John Alexander (Bennelong, Liberal Party) Share this | Hansard source

by leave—On behalf of the member for Menzies, I move:

That this House:

(1) notes that:

(a) the COVID-19 crisis has caused the cancellation or delay of flights and other travel for many Australians;

(b) many Australians have experienced considerable difficulty in obtaining the refund of monies paid for travel, accommodation and other tourist activities;

(c) while many travel agents have acted with integrity and fairness, some have not done so; and

(d) the COVID-19 crisis has exposed the absence of consumer protections for Australian travellers; and

(2) urges Australian governments to enact legislation that:

(a) provides consumers with a right to a refund if the service they paid for hasn't been fulfilled due to situations outside of human control;

(b) establishes mandatory trust accounts for all travel agents, including online travel agents;

(c) provides for transparent fee for service for all travel agents with no hidden costs; and

(d) ensures that supplier terms and conditions are provided to customers by travel agents.

Obviously I am not the member for Menzies, unless he's had a late growth spurt! Unfortunately, he is unwell—there is a doctor in the House today—so I have taken his spot and wish him a quick recovery. I was already going to speak on this motion, however, as this is an issue which I know has affected many people in my electorate of Bennelong, and I'm very happy to move the motion in his name.

The surprises of 2020 affected everybody in some way. We have spoken a lot in this place about the businesses that struggled, and there's been plenty said about the way our health system has scrambled and adapted. We have sympathised with cafe owners, praised nurses and supported the unemployed. One of the more pervasive casualties of 2020 is confidence—not that we aren't confident we will get through this; that confidence remains high. Rather, it is the uncertainty about when we will return to normal. Everyone knows someone who has made a plan where the light was visible at the end of the tunnel, only to have it dashed as their town returned to a snap lockdown. Victorians are feeling this acutely right now. Many of these dashed plans have been in travel. Australia is a nation of tourists, and when borders shut, planes stopped flying and cruise ships remained in the dock there were hundreds of thousands of people who were left out of pocket. Many of them were subsequently made whole again through refunds. Some were issued with vouchers that they still haven't been able to use. Regrettably, some will not see all of their money again.

The ACCC highlights that the terms and conditions relating to refunds or vouchers differ, and the rules at the time of the booking are those which must be followed. Terms and conditions vary between travel providers, and in some cases consumers might not be entitled to a full refund or any refund of their booking. But the pandemic has made clear the need for an overarching system and to bring some transparency to the market. Over the past year, I have been contacted by constituents who have experienced difficulties in receiving credits or refunds for trips that were cancelled, postponed or disrupted due to COVID-19. Holidays months and even years in the planning could no longer proceed. What would have been times of great joy, excitement and happy memories unfortunately turned to stress, panic and financial loss.

As an example, I recently met with a constituent whose trip to Europe in March last year was quickly turned into panic as the rapidly escalating COVID-19 outbreak, particularly in Italy, saw their trip disrupted and led to them ending their holiday and having to purchase their own flights back home. Even after all this time and after raising their case with the ACCC, Fair Trading and NCAT, they are still fighting to recoup their losses for a holiday that wasn't able to happen. The financial toll is one thing, but the emotional and mental impact these types of experiences have on individuals is equally, if not more, significant.

It is worth stating clearly, as this motion does, that many of the tourism operators and providers are honourable and reputable and have sought to do the right thing here. I have spoken in this place previously about the hardships faced by travel agents across Bennelong, and I stand by those words and sentiments today. We must create a system that not only insulates future travellers from future upheaval but also gives businesses the certainty that they need to survive and the openness to maintain the faith of their customers.

It has been pointed out that Australia is fairly isolated and outdated in our consumer laws in this area. In the EU, for example, anybody who has a flight cancelled or delayed by 90 minutes, which can't be rerouted, is automatically provided with a full refund. Similarly in the United States, any cancelled flight results in an automatic refund of the cost. Creating similar laws here shouldn't be too difficult.

We are rightly proud of the consumer protections in this country. They are seen as being beneficial to business and beneficial to consumer confidence. If there is one thing that could give our struggling travel industry a shot in the arm, it is an injection of consumer confidence. Enacting these laws could provide the confidence that Australians need to get travelling again and get our travel companies back on their feet.

See this speech in context