Issue Date:  -  Tuesday, 24 July 2001

Prosecution Success Restores Scouts' Funds

Scouts Victoria will receive almost $90,000 after the Department of Consumer and Employment Protection successfully prosecuted a Kardinya man for operating as a travel agent without holding a licence.

Stuart James Bromley, 40, of Davies Crescent, Kardinya, who trades as the International Arts Foundation Incorporated and International Museum (Aust Branch) Inc. was found guilty of two charges under the Travel Agent's Act.

Consumer Protection found that in 1999 Mr Bromley approached Scouts Australia (Victoria Branch) proposing a trip to Kakadu for its members in April 2000.

He distributed brochures through the Scouts Victoria organisation offering the seven day trip, which involved the charter of an aeroplane from Melbourne to Darwin and bus services from there to Kakadu National Park.

Payment in excess of $200,000 was made direct from participating Scouts to the Arts Foundation, however, the trip was delayed due to a cyclone, and later cancelled. Most of the funds were never retrieved.

Mr Bromley was found guilty under Section 7(1) of the Travel Agent's Act of carrying on business as a travel agent while not holding a licence and Section 7(3) of holding himself out as carrying on business as a travel agent while not holding a licence.

Mr Bromley was fined $15,000 and was ordered to pay the Victorian Branch of the Scouts Association $89,000 plus legal cost of $9,000.

Consumer Protection Commissioner Patrick Walker highlighted why dealing with an unlicensed travel agent was such a concern.

"Unless consumers deal with a licensed agent, they don't have the protection of the Travel Compensation Fund, a national scheme that supervises the financial status of licensed travel agents," Mr Walker said.

"This fund protects consumers if an agent fails to account for any money they have paid, such as when an agency collapses or a tour operator cancels a trip," he said.

"In this instance, Mr Bromley was not a licensed travel agent. The loss suffered by Scouts Victoria, which took over the debt on behalf of participants, could not be recovered through the Travel Compensation Fund," Mr Walker said.