Vote: Consumer Affairs
Output Class > Policy Advice on Consumer Issues
Description
This output class provides for policy advice and information on issues, policies and programmes affecting, or potentially affecting, the ability of consumers to transact with confidence.
Quantity, Quality, Timeliness and Cost
(Performance standards for outputs other than policy advice are in brackets where applicable.)
Work Programme
All policy advice projects were delivered in accordance with the terms of the work programme as agreed with the Minister. Changes to deadlines were discussed with the Minister.
The following outputs were included in this output class for 2004/2005.
Consumer Policy
This output provides for policy advice on issues concerning an effective legal and regulatory framework for business/consumer transactions, the promotion of improved market practices and effective redress, and international consumer policy developments. In 2004/2005 the output included the following.
Work commenced on reviewing the enforcement of consumer protection law (which includes cross-border enforcement issues), focusing on the Fair Trading Act 1986 and the Consumer Guarantees Act 1993. The review terms of reference were approved in December 2004. In June 2005, the Minister approved the release of a think-piece document which sets out the purpose of the review and a discussion of relevant theories on regulation of enforcement and redress.
Work towards advancing the concept of a single economic market with Australia included:
- Forwarding submissions to the Australian Productivity Commission, which was commissioned to assess how the operation, administration and enforcement of the Australian and New Zealand competition and consumer policy regimes affects, impedes or fosters an integrated trans-Tasman business environment.
- Contributing to the wider Ministry of Economic Development and Treasury advice to Ministers on a response to the Productivity Commission report that was used to inform discussions between the Minister of Finance and the Australian Treasurer. One key recommendation was to foster greater sharing of information and investigative assistance between the Commerce Commission and the Australian Competition and Consumer Commission (ACCC). Following further analysis, the Ministry of Consumer Affairs obtained Cabinet agreement to include in the Commerce Commission (Information Sharing and Fees) Bill amendments to the Fair Trading Act 1986 and the Credit Contracts and Consumer Finance Act 2003 (CCCFA) to provide for information sharing and investigative assistance between the Commerce Commission and overseas fair trading and consumer finance regulators.
Terms of reference for a review of industry-led self regulation were approved in December 2004. Cabinet approved the release of the first discussion document on the review in June 2005. The discussion document sets out a framework to help consumers and industry establish, operate and evaluate industry-led regulatory schemes.
Regulations were issued under the CCCFA, which came into force on 1 April 2005. Effective implementation of the Act was a key focus of attention over the year to 30 June 2005.
Consumer Research, Information and Capability Building
This output provides for:
Reviews of the effectiveness of consumer policy through systematic monitoring and evaluation and research on consumer and business interactions.
A report was provided to the Minister on the findings and implications of initial focus group research on consumer and trader awareness and experience of the primary consumer legislation, on 13 October 2004. This information fed into a baseline survey on consumer awareness which began in April 2005, with the questionnaire being signed off in late May 2005.
Information and education to consumers, community agencies and businesses with respect to their legal rights and obligations and access to remedies and redress.
The Ministry of Consumer Affairs maintained consumer hot lines throughout the year, responding to 16,763 general inquiries, 109 Māori consumer inquiries and 327 Pacific Island consumer inquiries. In addition, 155 scam watch listings were posted on the Consumer Affairs website.
The promotion of effective consumer representation within institutions and agencies dealing with issues that affect consumers.
The Ministry of Consumer Affairs responded to 14 inquiries for nominations for consumer representatives on statutory boards, advisory boards, departmental working parties and committees, from which 33 nominations were made.
Capability building to enable communities and community organisations to identify and address consumer issues.
During 2004/2005, training was provided to Shakti, a new migrant umbrella organisation, to enable them to provide a service to new migrants and to develop their ability to represent their consumer interests.
Promotion and Monitoring of the Motor Vehicle Sales Act 2003 (MVSA)
This output provides for the promotion, education, and effectiveness of the MVSA.
A radio and print campaign was completed by 30 September 2004.
