The High Court challenge to the transfer and contracting out by Bord Failte of a national tourism information and reservation database has been settled between the parties involved.

Under an agreement reached between Bord Failte, Fexco, the Northern Ireland Tourist Board and Tour Contractors (Ireland) Ltd (ITC), tour operators are to be given an input into the development of the database, which is called Gulliver.

The two tourist boards sold the Gulliver system in July 1997 and contracted out the call centre service to Gulliver InfoRes Services Ltd. Fexco, a private, unlimited company based in Killorglin, Co Kerry, has a 74 per cent shareholding in Gulliver InfoRes Services Ltd. A joint venture, owned by the two tourism boards, owns the remaining 26 per cent.

Earlier this year, TCI sought a judicial review of the sale of Gulliver. Counsel for TCI said the effect of the agreements between Bord Failte and Fexco was that these public information and service supports to the Irish tourism market had been transferred from the public domain and sold into private ownership and control.

Following the agreement announced yesterday, the court hearings will not go ahead. The Gulliver information and database service remains unaffected but a formal framework has been agreed which "clarifies the operation of Gulliver in respect of information handling, promotion and packaging".

In addition, tour operators can now link their services to the Tourism Brand Ireland website. They will also "actively participate" in a joint-steering group for the development of Gulliver.

Mr John Dully, chief executive of Bord Failte, said he was "confident that the parties will be working closely in the future". There would be "teething problems" but the parties have "made a start and a very productive start. We have formed a very solid partnership."

Mr Tim McStay of TCI said operators, and particularly those in the US market, had felt the Gulliver system might be "restrictive in terms of choice for the customer" and for the operators.

Mr Stewart Stephens, managing director of Gulliver, said the "proactive structure" which had been agreed would "steer this for everyone's benefit", including travel intermediaries.

Any restrictions which had existed because of the application for a judicial review have now been lifted and the full development of the system will now commence.