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12 Jun 1996 : Column 279

Tourism (Scotland)

1 pm

Mrs. Margaret Ewing (Moray): I welcome the opportunity to discuss Scottish tourism and its implications for our economy. Tourism is a vast and complex industry, and it merits great attention. It is my sincere hope that we shall debate the tourist industry again, but that we shall have more time to discuss the issues that are important, to analyse and to make recommendations.

Tourism is a key industry in Scotland. The latest figures available to me show that some 170,000 to 180,000 people are employed in the tourist industry, which is 8 per cent. of the Scottish work force. Therefore, the impact of the tourist industry on economic activity cannot be underestimated. It is projected that tourism will be the largest single industry in the world by the millennium. It is growing at a rate of 4 per cent. per annum and it accounts for 100 million jobs. In the north-east of Scotland, tourism is the fourth largest employer in the former Grampian region: it supports between 17,000 and 18,000 jobs, it generates some £240 million in income and it involves some 4,000 businesses.

It is my contention that that key industry deserves a strategic overview, to ensure that appropriate, democratic measures are taken to support, market and develop it. Scotland's tourist industry cannot depend on fortuitous events such as the success of the films "Braveheart", "Rob Roy" and others--even though we may have enjoyed them. Nor can Scotland rely on the nostalgia of the films "Granny's Heilan' Hame" and "Brigadoon". We should put forward the argument that tourism is a vibrant industry--that must be Scotland's approach to the late 20th century and to the beginning of the 21st century.

Hon. Members know of the delights that Scotland has to offer. My secretary, who works for me in London, had not visited Scotland until she came to work for me. I remember driving her to Dunoon and Inverness one day. Every time I turned a corner, she wanted me to stop so that she could take a photograph--I was almost a road hazard that day. We have great delights to offer people from all over the world. Therefore, we should have a strategy to ensure that we maximise on our economy, hospitality and friendliness.

In that context, I wish to make some key points to the Under-Secretary of State for Scotland. My points are tendered in a constructive manner and I hope that I receive constructive answers. I refer to funding. All Grampian Members of Parliament--including the Minister--received a substantial amount of faxed material from the Aberdeen and Grampian tourist board in preparation for the debate. Therefore, I shall not refer to all the details and arguments that are included in that material because of the time limits that are placed on us in these short debates. I draw the Minister's attention to what has been happening in the Irish Republic and the success that it has achieved.

Mr. Robert Hughes (Aberdeen, North): As the hon. Lady is aware, last Friday the Aberdeen and Grampian tourist board finally managed to set its budget for the coming year. It is £900,000 down on a £2.8 million budget, which is severe. The trade members of the board, in particular, say that because it is a statutory body, there

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should be some way in which the core funding can be guaranteed. Ring-fencing probably is not feasible, but what does the hon. Lady think about the possibility of a three-year budget for the board, perhaps on a rolling programme, so that it can market tourism on a regular basis without having to worry about where the money is coming from?

Mrs. Ewing: I shall return to that issue later. The hon. Gentleman makes a valid point. The north-east of Scotland seems to have been particularly affected by the current round. Given that it did so much positive work in earlier days, we can draw from that example.

Mr. Alex Salmond (Banff and Buchan): Is my hon. Friend aware of the splendid new tourist facilities at Duff house in the north of my constituency, the lighthouse museum in Fraserburgh and the Maritime Heritage Centre in Peterhead? The facilities have been opened recently, largely due to the work of the previous council. However, three out of five information centres in my constituency are closing. Is that not incredibly short-sighted? We have splendid new facilities, but we do not have the finance to guarantee that visitors will be given the information so that they visit them.

Mrs. Ewing: My hon. Friend makes a valid point, and there are similar problems in my constituency. Tourist information centres are often not open in Moray. The tourist information centre at Peterhead is often not open because of funding limitations--the same applies to the tourist centre at Aberlour. It is ridiculous for us to promote tourist attractions if we do not have the centres to make information available to tourists who are in the area.

I was referring to the Irish example. There is clearly strong public sector leadership, and it includes the skilful use of European funding. In promotion, marketing and training, no less than 57 per cent. of the 1994 to 1999 programme for the Republic will be funded by Europe. In my area--and in the area represented by the Minister--traditional industries, such as farming and fishing, are being disastrously undermined for a variety of reasons.

