Dave Thompson MSP

SKYE, Lochaber and Badenoch MSP Dave Thompson has backed a new strategy document released today which looks at ways to enhance Scotland’s snowsports industry.

Mr Thompson was particularly pleased to note that the Scottish Snowsports Sector Review, jointly commissioned by Scottish Enterprise and Highlands and Islands Enterprise, highlights the UK Government’s decision to levy a higher rate of tax on ski resorts than their European competitors have to pay. Last year Mr Thompson raised his concern about this policy, which makes Scottish resorts uncompetitive in both the international and domestic markets, with fellow Highland MSP Danny Alexander but this appeal for a reduction in VAT was denied.

After reading the new strategy document, Mr Thompson said: “I am delighted to see that one of the key steps proposed to revitalise this important sector is a fresh campaign to lobby Westminster for exactly the step I advocated last year.

“It is galling that Danny Alexander, whose own constituency is home to one of Scotland’s five ski centres (Cairngorm) and who was brought up below another (Nevis Range), has done nothing to help them compete with others in mainland Europe whose governments levy a significantly lower rate of purchase tax.

“While the difference may be a few pounds on a daily lift pass, that mounts up to a more significant sum when people are looking at whether or not to buy a season ticket. It is also magnified when several days passes are added together for the type of holiday package potential clients from farther south in the UK will weigh up against similar deals offered by Alpine resorts, which are as simple for them to reach as are our ski centres in Scotland.

“While the UK Treasury continues to maintain that a purchase tax (or VAT) of 20 per cent must be levied on ski lift passes, their French competitors must pay only 5.5 per cent and I believe it is imperative that we come together to make the strongest possible case to Westminster for Scottish ski centres to be taxed at the same rate as their European competition.

The report identified the unequal VAT regime as one of five key challenges threatening the future of the sector and Mr Thompson also stated that money saved through a reduction in VAT could help to address another of those challenges – ageing equipment.

“Ski centre owners I have spoken to have told me that a tax reduction would allow them to replace ageing lifts and other equipment and help make their centres safer and more competitive,” he said.

“The report states that there is a misguided perception that Scottish ski centres suffer from a lack of comfort and investment but I believe making more funds available for equipment maintenance and replacement through a tax reduction will play a big part in helping to address this.

Notes:

Please see a letter on this issue from Dave Thompson to Danny Alexander (Oct 29 2010), a press release issued around this time and a second release from January following the Treasury rejection of the call.