Vote: Consumer Affairs
Key
Departmental Output Classes
D1 Policy Advice on Consumer Issues
D2 Information and Education Services for Consumers and Traders
D3 Administration of Trade Measurement Legislation
Output Class D1 - Policy Advice on Consumer Issues
Description
This output class provides advice on issues concerning: an effective legal and regulatory framework for business/consumer transactions; the promotion of improved market practices and effective redress; the administration of consumer and consumer safety legislation; the Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) and consumer policy developments internationally.
Outputs within this class are:
- supporting the passage of new consumer credit legislation through Parliament;
- supporting the passage of the Consumer Protection (Public Utilities and Computer Software) Bill through Parliament;
- supporting the passage of the Fair Trading Amendment Bill through Parliament;
- commencing a policy project on consumer protection law enforcement;
- providing policy advice on issues relating to the impact on consumers of electronic commerce and information communication technology;
- leading and contributing to the development of self-regulatory policies and mechanisms in consumer markets;
- preparing a final position on unsafe products that are under special exemption under the Trans-Tasman Mutual Recognition Arrangements;
- finalising safety regimes for baby walkers and bunk beds;
- monitoring the effectiveness of the consumer product and service safety legislation;
- developing and maintaining consistent and internationally acceptable consumer product and service safety standards for New Zealand;
- achieving product and service safety compliance through investigations;
- informing consumers and business about the safety of consumer products and services; and
- networking with other interested national and international organisations.
Quantity, Quality, Timeliness and Cost
Details of performance against the generic standards and measures for policy advice provided by the Ministry of Economic Development for this Vote (Quantity, Quality and Timeliness) can be found in the section Policy Advice and Ministerial Servicing.
Specific deliverables relating to the agreed work programme are outlined below.
Work Programme
All policy advice projects were delivered in accordance with the terms of the work programme as agreed with the Minister. Delays and changes to deadlines were negotiated with the Minister.
Key deliverables in the work programme for the year included:
Progress Fair Trading Amendment Bill through to instructing Parliamentary Counsel Office by September 2001.
Drafting instructions were provided to the Parliamentary Counsel Office on 11 October 2001. The Fair Trading Amendment Bill was introduced on 18 December 2001 with the first reading on 2 May 2002. The Bill has been referred to the Commerce Committee. The closing date for public submissions was 14 June 2002 and the report-back date is 1 November 2002.
Support passage of Consumer Protection (Public Utilities and Computer Software) Bill through Parliament by October 2001.
The Consumer Protection (Definitions of Goods and Services) Bill was introduced on 30 August 2001 with the first reading on 10 October 2001. Passage of the Bill was delayed beyond October 2001 because of other Parliamentary priorities.
Progress consumer credit law review through to instructing Parliamentary Counsel Office and onto the legislation programme by June 2002.
Cabinet approval for a new Consumer Credit Bill was obtained in July 2001. Drafting instructions were submitted to the Parliamentary Counsel Office on 30 November 2001. The Bill was approved for introduction by the Cabinet Legislation Committee on 13 June 2002.
Continue to focus on consumer issues in respect of electronic commerce with particular regard to the development and implementation of principles and mechanisms for consumer protection in a national and global marketplace by June 2002.
The Ministry of Consumer Affairs has been working with international organisations on building consumer confidence in e-commerce. So far, the focus has been on improving disclosure of pre-transaction information, resolving post-transaction disputes, and identifying and resolving problems in enforcing fair trading laws across national borders. The Ministry's goal is to facilitate internationally consistent approaches to consumer protection. This means that New Zealand consumers can transact on-line with reasonable confidence that their transaction will succeed and that, if problems arise, they have an avenue for redress. These initiatives are now culminating in development of guidelines and principles, which the Ministry will implement domestically over the next 12 months.
Support the ongoing development of self-regulatory mechanisms in banking, insurance and utility markets by June 2002.
During the year the Ministry:
- contributed to the development of the Electricity Complaints Commission, launched in August 2001;
- contributed to the development of the Fair Insurance Code, finalised in August 2001; and
- made a submission on the Code of Banking Practice in March 2002.
