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; and Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) and consumer policy developments internationally.

Outputs for this class are:

completing the review of consumer credit law;
supporting the passage of an amendment to the Consumer Guarantees Act to include electricity, other products supplied via networks, and computer software in its ambit;
general policy work towards amendments to the Fair Trading Act and other consumer legislation to ensure it remains relevant and effective;
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;
networking with other interested national and international organisations; and
providing policy advice to the Government and implementing its decisions.

Quantity, Quality, Timeliness and Cost

Details of performance relating to performance measures for generic standards and measures for policy advice provided by the Ministry of Economic Development for this Vote (Quantity, Quality and Timeliness) can be found on pages 72 to 81.

(Performance standards are in brackets where applicable.)

Specific deliverables relating to the agreed work programme are as follows:

Work Programme

The Ministry of Consumer Affairs action plan established at the beginning of the year was an indicative programme for the Purchase Agreement tasks and other projects. Progress was reviewed and reported to the Minister at the end of each quarter. Where the schedule could not be met an explanation was provided to the Minister, and where appropriate, a revised plan and timeline agreed.

Key deliverables in the work programme for the year included:

Complete final two discussion documents on the Credit Law Review by September 2000.

The Ministry of Consumer Affairs released the final two public consultation documents. Over-indebtedness, Insurance and E-credit was released on 16 August 2000. Redress and Enforcement was delayed until 24 October 2000 due to staff vacancies.

Report to Government on any changes required to Credit Law by June 2001.

Following wide consultation, including stakeholder meetings and consideration of submissions from community groups, industry and others, the Ministry submitted to Cabinet and Cabinet Committee papers recommending changes to credit law, by 30 June 2001.

Increase the focus on consumer issues in respect of electronic commerce with particular regard to consumer protection and self-regulation by June 2001.

This was achieved through:

a model code of practice promoted to business groups;
contributing to the development of the Electronic Marketing Standards Authority;
promotion of consumer protection in implementation of the e-commerce strategy and involvement in the e-commerce summit;
contributing to the development of consumer protection within APEC;
participation in an OECD meeting and in a working group on alternative dispute resolution and guidelines follow-up;
negotiations with the Commerce Commission on a joint strategy for e-commerce which is planned for completion by 31 December 2001;
achieving New Zealand participation in e-consumer.gov which is an International Marketing Supervision Network project - a global complaint database; and
policy development towards amendments to the Fair Trading Act to facilitate cross border co-operation and enforcement of fair trading laws.

Consumer Safety

Quantity

Number of publications:

input during development or revision was provided on 12 (10) voluntary standards;
three (2) mandatory standards were developed or revised;
it was estimated that three Consumer Safety Newsletter Supplements would be published. Separate Consumer Safety Newsletters Supplements were discontinued. Four consumer safety articles were included in the MCA Newsletter, which is sent to approximately 1,500 organisations and individuals interested in consumer issues;
10 (5) consumer/trader fact sheets were developed/maintained. These were demand driven.

Number of complaints handled:

136 (170) complaints were received.

Complaints actioned included:

24 (30) product cessations, recalls and safety modifications;
27 (20) referrals to other agencies for action;
53 (60) requiring ongoing monitoring; and
8 media releases and 7 publicity articles (10).

Quality

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.

100% (90%) of complainants surveyed indicated their satisfaction with the consumer safety complaints handling system.

Cost

(Figures are GST exclusive)

	2001 Main Estimates	2001 Supple- mentary Estimates	2001 Actual	2000 Actual
	$000	$000	$000	$000
Revenue:
Crown	1,168	1,197	1,194	1,034
Other	-	6	6	-
Total Revenue	1,168	1,203	1,200	1,034
Expenses:
Annual appropriations	1,168	1,203	1,200	1,034
Other appropriations	-	-	-	-
Total Expenses	1,168	1,203	1,200	1,034
Net Surplus/(Deficit)	-	-	-	-

Revenue Other was derived from miscellaneous.

Major Budget Variances

Supplementary Estimates changes reflect a transfer of funding from Vote: Energy, D3 - Administration of Gas and Electricity Regulations to complete a review of credit law and to update the consumer safety database ($29,000).

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

Description

This output class provides information, education and advice programmes for targeted consumer, trader and community groups. Programmes generally focus on issues that most affect economically and socially disadvantaged consumers. Support and training will be provided to community agencies that provide consumer advice. However, there is also a role in consulting and providing information to all consumers on general consumer issues and some specific issues that have potential for widespread detrimental impact.