Funding should be available to Scotland from Europe. That is particularly true when tourism is being considered in the context of the intergovernmental conference as a policy that could be included in the revised treaties. That emerged originally from Council decision 92/421/EEC OJL 231. It was agreed that there should be a Community-level policy to strengthen tourism. The first report relating to that was published in April 1994. The Economic and Social Committee has also argued for a legal basis in the treaties. Europe has much to offer in the context of tourism support, particularly as many tourists to Scotland come from Europe.

Is the Scottish Office seriously looking at the support that could be available? I suspect that the Minister will refer to the tourist projects that are being underpinned by objective 1 in the highlands and islands. However, in the context of the debate on tourism as a whole, we have to look beyond objective 1 status for one area and look at the funding that is available to Scotland as a whole.

Ms Roseanna Cunningham (Perth and Kinross): Is my hon. Friend aware that when the Secretary of State visited Crieff hydro earlier this year, he made a promise to

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increase funding for tourism in Scotland? At about the same time, we were preparing for a decrease in local authority budgets across Scotland. Before my hon. Friend moves off the issue of funding, does she agree that the promises of the Secretary of State are yet to be fulfilled? It will be interesting to hear when we shall get that funding.

Mrs. Ewing: I shall refer to the Minister's speech later. Funding lies at the core of what is happening in the tourism industry, and I urge the Minister to examine what is being done at a national level. The problems can be compressed by referring to a quotation last year from Scottish Business Insider:


Therefore, I ask for a strategic overview. That could be best undertaken by the Scottish Office in conjunction with the Scottish tourist board, the unitary authorities--to which my hon. Friends have referred by way of intervention--and our local enterprise companies.

That review is particularly relevant to the north-east of Scotland. In the months since the reorganisation of local government, discussions have been held in the Aberdeen and Grampian tourist board area. Details of the negotiations and the meetings that have taken place in the past few days are provided in a long fax that Moray council prepared for me. Some progress has been made, but there are deep concerns that the business plan prepared by the board cannot be funded from existing council, Scottish tourist board or local enterprise company budgets. That has implications for the level of service that can be provided. I refer also to the previous comments about tourist information centres.

I therefore ask the Minister to consider granting some discretion to local enterprise companies in terms of funding for the Aberdeen and Grampian tourist board. At present, the LECs direct attention at specific projects rather than at core funding. If we look to the core funding aspect and to a long-term plan, the people of Scotland--particularly those in the north-east--will derive great benefit. I also ask the Scottish Office to review its decisions on local government funding in that area.

I refer now to the point raised by my hon. Friend the Member for Perth and Kinross (Ms Cunningham). When the Minister last spoke at the Scottish hospitality industry congress, he emphasised the importance that is attached to tourism training in Scotland in order to improve standards of training and staff development in that sector. He recognised that that is a daunting prospect, but he did not refer to pay and conditions.

For many involved in the tourism industry--the vast majority of whom are women--work is seasonal, part time and low paid. If we are to enhance our tourism industry, we must remove the element of drudgery and make individuals proud to be part of it. The Confederation of British Industry and the Federation of Small Businesses have argued for enhanced training and improved pay. Will the Scottish Office examine those key factors as part of any tourism initiative? Those who work in the tourism industry should take pride in and receive recompense for their efforts.

Will the Minister talk to the Treasury about variable valued added tax rates for bed-and-breakfast and hotel accommodation? I refer him to my parliamentary question

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of 28 June 1995 on that subject and to the May 1995 edition of the Voice of the British Hospitality Association magazine. It found that the United Kingdom levies the second highest rate of VAT on tourism goods and services in Europe. The findings conclude that an across-the-board cut in VAT to 8 per cent. would create some 87,000 new jobs in the United Kingdom, increase foreign currency earnings by £1.2 billion and generate an extra 10 million tourists for Britain. Of course, Scotland would receive a proportional increase.

This has necessarily been a short debate. I believe that tourism merits more than simply a lottery of applications for Adjournment debates. Therefore, I have a specific recommendation for the Minister. Earlier today, I checked with the Clerk of the Scottish Affairs Committee as to whether that Committee had undertaken any projects on tourism. Apparently, it has not investigated that subject since its inception--despite the fact that 8 per cent. of Scotland's work force is employed in the industry.


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