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WEDNESDAY, FEBRUARY 18, 1987
CONSUMERS ENTITLED TO FULL COMPENSATION'
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THE CONSUMER COUNCIL MAINTAINS THAT CONSUMERS AFFECTED BY THE COLLAPSE OF TRAVEL AGENCIES ARE ENTITLED TO FULL COMPENSATION FOR THE TOUR MONEY THEY HAD PAID WELL IN ADVANCE OF RECEIPT OF GOODS OR SERVICE, THE HON SELINA CHOW TOLD THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).
IN TABLING THE 1985-86 ANNUAL REPORT OF THE CONSUMER COUNCIL, OF WHICH SHE IS CHAIRMAN, MRS CHOW SAID THE COUNCIL WAS FULLY AWARE OF THE INADEQUACY OF THE PRESENT RESERVE FUND CREATED UNDER THE TRAVEL AGENTS ORDINANCE.
IT WAS ALSO AWARE OF THE STRONG SENTIMENTS OF MEMBERS OF THE TRAVEL INDUSTRY AT THE PROSPECT OF THEIR HAVING TO DIG INTO THEIR POCKETS FOR ADDITIONAL CONTRIBUTIONS TO THE FUND.
+ BUT LET IT NOT BE FORGOTTEN THAT WHEN THE PRESENT TRAVEL AGENTS ORDINANCE WAS BEING FORMULATED AND THE CONCEPT OF A RESERVE FUND WAS RAISED, IT WAS RECOGNISED THAT SUCH A FUND WOULD DERIVE ITS INCOME FROM AN ACROSS-THE-BOARD LEVY IMPOSED ON THE TRADE, AND WHICH SHOULD BE CAPABLE OF BEING USED TO MEET ALL LEGITIMATE CLAIMS,+ MRS CHOW SAID.
FURTHERMORE, IT WAS PROPOSED THEN THAT THE FUND SHOULD BE FINANCED BY A LEVY TO BE DETERMINED BY THE EXECUTIVE COUNCIL ANNUALLY ACCORDING TO NEED AND TOWARDS COMPENSATING VICTIMS OF ABSCONDMENTS AND OR FAILURES OF TRAVEL AGENTS, SHE SAID.
+THAT, AS I UNDERSTAND IT, WAS THE ADMINISTRATION'S EXPLANATION OF THE SPIRIT OF THIS LAW AND THE RESERVE FUND CREATED UNDER THE LAW, AND WAS ACCEPTED BY THE TRADE AS A PREFERABLE SOLUTION IN FAVOUR OF OTHER OPTIONS SUCH AS COMPULSORY INSURANCE OR DEPOSITS OF BOND, SHE ADDED.
IT WAS THEREFORE THE COUNCIL'S VIEW THAT VICTIMS OF THE RECENT CLOSURE OF TRAVEL AGENCIES MUST BE ACCORDED REDRESS IN ACCORDANCE WITH THE SPIRIT OF THE TRAVEL AGENTS ORDINANCE.
SHE ADDED THAT IN THE LONG TERM, A SOLUTION MUST BE FOUND TO EFFECTIVELY PROTECT HONG KONG'S OUTBOUND TRAVELLING PUBLIC.
CONSIDERATION HAD BEEN GIVEN TO THE SPECIAL CHARACTERISTICS OF THE TRAVEL INDUSTRY IN THAT THE MAIN BULK OF THIS BUSINESS WAS CONCENTRATED IN THE LAST QUARTER OF THE YEAR. THIS WOULD OBVIOUSLY MAKE IT DIFFICULT FOR ANY BOND SYSTEM TO ADEQUATELY COVER CLAIMS ARISING OUT OF THAT PARTICULAR PERIOD OF THE YEAR.
/+IT HAS