Consumer Safety
Prepare a final position on unsafe products that are under special exemption under the Trans-Tasman Mutual Recognition Arrangement by 30 June 2002.
The Ministerial Council on Consumer Affairs has agreed to mutual recognition for ingredient labelling of cosmetic products, fire extinguishers, flotation toys and swimming aids, and vehicle jacks. Only three product safety standards remain for resolution and a final 12-month special exemption has been sought from Heads of Government for sunglasses, child car restraints and tobacco product labelling. Consultation on the last two has commenced with the Land Transport Safety Authority and the Ministry of Health respectively. Final resolutions will also depend on reviews in these areas being undertaken in Australia at year-end.
Quantity
Number of standards:
- input during development or revision was provided on nine (10) voluntary standards; and
- five (5) mandatory standards were developed or revised.
Number of publications:
- five (3) Consumer Safety Newsletter articles were published; and
- two consumer fact sheets and one trader business note (5 consumer/trader fact sheets) were developed/maintained. In addition, a consumer poster and postcard were published highlighting consumer safety.
Publications are targeted to provide information for consumers and traders on current safety issues or changed requirements that arise in the course of the year. Forecast numbers were estimates only, based on anticipated issues.
Number of complaints handled:
- 107 (130) complaints were received.
Complaints actioned included:
- 28 (30) product cessations, recalls and safety modifications;
- 23 (20) referrals to other agencies for action;
- 38 (40) requiring ongoing monitoring; and
- 10 (10) media and publicity releases.
Quality
100% (100%) of media, publicity releases and fact sheets were technically correct, professional in appearance, and consistent with the Ministry's logo and brand.
90% (90%) of complainants surveyed indicated satisfaction with the consumer safety complaints handling system.
Cost
| | 2002
Main
Estimates | 2002
Supple-
mentary
Estimates | 2002
Actual | 2001
Actual |
|---|
| | $000 | $000 | $000 | $000 |
| Revenue: | | | | |
| Crown | 1,168 | 1,304 | 1,295 | 1,194 |
| Other | - | - | 4 | 6 |
| Total Revenue | 1,168 | 1,304 | 1,299 | 1,200 |
| Expenses: | | | | |
| Annual appropriations | 1,168 | 1,304 | 1,299 | 1,200 |
| Other appropriations | - | - | - | - |
| Total Expenses | 1,168 | 1,304 | 1,299 | 1,200 |
| Net Surplus/(Deficit) | - | - | - | - |
Revenue Other was derived from miscellaneous.
Major Budget Variances
The Supplementary Estimates increase reflects transfers of funding from Vote Industry and Regional Development ($65,000) to meet funding pressures associated with work on consumer policy issues; and from D2 Information and Education Services for Consumers and Traders in Vote Consumer Affairs ($71,000) to better reflect where costs associated with Vote Consumer Affairs activities were expected to be incurred.
Output Class D2 - Information and Education Services for Consumers and Traders
Description
This output class provides information and education for consumers, traders and community groups, including activities aimed at Māori, Pacific peoples and low-income consumers. While, in general, programmes focus on issues that most affect economically and socially disadvantaged consumers there is a role in consulting and providing information to all consumers on general and specific issues that have potential for widespread detrimental impact.
Outputs within this class are:
- provision of resources and/or programmes on consumer law for consumers, community advisory agencies and traders including specific programmes for low-income, Māori and Pacific consumers;
- provision of information to help consumers make comparisons between goods and services, prices, and production processes;
- provision of a hotline for community agencies and another two specifically available to Māori and Pacific consumers;
- response to consumer protection issues and problems that arise by providing information to consumers, encouraging compliance with the law by traders and/or contributing to appropriate policy developments; and
- development of strategies to enhance effective consumer representation on decision-making bodies.
Quantity, Quality, Timeliness and Cost
Information Resources and Programmes
Quantity
Resources and programmes for traders.
One resource for motor vehicle retailers on consumer law is to be published.
New legislation governing the sale of motor vehicles was not passed during the period, so the scheduled resource for motor vehicle dealers has not yet been published.
Resources and programmes for community advisory agencies.
