Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Hansard source

Thank you for the question because it does provide me with the opportunity to highlight the actions that have been taken on this matter in the context of Australia's new consumer law, which came into effect on 1 January this year. I am sure all senators and those listening are aware that Tiger Airways Australia was banned from flying by the Civil Aviation Safety Authority, CASA, with immediate effect on 2 July on the basis of serious and imminent risk to air safety. CASA announced on 6 July that it will apply to the Federal Court to extend the ban until 1 August 2011 on the basis it needs more time to investigate the operations of the company.

Initially the company continued to sell tickets to consumers for flights to commence from the end of the initial ban period, being Saturday, 9 July. Both the ACCC and the state and territory consumer regulators did take prompt action under Australia's new Consumer Law. They contacted, spoke to and informed the company to notify it that selling tickets to consumers without a reasonable expectation of being able to provide services would amount to a contravention of Australia's Consumer Law. As I said, this is new national law; it was introduced from 1 January this year. It does highlight single national law: we were able to see with regard to this matter prompt, nationally consistent action—and I emphasise nationally consistent action—which may not have been possible under previous legislation. So I think it does illustrate that the new national Consumer Law can operate effectively. (Time expired)