Thomas Cook

Baroness Kramer Excerpts

Wednesday 25th September 2019 Lords Chamber

[Baroness Vere of Norbiton]

I believe that that directive has been brought across and is in our law.

[Baroness Kramer (LD)]

My Lords, obviously our first concern is both for the staff of Thomas Cook and for the holidaymakers who found themselves in this impossible situation. Across the globe, however, there are hoteliers and others who have provided services for which they have not been paid. If the UK has a reputation for allowing this situation, I suspect that other travel firms will find in the future that they are asked for guarantees and other kinds of prepayments that will make holidays far more expensive for everybody else in this country. Does she have an idea of how the people who are owed money for services that they have provided under Thomas Cook arrangements are going to be repaid in these circumstances?

[Baroness Vere of Norbiton]

As the noble Baroness will know, these are, in pretty much all instances, private companies making private arrangements. The travel market is global, so if one is in a hotel in Italy, there will be people there from travel companies from all over the world. It is the case, therefore, that those private arrangements will continue, and as with all private arrangements between two private organisations, an assessment should be made on the long-term financial viability of the person to whom one is providing credit.