XN000022-1988-07-20 — Page 23

WEDNESDAY, JULY 20, 1988

21

COMPENSATION FOR TRAVELLERS GUARANTEED

章

THE REPLACEMENT OF THE TRAVEL AGENTS RESERVE FUND BY A NEW TRAVEL INDUSTRY COUNCIL RESERVE FUND WILL ENSURE THAT THERE ARE ADEQUATE FUNDS TO COMPENSATE AGGRIEVED TRAVELLERS, THE HON HILTON CHEONG-LEEN SAID IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MR CHEONG-LEEN WAS SPEAKING IN SUPPORT OF THE TRAVEL (AMENDMENT) BILL 1988.

AGENTS

TOUR

AND

UNDER THE BILL, A ONE PER CENT LEVY ON OUTBOUND PACKAGE PRICES WOULD FUND THE NEW TRAVEL INDUSTRY COUNCIL RESERVE FUND, CLIENTS OF ANY FUTURE DEFAULTING TRAVEL AGENTS MIGHT RECEIVE COMPENSATION EQUAL TO 70 PER CENT OF THEIR UNSATISFIED CLAIMS.

"IT HAS BEEN SUGGESTED THAT SINCE ALL TRAVEL AGENTS WILL IN FUTURE HAVE TO BE A MEMBER OF THE TRAVEL INDUSTRY COUNCIL THROUGH AN AFFILIATED ORGANISATION, CLIENTS SHOULD BE ENTITLED TO 100 PER CENT COMPENSATION INSTEAD OF ONLY 70 PER CENT.

"

1-

'AS THE NEW COMPENSATION ARRANGEMENTS REQUIRE SOME TIME TO SETTLE DOWN, I THINK THE QUESTION OF 100 PER CENT COMPENSATION COULD BE REVIEWED BY GOVERNMENT TWO YEARS FROM NOW," HE SAID.

FOR

MR CHEONG-LEEN URGED RESIDENTS WISHING TO PURCHASE TRAVEL TICKETS TO JOIN A TOUR FOR THEMSELVES OR THEIR FAMILIES TO FOLLOW THE PRINCIPLE OF "CAVEAT EMPTOR" AND ENSURE THAT THEY GOT GOOD VALUE MONEY AND NOT NECESSARILY BOUGHT THE CHEAPEST PRICED TICKET OFFERED.

THAT WAS

INDUSTRY

THE FACT THAT THE "RULES FOR ADMINISTERING THE TRAVEL COUNCIL RESERVE FUND" WOULD HAVE ΤΟ BE APPROVED BY THE FINANCIAL SECRETARY AND THAT PROVISION WOULD BE MADE FOR CLAIMS BY CLIENTS OF DEFAULTING AGENTS TO BE PROCESSED WITHIN A CERTAIN PERIOD OF TIME AFTER THE COURT RULING OR WINDING-UP DECISION HAD BEEN OBTAINED REPRESENTED ADDITIONAL PROTECTION FOR THE CONSUMER, HE POINTED OUT.

PRESENCE OF ONE LEGCO MEMBER, ONE CONSUMER COUNCIL REPRESENTATIVE AND ONE GOVERNMENT REPRESENTATIVE ON THE BOARD OF DIRECTORS ADMINISTERING THE TRAVEL INDUSTRY COUNCIL RESERVE FUND WOULD ENSURE THE IMPARTIAL OPERATION OF THE FUND.

MOREOVER, THE

MR CHEONG-LEEN SUPPORTED THE GOVERNMENT'S OBJECTIVE OF LIMITED GOVERNMENT INVOLVEMENT IN ORDER TO INTRODUCE SELF-REGULATION OF THE OUTBOUND TRAVEL INDUSTRY, AND AT THE SAME TIME ENSURE THAT THERE A REASONABLE DEGREE OF PROTECTION FOR THE CONSUMER.

"I WOULD HOPE THAT THIS BILL 15 EVOLUTION TOWARDS COMPLETE SELF-REGULATION,

WAS

THE FIRST PHASE IN

HE SAID.

THE

/HE SUPPORTED