STA Board & Council EU Exit Discussion Meet and Update from Cabinet Secretary Fergus Ewing

The STA hosted a round table EU Exit discussion with the STA Board, Council and Scottish Government officials on 2 December.  We were also joined by Cabinet Secretary Fergus Ewing, who provided an update on the Tourism Task Force proposals that were discussed at the Scottish Cabinet on 1^st December.

Attendees voiced concerns around a number of key sectoral challenges likely to be caused by the end of the transition period, which are undoubtedly compounded by the challenges caused by Covid-19.

The main issues raised were:

1. Workforce – immigration remains a distinctly different issue for Scotland; the situation is exacerbated in rural areas which continue to see depopulation, despite having free movement over recent years and the situation now risks further deterioration, which is particularly acute for tourism, hospitality, food, drink and agriculture, the most important sectors in many of these areas.
2. The loss of expertise in languages and the impact to our tourism industry, with much of this expertise moving back to European countries leaving a skills gap within our sector. There are significant recruitment challenges coming particularly in relation to foreign language skills gap in the sector due to the drop off in EU workers which has been exacerbated by Covid-19.
3. The need for a grace period – there is widespread concern that the 1^st January will see further crisis across UK, particularly within the supply chain.
4. GDPR – businesses have been consumed with dealing with the Covid-19 pandemic and there is concern that time is running out to be ‘Brexit ready’ in all aspects of business administration.

Fergus Ewing, Cabinet Secretary for Rural Economy and Tourism joined the call for the final half hour.  He told the group that he was “Aware of some sectors that frankly have had no support at all” and is “hopeful that there will be positive news for all sectors”, acknowledging that more support is required and an announcement will hopefully come within the next week.

He said; “Officials are working incredibly hard to understand the issues and to work to do our best to get this financial support; to provide a lifeline to get to recovery.”

On the subject of Tesco rates relief, Mr Ewing said that he would be making enquiries to find out if other supermarkets are going to be doing the same and if that money can be rediverted.  He said: “There is an opportunity there and I will be arguing that the money is diverted to the real victims of Covid and that would provide us with the opportunity to do more.  It was there for Covid, it should be used for Covid.”

On the subject of the Task Force recommendations he said “The Task Force produced an excellent series of recommendations; we’re looking at short, medium and long term and the need to restore international trade. We can’t have a tourism sector in Scotland without having the international element.  Direct support for APD cuts is not something that has been put forward but this is not on the UK agenda either.  A route recovery fund will be happening and we must make sure we are able to withstand the fierce competition to reestablish routes.”

He added:

“I have made a plea for short term support.  I have also pressed for a boost to the Rural Infrastructure Fund, also arguing to relax restrictions as soon as we can and extend opening hours and have the normal experience we all enjoy.  These restrictions are strangling the hotel and restaurant trade and are causing immense financial hardship.  The supply chain is massive and extensive and varied and it’s very easy to forget about that.”

The Cabinet Secretary also referenced bolstering the case for a rates holiday next year and the need to look more toward recovery but to get the job done of the financial support being out, preferably before Christmas.