Dáil Éireann Debate, Wednesday - 26 March 2025
30. Deputy Barry Ward asked the Minister for Transport if his attention has been drawn to concerns of SMEs in the transport sector in relation to overburdensome licencing regulations and related administrative requirements as set out by his Department; and if he will make a statement on the matter. [14344/25]
Amharc ar fhreagraTravel agents and tour operators who sell package holidays are subject to regulation under EU Directive 2302/2015, the Package Travel Directive (PTD). The PTD amongst other matters provides that travel agents and tour operators must have security against their potential insolvency.
Travel agents and tour operators providing package holidays commencing in Ireland have a choice between obtaining a licence under the Transport (Tour Operators and Travel Agents) Act 1982 from the Irish Aviation Authority (IAA) or providing evidence of security to the IAA in the form of full indemnity insurance.
In general terms, the two requirements that must be satisfied in order to obtain a licence relate to the financial standing of the applicant, as well as fitness and suitability to carry out either of the relevant activities. The applicant must put in place security in the form of a bond to cover customer losses in the event of their insolvency. The IAA administers the scheme of insolvency protection in Ireland.
In 2017, the Commission for Aviation Regulation (merged with the IAA in May 2023) initiated a review of travel trade insolvency protection arrangements as implemented in Irish legislation, with the publication of a consultation paper and report, followed by the commissioning of a further report by CEPA in 2019. Further work on the review halted in the context of addressing the impacts of the COVID-19 pandemic.
In November 2023 the European Commission commenced a review of the PTD with member states agreeing a general approach in December 2024. The review of national travel trade insolvency protection arrangements will recommence in the context of the conclusion of the EU’s revision of the PTD.
