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ABTA’s insurance training scheme could be scrapped due to lack of support, chief executive Ian Reynolds has said.

Board members have yet to rubberstamp the scheme for inclusion in the association’s code of conduct, which means it is not compulsory for members to take part.

Reynolds said larger operators were still unhappy with the cost, despite board members approving its compulsory status at a meeting last July.

“Clearly if the employers of half the country’s travel agents aren’t behind this, it’s difficult for us to go ahead,” admitted Reynolds.

Reynolds met with First Choice, Thomas Cook and MyTravel last week to thrash out a new deal on price.

One proposal was to reduce the cost for companies that have more than 5,000 staff by £3 per head to £17 if they host an examination on their own premises - overseen by a TTC invigilator - for at least 70 students.

First Choice UK distribution managing director John Wimbleton said it was looking at ways to reduce the cost.

However, he thought it unlikely the scheme would go ahead, claiming it was more appropriate to have regulation by a body such as the General Insurance Standards Council. The GISC is being replaced by the Financial Services Authority from January 2005.

Reynolds admitted he was not certain whether the scheme would go ahead. Agents who have already committed to training will not be refunded if it is scrapped, he added.

The Treasury ruled last year the sale of travel insurance did not have to be regulated if included as part of a package, but the decision will be reviewed in 2007.

ABTA is due to meet TUI on March 23 ahead of ABTA’s board meeting on March 24.

Thomas Cook director of trade relations Ian Derbyshire said: “We have all been investigating how the fees can be reduced.”

Airtours Holidays and Going Places sales and retail commercial director Steve Barrass said: “It’s something we could do ourselves as we have our own training facilities.”