Interest-free loans would be made available under a Tory government for businesses hit by disasters such as foot-and-mouth, shadow cabinet member Peter Ainsworth pledged.

Mr Ainsworth criticised the Government's response to the epidemic, saying it led to economic disaster for the £64 billion a year tourist industry.

He told tourism chiefs in Eastbourne yesterday that the financial help that was offered was not taken up because of the bureaucracy involved in claiming it.

It follows William Hague's speech in Brighton on Tuesday when he promised a "cash transfusion" for the countryside and help for farmers and the tourist industry to overcome foot-and-mouth.

Vulnerable rural business would be eligible for a cut in business rates worth £1,000 a year He said: "The general feeling about the foot-and-mouth issue is that the Government reaction has been utterly pathetic.

"The initial response was inadequate, the result of which is severe economic disaster across the country."

The shadow culture, media and sports secretary said the only morsel of optimism to come out of the crisis was that it placed tourism high on the political agenda.

But he added: "Sadly, now the General Election has come round, the agenda has gone elsewhere.

"For the Conservatives it is a vital industry in every sense, one which is growing and deserves greater recognition.

"Things were quite tough even before the arrival of foot-and-mouth because of several factors, including the weakness of the Euro.

"There was an undercurrent of disquiet before foot-and-mouth but it came at the worst possible time and decimated large parts of the tourism market.

"Giving interest free loans to businesses suffering from such catastrophes as foot-and-mouth will help them back on to their feet again."

Mr Ainsworth said it was vital to revitalise the tourism industry as it affected many more people compared to agriculture.

Mr Ainsworth agreed with the concerns of Eastbourne Hotels Association chairman Mike Gillis that the tourist industry needed a greater voice.

And he said it was wrong the English Tourist Board should be the only one in Europe without a marketing arm.

Mr Gillis said: "Eastbourne has a small percentage of people coming from abroad.

"What we need is more money to attract people from the domestic market."

Mr Ainsworth said: "The last thing anyone should have done was to abolish the marketing role of the tourist board.

"The result is that England has been left without a voice in domestic terms and we say that with the voice goes extra funding."

Mr Gillis called for a realignment in the funding imbalance which exists between the four UK tourist boards.

Jonathan Webley, general manager of the Grand Hotel, Eastbourne, warned without improved transport links the resort faced losing visitors to rival Sussex resorts such as Brighton, which has access from the M23.

Eastbourne Liberal Democrat candidate Chris Berry said his party was in harmony with the Tories in their stance on giving the tourism industry a greater voice.

And he agreed that red tape needed to be trimmed for beleaguered businesses to get easier access to funding.

He said: "I would like to see an extension of financial assistance to small businesses notwithstanding crisis such as foot-and-mouth.

"There obviously needs to be a system where less strings are attached because that is what we are hearing is holding people back from applying."

Last week tourism minister Janet Anderson pledged that Sussex would get a share of the £24 million earmarked for the hard-pressed rural tourist industry.

Earlier cash help had been targeted at the areas worst hit by foot-and-mouth.

Labour candidate for Lewes Paul Richard said more money was promised, on top of what was already available.

But he said more information about what help, cash or otherwise, struggling tourist businesses could get was needed.

He said: "Money is being made available to the tourist industry, which has been hit every bit as hard as farming.

"The take-up has been below what it should be, there needs to be more information for those involved to get their rights."

May 31, 2001