Reform will "unshackle" industry, says minister

Reform will "unshackle" industry, says minister
By admin


Australian Consumer Law, and the increasing use of credit cards, will be enough to financially protect consumers once the Travel Compensation Fund closes its doors, according to the NSW fair trading minister.

Anthony Roberts told Travel Today the TCF had served its purpose but was now outdated and had too many loopholes to make it effective in today’s global travel market.

Removing red tape and the “dead hand of government” will enable Australian businesses to compete more efficiently against off-shore and online players who were not hamstrung by regulations, Roberts said.

His remarks came at the brand launch last night in Sydney of the AFTA Travel Accreditation Scheme (ATAS) that will replace travel agent licensing next July.

AFTA chief executive Jayson Westbury said the launch marked the next stage “of an incredible journey that we’ve been on, and are about to go on”.

Roberts, one of the few ministers to have been involved in the reform process from the start, claimed that ATAS, and the wider regulatory reform, will “unshackle” the Australian industry.

Too many overseas companies are setting up in Australia yet are not subject to the same regulations as local firms, he said.

“When you see overseas companies setting up here and failing, leaving travel agents, through the Travel Compensation Fund, paying out compensation to British-based firms, where is the fairness in that?” he said, in a clear reference to the collapse of Kumuka last year.

The TCF covered too little of the industry and was now part of an “antiquated system that was holding the industry back”.

“The TCF was built for another time. It has worked well and served us well but we are in a different marketplace now where Australian businesses are competing on a global basis,” Roberts said.

He also claimed the TCF was providing little barrier to entry – an observation that will raise eyebrows in some quarters and is certain to raise the hackles of the TCF.

Roberts said Australian Consumer Law – which includes the Consumer, Trader and Tenancy Tribunal (CTTT) in NSW – and credit cards chargebacks would be sufficient to financially protect consumers in the event of a company failure.

“It is easier to go through the CTTT than going through a prolonged compensation system,” he said, apparently overlooking TCF claims that, on average, it refunds consumers in a matter of days.

Credit card chargebacks are also becoming more prevalent as increasing numbers of consumers book with credits card, Roberts said.

The minister said it was far better for the industry to look after itself than be regulated by government.

“Do you want your industry or a public servant looking after the brand? Who has got more interest in protecting your brand?” he said.

“The beauty about ATAS is that people will know they are dealing with someone who has ticked the boxes, someone who has superior service and superior knowledge.

“An accreditation scheme where consumers can be assured they are dealing with a company that has met certain criteria is marvellous.”

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