A PROPOSED visitor levy in Argyll and Bute could see money remain in whichever of the council’s four administrative areas it is spent in, an officer has said.

But a councillor has warned against the practice, saying that it could be “the start of the end of the authority”.

A short life working group made up of six councillors held its first meeting on Tuesday, October 1 to discuss a possible visitor levy in the area.

A draft scheme for the visitor levy has suggested that the additional charge on accommodation in the area could be five per cent.

Councillor Julie McKenzie (SNP, Oban North and Lorn) asked at the meeting: “On the revenue raised, is there any facility within the legislation to ring-fence the revenue to keep it within the four locality areas?”

Fergus Murray, the council’s head of economic development, responded: “My understanding is that it is up to the council where it is distributed, or where it moves the revenue about. Any revenue raised within Argyll and Bute is kept within Argyll and Bute.”

Executive director Douglas Hendry added: “I would need to check, but my understanding is that it would be possible to look at something along the lines of what Councillor McKenzie is talking about.

“For something such as money raised in Oban Lorn and the Isles staying in Oban Lorn and the Isles, I think that is something that would be done, but I would have to make sure.”

Cllr Gary MulvaneyCllr Gary Mulvaney Councillor Gary Mulvaney (Conservative, Helensburgh Central) then said: “One of the things we want for the scheme is the simplicity of having it the same right across parts of Scotland.

“We do not want to get into a competition where a competing local authority is driving down the rate to get extra tourists in, because you will not actually raise the money you need for public services.”

Mr Murray said: “We are having discussions with other authorities about trying to keep things as simple as possible.

“We have not reached any agreement but there is ongoing discussion – not all councils have declared what rate they might set the levy at.”

Cllr Mulvaney added: “We need to keep it as simple as possible, and there is an onus on councillors to keep that at the back of their minds.

“I can see where Councillor McKenzie is coming from, but I think there is an inherent danger in that, because if there are more tourists in Oban than in Dunoon or Helensburgh, other areas could turn around and say something.

“For example, they could say that Helensburgh and Lomond has more band G and H properties, so it will raise more council tax and we should maybe get more council tax spent here.

“Or the cost of providing services on islands is higher than Dunoon or Lochgilphead. It is a very dangerous path for the authority to go down as every area could have a legitimate argument about income and how much is raised.

“You have to look at it from an Argyll and Bute point of view and the discussion will come down to the money we raise.

“I certainly would not want it done on an area by area level or town by town level. That would be the start of the end of the authority in a sense.”