Final report on the provision of consumer information education and advice
Robyn McDonald Consumer AffairsFinal report on the provision of consumer information education and advice
EXECUTIVE SUMMARY
The Ministry of Consumer Affairs has reviewed how consumer information,
education and advice will be provided in the future.
The objective of its information, education and advice programmes is
to:
- empower consumers, targeting those most in need, so they can exercise choice
and be effective in asserting their rights and responsibilities in the
marketplace.
The review of Operations was necessary because we were not meeting our
objectives. This was due to:
- the increasing demand on the public telephone advice service (the Consumer
Advice Service) following the introduction of the Consumer Guarantees Act 1993;
and - the realisation that this service was not meeting the informational needs of
targeted consumers (i.e. low income, Maori and Pacific Island consumers).
The goal of the review was to:
- identify the best possible way to achieve our objectives within current
resources; and - reallocate current resources so that the needs of our targeted consumers are
being met.
A number of options were considered and assessed against the goal of the
review and the following selection criteria:
- achievable within existing budget;
- best fulfills our strategic objectives;
- provides the greatest targeting results;
- maintains a regional presence for the best contacts;
- develops constructive relationships; and
- avoids the duplication of services with other organisations.
Research and consultation was undertaken with a variety of agencies including:
- key Maori groups;
- key Pacific Island groups;
- key community advisory agencies;
- other Government agencies;
- other consumer agencies; and
- business and trader/industry organisations.
This report follows an extensive review process that was the subject of a
final consultation process based on an interim report released on 9 June 1997.
Interested readers should refer to the'Interim Report on the Provision of
Consumer Information, Education and Advice' for further details of our current
work and the discounted options.
Outcome
We consider that the option which best meets the goal of the review and the
selection criteria is the "Consumer Information Service." It has the
following features:
- More strategic approach, including appointing specific staff to coordinate
projects for, or manage, the Ministry's relationship with a particular client
group. - Focus on enhanced relationship management regionally and nationally with key
community advisory agencies (such as Citizens' Advice Bureaux (CABx), New
Zealand Federation of Family Budgeting Services (NZFFBS) and member Budget
Advisory Services (BAS), Community Law Centres (CLCs), People's Resource
Centres) and Government agencies (such as Te Puni Kokiri (TPK), New Zealand
Income Support Service (NZISS), Ministry of Pacific Island Affairs, Commerce
Commission (CC)). - Development of strong relationships with key Maori agencies and Pacific
Island women's agencies (see 2.4.7). - Enhanced training programmes and support for CABx, NZFFBS members and CLC
workers and other community agencies providing consumer advice and information. - Provision of a hotline for CABx, BAS and CLCs and other community agencies
providing consumer advice and information. - More consumer advocacy work for those who meet the criteria and designed to
focus resources on issues involving significant detriment. - Development of strategies for ongoing media work aimed at targeted
consumers. - Specific information and education programmes for target consumers.
- Further Iwi education project work..
- More proactive trader compliance work to change behaviour to benefit all
consumers. - Continued trader information and education work by participating in Town
Visits with the CC and as part of Consumer Awareness Week projects. - Improved service and resources provided to schools/TOPs.
- Further development of written resources, and information provision
mechanisms such as the internet. - All information from hotline calls and advocacy work recorded on an improved
database - information used to record trends in the marketplace. - No general, public telephone advice service is provided by the Ministry in
this option.
1 INTRODUCTION
1.1 Purpose of the Ministry
1.1. The Ministry of Consumer Affairs' purpose is to work with consumers and
business to promote a fair and informed market place.
1.1.2 Our information, education and advice work (undertaken by the
Operations section) aims to empower consumers so they can exercise choice and be
effective in asserting their rights and responsibilities in the marketplace.
1.1.3 We place emphasis on providing relevant information that enables
consumers to resolve their own problems - a'self-help' approach with a minimum
of third-party assistance.
1.1.4 Given our limited resources, information, education and advice
programmes are specifically targeted at:
- issues involving the most detriment for consumers; and
- those who are most disadvantaged by means of income and education.
1.1.5 The groups we target are low income, Maori and Pacific Island people
along with the traders who deal most with our targeted consumers. These groups
incorporate consumers who are most disadvantaged in the marketplace because they
are:
- less able to access information to make informed consumer choices;
- less able to enforce their legal rights in the market; and
- less able to sustain the loss as a result of an unsuccessful consumer
transaction, such as purchasing poor quality goods or a bad credit deal.
1.1.6 The work undertaken by our Policy, Consumer Safety and Trade
Measurement sections is not targeted and benefits all consumers; for example the
recent Ministry study analysing contracts, metering and disputes procedures for
domestic electricity customers which provides a basis for further Ministry work
with power companies, Government agencies, consumer and community groups to
improve the conditions offered to all domestic electricity consumers.