Outputs in this class are:

provision of resources and programmes on consumer law for traders, community advisory agencies and consumers;
provision of a hotline for community agencies and another specifically available to Māori and Pacific peoples consumers;
provision of material for consumers on consumer rights and responsibilities; and
interaction with consumers and their representatives on a range of consumer issues.

Quantity, Quality, Timeliness and Cost

(Performance standards are in brackets where applicable.)

Quantity

Resources and Programmes for Traders

Only one (4) Town Visit for resources and programmes for traders (involving 150 traders in the Lower Hutt area) was held because the Commerce Commission was reviewing the Town Visit programme. No decisions have been made on the future of the Town Visit programme.

Resources and Programmes for Community Agencies

The delivery of: one series of training nationally for Budget Advisory Services (BAS) and one series of training nationally for Citizens Advice Bureau (CAB) to schedules setting out the number, dates and location of sessions agreed with those agencies, and in accordance with the project plan agreed with the Minister.

A series of national training sessions for BAS and national training sessions for CAB was held throughout the year. Statements of intent to reflect agreed training arrangements were refreshed and agreed with BAS and CAB. Training was carried out in accordance with agreed schedules.

Resources and Education for Consumers

Information to the target audience was in accordance with the project plan agreed with the Minister. Delivery included:

One specified programme of activities targeting Māori that developed and maintained an appropriate means of conveying consumer information to the target audience in accordance with the project plan agreed with the Minister. This included:

consumer messages broadcast on East Coast radio stations, and a tour of Kura Kaupapa Māori in the East Coast region to promote key consumer messages and the Consumerkids (Te Reo section) website;
participation in New Zealand Federation of Family Budgeting Services Budget Expo in Hamilton;
Pukana TV programme: promotion of Consumerkids website to Māori children through Pukana;
competition held to entice children to work through the Te Reo section of the Ministry's Consumerkids website;
Mana bimonthly magazine: purchased one-third page advertorial for next six issues (three published to 30 June 2001) promoting key consumer messages to Māori;
eight regional presentations to key Māori Women's Welfare League (MWWL) members were completed by the end of April 2001. Further promotion of consumer messages by key MWWL members to Māori women in their regions was undertaken in May-June 2001; and
re-run of 1993 survey on how Māori women receive information. Focus group meetings were held in Tai Tokerau, Tairawhiti, Te Waipounamu and Ikaroa districts.

One specified programme of activities targeting Pacific peoples consumers that developed and maintained an appropriate means of conveying consumer information to the target audience in accordance with the project plan agreed with the Minister, including:

completing a three-month campaign broadcasting consumer messages on Triangle Television targeting Pacific peoples programmes;
ongoing consumer messages broadcast with specific Pacific peoples radio stations in the Auckland, Wellington and Christchurch regions. Explored and negotiated contracts with other Pacific radio stations;
ongoing monthly consumer columns in a Pacific peoples' newspaper that has a national circulation;
extensive networking disseminating information and conducting consumer seminars targeting Pacific peoples audiences;
presented the Education Package for community advisors to the Otara Pacific Island Presbyterian Church;
liaison was maintained and assistance provided to Community Law Centres and Youth Law Centres on consumer issues; and
Christchurch Pacific Island Consumer Education Strategy programme (liaison and consumer training programme for Pacific peoples groups) was completed according to plan.

Quality

Accuracy, practicality and legal basis of legal information and advice. Every consumer case handled is peer reviewed before closure. A peer reviewer checks all resource and training content drafts for legal accuracy, and where there are questions as to the correct interpretation, the Ministry of Economic Development Legal Section will review the interpretation.

100% of drafts of resources and training content were peer reviewed.
In 100% of cases where there were questions of interpretation, Legal Section reviewed the interpretation.

Appropriateness of programmes intended for target audiences.

All resources and programmes produced are developed and implemented in consultation with representatives of the intended target audience. 100% of training programmes, resources and advice manuals developed were subject to consultation and/or peer review with representatives of the intended audience.

Support for national voluntary advisory agencies offering consumer advice. Programme content and delivery methods are developed and delivered in consultation with key representatives of those agencies. Feedback on the appropriateness of content for the participants' needs and on the effectiveness of delivery, as defined by the participants, is sought either on completion of each component of the programme or on its overall completion, by meeting with the agency representatives concerned.

