard packs would build on the success of the advertising ban. Eighty five per cent. of people back Government action to reduce the number of young people who start smoking and 63% of people support standard packs, with only 16% opposed. One hundred and ninety health organisations support standard packs, including the royal medical colleges and health charities, as well as the World Health Organisation.

I was not aware that we waited for countries, such as Australia, to implement initiatives before we would do so in the UK. It was my impression that we sought to lead the field in safety. Even if we are waiting on smoke signals, or hopefully a lack of smoke signals—forgive the pun—from Australia, research from Cancer Research that is making its way back from Australia shows early indications not only that the policy is making cigarettes appear less appealing, but that there is no evidence of problems for retailers.

I spoke to my colleague, Northern Ireland Health Minister, Edwin Poots, about the issue and he said that he fully supports the concept of plain packaging. He further told me that it was essential that there is a UK-wide scheme to tackle smoking.

[Roger Williams]

Will the hon. Gentleman give way on that point?

[Jim Shannon]

I cannot. I urge the Government not to put off the measure by waiting to get the all clear from Australia, when too many people are not getting the all clear from lung cancer and other diseases. Take the steps necessary. They might prevent some of the 567 children who may start smoking today, every day and every week, from doing so.

Common Agricultural Policy Reform

Debate between Roger Williams and Jim Shannon

Tuesday 12th February 2013 Commons Chamber

[Roger Williams]

I agree. UK farmers certainly need a level of direct payment to remain financially viable and to play their part in the activities in which the people of this country would like to see them play a part.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on raising a matter that is worthy of a three-hour debate. Northern Ireland farmers have experienced a 52% reduction in their real incomes at a time when the supermarkets are not paying them the money that they need to recoup some of their losses. Does he agree that, while it is good that there has been a seven-year continuation of the CAP moneys until 2020, those moneys should have been set at a level that would help the farmer rather than penalising him?

[Roger Williams]

I agree. The direct payment protects the farmer from various things, including volatile commodity prices and poor and problematic weather conditions, which have a huge effect on profitability. Without the direct payment, many farmers would not be able to continue in business.

I, along with organisations such as the Country Land and Business Association, fear that modulation of this kind could undermine the ability of UK farmers to compete. I note the findings of the Environment, Food and Rural Affairs Committee “Greening the CAP” report. It stated:

“The competitiveness of UK farmers will be reduced if they are exposed to higher modulation rates than their European counterparts. We therefore recommend that Defra does not set modulation rates higher than other Member States that receive similar single farm payment rates.”

In terms of rural development, or pillar two, the UK receives the lowest per hectare allocation of funds because of the rebate the Government receive from Europe. A further reduction could turn farmers away from all the good they are doing in developing wildlife under the existing pillar two. The Government must make sure that as much positive management for wildlife as possible continues as we approach the 2020 deadline for improvements in biodiversity. Pillar two has delivered real improvements for the environment; the Royal Society for the Protection of Birds receives £5 million from the CAP, for instance.

For a number of agricultural sectors, direct payments make up the majority of farm income, yet under EU rules farmers cannot receive payments for undertaking environmental work. They can be paid compensation only for the losses and costs incurred as a result of that environmental work. I believe there should be a system that genuinely rewards farmers for undertaking environmental work, and I am sure the Minister agrees. A deal must be done under the Irish presidency, thereby allowing for a period of transition in which farmers can make informed business decisions before the policy takes effect.

The British and European public have great expectations for CAP reform. They expect farmers across Europe to provide quality food and increase food security, and to increase exports within the EU and further afield. They also require our farmers to be sustainable and to deliver public goods such as biodiversity, landscaping, water purity and granting greater access to farmland. These two goals can be achieved only if agriculture is profitable and successful. Farmers cannot, however, be expected to commit their lives to such a role within the sector without receiving sufficient support and investment. It is therefore essential to have a single farm payment that is set at a level that allows farmers to remain profitable and deal with the challenges they face.

Recently, the single farm payment accounted for 80% of the total profitability of English agriculture, and in this financial year it will probably account for even more. The profitability of English agriculture is therefore clearly closely linked to the income from the single farm payment.

The challenges facing farmers vary widely. Globally, prices for commodities remain volatile, and the dairy industry has seen some of the lowest prices for milk in recent times. High input costs such as for fuel, fertiliser, feed and chemicals are hitting farmers across all sectors, too. We also face increasingly inconsistent weather, which has resulted in the lowest wheat yields since the 1980s, while dairy farmers have had to keep cattle indoors and revert to winter feeding early, all at extra cost. These effects are felt globally as well as here in the UK; the United States has experienced its worst drought in 56 years, for instance, leading to poor yields and crop abandonment in some areas.

I also want to make the case for extra support for hill farmers. They find it difficult to compete with people farming more advantageous areas. The CAP does not give specific support for hill farming.

