Blair cautious over help for hospitality

Prime Minister Tony Blair has said he cannot promise "an open chequebook" for rural hotels and restaurants affected by foot-and-mouth.

He said: "We have set up a task force to examine what is happening and what can be done to help.

"I can't promise an open chequebook. No responsible prime minister would."

The Government's Rural Task Force, headed by environment minister Michael Meacher, last week delivered its preliminary report on the outbreak to Blair.

It looks at which parts of the countryside are safely accessible; how confidence in tourism can be restored and what short-term help can be provided to the rural economy.

The task force, which includes representatives of the rural tourist industry and hoteliers, was due to meet again on Tuesday.

Blair and other Government ministers last week visited some of the worst-affected areas in Devon and Cumbria to hear first-hand how the crisis has hit the rural economy.

In his constituency office in Trimdon, County Durham, Blair met Peter Sloyan, head of the Northumbria Tourist Board.

Sloyan said Blair wanted to know what the Government could do to reduce the impact of the crisis.

Tourism Minister Janet Anderson went to Ashburton, Devon, to meet tourism representatives.

The British Hospitality Association and the British Incoming Tour Operators Association are calling for affected businesses to be given a moratorium on VAT payments, uniform business rates and PAYE contributions, to ease their immediate cash-flow crisis.

This week Blair was expected to announce relief on VAT payments, business rates and national insurance for businesses that have been affected by the outbreak.

Source: Caterer & Hotelkeeper magazine 22-28 March 2001