Vol. 398 No. 3
4 Proinsias De Rossa asked the Minister for Tourism and Transport if he is satisfied that all tour operators sending holiday makers abroad are operating on a sound financial basis and capable of honouring all commitments; and if he will make a statement on the matter.
Tour operator licences are issued on an annual basis in accordance with the Transport (Tour Operators and Travel Agents) Act, 1982. Before a licence is granted, a tour operator is required to submit a detailed application, duly audited and certified accounts and any additional financial and such other information as may be required as part of the process of satisfying my Department that the tour operator's resources are adequate for the purpose of the business. Decisions on individual applications are taken only after they have been carefully examined by my Department.
The performance of individual tour operators is monitored during the period of the licence. Where there is any reason for concern about the financial position of a tour operator, a further detailed examination is carried out in consultation with the tour operator concerned. Where such examination identifies a potantial problem, the operator is required to take the necessary steps to ensure that he or she can continue to meet his or her obligations. Failure to do so would lead to the withdrawal of the tour operator's licence.
The question was tabled arising out of the serious concern expressed in the recent issue of The Sunday Business Post that the largest tour operator, JWT, was in serious financial difficulty. The Minister would seem to have agreed that the over-booking of seats by tour operators this year does pose a possible threat. Is the Minister satisfied that, if the largest of the tour operators was to get into difficulty, at that stage, there might not be sufficient accommodation for those who have booked holidays with them?
The Deputy will understand that I am not prepared to comment on an individual company. What I am prepared to say is that, for some years now, the tour operators' industry has been experiencing a difficult time. One of my first actions as Minister was to call in the tour operators and seek their agreement — which I got — to reduce the actual number of seats they book, as an industry, in advance. The Deputy will appreciate the manner in which the industry works, that early in the year they book a lot of seats and are then faced with having to sell them. The capacity now stands at 175,000. In 1989 approximately 215,000 seats were sold. I have now got their agreement to reduce that number to 175,000. I am told there is still difficulty in filling even that reduced number of seats.
I had intended asking the Minister to allay the fears Deputy Byrne has spoken about now obtaining in the marketplace. I am afraid that, if anything, the Minister's comment that he is not prepared to comment on individual situations will increase those fears among the public. Would the Minister now state categorically to this House that he is satisfied there will not be any serious problems encountered by this industry in the course of this year?
The Deputy will appreciate my caution in this area. Throughout the media speculation I have avoided commenting on a particular company; it would not be correct for me to do so. I can say to the travelling public that there is a bonding system and a fund in place, so that whatever company — I stress, not necessarily the one in question: last year there were a number of casualties; who knows what casualties there will be in the future — may run into difficulty the systems are there to prevent any loss to the public. I do not regard the position as being one of crisis. I do not see any crisis in the tour operators' industry. I see them as having experienced a difficult time. I am reasonably optimistic that the industry will firm up and that all will be well. That comment is based on my optimistic nature.
Unfortunately, the Minister has not reassured me in any way. He mentioned the 175,000 seats that are booked whereas, in an interview with him as reported in Business and Finance, he argued that the industry would be very lucky to achieve a target of even 110,000 seats. He seems to be implying that he is not happy with the bookings the industry has made. Can the Minister assure the House that he will maintain close contact with the industry to assure the travelling public this summer that all holidays they book with any Irish tour operator will be guaranteed, so that they will not be left stranded?
I want to reassure the public that my Department, on a week in, week out basis, keep in close touch with tour operators. We are talking about only 12 dedicated, particularly concentrated tour operators. My Department keep in touch with them week in, week out. In fairness to the industry I should say that, when they saw the position, they agreed to dramatically reduce the number of seats they would book in advance. Elements of the industry are now informing me that they are confident they will be able to fill all of those bookings. It is really in the hands of the public whether they wish to travel to sun spots, is it not?
I appreciate the reticence and reluctance on the part of the Minister to comment on individual companies, but can he distinguish between "inaction" and "caution"? Is he satisfied that it is not necessary for him to hold a further meeting, or constant meetings, with the people involved in the business? Furthermore, would he agree that, unless he does so, he might end up with the problem because, at the end of the day the problem and responsibility rest with the Minister?
I accept that. Let me reassure the Deputy that, at this time of the year, almost on a daily basis, we are in touch with some of these 12 companies, particularly the large ones, with whom we maintain regular contact, I might say almost on a day in, day out basis. We are monitoring the position right across the board extremely carefully.
