17
WEDNESDAY, JULY 20, 1988
"EVERY EFFORT HAS BEEN MADE TO ENSURE THAT
THE TRADE OPEN TO NEWCOMERS SO THAT CONSUMERS WILL CONTINUE TO HAVE CHOICE OF TRAVEL AGENTS,
干呻
HE SAID.
REMAINS
A WIDE
MR JACOBS SAID ABOUT HALF OF THE 1,000 LICENSED TRAVEL AGENTS WERE ALREADY MEMBERS OF THE TIC.
SO FAR, SOME 300 TRAVEL AGENTS, WHO WERE NOT MEMBERS OF THE TIC PREVIOUSLY, HAD APPLIED TO JOIN.
THE REMAINDER WERE EXPECTED TO JOIN THE TIC IN THE NEXT FEW MONTHS AS THEIR CURRENT LICENCES EXPIRED.
"I AM HAPPY TO BE ABLE ΤΟ INFORM THIS COUNCIL THAT THE RESPONSE FROM INDIVIDUAL AGENTS CONFIRMS THAT THE NEW MEASURES HAVE WIDE SUPPORT FROM THE TRADE, HE SAID.
MR JACOBS SAID AN IMPORTANT ELEMENT OF THE NEW SCHEME WAS THE ESTABLISHMENT OF A NON-STATUTORY COMPENSATION SCHEME TO REPLACE THE TRAVEL AGENTS' RESERVE FUND, WHICH WAS EXPECTED TO PROVIDE A BETTER CUSHION FOR CUSTOMERS OF ANY TRAVEL AGENT WHO MIGHT DEFAULT.
HE NOTED THAT THE TIC RESERVE FUND CONSTITUTION PROVIDES FOR SEVEN OF THE 11 TIC RESERVE FUND BOARD MEMBERS TO BE APPOINTED FROM OUTSIDE THE TRADE AND FOR ALTERNATE DIRECTORS ΤΟ BE APPOINTED TO STAND IN, WHEN NECESSARY.
"
"THE POLICY OF THE FUND WILL BE то PROVIDE 70 PER CENT EX-GRATIA COMPENSATION TO CUSTOMERS OF DEFAULTING TRAVEL AGENTS, HE SAID.
"FULL COMPENSATION WILL NOT BE PROVIDED MAINLY BECAUSE WE FEEL THAT CUSTOMERS SHOULD BEAR SOME RESPONSIBILITY WHICH ANYONE ENTERING INTO A COMMERCIAL CONTRACT OF ANY SORT WOULD NORMALLY HAVE TO ACCEPT.
COUNCIL HAS BEEN CONCERNED ABOUT
"I KNOW THAT THE CONSUMER
THIS POINT.
LIQUIDATION OR BANKRUPTCY
"BUT I MIGHT ADD THAT IN MOST PROCEEDINGS, THERE IS LITTLE LIKELIHOOD THAT AN ORDINARY CREDITOR WOULD RECOVER ALL THE MONEY OWING TO HIM. WHAT WE HAVE PROPOSED IS, I SUGGEST, A REASONABLE BALANCE BETWEEN THE VARIOUS INTERESTS INVOLVED.
MR JACOBS NOTED THAT MEMBERS OF THE AD HOC GROUP CONVENED BY DR THE HON HENRIETTA IP PROPOSED THAT A TIME LIMIT SHOULD BE STIPULATED FOR THE FUTURE PROCESSING OF APPLICATIONS FOR COMPENSATION, SO THAT CUSTOMERS OF DEFAULTING AGENTS WOULD AN ANSWER WITHIN A FINITE TIME.
1 EX-GRATIA
BE GIVEN
/THIS SUGGESTION