The Hindu : Tamil Nadu News : Veeraswami asks hotels, restaurants to reduce prices

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Monday, Dec 01, 2008
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Tamil Nadu

Tamil Nadu

Veeraswami asks hotels, restaurants to reduce prices

Special Correspondent

CHENNAI: Asking owners of small hotels and restaurants to reduce the prices on their menus, Electricity Minister Arcot N. Veeraswami on Sunday advised them to approach the government for discussing subsidy for ingredients.

He was speaking at a function to felicitate M.P. Purushothaman, who has been elected president of the Federation of Hotel and Restaurant Associations of India (FHRAI) for the third time.

Tax removed

Pointing out that the State government has removed sales tax and reduced luxury tax for the industry, Mr.Veeraswami said the industry should reciprocate by reducing rates.

He conceded that the cost of raw materials, especially that of dal and oil, was on the rise. “This government is not about one-way traffic. It will not be correct to make you cut prices while your costs go up,” he said.

The government would be willing to consider lower prices for key ingredients supplied to hotels and restaurants.

The association should meet the Chief Minister and make a request.

Mr. Purushothaman welcomed the move, saying hotel owners found it difficult to reduce prices when input costs were high. The Minister’s suggestion would be taken up soon.

In the light of the terrorist attacks in Mumbai, where hotels were key targets, the federation would convene a meeting on Monday to discuss additional security measures to be adopted, he said.

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