XN000022-1985-07-24 — Page 8

WEDNESDAY, JULY 24, 1985

THE SPECIAL NATURE OF THE TRAVEL BUSINESS, MA HIGGINSON SAID, ESPECIALLY IN RESPECT OF OUTBOUND ACTIVITIES, MADE MEMBERS OF THE TRAVELLING PUBLIC VULNERABLE TO TRAVEL AGENTS WHO ABSCONDED OR WHO BECAME INSOLVENT. IN OFFERING A FUTURE SERVICE TO HIS CLIENTS IN AN OVERSEAS DESTINATION, A TRAVEL AGENT ASSUMED A POSITION OF TRUSTEE WHEN HE RECEIVED MONEY IN ADVANCE FROM HIS CLIENTS. SINCE THE LATE 1970'S. THERE HAD BEEN SERIOUS ABUSES OF TRUST BY A NUMBER OF TRAVEL AGENTS WHO ABSCONDED AFTER HAVING RECEIVED DEPOSITS AND PAYMENTS FROM CLIENTS, HE SAID.

PARTS I AND III OF THE BILL REQUIRE A PERSON WHO WISHES TO CARRY ON OUTBOUND TRAVEL SERVICES IN HONG KONG TO OBTAIN A LICENCE AND SET OUT THE REGISTRAR'S POWERS IN RELATION TO LICENSEES.

+A PERSON WHO OPERATES AS A TRAVEL AGENT WITHOUT A LICENCE COMMITS AN OFFENCE PUNISHABLE BY A MAXIMUM FINE OF $100 000 AND TWO YEARS' IMPRISONMENT.

FOR

+ONLY A 'FIT AND PROPER PERSON' MAY OBTAIN A LICENCE. THE PURPOSE OF THIS BILL, A PERSON IS NOT FIT AND PROPER IF, AMONG OTHER THINGS, HE HAS BEEN CONVICTED OF AN OFFENCE INVOLVING FRAUD, CORRUPTION OR DISHONESTY, OR IS INSOLVENT, HE SAID.

AN APPLICATION FOR A LICENCE MIGHT BE REFUSED IF THE PREMISES TO WHICH THE APPLICATION RELATED WAS NOT SUITABLE FOR THE OPERATION OF THE BUSINESS OF A TRAVEL AGENT.

+THE LICENSING CRITERIA TO BE APPLIED IS NOT OVER-STRINGENT: SOME MAY REGARD IT AS TOO LAX, BUT IT IS NOT THE GOVERNMENT'S INTENTION TO STIFLE HEALTHY COMPETITION, HE SAID.

THE BILL PROVIDES FOR A PERSON WHO PUBLISHES ADVERTISEMENTS FOR A TRAVEL SERVICE TO BE SATISFIED, BEFORE SO DOING, THAT THE AGENT IS LICENSED OR EXEMPT FROM LICENSING,

+ THE AIM OF THIS MEASURE IS TO ELIMINATE ADVERTISEMENT FROM UNLICENSED AGENTS IN THE MEDIA. BEFORE PUBLISHING ADVERTISEMENTS FOR TRAVEL SERVICES, PUBLISHERS WILL BE ABLE TO CHECK WITH THE REGISTRAR'S OFFICE OR CONSULT THE GOVERNMENT GAZETTE THAT THE AGENT IS LICENSED. THE COOPERATION OF THE MEDIA IN THIS MANNER WILL DO MUCH TO HELP THE ORDINARY CITIZEN,+ HE SAID.

LEGISLATION ALONE, HE SAID, COULD NOT PREVENT ABSCONDMENTS OR INSOLVENCY.

PART IV OF THE BILL, THEREFORE, PROVIDES FOR THE ESTABLISHMENT OR A TRAVEL AGENTS' RESERVE FUND TO BE FUNDED PRIMARILY BY A LEVY IMPOSED ON EACH LICENSEE.

+THIS WILL BE A FUND OF LAST RESORT.

/+AN EX-GRATIA