The Ministry of Consumer Affairs delivered training for Budget Advisory and Citizens Advice Bureaux workers in the effective use of consumer resources provided to their agencies by the Ministry.
Training programmes delivered:
- one (1) series of training nationally for Budget Advisory Services; and
- one (1) series of training nationally for Citizens Advice Bureaux workers in accordance with schedules setting out the number, dates and location of sessions agreed with those agencies.
Hotline for community agencies and another two specifically available to Māori and Pacific consumers.
Number of Hotline calls handled:
- 2,806 (2,800) calls were received on the Hotline for community agencies. In addition:
- 477 calls were received on two hotlines promoted specifically to Māori and to Pacific consumers;
- 328 consumers called directly through Ministry of Economic Development reception; and
- 146 Consumer Advocacy Team cases involving complex problems were handled.
Resources and education for consumers.
Training programmes delivered:
- one (1) programme of activities targeting Māori that included using a range of iwi media, face-to-face contact and promotional resources to provide consumer messages to Māori. A key development was a relationship with the Māori Women's Welfare League to deliver consumer information to Māori through their regional branches.
- one (1) programme of activities targeting Pacific consumers that included using a range of Pacific peoples' media, face-to-face contact, including through a major Pacific Island church, and promotional resources to provide consumer messages to Pacific peoples.
Numbers of pieces of correspondence responded to:
- 892 (1,500) pieces of correspondence on consumer matters. (Demand driven.)
Information to help consumers make comparisons between goods and services, prices and production processes, i.e. the provision of a comparative information facility for domestic electricity consumers.
Resources provided:
- the Powerswitch database on the Consumers' Institute website, which is funded by the Ministry, provided comparative information for domestic electricity consumers;
- access to the Powerswitch database by all domestic consumers was available through Citizens Advice Bureaux; and
- one campaign (2) to promote the availability of the comparative information facility has been delivered. The second planned promotion was delayed until September 2002 due to the early election.
Strategies to enhance consumer representation on decision-making bodies.
Provide to the Minister a paper, making recommendations on consumer representation on decision-making boards and committees by 28 February 2002.
A paper was provided to the Minister by 28 February 2002 and approved by the Cabinet Appointments and Honours Committee. The paper was subsequently confirmed by Cabinet on 25 March 2002, with a report back with draft guidelines required by 31 July 2002. At 30 June 2002, guidelines had been drafted to meet this deadline.
Quality
Accuracy, practicality and legal basis of legal information and advice. Every consumer case handled is peer reviewed before it is closed. All written material for external audiences is peer reviewed for legal accuracy at draft stage. Where there are questions of legal interpretation such material is peer reviewed by the Ministry of Economic Development Legal Section.
- 100% of consumer cases handled were peer reviewed before being closed.
- 100% of written material for external audiences was peer reviewed for legal accuracy at draft stage.
- In 100% of cases where there were questions of legal interpretation such material was peer reviewed by the Ministry of Economic Development Legal Section.
Appropriateness of programmes for intended recipients.
- all resources and programmes produced were developed and implemented in consultation with representatives of the intended audience.
Resources and programmes for community advisory agencies are developed and delivered in consultation with key representatives of those agencies. Feedback is sought from those agencies on the appropriateness of the information and the delivery style.
- all such programmes were developed and delivered in consultation with key representatives of those agencies.
- feedback received from agencies on the appropriateness of the information and the delivery style:
- Citizens' Advice Bureaux satisfaction rating = 3.513
- Budget Advisory Services satisfaction rating = 4.
Responses to consumer protection issues and problems that arise by providing information to consumers, encouraging compliance with the law by traders and/or contributing to appropriate policy development.
Five issues relating to the application of consumer law were handled in the period.
All responses defined the issue(s) accurately and were legally accurate as agreed by a process of peer review.
Media releases on "issues" drew no negative media or stakeholder attention.
No issues arose where the Minister required further action.
Timeliness
Delivery of agreed programmes and resources. Timeframes are agreed upon with the Minister that are:
- achievable and realistic and are recorded in the annual business plan;
- progress towards achieving them is reported on when required;
- agreed deadlines are met or renegotiated if a delay is unavoidable or programme adjustments are required; and
- hotline calls are responded to in such a way that no complaints are received about response times.
