§ Mr. David Youngasked the Secretary of State for Transport what further action he proposes to take to deal with the exploitation of consumers by financially unsound travel firms.
§ Mr. Michael SpicerAir travel organisers are licensed by the Civil Aviation Authority, which is statutorily obliged to refuse, or where appropriate revoke, licences if it is not satisfied an applicant is a fit person to hold a licence or that his resources and financial arrangements are adequate for discharging his actual and potential obligations. For this reason, the CAA monitors licence holders' activities. My right hon. Friend is currently considering a report by Sir Peter Lane, which recommends a number of ways in which the present arrangements for protecting holidaymakers might be strengthened, including an enhanced monitoring capacity by the CAA.