The Consumer Action Law Centre has echoed the Consumers Federation of Australia, CHOICE and the Queensland Consumers Association in calling on the nation’s Consumer Affairs ministers to consult with all stakeholders before making a decision on the future of the Travel Compensation Fund. Ministers will meet as part of the Legislative and Governance Forum on Consumer Affairs (previously the Ministerial Council on Consumer Affairs) in Adelaide on Friday 6 July 2012.
Gerard Brody, Director of Policy and Campaigns at Consumer Action said the fund, which is used to compensate would be travellers when travel agents collapse, should not be modified or abandoned without consulting consumers.
‘The fund is currently worth around $30 million, and was designed to provide consumers with compensation when a travel agent collapses – so, as far as we’re concerned, consumers should have a say in what happens to it.
‘The Ministerial Forum has acknowledged the need for consultation on the future of the consumer protections in the travel industry, but that was over a year ago. To our knowledge, consumer organisations haven’t been consulted and we’re now concerned the Forum may forgo this process.’
Mr Brody said Consumer Action’s legal advice phone line has received calls from Victorians whose travel plans have been thrown into turmoil after the collapse of travel agents or airlines and was well positioned to offer an insight into the consumer experience.
‘There may well be ways to improve consumer protection in the travel industry, but we’d like the Forum to put off any decisions until it has undertaken sufficient consultation and until we’ve had the opportunity to give a consumer perspective. Ultimately, the fund is paid for by consumers who purchase travel services from travel agents, so it’s only right that they’re properly considered before a decision is made.’