Michael Lowry (Tipperary, Independent) | Oireachtas source

I will be brief. I welcome our witnesses and thank them for taking the time because this meeting is informative for us. I have met representatives of the Irish Travel Agents Association on a number of occasions and I know many people involved in the industry. Most of the businesses are family run, professional, courteous, organised and provide an excellent service. I understand there are 190 licensed travel agents in the country and I have met many of them in my constituency of Tipperary on a number of occasions.

What is effectively happening is that the Government's advice is not to travel and thousands of people have followed that advice and cancelled flights and holidays. Most of those cancellations are package holidays which would include flights, transfers and accommodation. A ludicrous situation exists under this European Union directive whereby the travel agent is legally responsible to secure the refund of the entire package. That is simply not financially sustainable and I ask Mr. Hackett or Mr. Dawson to explain why that is the case because the consumer needs to understand. Travel agents are suffering incredible abuse from clients who think that all the travel agent has to do is reach into a bank account and refund the money. As I understand it, and the consumer does not understand this, the travel agent is lucky to get 10% of the entire package. How can travel agents refund 100% when they only receive 10%? It is a total nonsense and travesty. It is incredibly unfair to expect travel agents to shoulder the burden of that financial outlay. I have been told by several travel agents that the reality is they will be forced into liquidation. As has previously been confirmed, the bonding system to protect the consumer when agencies collapse only becomes effective after a travel agent goes into liquidation, which is another nonsense.

Travel agents and thousands of consumers throughout Ireland are effectively caught stranded between the European Union directive and Government advice. It has been crystal clear to us here and it was extraordinary to hear the comment that it is cheaper to fly an almost empty aeroplane than to cancel a flight and refund the consumers.

We have identified the amount today, but will our guests explain how the system operates and why it is impossible for them to give these refunds, for the benefit of the consumers who are listening and the clients our guests represent?