Ms Cathy Mannion:

The scheme applies where the package cannot be performed as a result of an insolvency of a travel agency or tour operator. The legislation is quite specific on this point. We have to look at matters case by case. What I am giving the committee today are the high-level principles of how it works. Generally, if a package is booked and the travel agent or tour operator becomes insolvent resulting in it not being possible for the package to be taken, we step in. Sometimes the travel agent might become insolvent but the customer has all the necessary information on the booking and so can go on the holiday. An insolvency does not mean every customer will not be able to take a holiday. It depends on the case in question.