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Vote: Consumer Affairs


This Document is Archived


Report of the Ministry of Economic Development for the Year Ended 30 June 2000

[ Last Updated 10 February 2006 ]


Breakdown of Actual Expenditure

Breakdown of Actual Expenditure

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 in this class are:

  • proceeding with a review of consumer credit law;
  • developing and 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 (including consultation and analysis) towards amendments to the Fair Trading Act and other consumer legislation to ensure it remains relevant and effective;
  • developing and maintaining consistent and internationally acceptable product and service safety standards for New Zealand;
  • networking with other interested national and international organisations;
  • informing consumers and business about the safety of consumer products and services;
  • achieving product and service safety compliance through investigations;
  • monitoring the effectiveness of the product and service safety legislation; and
  • providing policy advice to the Government and implementing its decisions.

Quantity, Quality, Timeliness and Cost

Performance MeasuresPerformance StandardsActual
Quantity   
Ministerial Correspondence60-70 (estimated)83
Parliamentary Questions20-30 (estimated)42
Policy Advice   
Policy advice will be delivered in accordance with the prioritised requirements of a work programme negotiated annually with the Minister.Delivery of policy advice projects in accordance with the work programme agreed with the Minister.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.
Projects not included in the Departmental Forecast Report   
Initiate and progress the consumer credit law review by releasing up to four discussion papers for public consultation.  The Ministry of Consumer Affairs has progressed its Consumer Credit Law Review (due for completion by June 2001) by releasing two public consultation documents calling for submissions, What Transactions Should Consumer Credit Law Apply To? and Transparency in Consumer Credit Law. The Ministry also held consultation meetings nationwide with government, industry and consumer/community groups.
Contribute to the development of the OECD Guidelines on Electronic Commerce and promulgate these to New Zealand consumers and industry.  Guidelines have been completed and released publicly. Guidelines and a proposal for a Model Code were set out in the Electronic Commerce Status Report. Industry meetings and liaison were undertaken post status report. Self-regulatory initiative developing with extensive input from Ministry (Electronic Marketing Standards Authority). Model Code idea accepted. Model Code completed.
Coverage   
Provision of a comprehensive service which has the capacity:
  • to react urgently;
  • to offer timely and relevant briefings on significant issues; and
  • to give ministerial services and support as required.
The Minister's feedback is within the range (4) "met expectations" to (5) "fully met expectations" in the quarterly review of the Ministry's performance.16The Minister gave the Ministry a rating of (4) for the policy services provided during the first quarter. No other quarterly assessments have been received.
Consumer Safety   
Voluntary standards receiving Ministry input during development or revision.5 (estimated)8
Mandatory standards under development or revision.3 (estimated)5
Consumer Safety Newsletter Supplements published.3 (estimated)3
Consumer/trader fact sheets developed/ maintained.2 (estimated)3
Complaints received.170 (estimated)133 (36 of these required no further action.)
Complaints actioned:   
  • product cessations, recalls and safety modifications;
30 (estimated)13 (Demand driven. Forecast based on 1998/1999
Actual (22) plus increase that did not eventuate.)
  • referrals to other agencies for action;
20 (estimated)29 (Demand driven.)
  • ongoing monitoring; and
60 (estimated)45 (Demand driven. New measure in 1999; estimate for standard set too high.)
  • media and publicity releases.
10 (estimated)10
Quality   
The Ministry's Policy Framework provides that advice has the quality characteristics above.The Minister's feedback is within the range (4) "met expectations" to (5) "fully met expectations" in the quarterly review of the Ministry's performance.17The Minister gave the Ministry a rating of (4) for the policy services provided during the first quarter. No other quarterly assessments have been received.
Ministerial servicing in the form of letters and parliamentary questions is undertaken as required by the Minister.An acceptance rate of 100% is achieved in respect of first drafts.Discussion/negotiation with the Minister's office achieved an agreed final version.
Complainants surveyed indicate satisfaction with the consumer safety complaints handling system.90%92.5%
Media, publicity releases, fact sheets and newsletter supplements are technically correct, professional in appearance, and consistent with the Ministry's logo and brand.100%100%
Timeliness   
Reports and oral advice to the Minister are delivered within the timeframes required by, and agreed with, the Minister.100%100%
Draft ministerial correspondence is submitted to the Minister within 10 working days of receipt in the Ministry.100%94%

Cost

(Figures are GST exclusive)

  2000
Main
Estimates
2000
Supple-
mentary
Estimates
2000
Actual
1999
Actual
  $000$000$000$000
Revenue:       
Crown1,0351,0351,0341,031
Other----
Total Revenue1,0351,0351,0341,031
Expenses:       
Annual appropriations1,0351,0351,0341,031
Other appropriations----
Total Expenses1,0351,0351,0341,031
Net Surplus/(Deficit)----

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

Description

This output class provides information, education and advice programmes for targeted audiences within consumer, trader, education and community groups.

Programmes focus on issues that most affect economically and socially disadvantaged consumers. Support and training are provided to community agencies providing consumer advice.