Standards were met in 100% of cases.
Cost
| | 2002
Main
Estimates | 2002
Supple-
mentary
Estimates | 2002
Actual | 2001
Actual |
|---|
| | $000 | $000 | $000 | $000 |
| Revenue: | | | | |
| Crown | 1,826 | 1,712 | 1,674 | 1,817 |
| Other | 420 | 387 | 421 | 16 |
| Total Revenue | 2,246 | 2,099 | 2,095 | 1,833 |
| Expenses: | | | | |
| Annual appropriations | 2,246 | 2,099 | 2,095 | 1,833 |
| Other appropriations | - | - | - | - |
| Total Expenses | 2,246 | 2,099 | 2,095 | 1,833 |
| Net Surplus/(Deficit) | - | - | - | - |
Revenue Other was derived from electrical levies for 2001/2002 and miscellaneous income for 2000/2001.
Major Budget Variances
The decrease reflects a transfer of funding from 2001/2002 to 2003/2004 relating to the delay in commencement of the Powerswitch project (-$51,000); and a transfer to D1 Policy Advice on Consumer Issues in Vote Consumer Affairs (-$71,000) and to D3 Administration of Trade Measurement Legislation in Vote Consumer Affairs (-$43,000) to better reflect where costs associated with Vote Consumer Affairs activities were expected to be incurred; offset by a fiscally neutral adjustment recognising costs relating to the maintenance of the Powerswitch database by the Consumers' Institute ($18,000).
Output Class D3 - Administration of Trade Measurement Legislation
Description
This output class provides for the administration of trade measurement legislation.
Outputs within this class are:
- evaluating/approving new instruments submitted for trade use;
- assessing/accrediting companies and individuals to verify/certify measuring instruments and monitoring their performance standards;
- testing and verifying accredited companies' and inspectors' physical reference and working standards to nationally recognised standards;
- investigating complaints of short measurements;
- undertaking strategic inspection programmes to achieve an increase in compliance;
- issuing warnings and infringement notices;
- proceeding with prosecutions to achieve compliance;
- providing information to business and consumers about their obligations and rights; and
- maintaining contact with international legal metrology organisations.
Particular areas of focus for 2001/2002 were:
- implementing the Average Quantity System for pre-packaged goods by drafting technical regulations that came into force on 14 November 2001 and working with industry to achieve compliance to the new regime;
- organising and hosting the eighth Asia-Pacific Legal Metrology Forum in Auckland in November 2001; and
- increasing the focus on national measurement issues by progressing the recommendations from the July 2000 National Measurement Conference.
Quantity, Quality, Timeliness and Cost
Quantity
Numbers of applications processed
Standards tested (for accredited persons):
- 44 (44) companies' accredited persons' standards were tested.
Approvals processed:
70 (60) approvals were processed in total:
- 12 (10) full evaluations;
- 24 (25) overseas; and
- 34 (25) variants.
Accreditation applications processed:
- four (2) full; and
- 30 (20) extensions.
Volumes are demand driven.
Audits undertaken and complaints handled:
- 12 (22) full company surveillance audits were completed; (The lower number than forecast was due to increased volumes of approval applications and compliance inspection work during 2001/2002.)
- 107 (100) complaints were handled;
- 18 (40) infringement offence notices were issued; and
- 2 (2) prosecutions were commenced.
Numbers of publications
- two (4) media articles and publicity releases were issued;
- four (6) consumer/trader fact sheets were developed/maintained; and
- two (3) Trade Measurement newsletter supplements were published.
Numbers of publications are driven by issues, usually relating to non-compliance, that arise from inspection and complaints to the Ministry and require information to be promulgated to consumers and traders in the course of the year. Fewer issues than expected arose in the course of 2001/2002.
Quality
100% (100%) of accredited persons' standards' calibration and verification was undertaken in compliance with International Accreditation New Zealand (IANZ) approved procedures, as verified by IANZ annual audit.
