Hotels - clawback of tax relief

Bronte

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In the past while the Hotels federation/body has been complaining about the oversupply of capacity in their industry cased by too many hotels being built with tax breaks. Apparently the tax break only applies over a period of 7 years if it trades as a hotel. Now they want to be allowed dispose/change the use and still keep the tax break. This will allow the remaining hotels to survive. Why should they be allowed to keep the tax break if they made a business error in building too many hotels. Why should the remaining hotels be allowed to keep prices high by others being allowed to reduce capacity. Did the hotel industry not lobby for the tax breaks in the first place? Or was it developers as apparently a lot of them went into hotel construction/ownership. If a businessman invests unwisely the government will not be bailing them out so why should they do it for the hotel industry?
 
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