"In relation to Tourism:

(1) Are you aware of concerns in the tourism industry about the decision by Impulse Airlines to cease paying commissions on regional air services;

(2) How do you plan to address and help resolve these problems; and

(3) Are you also aware that because Impulse Airlines is not a member of IATA, the insurer for the Australian Federation of Travel Agents, travellers with Impulse are not included in IATA's insurance cover."

(1) I am aware of the concerns expressed by travel agents that Impulse Airlines is no longer paying commissions. I have had representations from twelve travel agents to date, from locations including not only the ACT and east coast areas but also from Perth, Winnellie in the Northern Territory, Toowoomba and Port Pirie in South Australia, although Impulse does not have services to these locations.

These representations all raise much the same objections, which I understand were raised by the Australian Federation of Travel Agents Ltd (AFTA) in a recent letter to its members suggesting that they mount a letter-writing campaign. In that letter I understand that AFTA recommends to its members that they advise clients not to use Impulse, as long as Impulse refuses to pay commissions.

I understand that Impulse has no objection-and in fact, encourages-travel agents to add a fee to the Impulse fare when the agent does the booking. This is a much more transparent system for the client, who can make his or her own decision on whether that agent, or any agent, is providing value for money when they offer a booking service. I understand that some agents already work with Impulse on this basis.

Impulse believes that the greatest benefit to the customer is for Impulse to provide the lowest fare possible consistent with maintaining a viable business. In this context, the main benefit to the ACT and regional Australia is the provision of competitive air services. This will greatly increase the number of people who can afford to fly, and increase the business opportunities for travel agents in both country and city areas to provide value-added packages for clients.

In adopting this approach Impulse is providing greater transparency and client benefit in terms of lower airfares. I understand that Impulse continues to talk to AFTA in an attempt to reach a position which will be of benefit to both Impulse and the travelling public as well as travel agents and AFTA.

(2) The issue is essentially a commercial one. Clearly, it is not in Impulse's interests to put itself out of business. Impulse needs to make decisions on a commercial basis. We will continue to monitor developments in the industry as we have a stake in Impulse's continued ability to deliver benefits to the ACT community, but unless one of the parties misrepresents its position to the public I do not consider it appropriate for government to intervene.