Ulster Unionist Economy Spokesperson, Sandra Overend used today’s debate on the VAT Rate for the Hospitality Sector to urge the Assembly to begin the 2012/13 term by prioritising issues within its own control.

The Mid Ulster MLA said;

'We are rightly proud of the impact that tourism initiatives such as Titanic Belfast and the Signature Projects as well as the Irish Open have had on our tourism attraction here in Northern Ireland. We also look forward to additional projects in 2013 that will increase our tourist numbers. However, given the vast opportunities we currently enjoy, serious questions must be asked as to whether we are actually capitalising on them, as the figures suggest we are not.'

'The current Economic Strategy marks out tourism as one of the sectors which has made, and will continue to make, an important contribution to the NI economy. However, it causes me concern given that for the first quarter of this year, the numbers of overseas visitors actually fell by 13% in comparison to the same period in 2011. All of this again points to the serious need for a Tourism Strategy in Northern Ireland. The publication of a Tourism Strategy is an example of what the Assembly can do to help the local economy– something we can do here and now – rather than lobbying Treasury for a VAT reduction which has yet to be costed as happened today.'

‘I find it astonishing that during the first plenary sitting of the 2012-2013 session that we are not focusing on what we can do here within the Northern Ireland Assembly to help our local economy. Referring to the PMI figures released this morning, I am concerned that it has failed to signal growth for 57 consecutive months. Meanwhile exports, which are viewed as the economy’s route to recovery, have been falling continuously since February 2008.This is what should be on the agenda today.’

‘If we do press ahead with lobbying the UK Treasury for a VAT reduction we need to look closely at exactly what sectors are most in need of our support. A lot of resources have been devoted to tourism and, whilst that is appropriate and the hospitality sector must be supported, other industries are also suffering as a result of the recession. Specifically I think of construction and the fact that the PMI survey today also revealed that the construction sector output is falling at its fastest pace in 12 months.’

‘The Ulster Unionist Party has previously endorsed a reduction to 5% VAT rate for Home Improvements which has been in operation in the Isle of Man for 11 years and has in turn seen the growth of the construction industry and the creation of jobs. As all countries can only have up to two reduced rates between five per cent and 15per cent, my Party believe this option must be given consideration as well.’