Rural Bank Closures

Debate between Roger Williams and Jim Shannon

Tuesday 21st February 2012 Westminster Hall

[Roger Williams]

In the long run, it is in the banks’ interest to ensure that they provide a comprehensive level of service to the communities that they wish to serve and services that are more accessible and more convenient. I think that it is probably the role of the Government to sit down with the bankers, as was suggested by the hon. Member for Harrow West (Mr Thomas), and set out what should be required of banks. Not all the banks were bailed out with public money as a result of the banking collapse, but all banks have benefited from Government action—quantitative easing, for instance—and just about all banks are dependent or have depended on measures that the Government have brought forward. It is time to sit down and see what can be achieved to help these communities.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on bringing this matter to Westminster Hall today. My constituency of Strangford has had two bank closures: the Ulster bank in Portaferry and the Northern bank in Balloo have closed. Two campaigns were fought, but not won. We did, however, win the campaign to save the Northern bank in Kircubbin, with community support. Does the hon. Gentleman agree that the impact of closures on elderly people is horrendous? If there are not banks close at hand, they may carry cash around with them, and many of us will be aware of a large number of people who have been robbed as a result. Banks therefore have a responsibility to elderly people and to rural communities. Perhaps the Government could work together with the banks on that. Perhaps, somewhere along the way, banks need to carry a loss leader, covering their losses in such areas through profits in other areas.

[Roger Williams]

I thank the hon. Gentleman for that intervention. Yes, I believe that there may be a role there. There is the American model of a shared bank, whereby one facility houses different banks. They share the costs and maintain a presence in the community. That may be a way forward; the Government could help with, or initiate, a pilot scheme of that type. I had intended to suggest that later.

Forestry Commission

Debate between Roger Williams and Jim Shannon

Tuesday 1st March 2011 Westminster Hall

[Roger Williams (Brecon and Radnorshire) (LD)]

Thank you, Mr Gray, for allowing me to speak in this debate. I will keep it short. I congratulate the right hon. Member for Lewisham, Deptford (Joan Ruddock) on securing the debate. I well remember her contribution as a Minister in the Department for Environment, Food and Rural Affairs in previous Parliaments.

I would like to declare an interest. I am a member of a partnership that is in receipt of a farm woodland grant from the Forestry Commission to promote both the management of woodlands under our responsibility and the public good through, for example, access and biodiversity. I will return to that—not that I am an example of a good forester, although I am an enthusiastic one—because it is not just the public estate that is important for access and biodiversity, but private woodland and private forestry too.

I have another small interest to declare. Some members of my family, although not immediate members, are involved in the sawmill industry, which is a commercial aspect of forestry that has not been mentioned today. Many jobs in my constituency are dependent on sawmills and on a consistent throughput of material, both in quality and quantity, to go into those sawmills. Sadly, only 10% of all timber used in this country for construction or for furniture manufacture originates in this country, but that is still an important part of the rural community.

Sadly, the House has not shown much interest in forestry until the past couple of months. In fact, in almost 10 years as an MP, we have had no debates in Government time on forestry. We have had one debate in Opposition time on forestry, and that was the recent debate. We have had two Adjournment debates on the New Forest. We have had two Westminster Hall debates, one sponsored by the hon. Member for Christchurch (Mr Chope) and, in 2005, one that I sponsored. Unfortunately, DEFRA did not manage to put up a Minister to reply to the debate, such was its interest in forestry, and the reply was made by a member of Her Majesty’s Treasury team—the former Whip, Nick Ainger, who is no longer a Member of the House. We had a good debate in this Chamber for 30 minutes.

That is the sum total of interest that the House has shown in forestry in the past 10 years, so I am pleased that we are now able to debate this issue more calmly than we did a fortnight ago—I am sure that the Minister is not very pleased that it has caused the interest that it has—because the future of forestry in this country is important. Some 20% of the forest cover in England is in the public estate, and 80% is privately held. Of that 80%, 40% is either undermanaged or not managed at all, and that is a real challenge for the Forestry Commission in the future. How can we better manage that woodland, not only in commercial terms but also in terms of access and biodiversity?

[Jim Shannon]

Is the hon. Gentleman aware of the sporting potential of forests, and therefore their economic benefits as well? Does he agree that perhaps that has been overlooked when it comes to any potential sales or otherwise of forests?

[Roger Williams]

The sporting potential of forests should be taken into account. One of the points that I would make if I had more time is about the great demand on our forests for different kinds of access. In my area, there are not only walkers, cyclists and horse riders, but people who go scrambling and rally driving as well. Rally driving and horse riding do not go together very well, so we have to manage the diverse demands on our forests.

Yes, the Forestry Commission was set up in response to the lack of timber for pit props, but its reputation has not always been as holy as it is now. Indeed, the contraceptive conifers that march up and down our woodlands were all planted by the Forestry Commission. The planting of the Flow country in Scotland, where we had the last of our native conifer woodland, was not to its glory, but, yes, it has improved; it has altered its terms of reference and its priorities.

When the panel meets—I hope that it will be called the wood panel, because everyone would then be able to recognise it—I hope it will take into consideration not only the public estate, which is managed by the Forestry Commission, but private woodland as well, which can make a huge contribution in this country. As someone said, we probably have less woodland cover than almost any other European country, so it is important that we take private woodland into account. The Forestry Commission is already making planting grants to the private estate, so that would be within the panel’s terms—at least, I hope that it is—because, in making those grants, we can ask for public good to be demonstrated. We can ask for access and improvements in biodiversity.

We should remember that conifer woods are not completely aseptic, or without any life at all. In fact, the red squirrel and the dormouse have been shown to use such habitats, so they are important. The Forestry Commission also has a big part to play in ensuring that there is a supply of timber to go through our sawmills, so I would ask the Minister whether there is any way in which all of that can be taken into consideration. In the enthusiasm to protect our public estate, we have forgotten about the contribution that private woodland makes as well.