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Vote: Consumer Affairs


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Statement of Intent 2002-2005

[ Last Updated 24 January 2006 ]


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. Outputs in this output class are listed below:

  • Consumer Policy
    • support the passage through Parliament, and support implementation, of new consumer legislation;
    • initiate reviews of consumer legislation;
    • undertake consumer policy work; and
    • lead or contribute to various policy initiatives, locally and internationally, aimed at building consumer confidence in e-commerce.
  • Consumer Safety
    • operate an effective investigation, compliance and communication system for the consumer product safety regime;
    • work with consumers and businesses to ensure that consumer products are supplied with appropriate and adequate instructions and labels to ensure safe purchase and use;
    • participate in international consumer safety fora and initiatives, including Trans-Tasman Mutual Recognition Arrangements (TTMRA), to promote and harmonise effective product safety policies and practices;
    • contribute to the development of voluntary consumer product standards and of mandatory product safety standards, unsafe product notices and recalls; and
    • facilitate the development of a "GM-free" voluntary labelling system as a member of an inter-departmental group.

Contribution to the Ministry's Outcomes

This output class contributes to the foundation outcome. The contribution of the respective outputs is described in italics below.

The Ministry of Consumer Affairs is the principal provider of these outputs.

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.

2002/2003 Performance Measures and Standards

Policy Advice

Policy advice will be delivered in accordance with the terms of the work programme agreed with the Minister.

Key Deliverables in the Work Programme for 2002/2003

  • Support the passage through Parliament of the Consumer Credit Bill, Consumer Protection (Definitions of Goods and Services) Bill, Fair Trading Amendment Bill and Motor Vehicle Sales Bill in accordance with the Government's legislative timetable.
  • Initiate reviews of consumer protection law and its enforcement, Credit (Repossession) Act and Auctioneers Act, by 30 June 2003.
  • Support the development of the 2002 Code of Banking Practice through to 31 December 2002.
  • Complete consultation concerning trader guidelines for the use of inertia-selling techniques for services, by 30 June 2003.
  • Report on insurance issues concerning people with criminal convictions and disclosing of material facts, by 30 September 2002.
  • Contribute to or attend three international fora dealing with consumer policy/protection in e-commerce, by 30 June 2003.

This output contributes to the Ministry of Economic Development's outcomes by ensuring that:

  • laws and regulations set out clearly the rights and obligations of consumers and business;
  • consumer policy developments accord with New Zealand priorities;
  • redress, remedies and penalties are available for consumers when things go wrong;
  • initiatives are promoted that meet consumers' interests; and
  • laws and regulations provide for accurate information to be provided by business to consumers.

Consumer Safety

Quantity

Expected numbers:

  • 30 (30) (estimated) unsafe products identified and removed from sale or made safe;
  • 90 (130) (estimated) product safety related complaints actioned;
  • 18 (8) (estimated) safety articles, fact sheets and public statements released;
  • one special exemption under TTMRA resolved; and
  • 11 (15) voluntary and mandatory standards under development or revision.
Quality

All (100%) of complainants surveyed who respond, on average rate that they are (3) satisfied to (4) very satisfied with the handling of consumer safety complaints and product labelling and instructions complaints.14

All (100%) media and publicity releases and fact sheets comply with Ministry of Consumer Affairs (MCA) publication guideline standards.

All (100%) of stakeholders who respond to an annual survey on average rate that they are (3) satisfied to (4) very satisfied with MCA performance.15

Timeliness

Key milestone dates, as specified in project plans, are met for the following programmes:

  • international initiatives (including TTMRA);
  • development of consumer standards; and
  • "GM free" voluntary labelling system.

This output contributes to the Ministry's outcomes by ensuring that:

  • product and service safety laws, regulations, standards and codes of practice are in place;
  • consumer safety policy developments accord with New Zealand priorities;
  • meet their obligations to deliver safe goods and services;
  • have accurate information about the products and services that are available to them, including how to use them safely.

