HC Deb 24 July 1991 vol 195 cc719-20W
Mr. Andrew Mitchell

To ask the Secretary of State for Trade and Industry when he expects to publish the Government's proposals for implementing the EC package travel directive.

Mr. Lilley

I have today issued a consultation document, setting out our proposals for legislation to implement the EC package travel directive. We plan tough new legislation which will give much greater protection to package holidaymakers and should ensure that we never again see holidaymakers stranded abroad when their tour company fails.

Our proposed new legislation would lay down minimum standards for the way that package holidaymakers are to be treated by the travel organiser and travel agent. In particular, the legislation would:

  • set out the information to be included in brochures, and other information which must be supplied to the consumer before the start of the holiday;
  • define the circumstances in which changes may or may not be made to the particulars in the brochure;
  • lay down the matters which must be included in the contract between the holidaymaker and the travel organiser;
  • regulate the making of surcharges so that no price increases may be made within 20 days before the departure;
  • place the sole liability for the holiday on the organiser and require him and the travel agent to deal promptly with complaints.

These requirements would be backed up by a combination of new criminal offences and civil liabilities.

European Community directive 90/314/EEC on package travel, package holidays and package tours has to be implemented by all member states by 31 December 1992.

Article 7 of the directive requires holiday firms to provide evidence of security to repay money and to repatriate consumers in the event of insolvency. We propose to implement this requirement by setting up a new licensing system for package travel organisers, with a requirement for them to be bonded, and for a national back-up fund to be established.

I am anxious, however, that the proposed new licensing system should not put unnecessary burdens on small businesses or those, such as youth clubs and the Church, who are involved in organising trips, outings and other activities.

If an organiser neither takes prepayments nor offers packages where the question of repatriation would arise, he would not need a licence. People who organise packages only occasionally would also be exempt. Also someone who makes arrangements at the specific request of the members of a club, for instance, would be unlikely to be covered by the directive.

I do not think therefore that these proposals are likely to cause any significant difficulties in practice.