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Mrs. Lait: I did not want to interrupt my hon. Friend while he was in such full flow on the national minimum wage, about which I absolutely agree with him, but is he aware that, potentially, organisations that provide activity holidays for eight to 14-year-olds will not be recognised under the Tax Credits Bill, and will therefore be unable to claim for child care facilities? That is yet another difficulty facing such organisations.
Mr. Swayne: I am most grateful to my hon. Friend for that intervention because I was entirely unaware of that huge threat to the industry, which of course adds to the difficulty in which it already finds itself.
As I was saying, part of the remuneration offered by activity holiday organisations is full board and lodging. If they cannot offer that, they will be unable to acquire staff, for whom there is no alternative provision. So, they would naturally expect an abatement of the national minimum wage for the provision of full board--but none is allowable. For the provision of accommodation, the abatement is less than £20 a week. The Secretary of State called me a fool, but I am not such a fool as to believe that, anywhere in the land, accommodation can be had for £20 a week--especially with full board thrown in.
This problem is faced not only by activity holiday companies; such provision is a feature of many other contracts and remuneration for jobs in small hotels and restaurants throughout the south of England and elsewhere. I am absolutely certain that accommodation cannot be had during the summer in Lymington, Barton-on-Sea, Milford-on-Sea or anywhere else for £20 a week. People who work in such enterprises are well aware of the advantages of the provision of full board and accommodation.
I shall quote from a letter from my constituent, Mr. Alan Outhwaite, who runs Travel Class Ltd., an activity holiday organisation my constituency. He says:
The deputy chairman of the British Activity Holiday Association sent me a fax on 16 June, saying:
As I have mentioned small hotels and restaurants, I wish to discuss another problem, which was drawn to my attention when I was visited at one of my constituency advice sessions by a Mr. Conway, who runs a small restaurant--the Candlesticks restaurant in Ringwood. Mr. Conway is 61 and his wife is 60. He has had the restaurant for 16 years, nursing it through two recessions,
and it was his intention to retire in the year 2003 when he reached the age of 65. Like most small business people, Mr. Conway does not have a pension plan because his pension is effectively the business that he runs. The disposal of that business has to provide him not only with sufficient income for his pension but with somewhere else to live because, like so many of those who operate in our tourism industry in the form of restaurants and hotels, Mr. and Mrs. Conway, in effect, live above the shop. The premises from which they trade are their home, and, when they retire, they expect to be able to sell those premises and generate sufficient income to buy an annuity to pay for their retirement and to buy somewhere else to live.
Selling the restaurant should realise about £250,000. Before Labour class warriors say, "That is a very large sum", they should bear in mind that Mr. Conway must buy another property with that and pay for his retirement. Last year, the tax arrangements would have enabled him to do so--to realise that £250,000 and pay no tax. Now, however, because of the tax changes that the Government have introduced by abolishing income tax relief for capital gains purposes, he will have to pay £55,000 in tax as a consequence of selling that restaurant and realising the £250,000 that he thought would pay for his retirement and buy him somewhere else to live.
Gillian Merron (Lincoln):
I am fortunate to represent one of the top historic cathedral cities, where my constituents and I enjoy the benefits of living amid a wealth of heritage and culture that spans some 200 centuries across the city.
More than 1 million people have the opportunity to visit us each year to share in the benefits of living in a colourful city that has deep historic roots as well as a vibrant future. As we have heard, tourism is a growth industry and its economic importance cannot be underestimated. One in six of all new jobs created over the past 10 years has been in tourism, and it is the fifth largest industry in the United Kingdom. It is probably no surprise that tourism is our largest invisible export, but it is a disappointment, as we have heard today, to have to face the fact that our share of the world market is not all that we might like it to be. That is great waste but it is also clearly quite a challenge.
Tourism has had a reputation for providing a variable quality of service, with poorly trained and often low-paid temporary workers. It has been seen as a somewhat haphazard sector. However, I believe that that reputation is heading for a great change as a result of the efforts
of local authorities such as Lincoln city council; of the implementation of the Government's "Tomorrow's Tourism" strategy; and of the contribution and commitment of people within the industry.
Last Friday, I had the pleasure of presenting an Investors in People award to the Hillcrest hotel. It is the first small hotel in Lincoln to receive the award. I believe that that represents a turning point, since the quality of training enjoyed by all the staff will make a major contribution to that hotel's prosperity and to the quality of service that is offered to tourists who come to Lincoln. Similarly, Government policies such as the national minimum wage have helped to put quality and standards at the very heart of tourism.
Many hon. Members have told me that they have enjoyed visits to Lincoln. Those Members who have not been blessed with the opportunity to make such a visit will be most welcome in future. Lincoln's appeal to tourists is predominantly in the uphill area of the city. It is an historic and unspoilt part of the city featuring the cathedral and the castle. The downhill area, separated by the aptly named Steep Hill, is lively with plenty of shops and places in which to socialise. It has the new university and an inland marina, the Brayford pool. A recent survey revealed the many plus points that visitors to Lincoln see and experience. However, the results of the survey highlighted the challenges that must be tackled.
