Independents call for Government action
CONSUMER affairs minister Kim Howells has confessed he has no idea when the controversial issue of transparency will be resolved, even though the saga has now entered its third year.
The astonishing delay has infuriated independent operators who have vowed to step up the pressure on the Government.
Multiples were told to make ownership links clear on the outside of their shops back in December 1997 following a Monopolies and Mergers Commission investigation into the travel industry.
Howells admitted he had lost track of the issue but later claimed the delay was down to Thomson’s court action against another MMC ruling which banned the ‘most favoured customer clause’.
“I must admit that transparency is not something I have looked at for a while and I can understand why people are feeling frustrated,”said Howells.
Later, the minister said he delayed taking action because he wanted to wait for the outcome of Thomson’s court action.
“The Department of Trade and Industry circulated a draft order about ownership links on August 2 and a number of comments were made,” said Howells.
“I decided not to issue a revision of the order until the Court of Appeal case brought by Thomson had been heard.
“I am now considering the implications for the transparency order of the Appeal Court judgement given on December 9.”
However, industry observers said the issues are unrelated. Howells’ office refused to put a timescale on the review although officials said he was now treating it as urgent.
British Airways Holidays managing director Roger Heape said: “We have heard absolutely nothing from the DTI. We feel strongly there should be clear messages on the windows. The European Commission in blocking Airtours bid for First Choice was also concerned about collective dominance by the major companies, yet still nothing has been done.”
Heape also called for consortium members to display their links with operators.
The Association of Independent Tour Operators will step up pressure on the Government and chairman John Bennett said: “We are increasingly concerned at this delay in implementing a decision which was made over two years ago.”
Thomas Cook and Airtours are believed not to have objected to proposals to make ownership links clear in the first round of negotiations but Thomson is thought to have argued against the move.
n See Comment, page 8