Ministers approve Travel Industry Transition Plan
Consumer Affairs Ministers from across the country have just announced the implementation of the Travel Industry Transition Plan (TITP), which includes the wind-up of the Travel Compensation Fund.
The plan provides for a staged phasing out of the existing National Scheme, commencing with the proposed cessation of prudential supervision in mid-2013, followed by the repeal of travel agents’ legislation by mid-2014.
The Travel Compensation Fund will be wound up, with a proportion of the remaining reserve funds to be used for a range of purposes including stakeholder communication and education initiatives; a one-off grant for consumer research and advocacy purposes; a grant to fund development of an industry-led accreditation scheme by a national working party of government, industry and consumer representatives; and paying any transitional compensation claims.
The plan also provides for reliance on the Australian Consumer Law and other laws “as well as industry-led regulatory mechanisms and market-based remedies such as credit card charge backs” to protect consumers.
“In implementing the plan, governments and agencies will work with industry to ensure there is appropriate disclosure of consumer risk in agency transactions and in developing commercial solutions to address business insolvency,” a communique from the Consumer Affairs Forum meeting held today states.
The TITP will commence from 01 July 2013, with a view to full implementation in 2015.
The communique says that adopting the TITP was a majority decision, and that all jurisdictions will cooperate to achieve implementation of the plan, but “South Australia and Western Australia will consider their position in light of the national scheme no longer operating”.
AFTA ceo Jayson Westbury said the changes are “sensible reforms that will deliver a fair, efficient and competitive travel industry that meets the needs of all stakeholders into the future.
“This is a big day for the travel industry, we have all been waiting patiently for this reform and if not for the courage and conviction of a few determined Ministers, travel agents of Australia may have been left hanging,” he said.
“I am delighted that the hard work, dedication to the policy and commitment of the AFTA board and members have meant that united we can make a difference,” Westbury added.
Details about the specific nature of the transitional arrangements will be released over the coming weeks and months, he concluded.
More information in Monday’s Travel Daily.