Address by Mr. Tom Kitt, T.D., Minister for Consumer Affairs, at the Annual Conference Dinner of the Irish Travel Agents Association, at the Mount Brandon Hotel, Tralee, Co. Kerryon Saturday 4th November, 2000

Let me begin by thanking Brendan Moran for the invitation to join you this evening at your Annual Conference. I am under orders not to delay proceedings too long and I will do my best to comply.

(Pricing transparency - the euro)If I could begin on European note - literally and figuratively! - I cannot let tonight’s opportunity pass without touching on the implications of the introduction of the euro for us. Irish notes and coins will be withdrawn in just over 15 months’ time. On 9 February, 2000, the euro as the single currency will become a reality for the countries - including Ireland - in the eurozone. In the run-up to that momentous event, I have been working in partnership with the Director of Consumer Affairs to ensure that the introduction of the euro will give rise to greater price transparency, thereby further stimulating competition and increasing consumer choice.

Codes of Practice on Dual Pricing are a key element in the provision of timely information to consumers about the euro, and they will be an important feature of the changeover period. Codes of Practice on Dual Pricing safeguard the right of consumers not to be overcharged for goods and services, in that those who subscribe to them commit themselves to carrying out the changeover fairly and to seeking no advantage from the conversion. In short, Codes of Practice on Dual Pricing help foster consumer confidence in the euro.

I am aware that the ITAA has signed up to the EU-level Agreement between consumer associations from the distributive trade, tourism, craft and SME sectors in connection with the transition to the euro. I am, of course, pleased that ITAA has done so. I would strongly recommend that you sign up as well to our own Irish Code, the National Code on Euro Changeover, which I plan to re-launch next month, along with the logo that subscribers to the Code (or approved sectoral codes) will be entitled to display. Consumers will be urged to do business only where they see the logo on display.

The idea behind the National Code is two-fold. First, to inform consumers, by providing for transparency in the pricing of goods and services, in accordance with the conversion rules, during the changeover. Second, to assist consumers, in a practical way, to become familiar with pricing in the new currency.

The minimum period during which the National Code will apply will be from 1 October, 2001 until one month after Irish notes and coins have been withdrawn on 9 February, 2002. However, there is no need for an organisation or a business to wait until October of next year to sign up. It would give me great pleasure if, at the re-launch next month of the National Code incorporating the logo, I could announce that the ITAA was the first subscriber! And, indeed, I think the fact that the ITAA had subscribed to the National Code could be another item of reassuring information for consumers to see on the Consumer Information page of your website.

As you will be keenly aware, we are living at a time when travel, whether for business or pleasure, is increasing. Ever lower-priced travel is encouraging an ever greater number passengers. At the same time, however, we cannot fail to be aware that complaints are growing about the quality of service, lack of information and treatment of customers when things go wrong. The answer does not lie solely in reliance on the market and competition. While a competitive market is clearly essential, it needs to be complemented by specific measures to protect passengers, as happens in the case of consumers of other goods and services. Legislative action may be called for in certain areas, but legislation is not necessarily the only, or the most appropriate, approach in relation to addressing consumer complaints.

As a representative body, the ITAA will no doubt keep under review its own response to meeting customer expectations of service. I have looked at your website and, in particular, the "Consumer Information" page. We will all agree that consumers need information on how to seek redress when things go wrong. In that regard, I might be so bold as to suggest that you consider supplementing the material on that page of your website with information on, for example, the mechanisms available to consumers under arbitration and the small claims procedure for out-of-court settlement of complaints. The legislative action being taken by this Government in providing for an independent Regulator - known as the Commission for Aviation Regulation - should lead to updating the material on licensing and bonding, since that is one of the regulatory functions, previously carried out by the Department of Public Enterprise, which is being transferred to the Regulator.

To the ultimate benefit of the consumer, my aim, with your help, is to ensure that the consumer always has easy access to the most up-to-date consumer information on the goods and services they wish to purchase and on how to secure the appropriate remedy in those cases where things go wrong.

To make informed choices, consumers need reliable, transparent information about the goods or services they wish to buy. At the end of May, I announced my intention to improve transparency in airline advertising, so that consumers would be accurately informed about the full price of airline tickets and the availability of the airfares advertised.

Passengers are in a weak position, compared to the airline, when buying a ticket. This imbalance clearly needed to be addressed. Legislation is the appropriate tool in this instance, where it is a question of specifying certain obligations that will have to be met.

The statutory powers at my disposal towards that end are contained in the Consumer Information Act 1978, which enables me to require certain information to be included in advertisements for goods and services. My decision to use these powers was taken as a result of the complaints which both the Director of Consumer Affairs, Carmel Foley, and I received about the hidden costs to consumers of air travel.

I should like to take this opportunity to update you on the steps that have been taken in the intervening five months since my announcement last May.

Firstly, of course, my officials prepared an initial draft of the Order to be made under the 1978 Act. I then consulted extensively and widely. This process involved contacting the Air Operators - a total, in fact, of 48 EU and non-EU airlines serving Ireland - as well as other interested bodies such as the European Commission, Aer Rianta and, of course, yourselves, given that the ITAA is the umbrella organisation for 80% of travel agents outlets in this country.

I greatly appreciate the support of the ITAA for my initiative which your Chief Executive, Brendan Moran, has conveyed to me on your behalf. Brendan also shared with me a number of specific comments on the proposed Order when we met at the end of August.

You will be interested to note that the European Commission are working on proposals in this area also. I am delighted to report that Ireland is ahead of Europe on this occasion. As my legal advisers work on the legal drafting of the Order I wish to let you know that I expect to sign the final regulations in this important matter of consumer information in a matter of weeks.

Let me conclude by thanking you for the invitation to join you here tonight and wish you a successful year ahead. Thank you.