Mrs BRAHAM - 1994-11-22
As the Attorney-General and other members are aware, recent media reports in Alice Springs indicated that Alice Springs tour operator, Visitours, has closed its doors. Can the Attorney-General outline what steps are being taken to protect the interests of consumers and tour operators?
ANSWER
Mr Speaker, I thank the member for her question. I am well aware that she has been in touch with my office since the news first broke to ascertain on behalf of her constituents and residents of Alice Springs exactly what exposure they may be facing.
The Office of Consumer Affairs has been making a list of all the people who have contacted that office. Some 8 consumers have contacted the office to date but, as we understand it, none of them is likely to be out of pocket. However, some tour operators may have some level of exposure. The level of that exposure has yet to be defined because
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there are a number of actions on foot currently, one of which is an application before the Supreme Court to appoint a liquidator so that the company can continue to operate. That is a far better proposal than to slam the doors and walk away from it, which seems to have been the current owners' approach. I understand that the creditors are not prepared to allow that to happen voluntarily.
In terms of legislative protection, there is provision within the Consumer Affairs Act for a scheme of registration for tourism industry operators who sell packages, air fares etc. Possibly, that scheme could link in with an underwriting or fidelity fund arrangement. Details have been explored with the industry for 6 or 9 months, dating back to the time of the former Attorney-General. Coincidentally, a meeting is to be held on 29 November at which we trust that final details, such as cost of registration and cut-off points, will be finalised. That could include whether small operators will be exempt from the scheme and, in that regard, a limit of $100 000 turnover a year might be the cut-off point.
Once those details are finalised, we will be able to introduce fairly readily regulations that will put in place a code of conduct, including insurance provisions etc. The tourism industry has been dealing with this matter over the last 6 to 9 months, and we understand that there is now fairly common agreement that it should become compulsory, firstly, to be registered and, secondly, to carry the appropriate insurances. In the meantime, more work will be done in the forthcoming period to assess the exact position of operators who may be exposed. However, at least we understand that no consumers - that is, members of the travelling public - will be exposed or out of pocket.
Page 289
ANSWER
Mr Speaker, I thank the member for her question. I am well aware that she has been in touch with my office since the news first broke to ascertain on behalf of her constituents and residents of Alice Springs exactly what exposure they may be facing.
The Office of Consumer Affairs has been making a list of all the people who have contacted that office. Some 8 consumers have contacted the office to date but, as we understand it, none of them is likely to be out of pocket. However, some tour operators may have some level of exposure. The level of that exposure has yet to be defined because
Page 288
there are a number of actions on foot currently, one of which is an application before the Supreme Court to appoint a liquidator so that the company can continue to operate. That is a far better proposal than to slam the doors and walk away from it, which seems to have been the current owners' approach. I understand that the creditors are not prepared to allow that to happen voluntarily.
In terms of legislative protection, there is provision within the Consumer Affairs Act for a scheme of registration for tourism industry operators who sell packages, air fares etc. Possibly, that scheme could link in with an underwriting or fidelity fund arrangement. Details have been explored with the industry for 6 or 9 months, dating back to the time of the former Attorney-General. Coincidentally, a meeting is to be held on 29 November at which we trust that final details, such as cost of registration and cut-off points, will be finalised. That could include whether small operators will be exempt from the scheme and, in that regard, a limit of $100 000 turnover a year might be the cut-off point.
Once those details are finalised, we will be able to introduce fairly readily regulations that will put in place a code of conduct, including insurance provisions etc. The tourism industry has been dealing with this matter over the last 6 to 9 months, and we understand that there is now fairly common agreement that it should become compulsory, firstly, to be registered and, secondly, to carry the appropriate insurances. In the meantime, more work will be done in the forthcoming period to assess the exact position of operators who may be exposed. However, at least we understand that no consumers - that is, members of the travelling public - will be exposed or out of pocket.
Page 289
Last updated: 09 Aug 2016