Tourism needs to grow in a sustainable way so that it can contribute positively to the life and economy of Lincoln. People love to come to Lincoln but we must be mindful of the results of the survey, which are reflected in the city council's economic regeneration, tourism and arts strategy. It is right and proper to recognise that all those aspects are linked. In that context, we must examine the trends of tourism. Overwhelmingly, visitors to Lincoln are day visitors who travel by car. This puts tremendous pressure on car parks but there is also pressure on rail and bus stations. Those are areas that the city council has rightly identified as needing improvement.
Lincoln has a reputation for being difficult to reach, and this has contributed to it being too much of a well-kept secret. I am delighted that the Government have seen fit to address the problem, particularly by agreeing to dual the A46 from Newark to Lincoln. The work will begin in the early years of the new millennium. Its completion will be a tremendous boost to tourism and to Lincoln's prosperity.
It is also pleasing that there has been an improvement in the train services that connect Lincoln with the rest of the east midlands. However, we need much better rail links to draw in visitors from further afield. It is lamentable that the Conservative-controlled Lincolnshire county council has seen fit to cut rural bus services despite the Government's support for such services. These are important to tourism and to the quality of social and economic life within the county.
Lincoln city council's strategy rightly identifies the need to develop further visitor attractions downhill. A heated debate is going on in our city about the best location for a museum, which is an exciting and necessary development for the city and the county. There has already been an announcement by Lincolnshire county council--premature and unjustified, in my view--that uphill Lincoln castle is the council's preferred solution. That assessment has been much criticised by my
constituents and by organisations such as the museum action group, which brings together many esteemed experts.
There must be a serious evaluation of downhill sites, so that the nature and needs of the collection and its visitors--tourists and local residents alike--can be properly considered. The question of a suitable location for a much-needed museum is a taxing one. It must be approached openly and with imagination and vision, so that we get it right.
Lincoln's role as a specialist and regional shopping centre is a prime draw for many visitors, who enjoy the excellent array of shops such as Imperial Teas, whose teas and coffees from every corner of the world are a joy, or Goodies, a traditional sweetie shop where sherbet fountains and quarters of pear drops are sold in paper bags, or the House of Wines, which stocks a fabulous array of German wines, and which recently initiated Lincoln's first-ever German wine fair.
The annual programme of events goes from strength to strength in our city, attracting tourists from far afield. The Christmas market, which has been inspired by our German twin town, Neustadt is the highest profile event. Hon. Members might also be interested in the jousting tournament or the international clowns convention.
Roman heritage is perhaps the most significant of Lincoln's hidden assets. I shall raise some concerns about that with my hon. Friend the Minister. Most of the field work is carried out as a result of planning conditions and is funded by developers. There has to be monitoring to ensure the preservation of sites and appropriate recording. However, developers almost invariably look for the lowest price, which can mean lower quality.
There is a tendency to neglect the analysis of data, which is funded by developers, as funding covers only the preliminary assessment of the findings. Furthermore, specialists in local pottery and artefacts, for example, are being lost to the profession as there are not enough resources from project income to cover the cost of their employment.
There is much to be done. I pay tribute to the work of Mick Jones, director of the city of Lincoln archaeological unit, and his team for their dedication and professionalism. They have done much to enhance the role and relevance of archaeology in our city and across the country. I should welcome the Minister's comments on Government support for such work.
In Lincoln, we have many other achievements that promote the well-being of our tourist industry. The talented and energetic Lincoln Shakespeare company is celebrating its 20th production, and Lincoln city council recently won an east of England award in national tourist information week for its St. George's day celebrations, in which St. George galloped through the streets to rescue a damsel in distress, after slaying a fiendish dragon--a vision which, I am sure, will interest many Government Departments.
In Lincoln, we have the tourism cake and the icing on it. The cherry would be the granting of lord mayor status for the city, which would be conferred by decision of the Crown. That would be an appropriate way to mark the millennium for a city noted for being steeped more deeply in history and tradition than many others, while also having the brightest of futures.
"The national minimum wage has cost us an extra £25,000 for this season--all totally uncosted when we set out our prices"--
and marketed them--
"in April 1999."
He will have no doubt been mightily relieved to have heard the Minister for Tourism, Film and Broadcasting say that the matter is under review. That is a great help now that it has already cost my constituent £25,000. We have already begun to question whether the perception that the matter is under review is correct. There was certainly no evidence of it in a parliamentary answer I received yesterday.
"In respect of the National Minimum Wage legislation, . . . the British Activity Holiday Association's representation about the negative impact of the minuscule accommodation allowance of just £20 per week, the Low Pay Commission did not recommend any change to this rate and . . . consequently, member companies of the British Activity Holiday Association have already had to reduce the numbers of students and young people employed in the industry, thereby denying them the highly-valued 'life-time skills' experience that the industry previously provided to them."
This is a problem not only for organisers of activity holidays but for all those tourism enterprises, including small private hotels or restaurants, that provide board and lodging as part of remuneration. The latter have been hard hit by the Government's unwillingness to accept and act on representations that have been made by making a more generous provision for taking account of board and lodging in their regulations for the implementation of the national minimum wage.
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