LNP Economic Management "Make People Pay not Companies"

In 2014 intensive lobbying by travel agents got rid of protections for the traveling public when companies went bust. When Covid hit, many thousands of people lost huge amounts of money. Pressure is now growing for travel agents to set up mandatory trust accounts. Tasha May reports.

Cordato says that under the liquidation process, he liquidator (Deloitte), secured creditors such as banks and directors, staff and shareholders are all paid ahead of customers.

An earlier report to creditors released in September identified an account that was referred to as a ‘trust’ account, but in fact did not operate as a trust account should. Deloitte found “a co-mingling of operating cash flows and customer monies”.

Flight Centre similarly does not hold customers’ money in trust.

On its website, the terms and conditions state:

“Monies paid by you to us will not be held by us on trust for and on behalf of you and we may hold such monies in any account as we see fit.”

Consumer advocate Adam Glezer says: “Covid has exposed a number of cracks in consumer protection, specific to the travel industry.”

And if nothing changes, people will continue to lose their hard-earned money.

  The Callide power station, which a fire shut down in May.

Claims that power generators are behind electricity price spikes

Small electricity retail firm Enova claims that major power generators are withholding supply during peak demand in order to drive up wholesale electricity prices.