1.2 Review of the Operations Section
1.2.1 The review of the Ministry's
Operations section was part of a wider strategic review encompassing all areas
of the Ministry which was completed on 22 July 1997.
1.2.2 Primarily, the review of Operations was necessary because we were not
meeting our objectives - to empower consumers, particularly those most in need,
so they can exercise choice and be effective in asserting their rights and
responsibilities in the marketplace . This was due to:
- the increasing demand on the public telephone advice service (the Consumer
Advice Service) following the introduction of the Consumer Guarantees Act 1993;
and - the realisation that this service was not meeting the informational needs of
targeted consumers.
1.2.3 The goal of the review was to:
- identify the best possible way to achieve our objectives within current
resources; and - reallocate current resources so that the needs of low income, Maori and
Pacific Island consumers are being met.
1.2.4 Much of Operations'
resources are taken up with the Consumer Advice Service, which receives
approximately 50,000 calls annually.
1.2.5 An assessment of this service shows that it fails to reach those
consumers the Ministry is charged with helping i.e. low income, Maori and
Pacific Island people. The overwhelming majority of users of the service are not
consumers that the Ministry targets.
1.2.6 Research undertaken by the Ministry (and others such as the Law
Commission), shows that our target groups prefer to receive information by way
of oral, visual and face to face contact rather than in written material or
talking to a person they do not know over the telephone.
1.2.7 The review was started in mid-1996 undertaking research and
consultation with a variety of agencies including:
- key Maori groups;
- key Pacific Island groups;
- key community advisory agencies;
- other Government agencies;
- other consumer agencies; and
- business and trader/industry organisations.
1.3 Link with the Interim Report
1.3.1 Following the research and
consultation stage a number of options were developed and considered. These
options were brought together in the paper:'Interim Report on the Provision of
Consumer Information, Education and Advice' released on 9 June 1997.
1.3.2 All the options were considered and assessed against the goal of the
review and the following selection criteria:
- achievable within existing budget;
- best fulfills our strategic objectives;
- provides the greatest targeting results;
- maintains a regional presence for the best contacts;
- develops constructive relationships; and
- avoids the duplication of services.
1.3.3 The interim report
identified the Consumer Information Service option as the preferred
option because it best met the selection criteria and the goal of the review.
1.3.4 We sought comment from within the Ministry and externally from a
variety of agencies on the report. Specifically to gain external comment, focus
groups were held with target consumers and key community advisory and Government
agencies to discuss and seek feedback on the report and in particular the
preferred option. The report on the findings from the consumer focus groups is
attached in Appendix two.
1.3.5 All comments received by 7 July 1997 were considered when preparing the Final Report on the Provision of Consumer Information, Education and Advice.
The list of submissions received is contained in Appendix four.
1.3.6 Fuller discussion on the options that were discounted is contained in
Part 7 of the interim report and assessment of our current work is contained in
Parts 2 and 5 of the interim report. A table comparing the various options
considered in that report is attached in Appendix one to show the key issues
considered.
1.3.7 Set out immediately below are specific comments on two of the
discounted options that were mentioned at a consumer focus group or in a written
submission.
0900 Call Centre
1.3.8 Comment was made by a community law centre in the Wellington focus
group that the Ministry should have canvassed the 0900 Call Centre option more
fully because it would appear that the option would provide the further
resources required to fund information and education programmes for target
consumers.
1.3.9 In response, the Ministry reiterates that this option was rejected for
the following reasons:
- low income, Maori and Pacific Island consumers and organisations we
consulted confirmed they would not use an 0900 service - this point was echoed
by the CABx and BAS respondents to our questionnaire; - traders/trader industry group representatives indicated that they would not
use an 0900 service; - there is no comparable Government service to benchmark the option against.
Therefore, it is difficult to assess the number of calls such a service will
attract from any sectors; - the cost recovery figures (in the interim report) were based on current call
numbers; if these numbers were not met, charges would either need to be
increased or the Ministry would have to meet extra costs from its operational
budget which would threaten the Ministry's operational budget; - a user pays system may raise consumer expectations that they would receive
more assistance than we would be able to provide; - making the public aware of the parameters of the service before they called
and incurred the minimum 0900 charge would be a major communication project; - there would be a duplication of the CABx information provision role;
- if we provided an 0900 advice service to all consumers we would
duplicate services available from solicitors; and - the Ministry would be subject to the same legal obligations as a private
sector service provider.
Contract Out the Ministry's Operational Work
1.3.10 The Consumers' Institute suggested that consideration should be given
to the total Operations section of the Ministry being put out to competitive
tender. It was contended that while the Ministry may be the most appropriate
"government-funded provider of consumer advice, information and education, that
the Ministry's service should be contestable with interested parties providing
an outline of the services they would offer and what they would charge for
them."
