Collective Commentary about the New Package Travel Directive

IRELAND | ANNE DOLAN 895 7.1.4. Notification Obligations Both organisers and traders facilitating linked travel arrangements will only be deemed to have complied with the requirements of Section 22(1) and Section 22(A)(1) in circumstances where they have notified the CAR of the nature and amount of the security it has arranged. In paragraph 16 of its Note, the CAR advises that it will notify the organiser or trader “ when it has received sufficient information” 49 . 7.1.5. Nature of Security to be provided in respect of Packages and Linked Travel Arrangements Section 23 of the 1995 Act (as amended) states that organisers and traders of linked travel arrangements may provide security to meet their insolvency protection obligations in one or more than one of the following ways , namely by: • placing money on deposit in a bank or financial institution in Ireland in the sole name of the CAR, which shall, in the event of an insolvency be “ fully and exclusively available to the Commission, without restriction or condition” 50 ; • way of a guarantee issued by an insurance undertaking or bank, authorised to conduct business in Ireland, which, again shall, in the event of an insolvency be “ fully and exclusively available to the Commission, without restriction or condition ” 51 ; • an insurance policy, with an insurance undertaking that is authorised to conduct business in Ireland, the proceeds of which shall, in the event of the insolvency of the organiser or trader, be fully and exclusively available, without restriction or condition 52 . Where the security is provided by way of money on deposit or by way of a guarantee it must be valid for not more than one year from the date of its commencement 53 and must be available to the CAR to draw on for a period of not more than six months following its expiry 54 and is to be in an amount that is 4% of the turnover of the organiser or the trader facilitating linked travel arrangements for the latest financial year for which the organiser or trader, has prepared accounts and financial statements or such other amount as shall satisfy 49 https://www.aviationreg.ie/_fileupload/2019-05-21%20Guidance%20to%20industry%20on%20SI%2080% 20and%20105%20of%202019%20transposing%20Directive%20(EU)%202015%202302.pdf. 50 Section 23(a) of the 1995 Act (as amended). 51 Section 23(b) of the 1995 Act (as amended). 52 Section 23(c) of the 1995 Act (as amended). 53 Section 24(1)(a) of the 1995 Act (as amended). 54 Section 24(1)(b) of the 1995 Act (as amended).