Select Committee on Culture, Media and Sport Minutes of Evidence


Examination of Witnesses (Questions 100 - 105)

TUESDAY 23 OCTOBER 2007

PETER HAMPSON, MS SUZANNE MALCOLM, STEVE VINSON AND STEVE WEAVER

  Q100  Chairman: I do not want to fall out with my colleague here, but presumably you do not view visitors to your locality simply as being an additional burden on the Health Service and all the facilities; you also regard them as people who are going to come and spend lots of money on all the businesses in your area, so there is a benefit.

  Mr Hampson: But that benefit does not end up in the local government pocket.

  Mr Sanders: It does not stay in the local economy.

  Chairman: All the restaurants and hotels.

  Q101  Mr Sanders: No. In the old days, when somebody came down, they came down for a week, they stayed in a guesthouse for a week and spent money in family-owned local businesses. Today, they come down, they go self-catering, they stock up in Sainsbury's or Marks & Spencer. Their money does not stay in the local economy, yet the local people still have to maintain the parks and gardens, still have to have more acres of car parking space for the peak season, which is land that is not deriving an economic benefit for the local people for most of the year, and therefore the cost of tourism on the council taxpayer is greater but the benefit to the council taxpayer is less.

  Mr Weaver: We could not survive without businesses, you are absolutely right. They create the jobs and the economy of Blackpool. The point I would make, though, is that it is support for the creation of jobs and prosperity in a resort such as Blackpool over and above what comes in through government, through Formula Grant, which is not faced by areas who do not have a visitor/tourism economy. They are not having to support their industry to that tune in order to have the jobs and prosperity in those areas. That is the difference really. We are not saying we do not want visitors. We want more of them.

  Chairman: I think Adrian might be.

  Mr Sanders: No, I would say you do want visitors but the same number of visitors does not make as much money for the area as it used to and that needs to be recognised by government.

  Q102  Janet Anderson: Steve, could I press you on that bit about the weighting of visitor numbers, and you said this is something that is being discussed at the moment. What would the best outcome of that discussion be for you, in terms of support to the authority and how visitor numbers are taken into account? What would you want to see out of that?

  Mr Weaver: We want to see the formula truly reflecting the number of day visitors and staying visitors, which it does not at the moment. Some of the models that have been pursued would significantly disadvantage us—and, indeed, places like Manchester even more. There is a range of options in what the Government wants. I am more than happy to provide to the Committee the option we would prefer in terms of that Formula Grant.

  Q103  Janet Anderson: It may be useful if you could put the various options in writing and how they would impact on you and what would be the preferred solution.

  Mr Weaver: I would be very happy to do that.1

  Mr Hampson: Hopefully it will be an obvious point, but if the grant is not correct the local authority gets less money, it has less money to spend. One of the few places it can make savings is the non-statutory

1 Not received at time of printing.

support for tourism and that is where we have huge problems. The effect on the tourism service is disproportionately high.

  Q104  Mr Sanders: Exactly.

  Mr Hampson: Every time there is a cut back, it falls massively on the tourism support and a number of other, often associated supporting functions within the local authority.

  Q105  Chairman: There are ways in which you can begin to address that; for instance, by making tourism a performance indicator for local authorities. That is not going so far as to make it a statutory obligation, but would you like to see the Government make it plain that they expect local authorities to do more to support tourism?

  Mr Hampson: That would be an ideal situation, if the messaging from central government was much stronger about the role and function. I think in fact that is starting to come through. The damage was done when the RDA system came into place. I think I alluded earlier to this messaging, that local authorities only have a role in the basic infrastructure support. The trouble with the local authorities, like oil tankers, is that it takes an awfully long time for them to change direction. The message that was put in place in 2003, that they have no role, has caused local authorities to consider their role and to start falling out. The messaging that they do have a role is starting to filter through. The problem is that it may take another three or four years for authorities who have backed away from tourism to pick up and start running with it. It is not an easy or quick fix.

  Chairman: I do not think we have any more questions. May I thank you all very much for coming here.





 
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