100% of training programmes, resources and advice manuals developed were subject to consultation and/or peer review with advisory agencies.
Evaluation forms were completed on delivery of most training, particularly where the training is new and untested, in order to ensure it is meeting the needs of the audience. The response has been favourable.
An annual meeting was held with each agency to renegotiate the statement of intent or memorandum of understanding, to assess the previous year's work and determine the work programme for the coming year. Regular contact is maintained to allow feedback to occur as it is required by either party.

Responsiveness to Issues

Responses defined the issues accurately and were legally accurate as agreed by a process of peer review and took into account the available resources. Media releases on specific issues were checked as acceptable by the Communications Advisor. No negative media or stakeholder attention resulted. Where the issue was one where the Minister required action, actions were agreed, undertaken as required and reported to the Minister.

Standards have been met in 100% of cases, as they are part of the routine process for addressing issues.

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; and
agreed deadlines are met or renegotiated if a delay is unavoidable or programme adjustments are required.

Standards were met in 100% of cases.

Cost

(Figures are GST exclusive)

	2001 Main Estimates	2001 Supple- mentary Estimates	2001 Actual	2000 Actual
	$000	$000	$000	$000
Revenue:
Crown	1,826	1,826	1,817	1,687
Other	7	17	16	11
Total Revenue	1,833	1,843	1,833	1,698
Expenses:
Annual appropriations	1,833	1,843	1,833	1,698
Other appropriations	-	-	-	-
Total Expenses	1,833	1,843	1,833	1,698
Net Surplus/(Deficit)	-	-	-	-

Revenue Other was derived from miscellaneous.

Output Class D3 - Administration of Trade Measurement Legislation

Description

This output class provides for the administration of trade measurement legislation. This includes:

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; and
providing information to business and consumers about their obligations and rights.

Quantity, Quality, Timeliness and Cost

(Performance standards are in brackets where applicable.)

Quantity

Numbers of applications processed:

44 (44) companies submitted 90 sets of accredited persons' standards which were tested
Approvals processed (demand driven):

nine (10) full evaluation;
45 (25) overseas; and
19 (25) variants.

Accreditation applications processed:

five (2) full; and
20 (20) extension.

Audits undertaken and complaints handled:

15 (22) full company surveillance audits were completed. Inspection work (e.g., complaints) and accreditation work took greater priority
132 (100) complaints were handled
21 (40) infringement offence notices were issued
two (2) prosecutions were commenced.

Numbers of publications:

10 (4) media articles were released and two radio interviews were given - these were issues/ demand driven
eight (6) consumer/trader fact sheets were developed/maintained
five (3) Trade Measurement newsletter supplements were published.

Quality

100% (100%) of accredited persons' standards' calibration and verification was undertaken in compliance with the International Accreditation New Zealand (IANZ) approved procedures.
100% (90%) of clients surveyed indicated satisfaction with the equipment pattern approvals process.
91.5% (90%) of clients surveyed indicated satisfaction with the private sector accreditation process.
100% (90%) of clients surveyed indicated satisfaction with the process for surveillance audits of accredited persons.
100% (90%) of complainants surveyed indicated satisfaction with the complaints handling process.
100% (100%) of cases prepared were accepted for prosecution by the Crown Solicitor.
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 the statutory timeframes.
100% (100%) of infringement offence notices met the statutory timeframes.

Cost

(Figures are GST exclusive)

	2001 Main Estimates	2001 Supple- mentary Estimates	2001 Actual	2000 Actual
	$000	$000	$000	$000
Revenue:
Crown	1,343	1,353	1,346	1,343
Other	100	166	155	83
Total Revenue	1,443	1,519	1,501	1,426
Expenses:
Annual appropriations	1,443	1,519	1,501	1,445
Other appropriations	-	-	-	-
Total Expenses	1,443	1,519	1,501	1,445
Net Surplus/(Deficit)	-	-	-	(19)

Sources of Revenue Other

	$000
Approval, testing and accreditation fees	86
Consultancy fees	63
Miscellaneous	6
	155

Major Budget Variances

The Supplementary Estimates adjustments mainly provide for a transfer of funding from Vote: Energy, D3 - Administration of Gas and Electricity Regulations due to increased activities in trade measurement ($10,000); and a fiscally neutral adjustment recognising revenue and expenses for contract services on international standards with Singapore ($60,000).

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Printed: 26/11/2009