asked the Minister for Communications if, in view of the summer holiday period, he will, at this time, outline procedures for bonding by travel agents; and if he will consider requiring such agents to give to each customer a simple written statement telling them how to proceed in the event of company failure.
Ceisteanna—Questions. Oral Answers. - Travel Agents' Bonding.
5.
It is an offence for any person to trade as a travel agent or tour operator unless that person is the holder of a licence under the Transport (Tour Operators and Travel Agents) Act, 1982. One of the prerequisities for a licence is the production of a bond for the protection of persons who enter into overseas travel contracts with the licensee during the period of the licence. In the case of travel agents, the required bonding level is 4 per cent of projected licensable turnover. There is a 10 per cent bonding requirement for tour operators. The types of bonding permissible under the legislation include guarantees by banks or insurance companies and cash sums to be deposited with me.
Whenever a licensed travel firm fails to meet its obligations to its customers under overseas travel contracts, my Department activate the necessary rescue arrangements. The usual procedure when a failure occurs is that my Department meet the travel firm concerned to get details of all customers whose travel arrangements are affected. Immediate steps are taken to ensure that any customers abroad at the time are enabled to complete their holidays or other travel arrangements without disruption. The situation in relation to customers due to travel shortly after the collapse is also assessed and whenever possible, steps are taken to ensure that their travel and associated arrangements can proceed as planned. An announcement is made to the news media as soon as possible — usually the same day as the collapse occurs but, in any event, in good time to ensure that those about to travel are informed of the arrangements being made on their behalf. In addition, my Department make urgent contact with persons who are about to travel. Contact is also made with persons due to travel at later dates. In the administration of these arrangements, my Department have operated, where necessary, in close liaison with the Irish Travel Agents' Association and other interests.
Since 1983, when the travel trade licensing/bonding scheme was introduced, the rescue arrangements have been administered on 13 occasions and 3,500 persons, who would otherwise have incurred losses, have benefited. I am satisfied that the arrangements have been administered satisfactorily and, as the form of the arrangements depends on the particular circumstances of each case, I do not consider that there is a need to introduce the procedure proposed by the Deputy.
Is the Minister happy that travellers are aware of their entitlements?
Every effort is made to ensure that travellers are aware of what is necessary. The legislation requires that all travel agents and tour operators clearly advertise that they are covered by the Act and that they are bonded. Anyone who does business with travel agents or tour operators who are not bonded is very silly. If my Department become aware of any illegal operators they take effective action as quickly as possible. In cases of the collapse of tour operators or travel agents the provisions of the Act have been adhered to and I am not aware of any complaints being made by travellers.
Would the Minister consider it desirable, in the interests of the travelling public, to place an advertisement in the newspapers say on 1 January each year or as near as possible to that date indicating the travel agents and tour operators who are bonded in accordance with the Act?
I do not understand the Deputy's question.
A person may not be aware if a travel agent or tour operator is bonded. Would it be possible for the Department of Communications to publish a list of officially bonded tour operators and travel agents once a year? If such a list appeared in the newspapers people would know the properly bonded tour operators and travel agents.
That point can be considered. However, there is no adequate substitute for vigilance on the part of the public. The public should be reminded to be vigilant and not do business with travel agents or tour operators who are not covered by bonding or the other provisions of the Act. People are liable to end up losing money or being stranded abroad if they do business with other operators.
Can the Minister give the number of tour operators or travel agents who have been pursued by his Department because they were not properly bonded?
I do not have that information with me but I will let the Deputy know.
Go home and tell him.
It is a different household.
Can you not go home and talk about it?
We have other things to talk about.
I would say that.