James Lawless (Kildare North, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

28. To ask the Minister for Jobs, Enterprise and Innovation his plans to review regulations on business. [15820/20]

Robert Troy (Longford-Westmeath, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

My understanding is that the Deputy’s question relates primarily to the regulations in place for the hospitality sector and licensed premises with regard to the re-opening of those businesses. These regulations are not within the remit of my Department but are, mainly, within the remit of the Department of Transport, Tourism and Sport with most regulation of licensed premises resting with the Department of Justice.

I understand that the Deputy is also enquiring about the giving of refunds for flights and package holidays. While legislation on these matters also falls within the remit of the Department of Transport, Tourism and Sport, I can provide the Deputy with the following information.

In relation to airline refunds the legal position is that air passenger rights are protected by Regulation (EC) No. 261/2004, which covers the rights of passenger in instances of cancellations. However, if a flight goes ahead and a customer either cancels or does not use their ticket, they are not entitled to a refund under this EU law. That said, I understand that the main Irish airlines are currently allowing customers who are booked to travel over the summer months to move their flights with zero change fee. Where flights are cancelled by the airlines, people are entitled to a full cash refund.

Similarly, the Package Travel market is regulated at EU level – the Package Travel Directive provides important consumer protections including the right to cancel a package holiday and receive a refund. The COVID-19 crisis has severely disrupted the travel plans of many, with many opting to follow Government advice not to undertake non-essential travel. As a result, Irish licensed tour operators and travel agents have seen an unprecedented demand for refund of package holidays - the Directive obligates them to refund even if flights go ahead.

Clearly the existing consumer protections and legal obligations on airlines and the broader travel sector did not envisage the current circumstances of mass cancellations and stringent travel restrictions across the globe. That has, not surprisingly, put the entire system under immense pressure and it is causing real difficulties for people and businesses.

The Minister for Transport has approved regulations to provide a State-guarantee for credit notes issued by Irish-licensed travel agents and tour operators, known as Refund Credit Notes. Where a customer agrees to accept a Refund Credit Note instead of cash, the cash value of the refund credit note is guaranteed, until such time as the customer decides to cash it or use it against a rebooked holiday. This will help support viable, Irish businesses through these unprecedented times.

My colleague Eamonn Ryan, Minister for Climate Action, Communications Networks and Transport, is also aware that the options put forward by airlines may not be fair or workable for customers in all instances, and he will be raising this with the industry at the first available opportunity.