Costs: Vote Consumer Affairs, Output Class D1

 Forecast
2002/2003
Supplementary
Estimates
2001/2002
Estimated
Actual
2001/2002
 $000$000$000
Revenue Crown1,1681,3041,304
Third Party Revenue---
Expenses1,1681,3041,304
Surplus/(Deficit)---

Output Class D2 - Information and Education Services for Consumers and Traders

Description

This output class provides information and education for consumers, businesses and community groups, including activities aimed at Māori, Pacific Island and low-income consumers. The output class also includes work to promote consumer representation and recognition of the value of consumer representatives on boards and committees. Outputs in this output class include:

  • providing programmes, promotional campaigns and resources that enable Māori and Pacific Island consumers in particular, and all consumers in general, to access accurate information about their rights, remedies, redress and responsibilities as consumers;
  • providing resources that enable businesses to understand their obligations to consumers under consumer law;
  • providing impartial, comparative information that enables consumers to identify the best product or service available for their individual needs;
  • implementing the Guidelines for Consumer Representation and developing, implementing and maintaining supporting processes that improve the effectiveness of consumer representation on decision-making bodies; and
  • representing New Zealand consumer interests in international operational initiatives to increase and enhance cross-border consumer protection and enforcement.

Contribution to the Ministry's Outcomes

This output class contributes to the foundation and growth outcomes.

Outputs in this class ensure that:

  • consumers are able to obtain information on their consumer rights and responsibilities that is relevant, accurate and accessible;
  • businesses are able to obtain information on their rights and responsibilities towards their customers under consumer law that is relevant, accurate and accessible;
  • the New Zealand perspective on cross border consumer protection is effectively represented at international level;
  • effective consumer representation encourages broader economic participation by ensuring that business decisions reflect the perspectives of all those involved in the marketplace.

The Ministry of Consumer Affairs is the principal provider of these outputs.

Service Performance Objectives - Output Class Specific

Where appropriate, comparative figures for the previous year are shown in parentheses.

2002/2003 Performance Measures and Standards

Quantity

Expected numbers:

  • three (2) training programmes, including resources, to community advisory agencies;
  • three (2) hotlines with 0800 numbers for use by community agencies and Māori and Pacific Island consumers;
  • two (2) programmes of activities targeting Māori and Pacific Island communities;
  • four (2) promotional publicity campaigns covering new consumer legislation and the availability of the Powerswitch comparative information facility for domestic electricity consumers;
  • one new resource for motor vehicle retailers on relevant consumer law;
  • one set of draft Guidelines on Consumer Representation developed, promoted and distributed following Government approval;
  • 75% of government departments consulted on the Guidelines on Consumer Representation, by 30 June 2003; and
  • participate in one international deceptive practice identification initiative.

Quality

All (100%) of stakeholders who respond to an annual survey of satisfaction with MCA performance on average rate that they are (3) satisfied to (4) very satisfied.16

All (100%) published material intended for external audiences meets MCA's publication guideline standards.

Community agencies rate the consultation process, appropriateness of the content and delivery of programmes as (3) satisfactory to (4) very satisfactory.17

Expect a 20% increase in the number of hits on the Powerswitch website on completion of Powerswitch promotional activities.

International partners rate the value of the MCA contribution to cross-border consumer protection and enforcement as (3) satisfactory to (4) very satisfactory.18

Timeliness

Key milestone dates, as specified in project plans, are met for the following programmes:

  • provision of programmes, promotional campaigns and resources;
  • provision of resources for businesses;
  • strategies to enhance consumer representation; and
  • international operational initiatives.

