Vote: Consumer Affairs
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 safety legislation, and international consumer policy developments.
The outputs provided enable consumers to transact with confidence. They do this by identifying consumer issues that adversely affect consumer confidence and developing appropriate policy responses, in order that consumers may be well informed.
Service Performance Objectives - Output Class Specific
Generic quantity, quality and timeliness performance measures for all policy advice, ministerial services and briefings supplied by the Ministry of Consumer Affairs Economic Development are detailed in the Ministry of Economic Development's Quality Standards for Policy Advice and Ministerial Servicing.
Where appropriate, comparative figures for the previous year are shown in parentheses.
2003/2004 Performance Measures and Standards
Policy advice will be delivered as agreed with the Minister and as detailed in the Ministry of Economic Development Output Plan.
Consumer Policy
Key Deliverables in the Work Programme for 2003/2004
- provide advice and support to the Minister of Consumer Affairs to facilitate the passage of the Consumer Credit Bill through the House of Representatives.
Consumers face particular risks in credit transactions relating to cost and quality of information and, in some market segments, poor practices by credit providers. The Consumer Credit Bill updates the legal framework through taking account of economic and technological changes, and providing an effective enforcement regime. The new framework enables well-informed decisions by consumers and creates confidence in the integrity and effectiveness of consumer credit markets. This will enable consumers to transact in credit markets with confidence.
- undertake initial scoping, prepare terms of reference and project plans for the review of consumer protection law and its enforcement.
Enforcement of consumer law gives suppliers incentives to comply with rules and standards, and gives consumers confidence in rules and institutions that govern the market. However, the enforcement of consumer law is piecemeal and can involve a number of different mechanisms. This project will evaluate different enforcement mechanisms in order to identify the most effective mix of enforcement approaches, including relevant OECD recommendations relating to cross-border enforcement of fair trading laws.
This project is intended to strengthen consumer confidence in the quality of New Zealand markets, firms, products and services.
Consumer Safety
Consumer safety services will include:
- developing and reviewing relevant voluntary and mandatory standards, and consumer safety policies;
- educating and informing consumers and businesses about consumer safety;
- investigating and resolving consumer safety complaints;
- administering the mandatory powers provisions of the Fair Trading Act; and
- building and maintaining national and international consumer safety networks.
Costs: Vote Consumer Affairs, Output Class D1
| | 2003/2004
Forecast | 2002/2003
Supple-
mentary
Estimates | 2002/2003
Estimated
Actual |
|---|
| | $000 | $000 | $000 |
| Revenue Crown | 1,168 | 1,188 | 1,188 |
| Third Party Revenue | - | - | - |
| Expenses | 1,168 | 1,188 | 1,188 |
| Surplus/(Deficit) | - | - | - |
Output Class D2 - Information and Education Services for Consumers and Traders
Description
This output class provides information and education primarily on legal rights and responsibilities to consumers, community agencies that advise consumers, and businesses.
Outputs in this output class include the provision of information on how to access remedies and redress if a transaction fails. As a result consumers are more likely to have their expectations of transactions met by suppliers, and where this does not occur, know how to go about seeking redress. This leads to consumers and businesses transacting with greater confidence.
The output class also includes consumer representation on statutory boards, advisory bodies, departmental working parties and committees. Where consumers' interests are represented along with those of business and government in decision-making, this will result in an environment in which consumers and suppliers have confidence in market rules and institutions.
Increasing attention is being given during 2003/2004 to ways of gathering data in order to understand the ways in which consumers interact with markets, to inform policy advice and service delivery.
Service Performance Objectives - Output Class Specific
Where appropriate, comparative figures for the previous year are shown in parentheses.
2003/2004 Performance Measures and Standards
Provision of Information
Information and education programmes for consumers and traders will be delivered as agreed with the Minister and as detailed in the Ministry of Economic Development Output Plan.
The Ministry targets information and education programmes to sections of the community who face barriers to accessing and using this information and as a consequence are less likely to have their expectations of transactions met. Current targeted groups include Māori, Pacific and low-income consumers.
Key Deliverables in the Work Programme for 2003/2004
- implement a programme to promote the Motor Vehicle Sales Act and provide information, education and advice resources on it for consumers, business and community advisory agencies.