100% (90%) of clients surveyed indicated satisfaction with the equipment pattern approvals process.
100% (90%) of clients surveyed indicated satisfaction with the private sector accreditation process.
90% of clients surveyed indicated satisfaction with the surveillance audits of accredited persons' process. All accredited persons were asked to complete feedback forms on surveillance audits but no responses were received in 2001/2002.
92% (90%) of complainants surveyed indicated satisfaction with the complaints handling process.
100% (100%) of cases prepared were accepted for prosecution by Crown Solicitors.
100% (100%) of media, publicity releases, fact sheets and newsletter supplements were technically correct, professional in appearance, and consistent with the Ministry's logo and brand.
Timeliness
100% (100%) of accredited persons' standards were calibrated and verified within 20 working days of receipt in a testable condition.
100% (100%) of work was completed on approval applications within 50 working days after the instrument became available.
100% (100%) of work was completed on accreditation applications within 50 working days of the applicant being ready for audit.
100% (100%) of full company surveillance audits were completed within the timeline set out in the surveillance policy manual.
100% (100%) of prosecutions met statutory timeframes.
100% (100%) of infringement offence notices met statutory timeframes.
Projects
Implement the Average Quantity System (AQS) for pre-packaged goods by drafting technical regulations that will come into force on 14 November 2001, and work with industry to achieve compliance to the new regime by 30 June 2002.
Technical regulations were published in the New Zealand Gazette and came into force on 14 November 2001. Meetings and education visits were held with industry representatives explaining the AQS during the last eight months of the 2001/2002 financial year. Business notes explaining the AQS were developed and published. The Ministry also worked with Australian officials and obtained further commitment by Australian State and Territory jurisdictions to introduce the AQS.
Organise and host the eighth Asia-Pacific Legal Metrology Forum (APLMF) in Auckland in November 2001.
The APLMF meeting held in November 2001 was attended by 43 delegates and 32 observers from 25 economies and five international organisations. A range of APLMF issues was progressed and feedback from the APLMF president and participants was positive. The purpose of the meeting was to progress harmonisation of legal metrology in the Asia-Pacific rim, and to build confidence in the capabilities of legal metrology authorities. This promotes assurance on the credibility of measurement systems in the Asia-Pacific area.
Increase the focus on national measurement issues by progressing the recommendations from the July 2000 National Measurement Conference.
The Ministry issued a report to the attending delegates on the outcomes of the National Measurement Conference. Follow-up work will involve working with the Measurement Standards Laboratory and International Accreditation New Zealand on strengthening the role of measurement to ensure that it meets the needs of industry and consumers to provide an efficient and effective system for trading goods and services by quantity.
Cost
| | 2002
Main
Estimates | 2002
Supple-
mentary
Estimates | 2002
Actual | 2001
Actual |
|---|
| | $000 | $000 | $000 | $000 |
| Revenue: | | | | |
| Crown | 1,342 | 1,385 | 1,385 | 1,346 |
| Other | 100 | 100 | 92 | 155 |
| Total Revenue | 1,442 | 1,485 | 1,477 | 1,501 |
| Expenses: | | | | |
| Annual appropriations | 1,442 | 1,485 | 1,477 | 1,501 |
| Other appropriations | - | - | - | - |
| Total Expenses | 1,442 | 1,485 | 1,477 | 1,501 |
| Net Surplus/(Deficit) | - | - | - | - |
Sources of Revenue Other
| 2002 | 2001 |
|---|
| | $000 | $000 |
| Approval, testing and accreditation fees | 91 | 86 |
| Consultancy fees | - | 63 |
| Miscellaneous | 1 | 6 |
| Total Revenue Other | 92 | 155 |
Major Budget Variances
The Supplementary Estimates increase reflects a transfer from D2 Information and Education Services for Consumers and Traders ($43,000) in Vote Consumer Affairs to better reflect where costs associated with Vote Consumer Affairs activities were expected to be incurred.
The variance between 2001/2002 and 2000/2001 for Revenue Other reflects one-off activities in 2000/2001 by the Trading Standards Service for the provision of advice on weight and measurement systems to the Singapore and Thai governments.
Back to Top