Three-month rate holiday branded ‘insulting’ by NI Hotels Federation

THE body representing hotels, guesthouses and other accommodation providers has told members not to pay corporation tax as the industry struggles to survive the coronavirus crisis.

In a scathing attack on the response by Government and the Assembly to the pandemic to date, the chief executive of The Northern Ireland Hotels Federation also urged MLAs to find out whether hotels that act as hospitals will be exempt from paying VAT.

Addressing Stormont’s Economy committee, Janice Gault issued a withering assessment of the official reaction to the crisis, branding the three-month rates holiday for businesses in Northern Ireland “insulting” and calling for greater clarity on the financial measures that are available to the business community here.

“It’s insulting to offer three months’ rates relief, offering loans is tokenism, it’s a complete and utter cop-out,” she said.

“We would struggle to find one single member who would say they have received any significant support from government.

“The Treasury can support us on a national basis but as an Assembly, you have additional powers and we would urge you to use them and complement what is being done by Westminster.

“The Assembly can come up with fantastic rulings for us very quickly.”

Ms Gault said it is not acceptable that the business community in Northern Ireland is getting its information from the Prime Minister’s daily televised coronavirus briefings and called for frequent updates from politicians and officials here.

“They are saying things that are of no relevance to Northern Ireland, we need you to explain what the Chancellor is looking at and what you are doing. Someone needs to be on the news after Mr Johnson and saying that this doesn’t apply to Northern Ireland,” she said.

“It’s really confusing when the Chancellor makes an announcement and it isn’t clear what applies to people here and what doesn’t.”

Ms Gault also called for Stormont to move to address uncertainty around benefits for those who lose their jobs as a result of Covid-19.

And in relation to the immediate cash flow issues being experienced by hotels, guesthouses and accommodation providers, Ms Gault added: “We have advised our members not to pay it so they can pay their staff and pay their suppliers.”

Colin Neill, chief executive of Hospitality Ulster, was also part of the industry delegation addressing the economy committee and said it is vital that more is done to protect the Northern Ireland economy.

He also raised concerns that offering loans to businesses is not a sensible long-term solution: “This is our war, we need unity government.

“It’s vital that we follow England on the year-long rates break and I don’t see loans really helping — they may buy a bit of time before we fall over.

“Northern Ireland isn’t like Great Britain, we don’t have big international chains, the people that run businesses, they know their employees’ names, they’re virtually family, they go to weddings, christenings and unfortunately they are going to go to some of their funerals — this isn’t about what government can afford, it’s about what government needs to do.”