This will enable consumers to have access to information that they are able to use in order to transact with confidence (MCA's high level outcome) in the motor vehicle market. Consumers in the motor vehicle market who are informed, confident and demanding contribute to the development of dynamic, competitive markets for innovative products, processes and services, which in turn leads to increased innovation and entrepreneurial performance in New Zealand (MED Outcome).
Quantity
Based on the project plan we expect to deliver:
- one initial major awareness campaign on the Motor Vehicle Sales Act for consumers and motor vehicle sellers with follow-up awareness activities spread over year; and
- one round of training on the Motor Vehicle Sales Act for community agencies.
Quality
- undertake an evaluation, including a survey of consumers and/or business, at the end of the major campaign period; and
- trial the training package with a group of intended recipients and evaluate the training afterwards.
Feedback sought from participants in each of the above activities, will rate the consultation process, appropriateness of the content and programme delivery as (3) satisfactory to (4) very satisfactory.23
Timeliness
- the awareness campaign will begin on the commencement date of the Act and continue at intervals throughout the fiscal year; and
- training will occur in the month prior to the commencement date of the Act or between June and November, depending upon the law's start date.
Costs: Vote Consumer Affairs, Output Class D2
| | 2003/2004
Forecast | 2002/2003
Supple-
mentary
Estimates | 2002/2003
Estimated
Actual |
|---|
| | $000 | $000 | $000 |
| Revenue Crown | 2,076 | 1,845 | 1,845 |
| Third Party Revenue | 59 | 342 | 342 |
| Expenses | 2,135 | 2,187 | 2,187 |
| Surplus/(Deficit) | - | - | - |
Output Class D3 - Administration of Trade Measurement Legislation
Description
This output class provides for the promotion and enforcement of a supportive trade measurement infrastructure for businesses and consumers, particularly through the administration of the Weights and Measures Act 1987. This legislation sets out requirements for a standardised system and creates incentives for compliance through enforcement processes.
Service Performance Objectives - Output Class Specific
Generic quantity, quality and timeliness performance measures for all policy advice, ministerial services and briefings supplied by the Ministry of Consumer Affairs are detailed in the Ministry of Economic Development's Quality Standards for Policy Advice and Ministerial Servicing.
Where appropriate, comparative figures for the previous year are shown in parentheses.
2003/2004 Performance Measures and Standards
Enhancing the National Measurement Capability
- initial scoping, terms of reference and project plans for a study of the scope of measurement activity that could benefit from the application of international legal metrology standards.
The credibility of New Zealand's national measurement system, particularly as it relates to legal measurements, has a direct impact on consumers' ability to transact with confidence. This occurs not only in the trade of goods by weight, measure or number but in other legal measurements such as road traffic enforcement, measurements in health, safety and the environment. Ministry of Consumer Affairs involvement in the issues outside our direct remit reflects the need to bring a whole of government approach to the national measurement system.
A credible measurement system not only helps consumers to transact with confidence, but also assists New Zealand to trade goods internationally and contributes to economic growth through the confidence in a key part of the standards and conformance infrastructure.
Quality
Generic quantity, quality and timeliness performance measures for all policy advice, ministerial services and briefings supplied by the Ministry of Consumer Affairs will apply as detailed in the Ministry of Economic Development's Quality Standards for Policy Advice and Ministerial Servicing. The Ministry standards for developing policy advice and recommendations will be fully met.
Timeliness
Key project milestone dates, as specified in the project plan will be met.
National Trade Measurement System
Management of New Zealand's trade measurement environment to meet international standards in relation to goods sold by weight, measure or number through the following activities will be delivered as detailed in the Ministry of Economic Development Output Plan and includes:
- calibration and verification of standards to ensure traceability;
- audit of private sector verifiers to ensure trade equipment is verified correctly;
- type approval examinations of new weighing and measuring instruments to ensure they do not facilitate fraud; and
- enforcement to ensure trader compliance with legislative requirements.
Costs: Vote Consumer Affairs, Output Class D3
| | 2003/2004
Forecast | 2002/2003
Supple-
mentary
Estimates | 2002/2003
Estimated
Actual |
|---|
| | $000 | $000 | $000 |
| Revenue Crown | 1,402 | 1,349 | 1,349 |
| Third Party Revenue | 160 | 115 | 115 |
| Expenses | 1,562 | 1,464 | 1,464 |
| Surplus/(Deficit) | - | - | - |
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