A programme to monitor the ongoing effectiveness of the new Motor Vehicle Sales legislation was implemented on 1 January 2004. Quarterly monitoring reports were provided throughout 2004/2005.
Cost
(Figures are GST exclusive)
| | 2005
Main
Estimates
$000 (thousands of dollars) | 2005
Supplementary
Estimates
$000 (thousands of dollars) | 2005
Actual
$000 (thousands of dollars) | 200410
Actual
$000 (thousands of dollars) |
|---|
| Revenue | | | | |
|---|
| Crown | 3,414 | 3,414 | 3,413 | 2,839 |
|---|
| Other | 445 | 452 | 442 | 281 |
|---|
| Total Revenue | 3,859 | 3,866 | 3,855 | 3,120 |
|---|
| Expenses | | | | |
|---|
| Annual appropriations | 3,759 | 3,766 | 3,762 | 3,436 |
|---|
| Other appropriations | - | - | - | - |
|---|
| Total Expenses | 3,759 | 3,766 | 3,762 | 3,436 |
|---|
| Net Surplus/(Deficit) | 100 | 100 | 93 | (316) |
|---|
Sources of Revenue Other| | 2005
Actual
$000 (thousands of dollars) | 2004
Actual
$000 (thousands of dollars) |
|---|
| Electrical levies | 247 | 86 |
|---|
| Annual return fees to fund MVTR | 182 | 185 |
|---|
| Cost recovery | 1 | 2 |
|---|
| Net gain on sale of fixed assets | - | 1 |
|---|
| Inter-departmental cost recovery | 12 | 5 |
|---|
| Miscellaneous | - | 2 |
|---|
| Total Revenue Other | 442 | 281 |
|---|
Major Budget Variances
The variance between 2004/2005 and 2003/2004 for actual expenses mainly reflects additional funding provided in Budget 2004 to enhance policy advice, research and monitoring capability of the Ministry of Consumer Affairs.
Output Class > Enforcement and Conformance
Description
This output class provides for the promotion and enforcement of a supportive measurement and product safety infrastructure for businesses and consumers, particularly through the administration of the Weights and Measures Act 1987 and the product safety provisions of the Fair Trading Act 1986.
Quantity, Quality, Timeliness and Cost
(Performance standards are in brackets where applicable.)
The following outputs were included in this output class for 2004/2005.
National Trade Measurement System
New Zealand's trade measurement environment was managed to meet international standards in relation to goods sold by weight, measure or number, through the following activities.
Calibration and verification of standards to ensure traceability.
229 active accredited persons' standards were tested and reports were issued. All accredited persons standards' calibration and verification were undertaken in compliance with International Accreditation New Zealand (IANZ) approved procedures.
Audit of private sector verifiers to ensure trade equipment is verified correctly.
38 (19) private sector verifiers were subject to surveillance and audit, and all had their accreditation renewed.
Type approval examinations of new weighing and measuring instruments to ensure they do not facilitate fraud.
Two (4) applications for approvals for new types of weighing and measuring equipment, 22 (26) overseas-based type approvals, and 28 (22) variants to approvals were processed. All type approvals issued complied with the Weights and Measures Regulations, and relevant OIML regulations, and to ISO 17025 standard.
Enforcement to ensure trader compliance with legislative requirements.
A total of 1,490 trader compliance inspections of trade weighing and measuring instruments were carried out, with 12 (13) infringement notices issued, 81 letters of warning issued, and advice given to 109 traders.
New Zealand's interests in intergovernmental organisations dealing with legal metrology were represented, including the International Organisation of Legal Metrology (OIML) and the Asia Pacific Legal Metrology Forum.
The Ministry of Consumer Affairs participated in the development and dissemination of 11 (10) OIML international recommendations/documents through a consultative process with industry on a range of issues, for example, electronic measuring instruments.
Quantity
Surveillance visits were made to 678 (400) traders to check the correctness of weighing and measuring equipment and pre-packaged goods.