Costs: Vote Consumer Affairs, Output Class D2

 Forecast
2002/2003
Supplementary
Estimates
2001/2002
Estimated
Actual
2001/2002
 $000$000$000
Revenue Crown1,8261,7121,712
Third Party Revenue342387387
Expenses2,1682,0992,099
Surplus/(Deficit)---

Output Class D3 - Administration of Trade Measurement Legislation

Description

This output class provides for the administration of trade measurement legislation. Outputs in this output class are:

  • managing New Zealand's trade measurement environment to meet international standards in relation to goods sold by weight, measure or number through the following activities:
    • calibration and verification of standards;
    • audit of private sector verifiers;
    • type approval examinations of new weighing and measuring instruments;
    • enforcement of legislative requirements;
  • drafting amendments to the Weights and Measures Regulations 1999 to provide for changes in responsibility for food quantity marking;
  • participating in the activities of inter-governmental organisations dealing with legal metrology, including the International Organisation of Legal Metrology (OIML) and the Asia Pacific Legal Metrology Forum (APLMF); and
  • initiating a study of the scope of measurement activity that could benefit from the application of international legal metrology standards.

Contribution to the Ministry's Outcomes

This output class contributes to the foundation outcome.

Outputs in this class contribute to the Ministry's outcomes by ensuring that:

  • consumers have accurate information about the products and services available to them;
  • businesses meet their obligations under consumer law;
  • effective redress, remedies and penalties are available for consumers when things go wrong; and
  • consumer laws and regulations provide for accurate information to be provided by business to consumers.

The Ministry of Consumer Affairs is the principal provider of these outputs.

Service Performance Objectives - Output Class Specific

Where appropriate, comparative figures for the previous year are shown in parentheses.

2002/2003 Performance Measures and Standards

Quantity

Expected numbers:

  • 360 (estimated) trader compliance inspections representing a cross section of traders; and
  • 22 (22) full company surveillance audits completed.

Quality

Accredited persons' standards calibration and verification undertaken in compliance with International Accreditation New Zealand (IANZ) approved procedures.

Quality Management System for standards testing and type approval examinations show 100% compliance as verified by IANZ annual audit.

90% (90%) of clients surveyed indicate satisfaction with the following processes: type approvals, private sector accreditations, surveillance audits of accredited persons, and complaints handling.

All type approvals issued comply with the Weights and Measures Regulations and relevant OIML recommendations.

All letters of warning, infringement offence notices and prosecutions comply with the Trading Standards Service Enforcement and Compliance policy.

Compliance inspections reveal non-compliance rates for trade weighing equipment do not exceed 3%, and non-compliance rates for measuring equipment do not exceed 10%.

All (100%) cases prepared are accepted for prosecution by Crown Solicitors.

Timeliness

95% of accredited persons have corrective action requests resolved within 90 days.

All (100%) accredited persons' standards are calibrated and verified within 20 working days of receipt in a testable condition.

All (100%) work completed on approval applications within 50 working days after instrument becomes available.

All (100%) work completed on accreditation applications within 50 working days of the applicant being ready for audit.

All (100%) full company surveillance audits are completed within timeline set out in surveillance policy manual.

All (100%) prosecutions and infringement offence notices meet statutory timeframes.

Key project milestone dates, as specified in project plans, are met for the following programmes:

  • amendments to Weights and Measures Regulations 1999;
  • inter-governmental organisation activities; and
  • reporting on the scope of measurement activity.

Costs: Vote Consumer Affairs, Output Class D3

 Forecast
2002/2003
Supplementary
Estimates
2001/2002
Estimated
Actual
2001/2002
 $000$000$000
Revenue Crown1,3421,3851,385
Third Party Revenue100100100
Expenses1,4421,4851,485
Surplus/(Deficit)---

14The range is (1) very dissatisfied, (2) dissatisfied, (3) satisfied, (4) very satisfied.

15The range is (1) very dissatisfied, (2) dissatisfied, (3) satisfied, (4) very satisfied.

16The range is (1) very dissatisfied, (2) dissatisfied, (3) satisfied, (4) very satisfied.

17The range is (1) very unsatisfactory, (2) unsatisfactory, (3) satisfactory, (4) very satisfactory.

18The range is (1) very unsatisfactory, (2) unsatisfactory, (3) satisfactory, (4) very satisfactory.



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