Committee Reports > List of Committees > Dáil > 1985 > Committee on Public Expenditure > Report - Review of a Proposal to Introduce a Charge Card System for Civil Servants Travelling on Official Business

APPENDIX I

SUBMISSION RECEIVED FROM DINERS CLUB INTERNATIONAL

Tá Diners Club thar a bheith buíoch don Choiste um Chaitheachas Poiblí as ucht deis a thabhaint dúinn na buntáistí a bhaineann le ballríocht an Chlub a chur ós a comhair.

Diners Club International are deeply appreciative of the opportunity to place proposals before the Committee on Public Expenditure regarding the use of Diners Club International services to facilitate economies in State Employee travel and allied expenses.

DINERS CLUB INTERNATIONAL

Diners Club is the original charge card. Started in New York in 1951 when businessman Frank McNamara found himself in a restaurant without his wallet, Diners Club was initially a charge facility for payment of restaurant bills. It very quickly developed and the acceptance of Diners Club Cards for hotels, airline tickets, car hire and shopping spread rapidly.

Today, Diners Club Cards are welcomed in over 500,000 establishments in 163 countries.

The principal shareholders in the organisation are Citicorp, one of the world’s largest banking groups.

From the beginning, Diners Club International has been the leader in the industry:

-First multi-purpose Card.

-First international Card.

-First Card accepted in South America, Europe, Asia and Africa.

-First Card accepted behind the ‘Iron Curtain’.

-First Card accepted in People’s Republic of China.

-First Card to offer year round personal accident insurance.

-First Card company to publish a magazine for its Members beginning in 1955.

-First Card company to offer international directories of Establishments.

-First Card contracted for Government Employee usage. (USA).

DINERS CLUB INTERNATIONAL IN IRELAND

Diners Club first established a presence in Ireland in 1967 and after a number of years of steady growth embarked on an ambitious programme of investment in early 1983.

A prestigeous premises at Russell Court, St. Stephen’s Green, Dublin, was opened in mid 1983 and the staff has increased significantly since then in order to provide a first class personal service to the growing number of Irish Members.

There are now 10,000 Members in Ireland and over 3,000 establishments accepting Diners Club Cards.

Diners Club Ireland has participated in many community related sponsorships, both cultural and sporting, including the recent visit of The Helsinki Philharmonic Orchestra to the National Concert Hall and the annual Christy O’Connor/Diners Club International Pro-Am Golf Tournament which last year raised over £25,000 for the Research Unit of the Children’s Hospital, Crumlin.

A recent development of some national significance was the association formed with Ireland’s oldest Building Society, The First National.

WHAT DINERS CLUB INTERNATIONAL CAN OFFER THE GOVERNMENT SERVICE

Diners Club understands the improvements the Government seeks in the management of official travel and expenses. Our long-standing experience with corporate clients ensures that we will:

-Improve the Government’s cash flow by reducing cash advances for official travel and expenses.

-Reduce the Government’s costs by eliminating laborious payment processes.

-Improve employee productivity and morale by making travel more convenient and secure.

-Enhance the Government’s buying power with travel service and other suppliers by tracking and reporting expenditures for official travel and expenses.

Diners Club can do this better than anyone else because our systems and service standards are tailored to meet the needs of large organisations in the area of travel and expense management:

The needs of Government closely approximate many of our large corporate clients who are household names in Ireland.

AN EXAMPLE OF HOW GOVERNMENT CASH FLOW CAN BENEFIT FROM AN AVERAGE FLOAT OF 60 DAYS

Assuming Government spends, for example, £5 million a year on travel and expenses. That translates into £416,666 per month. Assuming an average of 30 days for billing and 30 days for payment, Government receives a float of 60 days. The monthly expenditure of £416,666, not paid for 60 days on average, amounts to a float of £833,333.

That amount, invested at 15% per annum, brings an annual gain of £125,000.

