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Hotel Industry (Investment Grants)

Volume 728: debated on Thursday 12 May 1966

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asked the President of the Board of Trade why he does not classify the hotel industry as one of those sectors of the economy which can make the greatest contribution to strengthening the balance of payments; and whether he will now include them in the investment incentives scheme.

The Government welcome the contribution made by the hotel industry to strengthening the balance of payments. That contribution is, however, much lower than that made by manufacturing industry, and is not a sufficient reason for including it in the investment grants scheme.

Is the hon. Gentleman aware that there is a deep sense of resentment in the hotel industry that on every occasion it seems to be on the wrong side of any Government action?

That is not entirely true, because we have increased initial allowances from 10 per cent. to 30 per cent. for the hotel trades, and in development areas, which have been very much widened, they are eligible for 25 per cent. building grant, and are also indirectly assisted by Government grants which go to the B.T.A. every year to the tune of £2 million.