Outputs in this class are:

  • provision of resources and programmes on consumer law for traders, community advisory agencies and target consumers;
  • provision of a consumer advice hotline for community agencies; and
  • provision of written material for consumers generally on consumer rights and responsibilities.

Quantity, Quality, Timeliness and Cost

Performance MeasuresPerformance StandardsActual
Quantity   
Ministerial Correspondence80-90 (estimated)180 (Numbers were double the estimate because the Minister actively sought correspondence from consumers. In particular, the Ministry's "Powerline" elicited a large number of letters to the Minister.)
Parliamentary Questions20-30 (estimated)9
Information resources and programmes   
Resources and programmes for traders.Three town visits in conjunction with the Commerce Commission and in accordance with project plans agreed with the Minister.Town visits, in conjunction with the Commerce Commission, have been undertaken in Wairarapa, North Shore, Hamilton and Gisborne.
  Three print resources on consumer law.The following resources were produced:
  • Layby Sales guide
  • Quotes and Estimates fact sheet
  • Consumer Guarantee Act Guide for Manufacturers (reviewed).

In addition several fact sheets were produced in response to issues on loans, gift vouchers, scams and contracts.

Resources and programmes for community agencies.One programme (involving 12 sessions) of regional training for Budget Advisory Services and one programme (involving 16 sessions) for Citizens Advice Bureau workers in accordance with the project plan agreed with the Minister.Each programme is run over a calendar year. Citizens Advice Bureau: eight sessions held between July-October 1999 and five sessions between March and June 2000 (13).
    Budget Advisory Services:
three sessions were provided July-October 1999 and six sessions provided March-June 2000 (9). The difference is due to scheduling agreements with the organisations, which:
  • are not made until after the Departmental Forecast Report is developed;
  • may mean more sessions are scheduled after 30 June 2000;
  • may result in some sessions being combined upon being scheduled.

The agreement for the Budget Advisory Services programme is that national coverage of training is spread over two calendar years.

Resources and education for target consumersOne programme of activities targeting Maori comprising media, training, liaison and networking and resources for consumers delivered via Maori service providers in accordance with the project plan agreed with the Minister, by 30 June 2000.Media: Iwi radio programme delivered to all Iwi stations resulting in small increase in callers to Iwi hotline.

Training: Training not required this year.

Liaison and Networking: Attended Aotearoa Maori Arts Festival with a stand promoting consumer messages.

Resources: Pukeko image developed for use with Maori resources, in particular the Kidsite Maori component. Discussed consumer content in publications for Kura Kaupapa, agreed to provide consumer material as required.
  One programme of activities targeting Pacific Island consumers comprising media, training, liaison and networking and resources for consumers delivered via Pacific Island church groups in accordance with the project plan agreed with the Minister, by 30 June 2000.Media: Year long programme of consumer messages aired on Radio 531 PI. Triangle TV infomercials filmed but on hold until Auckland office fully staffed.

Training: Pacific Island Presbyterian Church (PIPC) consumer education package nearing completion.

Liaison and Networking: Mounted stand at Pasifika festival to promote consumer profile.

Resources: The PIPC consumer education package combines training and resources.
  One programme of activities targeting low-income consumers comprising training, liaison and networking, and resources for consumers, traders and service providers delivered by community agencies in accordance with the project plan agreed with the Minister, by 30 June 2000. Training: Training agreements reached with Budget Advisory Services and Citizens Advice Bureau (see training for CAB and BAS above), but formal statements of intent not signed this year.

Liaison and Networking: Completed annual local networking strategies in each office focusing on liaison with local community organisations to promote use of consumer hotline by community workers.

Resources: Provided hotline and undertook consumer advocacy work on issues of most detriment to these consumers. Budget Advisory Services handbook reviewed, drafted and being edited.

Quality   
Ministerial servicing in the form of letters and parliamentary questions is undertaken as required by the Minister.An acceptance rate of 100% is achieved in respect of first drafts.Discussion/negotiation with the Minister's office achieved an agreed final version.
Information resources and programmes   
Technical correctness of resources and programmes.100% of responses from external consumer, trader and education professionals, who check the resources and programmes before use, indicate that they are technically correct.100%
Appropriateness of presentation, language and accessibility of resources and programmes.All resources and programmes produced are developed in consultation with representatives of the intended audience.
  • Trader resources checked with Retail Merchants Association.
  • Budget Advice Service manual revision undertaken in consultation with NZ Federation of Family Budgeting Services.
  • Fact sheets are not developed in consultation with representatives of intended audience due to the tight timeframes for their production.
  • No other significant new programme requiring consultation was produced during the year.
  90% of recipients of training/liaison programmes give a rating of between 3 (good) and 5 (excellent) to indicate their understanding of the information on consumer rights delivered face to face through five community and community agency training/liaison programmes.Use of this measure was discontinued as the measure did not provide useful information. New indicators to address the objectives are currently being developed.
Consumer advocacy team and hotline for community agencies   
Accuracy, practicality and legal basis of advice provided.In 95% of cases surveyed using peer review and client satisfaction criteria, advice is judged accurate, practical and legally based.Peer review provided on complex advice and for newer staff ensured accuracy and practicality in all cases. New indicators to address the objectives are being developed.
Focus towards target groups and target issues.90% of the contacts meet the requirements of the stated targeting criteria. This has not been achieved in respect of "core" work. The Consumer Information Service team has also responded to the Minister's requests to cover a wider view on specific issues.
Support for national community agencies.90% of responses received from surveyed community agencies indicate that support by means of provision of written information, training and advice is "adequate" or better.90%
Timeliness   
Draft ministerial correspondence is submitted to the Minister within 10 working days of receipt in the Ministry.100%75% (Given the high volume of ministerials received, resources were stretched in both the Minister's office and the Ministry, and it was not always possible to achieve the final version within 10 days.)
Where only an interim reply is possible a final reply shall be provided within the following timeframes.90% within 20 working days of the original receipt in the Ministry; and

