HL Deb 15 November 1989 vol 512 cc1312-3

2.45 p.m.

Baroness Fisher of Rednal asked Her Majesty's Government:

Why companies that operate coach holidays abroad are not under any legal obligation to provide insurance to protect their clients.

Viscount Davidson

My Lords, most EC member states require coach operators to insure passengers against accidental injury or damage to property while in transit. Holiday organisers who are members of the Bus and Coach Council or the Association of British Travel Agents are bonded against insolvency and ABTA members are required, from summer 1990, to assume a greater liability for the proper performance of their holidays. Consumers are therefore able to choose whether to protect themselves by placing business with members of these bodies or to opt for cheaper packages without this protection. Travel insurance is available for individuals who want further protection.

Baroness Fisher of Rednal

My Lords, I thank the Minister for that reply. Is he aware that operators who arrange holidays by air are required to licence-bond by guarantee to the civil aviation authorities? Will the Minister agree that self-regulation, as operated by coach operators, does not give a guarantee to holidaymakers and that many find themselves stranded abroad with no means for returning home?

Viscount Davidson

My Lords, I am aware of that situation. I can tell the noble Baroness that from the summer of 1990 people who travel will be able to enjoy the benefits of the new ABTA code which requires organisers to be strictly liable for the provision of the package as promised. Her Majesty's Government welcome this initiative by tour operators to stand by their products and would support an EC directive to underpin this principle across the industry as a whole.

Lord Williams of Elvel

My Lords, does the Minister agree —I hope so because I have given him prior notice of this question —that the proposed EC directive on package travel would meet my noble friend's perfectly valid point? Article 5 would impose strict liability for performance on the tour operators and that liability would be insurable. Can the Minister say whether the Government support that article or are we yet again out of step with the rest of Europe in opposing it? If we oppose it can the Minister say why?

Viscount Davidson

My Lords, I am grateful to the noble Lord, Lord Williams of Elvel, for giving me prior notice of his question, however short. I hope that my answer will satisfy him to a certain extent. We believe that negligence is a key principle in UK law. We would have serious concerns about a proposal which makes organisers strictly liable, irrespective of proven negligence, for all elements of a package deal. But if a more balanced proposal were to emerege we would give it serious consideration.

Lord Williams of Elvel

My Lords, can the noble Viscount say what the Government believe to be a more balanced proposal?

Viscount Davidson

My Lords, not at this stage.

Lord Harmar-Nicholls

My Lords, since this is a very personal matter for coach passengers, can the Minister say whether we have to do everything via an EC directive? As the noble Baroness asked, cannot we deal with this matter in our own way and to our own requirements?

Viscount Davidson

My Lords, I do not believe that that is a question for me. The House of Lords Select Committee has commented that strict liability is neither right in principle nor economically insurable. Her Majesty's Government doubt that strict liability is appropriate without limitation for death or injury however caused. However, we are pleased to note that from November 1990 ABTA member companies will be assuming liability for death or injury to clients caused by negligence on the part of themselves or their suppliers.

Baroness Fisher of Rednal

My Lords, I thank the Minister for those very helpful replies. I agree that the majority of travel companies are reputable organisations. Does the Minister not agree that the travelling public have a right to be protected from the cowboys in the industry?

Viscount Davidson

My Lords, yes, I agree entirely.