Vol. 433 No. 3
10 Mr. Deenihan asked the Minister for Transport, Energy and Communications if his attention has been drawn to the concerns of the Irish Hotels Federation regarding the implications of EC Directive 90/314/EEC on Travel, Package Holidays and Package Tours for the future promotion of Irish tourism; and if he will make a statement on the matter.
I am aware of concerns expressed by the Irish Hotels Federation about the potential impact of the directive on packaged home holidays sold by them, particularly in the area of the protection of the consumer, where insolvencies arise.
Draft regulations circulated by our Department on 8 April last to interests affected, including the Irish Hotels Federation, dealt with, inter alia, the protection of the consumer against insolvency. The draft regulations were designed to be as flexible as possible and were drawn up to suit the varying circumstances of the range of package organisers offering home holidays. Following full examination of the views received, I intend to make the necessary arrangements for the implementation of the directive in this area as soon as possible.
Would the Minister agree that the implementation of this directive would place additional burdens on Irish hoteliers and guesthouse owners over and above those in competing destinations? Is he aware that the likely effect of such an imposition would place severe obstacles in the way of those who wished to promote activity related holidays on which further growth in Irish tourism is so dependent? Would the Minister not agree that the wording set out in the EC Directive should be retained in our legislation because the Government are broadening the interpretation of it?
I would not accept that my Department is broadening the interpretation of the directive. We are obliged to interpret the directive as it is laid down and we must take legal advice in that regard. Based on the principle of subsidiarity, we must conform, as a member of the Community, to the directive. I accept the directive will place new impositions on people involved in package holidays and will certainly change the traditional way of promoting those holidays. There has been growing concern over the years right across the community about consumer protection, as a result this directive has been introduced. I met organisations about this matter and their views are being taken on board. When we have concluded consideration of the submissions received and discussions have taken place we will come up with a formula by regulation, primary legislation or both.
Will the Minister agree that hoteliers and guesthouse owners will be faced with the liabilities and obligations envisaged in this directive for package organisers? Will he also agree that this directive will involve the production of detailed brochures and security for deposits as well as the provision of bonds, insurance cover and so on involving costs which the ordinary hotel or guesthouse operator cannot afford? There will be severe implications for those involved. The Government should take greater cognisance of the objectives of the Irish Hotel's Federation in this matter.
The Government and the Department are fully cognisant of the position. We have the utmost confidence in the Irish hotel and tourist industries and they have the professionalism and skills to adapt to the new position. There will be four options available to them. There will be further discussions and dialogue and we will ensure absolute mobility of tourism promotion of all holidays, domestically and internationally.
When is it hoped the directive will be put in place?
A decision will be made on the matter later this year.
