Phil Hogan (Carlow-Kilkenny, Fine Gael)

There was considerable debate on this matter on Committee Stage. There is support for the Minister's goal. I have received representations from the Irish Travel Agents Association. The industry is dealing with net margins but is not directly providing the service. Travel agents are paid in a certain format and this will affect turnover, profitability and survival. One travel agent indicated this measure would result in a reduction of €20,000 in gross profit. I am more concerned about the smaller travel agents who have been in touch with us about this matter. Perhaps the Minister of State might read some extracts or bring to the Minister's attention the implications of section 48 of the Bill, as amended, on the ban on credit card surcharges. Normally, I would be strongly supportive of this, but in this particular case I should like if the Minister of State would give some indication as to how we may assist in getting over this problem. The travel industry operates on an average gross margin of 8% and a net margin of 2% or less. The Bill, in effect, will wipe out the net margin on credit card transactions, which are now in excess of 40% of turnover due to increased web usage. It will definitely damage the industry, as indicated to me.

We do not want to discriminate unduly or unfairly on behalf of any particular industry, but there is certainly a case to be met as regards the travel agents in particular. I assume they had no notice of the fact that this would be brought to the attention of the Minister and introduced as an amendment until the Committee Stage amendments were tabled within the past two weeks. We just want to get the Minister of State's view, in the context of implementing section 48, as amended on Committee Stage, as to what way it might impact on this particular sector.

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