The target is being reviewed for future years.
Quality
Maintain a type approvals accreditation regime to ISO 17025 standard.
The quality target was met. An audit by the IANZ, as at October 2004, confirmed that the type approvals accreditation regime was maintained in accordance with the ISO 17025 standard.
The Ministry of Consumer Affairs participated in the development of 11 (10) recommendations/documents by the OIML.
Timeliness
Timeframes set by the OIML for reply on each circulated draft recommendation and document were met in all cases.
Product Safety
- building and maintaining of national and international product safety networks, for example, through attendance at the joint Australian/New Zealand Consumer Product Advisory Committee;
- developing and reviewing relevant voluntary and mandatory standards, and product safety policies;
- educating and informing consumers and business about product safety;
- investigating and resolving product safety complaints;
- administering the product safety provisions of the Fair Trading Act 1986; and
- representing the consumer perspective by participating in interdepartmental activities dealing with injury prevention, including the Government Interagency Steering Group on New Zealand Injury Prevention Strategy.
In 2004/2005 the following safety services were provided.
A review of all Unsafe Goods Notices (which essentially prohibit specified goods from being sold and imported) was completed and recommendations reported to the Minister on 21 June 2005. As a result of the review, it was determined that three of these Unsafe Goods Notices were no longer required. A Revocation Notice was published in the New Zealand Gazette on 30 June 2005.
310 (103) consumer complaints were responded to during 2004/2005, of which 160 related to consumer concern about rubber hot water bottles. These complaints resulted in the gazetting of an Unsafe Goods Notice in late-2004. The Ministry of Consumer Affairs is continuing to work closely with Customs on this issue.
Investigation of complaints associated with certain balloon-blowing toys containing toxic substances has highlighted potential gaps in the coverage of the Hazardous Substances and New Organisms regime. Following a letter from the Minister of Consumer Affairs to the Minister for the Environment and the Minister of Health, an interdepartmental committee has been formed to identify a resolution to these issues.
Quantity
Surveillance visits were made to 307 (300) traders/suppliers to check product safety.
Quality
All investigations of product safety complaints were carried out in accordance with the Measurement and Product Safety Service Complaints and Procedures Manual and were reviewed by a team leader/manager audit.
Timeliness
97% (95%) of complaints were acknowledged within seven working days of receipt of notification.
Cost
(Figures are GST exclusive)
| | 2005
Main
Estimates
$000 (thousands of dollars) | 2005
Supplementary
Estimates
$000 (thousands of dollars) | 2005
Actual
$000 (thousands of dollars) | 200411
Actual
$000 (thousands of dollars) |
|---|
| Revenue | | | | |
|---|
| Crown | 2,033 | 2,033 | 2,027 | 1,673 |
|---|
| Other | 160 | 168 | 116 | 171 |
|---|
| Total Revenue | 2,193 | 2,201 | 2,143 | 1,844 |
|---|
| Expenses | | | | |
|---|
| Annual appropriations | 2,193 | 2,201 | 2,143 | 1,844 |
|---|
| Other appropriations | - | - | - | - |
|---|
| Total Expenses | 2,193 | 2,201 | 2,143 | 1,844 |
|---|
| Net Surplus/(Deficit) | - | - | - | - |
|---|
Sources of Revenue Other| | 2005
Actual
$000 (thousands of dollars) | 2004
Actual
$000 (thousands of dollars) |
|---|
| Approval, testing and accreditation fees | 106 | 119 |
|---|
| Net gain on sale of fixed assets | - | 1 |
|---|
| Inter-departmental cost recovery | 10 | 1 |
|---|
| Miscellaneous | - | 50 |
|---|
| Total Revenue Other | 116 | 171 |
|---|
Major Budget Variances
The variance between 2004/2005 and 2003/2004 for actual expenses mainly reflects additional funding provided in Budget 2004 to increase monitoring and surveillance and increase access by business and consumers to Ministry of Consumer Affairs services in relation to measurement and product safety infrastructure.
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