THE ADVANTAGES OF USING DINERS CLUB CARD

THE INTERNATIONAL CHARGE CARD:

No Pre-set spending limit - you are free to spend as much as you need.

Accepted at over 500,000 establishments in 163 countries worldwide.

Charge goods and services at home or abroad and receive a monthly billing Statement.

Comprehensive International Directories to help you locate Diners Club Establishments worldwide.

THE INSURANCE CARD:

Travelling Overseas:

Charge overseas travel tickets to the Diners Club prior to your journey and automatically you receive the following free insurance benefits:

*Personal accident cover up to IR£75,000 for death or serious injury whilst taking aircraft flights, but also at all times you are overseas.

*Medical Expenses cover up to IR£75,000.

*Third party personal liability cover up to IR£500,000.

Travelling by air:

Charge your flight tickets to the Diners Club Card, and departure delays of over 4 hours allow you a full credit refund of up to IR£75 for meals and hotel expenses charged to your Card, as a result of the inconvenience. An extra IR£75 may be claimed if a booked connection is missed. And don’t forget the personal accident cover of IR£75,000 applies in conjunction with any recognised flight, anywhere in the world.

Baggage:

Baggage delayed more than 6 hours after flight arrival allows a full credit refund up to IR£75 for your immediate necessities charged to your Card, and an extra IR£175 for other requirements if baggage is still missing after 48 hours. Simply charge the flight ticket to your Diners Club Card.

Additionally, baggage damaged or lost during any journey overseas is covered up to IR£1,500 if travel tickets are pre-charged to the Diners Club Card.

Purchase of Goods:

Articles purchased with the Card are automatically covered for loss or damage by the unique ‘Get-it-home’ insurance for 30 days if bought abroad (15 days in usual country of residence). Maximum cover is IR£2,500 per article.

IT IS WORTHY OF NOTE THAT NO OTHER CARD OFFERS SUCH A COMPREHENSIVE RANGE OF FREE INSURANCE BENEFITS

THE TRAVEL CARD:

Exclusive Lounge at Heathrow:

Before or after a flight, Diners Club Members may relax in the Diners Club Lounge - exclusive to Members and conveniently situated in the Queens Building close to Terminal 1. Facilities include telex, telephone, Prestel, flight information. Drinks and light refreshments are with our compliments.

Confirmed Reservation Scheme:

Members requesting Hotel bookings under the Diners Club Confirmed Reservation Scheme and quoting their Card number are assured a room irrespective of time of arrival. The scheme operates at most hotels worldwide.

THE EMERGENCY CARD:

Cheque Cashing, Ireland, UK and Overseas:

Any Irish Bank cheque at any Ulster Bank Branch or at any National Westminster Bank Branch in the UK up to IR£50 per day, no charge.

Up to 1,000 US Dollars per 14 days at most Citibank Branches worldwide (35 countries). 1% charge.

Cash Advances:

Up to 1,000 US Dollars charged to your Card, per 14 days, at Diners Club offices overseas. 4% charge.

Card Replacement Service:

Available in emergency through local Diners Club offices.

THE CLUB CARD:

Exclusive Special Offers:

During the year, Diners Club arrange special offers with many establishments which are exclusive to Diners Card holders.

‘Signature’ Magazine:

Regular issues of this splendid Diners Club colour magazine free to Members.

Cultural and Sporting Events:

Diners Club continue to sponsor Cultural and Sporting Events in Ireland.

It is the experience of people who carry several cards that the Diners Club Dublin Office provides a special personal service which is at the same time efficient and friendly.

NORMAL FEES

Fees are subject to negotiation, depending on the number of cards and the anticipated volume turnover. If the business is of sufficient magnitude the fees could be quite nominal (Government Tax excluded).

Diners Club would be prepared to operate 50 cards without fees for a trial period of six months, in order to facilitate monitoring of service, billing and control and to assist the Government negotiation team before a final contract is agreed.