XN000022-1987-02-18 — Page 50

WEDNESDAY, FEBRUARY 18, 1987

48

GROUP TO EXAMINE VIEWS OF TRAVEL AGENTS

*****

THE ADVISORY COMMITTEE ON TRAVEL AGENTS HAS FORMED A WORKING GROUP TO EXAMINE VIEWS SUBMITTED BY THE INDUSTRY REGARDING ITS FUTURE.

THE GROUP WILL SOON MAKE RECOMMENDATIONS TO THE COMMITTEE ON HOW THE PROPOSALS COULD BE ADOPTED IN LINE WITH GOVERNMENT'S STATED POLICY OBJECTIVES TOWARDS THE INDUSTRY.

CHAIRMAN OF THE ADVISORY COMMITTEE, MR RAFAEL HUI, TOLD MEMBERS TODAY (WEDNESDAY) THAT THE GOVERNMENT'S TWO BASIC PRINCIPLES WERE: GIVEN THE NATURE OF HOW THE TRAVEL AGENT INDUSTRY OPERATES THE GOVERNMENT IS OF THE VIEW THAT, ULTIMATELY, SELF- REGULATION IS THE MOST SUITABLE AND PRACTICAL FORM OF PROTECTION FOR BOTH CONSUMER AND THE INDUSTRY; AND

*

* WHEN SEEN IN THE OVERALL ORDER OF IMPORTANCE TO THE GENERAL PUBLIC INTEREST, ANY MEASURE BY MEANS OF LEGISLATION OR OTHERWISE, WHICH INVOLVES PRUDENTIAL SUPERVISION BY GOVERNMENT OVER THE INDUSTRY, WOULD NOT BE APPROPRIATE. THE DEGREE OF REGULATION (AND HENCE PROTECTION EXTENDED TO CONSUMERS) OVER THE FINANCIAL SECTOR, FOR INSTANCE, SHOULD NOT BE SIMILARLY APPLIED TO THE TRAVEL AGENT INDUSTRY.

DURING TODAY'S MEETING THE COMMITTEE WAS GIVEN UPDATED REPORTS ON THE REVOKING OF TRAVEL AGENTS LICENCES TO CHOICEST HOLIDAY TOURISM INVESTMENT LIMITED AND AUSTRAVEL COMPANY LIMITED.

THE COMMITTEE ALSO DISCUSSED THE POSSIBLE MEANS OF COMPENSATING AFFECTED CLIENTS OF THE TWO AGENCIES AS WELL AS THE POSITION OF THE TRAVEL AGENTS RESERVE FUND.

IT NOTED THAT THE GOVERNMENT WILL HAVE FURTHER CONSULTATION WITH THE INDUSTRY WITH A VIEW TO COME TO AN APPROPRIATE ARRANGEMENT ON HOW THE RESERVE FUND CAN BE REPLENISHED.

IN THE MEANTIME, IT WAS ALSO NOTED THAT UNTIL THERE ARE FIRM PROPOSALS ON HOW THE INDUSTRY CAN BE MORE FIRMLY REGULATED, THE REGISTRAR OF TRAVEL AGENTS WILL CONSULT VERY CLOSELY WITH THE TRAVEL INDUSTRY COUNCIL AND THE CONSUMER COUNCIL ON REGULATORY ACTIONS AND WILL EXERCISE HIS POWERS ON THE BASIS OF THE LAW.

/49

Page 50Page 51