ABTA is considering the biggest shake-up in its
50-year history following a strategy meeting in which board members discussed
scaling back its regulatory role.
Newman Street bosses considered the step
after ABTA head of finance Mike Monk expressed concern frauds and failures were
placing an intolerable burden on the association’s funds.
ABTA chief executive Ian Reynolds confirmed a
sub-committee had been set up to develop ideas agreed at the strategy meeting
but denied plans to scrap bonding altogether.
“We reviewed all aspects of our strategy and agreed
priorities for the next 12 months. One of our goals is to promote confidence in
ABTA members by maintaining our regulatory framework. There is no suggestion we
will scrap it but it is being reviewed and there
may be some fine-tuning. We are not about to commit
suicide.”
If ABTA did scale back its regulatory role, the
Government could beef up the role of the Civil Aviation Authority, leave the
public to insure themselves against the failure of their holiday provider or
set up a new scheme altogether.
ABTA would concentrate on enforcing its code of
conduct, lobbying Government and possibly developing commercial ties with the
consortia.
CAA group director of consumer protection Helen
Simpson said change to its remit would require primary legislation and
suggested change by ABTA might prompt the Government into radical action on
bonding.
“I don’t know the details of ABTA’s thinking but the
Government might want to consider the whole scenario.”