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January 19, 1999
(Tourism, Culture and Recreation)


Minister responds to room levy issue

Charles Furey, Minister of Tourism, Culture and Recreation, commented today on the provincial government's involvement in the room levy issue. The provincial government, along with the City of St. John's and the Avalon Convention and Visitors Bureau (ACVB), signed a Memorandum of Understanding enabling the city to impose a tax on fixed roof accommodations in the City.

"It is important to understand that the MOU was a three party agreement, and that all parties - including the City - entered into and signed the MOU with their eyes wide open. Government's position was that we were willing to work with the City to enable them to impose the tax. Our role was to facilitate their ability to levy the tax as they chose," Furey said. "The resulting legislation clearly states that, `The council may impose a tax'. The MOU states that the levy will be imposed on all fixed roof accommodations. However, if the City and the ACVB wish to make an exemption for B&B's, the provincial government would have no objection. This issue is between the City and the ACVB - it does not involve the province," added Furey.

Furey pointed out that the City does have some flexibility on the issue stating, "The city does have other options. If the City and the ACVB cannot come to an agreement, they (the City) can choose to rebate the B&B operators for their portion of the levy at the end of the year."

Media contact: Tara Laing, (709) 729-0928

1999 01 19 1:40 p.m.


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