asked the Minister for Transport whether he intends introducing legislation to protect clients who have paid travel agents for their holidays.
3.
Ceisteanna — Questions. Oral Answers. - Holiday Travel Protection.
2.
asked the Minister for Transport the assistance the Government are prepared to provide for people who suffered heavy financial losses due to the collapse of a prominent travel company (details supplied).
4.
asked the Minister for Transport the action, if any, being taken to compensate persons who booked their holidays with a company (details supplied) which lost many thousands of pounds; and if he will make a statement on the matter.
5.
asked the Minister for Transport if he will make a statement on the collapse of a company (details supplied); and the immediate steps he proposes to take to protect its clients, many of whom paid their annual savings as deposits on holidays and are now the victims of the collapse.
6.
asked the Minister for Transport if he will meet a deputation representing clients of a travel company (details supplied) in view of the grave hardship and financial loss which that company's clients are experiencing and with a view to discussing remedial action in the matter; the steps his Department can take to help to ensure that such an incident does not recur; and whether he has any proposals for legislative reform in this area.
With the permission of the Ceann Comhairle, I propose to take Questions Nos. 2 to 6, inclusive, together.
As I indicated to the House on 18 December 1980 in the course of my contribution to the pre-Christmas Adjournment Debate, my Department do not have any statutory jurisdiction over the operations of tour operators. Contracts concluded by tour operators with airlines, hotels and so forth on the one hand and with their customers, the travelling public, on the other are essentially commercial matters for the parties concerned. I do not have at my disposal any funds to reimburse people who suffer financial loss as a result of a collapse of a tour operator, and accordingly no useful purpose would be served in my meeting a deputation representing clients of Bray Travel,
Recognising that there has been a significant growth in foreign holidays in recent years, my Department had urged the travel trade to institute arrangements that would safeguard the interests of the public in the event of the financial failure of a tour operator. The Irish Travel Agents Association, who represent tour operators and travel agents, had established a fund for that purpose and the fund was, in fact, used by the association to help meet the costs of Bray Travel clients who were already abroad at the time of that company's collapse. In addition, the airline concerned in this case were required, as a condition of their authorisation, to ferry home any holiday-makers who might otherwise have been stranded abroad because of the inability of the tour operator to fulfil his obligations.
I understand that the Irish Travel Agents Association now have under consideration new arrangements to make provision against losses that might arise in the event of any further failures and that a number of individual tour operators are introducing bonding arrangements.
The Bray Travel collapse has highlighted the need for effective protection of the travelling public and I am satisfied that this requires the establishment of a scheme on the basis of law. For some time past my Department have been looking at what can be done by way of legislation and, as I indicated to the House on 18 December last, it is my intention to seek Government approval as soon as possible for a package of legislative measures to deal with the matter. I hope to introduce this legislation in the current session.
Have the Government considered making compensation available for the victims of this collapse?
The Government are not making any funds available because if we were to adopt that attitude it would create a precedent in relation to every business that collapsed and we would have people coming to the Government in relation to normal courses of commercial activity which, in effect, this was.
Now that the Minister has told us he intends introducing legislation which would provide a bonding system, would it be possible to make the new Bill retrospective which would, as happened in the UK, cover something which has already happened?
There are special circumstances in relation to the UK situation. I am not aware of financial houses that would accept a bonding system which would be retrospective.
Is the Minister aware of the allegation that the company in question had not prepared audited company accounts for a period of four years? How did this matter go unnoticed in Government Departments?
I have, like Deputy Desmond, read in the newspapers that accounts were not prepared for something like four years. The question of company accounts is appropriate to another Minister.
The Minister said that a part of the contract of the air company was that they had to bring the stranded people back. Was that due to our legislation or the Spanish company? Was it as a result of legislation?
It is a standard condition of airlines charter licences here that in the event of the collapse of a tour operator all passengers taken by them must be repatriated.
Is it under our legislation?
It is a condition written into the licences given to foreign charter airlines which take people abroad, that they must bring them back.
Would the Minister reconsider his attitude to the question of compensation in view of the fact that there is a precedent by the Government in relation to the Irish Trust Bank where funds were made available on the basis that a breakdown of the company took place? Would the Minister extend some degree of sympathetic consideration to the people involved and, at least, discuss the matter with them?
I have expressed my sympathy in every way possible in relation to the people who lost their holidays and money and I had meetings with the Irish Travel Agents Association to see what they could do as part of their business routine. I have been told that in one or two cases travel agents who had Bray Travel holidays booked with them have made alternative arrangements for their clients. In relation to the alleged precedent with the Irish Trust Bank the questiom of the credibility of the Irish banking system was at stake there. The measures in question were exceptional and it was made clear at the time that the Government's action did not alter the legal obligation, which is that the Central Bank are not liable as a result of the insolvency of a licensed bank. The Deputy is really inferring that the Government should come to the aid of firms in every particular case of business collapse.
I am not asking that.
If I was to adopt the Deputy's suggestion that is what I would be doing.
Why has there not been any recommendation from the Minister's Department to the Minister for Industry, Commerce and Tourism that peoceedings be initiated against this company for alleged failure to lodge registered company accounts over a period, which resulted in a deficiency of £1 million? Surely there is a departmental and ministerial responsibility in this matter?
When we saw the notice in the newspaper the Deputy has referred to we immediately brought it to the attention of the Department of Industry, Commerce and Tourism. I am quite certain they will take the necessary action as a result of it.
Would the Minister explain what he means by "the necessary action"? If the company made no returns for four years and due to the dereliction of the Department of Industry, Commerce and Tourism in failing to follow that up, those people have lost their money, does that mean that action will be taken to compensate them for the failure of the Minister for Industry, Commerce and Tourism to carry out his duties in the matter?
I have said we have brought it to the attention of the Department of Industry, Commerce and Tourism. The Deputy is quite well aware of the Companies Act and the other legislation, and that the appropriate Minister is the Minister for Industry, Commerce and Tourism.
A final supplementary from Deputy Deasy. I have allowed numerous supplementaries.
Is that the Minister's view of collective responsibility?
Could the Minister tell us exactly how much money was involved?
I am not aware of the exact sum. We have heard various sums tossed around. As the Deputy knows, the matter is now before the courts.
The Minister does not care.
I certainly do care.
Question No. 7.
(Cavan-Monaghan): Is it not a fact that Aer Lingus ceased to do business with the company? That should have put the Government on notice and they did nothing about it.