Page 95 - Week 01 - Tuesday, 12 February 1991

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Since I raised that matter, the Government responded by suggesting that a trust fund may be the best way of regulation. That is directly contrary to what the industry has told me. They said that that would be very intrusive, would involve a high degree of government management, and would really prevent them from at least using that cash flow, which they depend on, from their three-, six- or twelve-month memberships.

Since those remarks were reported in the media, I have been contacted again by persons in this industry who had noted that the Attorney had said that the Consumer Affairs Bureau was investigating the collapse of the Cardio Fitness Club and who were hoping that this would be a precursor to some more general inquiry on the part of Consumer Affairs about regulation of the industry. They were asking me, "Whom can we talk to in government? Whom can we talk to in Consumer Affairs about our ideas for regulation?". I endeavoured to find out; but my inquiries were fruitless in that I was told that the collapse of the Cardio Fitness Club was being investigated but that there is no general inquiry into, or even a preliminary look at, regulation of the industry.

I urge the Government to look at this matter. As I say, it is an unusual set of circumstances, perhaps, in that an industry is coming to government and saying, "Look, we really want to talk seriously about a degree of regulation". It is obviously in the industry's interest, because when one organisation fails there is a tendency towards a lack of confidence in the industry. The industry - or at least certainly the players that I have spoken to - is very keen to avoid that by constructively talking with the Government on that point, and I would urge the Attorney-General, in his capacity as Minister for consumer affairs, to send people from his bureau out to talk to the industry and look very seriously at what may well be a very valuable form of consumer protection, because a lot of Canberra citizens are forking out their money in health and fitness clubs. A lot of them are young people, just entering the work force perhaps, and when an organisation collapses, as did the Kambah club, it affects a lot of people who, in good faith, have tried to go out and do something about their health, in that they have ended up losing their money. The industry wants to talk and I hope that the Government will take up that invitation.


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