Coastal Towns
Debate between Anne Main and Adrian Sanders(9 years, 3 months ago)
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Mr Sanders
There is a case for looking at the VAT rates in comparison to those in Europe. A competitive advantage is given to some European countries, and the Government need to look seriously at that.
Coastal communities have a great future. Most of them are in beautiful environments, and that can attract people to live and work there. They are areas that lend themselves to cultural activities and to creative and high-tech industries. They are entrepreneurial centres that often have a high percentage of small businesses. For example, 75% of all internet traffic in north America used to travel on equipment built in Paignton in my constituency by Nortel Networks. Unfortunately, the company went bust in 2001, but at its height in 2000, it employed more than 6,000 people. Wages lifted across the board, and tourism in the area increased because of the number of business people coming in. Out of its ashes, we now have a good embryonic high-tech sector that needs nurturing and support. That could lead to more sustainable full-time jobs.
The future is to diversify away from an over-dependence on one industry and to have a number of different industries supplying jobs, including tourism—whether that is niche tourism or more upmarket tourism—and that can only be helped by such things as a VAT reduction. My main request to the Government is not on VAT, because that will take some time, but for something quick. I ask them to increase the amount of money in the coastal communities fund by a significant amount by raiding a tiny percentage of the regional growth fund. As small coastal communities are full of small businesses, they cannot lever in the kind of private sector money that they need to compete fairly for regional growth funding. They just do not succeed in their bids for regional growth funding. The coastal communities fund, which is tailor-made for coastal communities, is the obvious way forward.
There are three things every coastal community needs: good skills to attract inward investors and to create jobs locally, better connectivity—I am grateful for the money that has gone into the Kingskerswell bypass in my constituency—and affordable housing.