Reprinted from The Herald (Glasgow)

LibDems' tourism tax idea condemned

By Murray Ritchie, Scottish Political Editor
Copyright 2001  Scottish Media Newspapers Ltd.
Article date: October 2, 2001
 

Opposition nationalists and Tories yesterday denounced the Liberal Democrats for suggesting a tourism tax - as the industry is facing near ruin caused by foot-and-mouth disease, BSE, the high pound and terrorism.

The LibDems have scheduled a debate covering a new tourism tax for their annual Scottish conference later this month in Glenrothes. They will hear calls for the abolition of the council tax and its replacement with a local income tax and a land value tax. But this time there is a move by some Edinburgh South members for a tourism tax to be levied on bookings in hotels, guest houses and local bed and breakfast establishments.

As Labour ministers quickly distanced themselves from their coalition partners, a LibDem spokesman said it was merely "something to be decided" and not party policy. He indicated Jim Wallace, Scottish party leader and deputy first minister, had no part in the idea and had not given it his blessing.

The party said the motion and amendment had been tabled before September 11 and that delegates would "obviously" take into account the effect of the events on tourism since then.

The LibDems' one-day conference is set for October 27, and the debate is the first item of business after the opening. A resolution says the council tax is unsustainable and unfair because it bears little relation to the ability to pay. It calls for a better way of financing local government - including a new tax on tourism.

The call comes as the executive is desperately reviewing the effects of the terrorist atrocities in the US on the Scottish tourist industry, already reeling from a wave of cancellations.

The SNP moved quickly to stoke any tensions in the Labour-LibDem coalition.

Kenny MacAskill, shadow enterprise minister, condemned the idea and said: "Many areas of Scotland - especially rural areas - are heavily reliant on tourism, and any new financial burdens could tip many businesses over the edge"

David Davidson, tourism spokesman for the Tories, accused the LibDems of "crass stupidity" in line with their previous proposals to tax dogs and caravans.

An executive spokesman said they had no plans to introduce a tourist tax.
 

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