Today’s meeting of Ministers of Consumer Affairs from across the country has acknowledged that the Travel Compensation Fund “could not continue to be the primary vehicle for consumer protection in the travel market”.
A just-released communique from the meeting says that while the TCF has played an important role in protecting consumers in the past, “there have been both fundamental changes in the market and recent legislative arrangements entered into between the States, Territories and Commonwealth, in particular the strengthened legislative protections under the Australian Consumer Law”.
The ministers also noted that “current arrangements are not satisfactory, with only about a third of affected consumers having any redress under the scheme,” and also pointed out that more money is being spent on the administration of the TCF than is being paid out to consumers.
The communique said that during extensive consultation about the role of the TCF over the last four years “there has been a general acceptance that the current system is a significant regulatory burden with declining benefit”.
The meeting also noted that larger states had signalled that in the absence of an agreed transition plan they would withdraw from the TCF, which could mean the TCF may no longer be viable.
A draft plan of transition from the existing arrangements has been presented by officials to ensure that consumers continue to be protected in the travel market. The ministers say they intend to release a plan and invite comments and suggestions from interested parties.
“Ministers committed to consultation with all interested parties, including industry and consumer groups during the development of the final transition plan,” with the intention that the way forward be determined at the meeting of Consumer Affairs Ministers to be held in Sydney in December this year.
More information in Monday’s Travel Daily.
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