ABTA chief
executive Ian Reynolds has warned agents to comply with its compulsory
insurance training scheme or jeopardise the industry’s future self-regulation.
Reynolds
faces crunch talks with the big four to diffuse a row over the cost of the
scheme. The row – exclusively revealed by Travel Weekly (February 2) – erupted
after it emerged the initiative, run by TTC Training, could cost the big four
£400,000.
ABTA claimed
victory last year when the Financial Services Authority withdrew its bid to
regulate insurance sales through agents after admitting there was no evidence
policies were mis-sold.
The
training scheme was launched in November in the hope an industry-wide take-up
would demonstrate a serious attempt by ABTA to maintain standards.
But
Reynolds warned: “Unless we can show tangible evidence of improvement, the
Treasury will be minded to bring in the FSA in 2007 when they review it.” He
said evidence of mis-selling coupled with low consumer confidence would count
against the trade.
Travel
Counsellors chairman David Speakman said his company will not comply with the
scheme in its present form, which could cost it £30,000.
He said:
“ABTA has got it wrong, perhaps we should wait until it’s got it right.”
Co-operative
Travel Trading Group chief operating officer Mike Greenacre is anxious to sort
out problems so third-party regulation is not brought in, but added the current
cost for the CTTG is “totally prohibitive”.
Thomas
Cook director of trade relations Ian Derbyshire would not confirm compliance,
but said: “We represent our views to the ABTA board.”
TUI UK has
admitted it is in discussions with ABTA after reports it was going to back out,
while MyTravel is in talks about how to implement the training
cost-effectively.