Section 19 – Use of net proceeds of the scheme
46.Section 19(1) requires a local authority operating a VL scheme to use the net proceeds of the scheme (defined in subsection (4) as the amount of money by which the gross amount received under the scheme exceeds the expenses of operating the scheme) for certain specified purposes. Those purposes are: facilitating the achievement of the scheme’s objectives (as set out by the local authority under section 13(1)(a)(iii)), and otherwise developing, supporting and sustaining facilities and services substantially for or used by persons visiting the local authority’s area for leisure or business purposes (or both) (or, in the case of a joint scheme, the area of another local authority which is part of a joint scheme – provided the authority is satisfied that using any share of the proceeds in this way will also benefit some part of its own area – see subsection (3)). By way of example, the objectives of a particular scheme may be to finance the building of a visitor centre, the improvement of convention centres or other spaces used for business meetings or conferences, or to improve transport links to a particular area. In line with subsection (1)(a), the net proceeds of the scheme would first have to be used to facilitate the achievement of those objectives. Surplus net proceeds would then have to be used in line with section 19(1)(b); they could therefore be used, for example, to build and maintain other business or leisure visitor facilities at another location in the local authority area frequented by visitors to that area.
47.In making use of net proceeds of a VL scheme, subsection (2) requires a local authority to have regard to its local tourism strategy (if it has one) and, if any part of the area to which the VL scheme relates has been designated as a National Park, the National Park Plan of that Park. Subsection (2) also requires a local authority to consult the VL forum for that scheme, persons who are representative of communities, businesses engaged in tourism and tourist organisations, and the National Park authority (if any part of the area covered by the proposed VL scheme has been designated as a National Park), as well as any other persons the authority considers appropriate.
