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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Travel Trade Competition.

State company fares and private competition

Summary

Deasy alleged that subsidised low CIE fares were driving private operators out of business. Wilson said he would not condone that purpose and promised to investigate and report back.

asked the Minister for Tourism and Transport if he has satisfied himself that fair competition exists in the travel trade (a) within this State and (b) to and from this State; and if not, the plans, if any, he has in this regard.

Comment on this

Under the provisions of the Transport (Tour Operators and Travel Agents) Act, 1982, I am responsible for the licensing and regulation of tour operators and travel agents involved in providing overseas travel arrangements. I am not aware of any unfair competitive practices being employed by tour operators or travel agents.

Comment on this

I was not specifically referring to tour operators or travel agents but to State companies who seem to think they have a right to put private operators out of business by charging totally uneconomic fares. Is the Minister aware that, for instance, CIE bus fares from places such as Cork and Galway cost £5 return? In my opinion, and in the opinion of many people, that is purely to put private operators out of business. The economic fare is not £5, it is about £15 or £17.

Comment on this

Free enterprise.

Comment on this

It is not free enterprise. The taxpayers are subsidising a State company to put private operators out of business. Surely that is not fair. I do not mind if it is done on a promotional basis for a short period of time but would the Minister not agree that if it results in people being put out of business it should not be allowed?

Comment on this

I would agree with the Deputy that if the purpose of doing so is to put any legal operator out of business, I and my Department could not condone it.

Comment on this

Will the Minister convey to the State companies involved that he is concerned? Will he investigate the matter to see if what started out as a promotional activity has continued as an operation to put other people out of business?

Comment on this

I give the Deputy an assurance that I will investigate what is happening and I will report to him.

Comment on this