100% within 30 days of receipt in the Ministry.
Not applicable - no interim replies.
Time taken to respond to inquiries received on the Community Agency Hotline message manager.100% are responded to within 40 minutes and follow-up action is taken within 24 hours.94% (2,815 calls) were responded to within 40 minutes.

1.5% (45 calls) of all calls required follow-up action. Data was not kept of the time taken to complete follow-up action.

Cost

(Figures are GST exclusive)

  2000
Main
Estimates
2000
Supple-
mentary
Estimates
2000
Actual
1999
Actual
  $000$000$000$000
Revenue:       
Crown1,6931,6931,6871,777
Other7711-
Total Revenue1,7001,7001,6981,777
Expenses:       
Annual appropriations1,7001,7001,6981,777
Other appropriations----
Total Expenses1,7001,7001,6981,777
Net Surplus/(Deficit)----

Output Class D3 - Administration of Trade Measurement Legislation

Description

This output class provides for the administration of trade measurement legislation which 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 referencing 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 MeasuresPerformance StandardsActual
Quantity   
Ministerial Correspondence5-10 (estimated)2
Parliamentary Questions10-20 (estimated)Nil
Accredited persons' standards tested.44 companies tested44
Approvals processed:   
  • full evaluation;
1014
  • overseas; and
3033
  • variants.
3035
Accreditation applications processed:   
  • full; and
21
  • extension
2524
Full company surveillance audits completed.2218
Complaints handled.20085 (Demand driven. The lower than forecast number of complaints may indicate greater compliance, particularly as the Ministry has developed a major trader programme with Woolworths NZ Ltd and Progressive Enterprises Ltd aimed at ensuring greater compliance in relation to weight and measure.)
Infringement offence notices issued.4026
Prosecutions commenced.21
Media and publicity releases.43
Consumer/trader fact sheets developed/ maintained.66 pamphlets and 2 fact sheets.
Trade Measurement newsletter supplement.33
Quality   
Accredited persons' standards calibration and verification undertaken in compliance with International Accreditation New Zealand (IANZ) approved procedures.100% compliance as verified by IANZ annual audit. 100% (IANZ audit November/December 1999.)
Clients surveyed indicating satisfaction with the equipment pattern approvals process.90%100% (12 respondents.)
Clients surveyed indicating satisfaction with the private sector accreditation process.90%100% (15 respondents.)
Clients surveyed indicating satisfaction with the surveillance audits of accredited persons' process.90%100% (14 respondents.)
Complainants surveyed indicating satisfaction with the complaints handling process.90%100% (17 respondents.)
Cases prepared and accepted for prosecution by Crown Solicitors.100%None at Crown Solicitor during the year.
Media, publicity releases, fact sheets and newsletter supplements are technically correct, professional in appearance, and consistent with the Ministry's logo and brand.100%100%
Timeliness   
Accredited persons' standards calibrated and verified within 20 working days of receipt in a testable condition.100%100%
Work completed on approval applications within 50 working days after instrument becomes available.100%100%
Work completed on accreditation applications within 50 working days of the applicant being ready for audit.100%100%
Number of full company surveillance audits completed within timeline set out in surveillance policy manual.100%100%
Prosecutions meeting statutory timeframes.100%100% (one only instigated during the year.)
Infringement offence notices meeting statutory timeframes.100%100%

Cost

(Figures are GST exclusive)

  2000
Main
Estimates
2000
Supple-
mentary
Estimates
2000
Actual
1999
Actual
  $000$000 $000$000
Revenue:       
Crown1,3431,3431,3431,344
Other1001008396
Total Revenue1,4431,4431,4261,440
Expenses:       
Annual appropriations1,4431,4431,4451,444
Other appropriations----
Total Expenses1,4431,4431,4451,444
Net Surplus/(Deficit)--(19)(4)

16The range is (1) not satisfactory, (2) fell short of expectations, (3) satisfactory, (4) met expectations, (5) fully met expectations.

17The range is (1) not satisfactory, (2) fell short of expectations, (3) satisfactory, (4) met expectations, (5) fully met expectations.



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