Comment: AFTA needs more TCF cash

Comment: AFTA needs more TCF cash
By admin


It may have fallen well short of the $9 million initially requested, but a $2.8m grant awarded to the Australian Federation of Travel Agents this week will at least go some way to establishing its accreditation scheme.

Details of what the voluntary scheme will look like will emerge over the next few months when AFTA stages a national roadshow. But whatever materialises, AFTA has stressed that agents will be “directly involved” in its creation.

But while AFTA said the one-off $2.8m grant will “totally fund” the development of the scheme, little has been said about how it intends to educate and promote it to the public, a vital component of the overall plan.

In its submission to the Travel Industry Transition Plan last year, AFTA wanted $3m to set up the scheme and a further $6m to educate consumers of the need to book with an accredited agent.

AFTA’s accreditation general manager, Gary O’Riordan, yesterday told Travel Today that it will apply for additional funds at the end of the year to do just that, although an amount has yet to be decided.

So what happened to the $6m that AFTA initially thought was necessary? And if any further cash is not forthcoming, just how will AFTA achieve its aim of telling the public about the new-look scheme and promoting those agents who participate in it?

It would be hugely disappointing if AFTA succeeds in developing a modern, robust voluntary scheme but then has no way of marketing it, which chief executive Jayson Westbury has always stressed was a key element of the plan.

Not that this appears to be travel agents’ primary concern. Their main issue with the entire reform process surrounds the redistribution of the near $30m held in Travel Compensation Fund reserves.

Of course that could reduce in the event of any collapses over the next 12 months when consumers will still be eligible for compensation.

But barring any unprecedented turn of events, there is likely to be a sizeable amount of cash left over in those TCF reserves

Agents have constantly demanded a more hardline approach from AFTA, arguing that it should go into battle on their behalf and insist the money is returned to them.

Such a view is entirely understandable, and predictable.  Agents have been paying into the TCF for years with their proceeds simply bailing out customers who booked with failed competitors. The irony is there for all to see.

So surely those who paid into the TCF, and saw no real benefit, should at least get some of their money back when the TCF is finally wound up? It is glaringly obvious to anyone with even a vague sense of fair play that this is exactly what should happen.

But fairness is not something always associated with issues surrounding government funding. AFTA is acutely aware that agency owners believe TCF reserves should be returned to them but as Westbury explained this week, the trust deed that governs the TCF simply does not allow for that to happen.

Under a “pre-determined formula” – pre-determined by the government that is – the reserves are to be distributed to the states and territories.

There has been some criticism directed at AFTA for not fighting the corner of its members. That is harsh on Westbury who succeeded in doing what most in the industry thought was nigh-on impossible – driving through reform of travel agent licensing.

He has done that almost single handed, so to then berate Westbury for not attempting to get a trust deed re-written is a little tough, particularly when the chances of success are as likely as Michael Clarke, Shane Watson and Micky Arthur having dinner together any time soon.

Agents are right to believe they should get the TCF cash. But it's just not going to happen and that's not the fault of AFTA.

Agents should take solace in the fact that reform is underway and the burden of red tape and associated costs is being lifted.

Latest News