XN000022-1987-12-30 — Page 6

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WEDNESDAY, DECEMBER 30, 1987

THE COMPENSATION FUND WILL BE ADMINISTERED

AND MANAGED BY A BOARD OF TRUSTEES. IN ADDITION TO REPRESENTATIVES OF TIC AND THE GOVERNMENT, THE TRUSTEES WILL INCLUDE A MEMBER OF THE LEGISLATIVE COUNCIL AND OTHER COMMUNITY LEADERS.

IN FUTURE, CUSTOMERS OF TRAVEL AGENTS WHICH DEFAULT WILL RECEIVE COMPENSATION OF 70 PER CENT. FULL COMPENSATION WILL NOT BR MADE BECAUSE IT IS CONSIDERED THAT CONSUMERS SHOULD ACCEPT SOMB RESPONSIBILITY FOR THEIR CHOICE OF A TRAVEL AGENT.

TO THE TRAVEL TRAVEL SERVICE

TIC HAS ALSO AGREED TO MAKE A CONTRIBUTION AGENTS' RESERVE FUND TO COMPENSATE AUSTRAVEL AND P.C. CLIENTS. THE RESERVE FUND WILL BE WOUND UP AFTER THE SETTLEMENT OF CLAIMS OUTSTANDING FROM PREVIOUS DEFAULTS.

THE REQUIREMENT TO JOIN TIC WILL BE MADE A CONDITION OF THE TRAVEL AGENT'S LICENCE AND THE TRAVEL AGENTS ORDINANCE WILL BB AMENDED TO PROVIDE FOR THIS.

TRAVEL AGENTS WHO HAVE NOT YET JOINED TIC WILL BE GIVEN SEVERAL MONTHS IN WHICH TO APPLY FOR MEMBERSHIP AND TO RE-ARRANGE THEIR BUSINESS MATTERS IF NECESSARY.

THE NEW LICENSING CONDITION WILL BE APPLIED FROM ABOUT MID-1988 ONWARDS BY WHICH TIME THE NEW ARRANGEMENTS ARE EXPECTED TO BE FULLY OPERATIONAL. THE ACTUAL DATE WILL BE NOTIFIED LATER.

AFTER THE SPECIFIED DATE, ALL TRAVEL AGENTS WHO ORGANISE GROUP PACKAGE TOURS WILL BE REQUIRED TO CONTRIBUTE THE ONE PER CENT LEVY TO THE TIC COMPENSATION FUND.

IN THE INTERIM, TIC HAS AGREED THAT SHOULD ANY TRAVEL AGENT DEFAULT DURING THE TRANSITIONAL PERIOD, THE CLAIMS OF CUSTOMERS WOULD BE MET BY THE NEW COMPENSATION FUND WHEN IT IS ESTABLISHED. THE GOVERNMENT AND TIC WILL ACT VIGILANTLY TO PREVENT THE OCCURRENCE OF ANY SUCH DEFAULTS.

TO IMPLEMENT THE VARIOUS ARRANGEMENTS, TIC WILL REVISE THEIR CONSTITUTION AND THE REVISED CONSTITUTION WILL HAVE TO BE APPROVED BY THE GOVERNMENT BEFORE IT IS ADOPTED.

THE CONSTITUTION WILL STIPULATE THAT CERTAIN PROVISIONS WHICH ARE CENTRAL TO THE SCHEME OF SELF-REGULATION, SUCH AS THE MEMBERSHIP CRITERIA AND COMPENSATION ARRANGEMENTS, CANNOT BE REVISED WITHOUT PRIOR APPROVAL OF THE GOVERNMENT.

THE

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