1.3.11 This specific option was not considered in the interim report.
However, the option of contracting out the telephone advice service was
considered and discounted primarily for the following reason:
- the Ministry is not funded to provide a universal legal advice service. This
option would see us continuing to do so but by contracting an external agency to
deliver the service. Again, we would be required to commit resources that would
otherwise be shifted to meeting our stated objectives.And, secondly:
- the resources were not available to consider the issues of the legal
obligations of both contracting parties in terms of agency and accountability
which would need to be explored thoroughly; - skills in the area of contract drafting, negotiating, costing and management
would have had to be acquired by the Ministry; - unless the cost of managing contracts was offset against the amount granted
to the successful tenderer, management of service contracts could see the
Ministry confined to an administrative function; and - the telephone advice service would become a commercial enterprise with
concomitant responsibilities.
1.3.12 In relation to the suggestion
raised by the Consumers' Institute, we consider that the option of contracting
out the Ministry's operational work is not feasible This is due largely to the
same reasons why we discounted the contracting out the telephone advice service
option coupled with the following factors:
- the Ministry possesses:
- legal expertise in consumer and credit law which is unique in the market;
- expertise in working effectively with Maori and Pacific Island communities
and disseminating consumer information to those communities; and - a combination of legal and community development skills and experience which
is not readily available in any other single agency;
- these factors add considerable strength to the quality of the Ministry's
policy advice; and - the neutral stance a Government department has compared to the risk that a
contracting agency may be associated with, for example a particular group of
consumers.
2 RECOMMENDED OPTION - CONSUMER INFORMATION SERVICE
2.1 Overview
2.1.1 Operations will continue to work with the following groups:
| OPERATIONS |
|
2.1.2 This diagram (amended following the interim report) reflects feedback
from the Wellington focus group and the Consumers' Institute that we should
build and maintain effective relationships with key Government and other
consumer agencies.
Consumer Information Service
2.1.3 The recommended option proposes increased information and education
work with target consumers, employing regionally-based liaison workers to work
directly with groups and traders involved with target consumers, extra support
and training for agencies that currently provide free consumer advice and
information such as CABx, NZFFBS members and CLCs and more advocacy work which
will help target consumers with problems where they face a high level of
detriment.
2.1.4 The following outline summarises the key features of the new service:
- More strategic approach, including appointing specific staff to coordinate
projects for, or manage, the Ministry's relationship with a particular client
group. - Focus on enhanced relationship management regionally and nationally with key
community advisory agencies (such as CABx, NZFFBS and member BAS, CLCs, People's
Resource Centres) and Government agencies (such as TPK, NZISS, Ministry of
Pacific Island Affairs, CC). - Development of strong relationships with key Maori agencies and Pacific
Island women's agencies (see 2.4.7 of this report). - Enhanced training programmes and support for CABx, NZFFBS members and CLC
workers and other community agencies providing consumer advice and information. - Provision of a hotline for CABx, BAS and CLCs and other community agencies
providing consumer advice and information. - More consumer advocacy work for those who meet the criteria and designed to
focus resources on issues involving significant detriment (see 8.2.1 - 8.2.15 of
the interim report). - Development of strategies for ongoing media work aimed at targeted
consumers. - Specific information and education programmes for target consumers (for
example Consumer Awareness Week projects - see 2.4.3 of the interim report). - Further Iwi education project work..
- More proactive trader compliance work to change behaviour to benefit all
consumers. - Continued trader information and education work by participating in Town
Visits with the CC and as part of Consumer Awareness Week projects. - Improved service and resources provided to schools/TOPs.
- Further development of written resources (such as a credit resource for
traders, posters aimed at target consumers), and information provision
mechanisms such as the internet. - All information from hotline calls and advocacy work recorded on an improved
database - information used to record trends in the marketplace. - No general, public telephone advice service is provided by the Ministry in
this option.
Consumer Disputes Service
2.1.5 The interim report identified the Consumer Disputes Service as an
integral feature of the Consumer Information Service option. It will be
available to target consumers identified through criteria and promoted through
community agencies, beneficiary agencies, Maori and Pacific Island
organisations, BAS, CABx, CLC and Government agencies such as NZISS, TPK and the
Ministry of Pacific Island Affairs.
2.1.6 The work will involve providing advice and advocacy for specific
consumers (and specific issues), assessment of disputes resolution options,
negotiation with traders, preparation of cases for Disputes Tribunals/Motor
Vehicle Disputes Tribunals, legal research, monitoring key legal developments in
consumer/credit legislation and identifying trends for trader compliance and
policy development work.
2.1.7 Considerable support was given to the introduction of this enhanced
service at focus groups and in written submissions. However, comment was made
that the service should be available to other consumers than just those targeted
by the Ministry and that the title of the service may confuse:
"[W]e endorse the establishment of a targeted Consumer Disputes
Service, although the title could lead to confusion with the Disputes Tribunal.
It will provide much needed advocacy and as the report notes, much better record
keeping ... However, our support is tempered by a fear that a large group of
consumers will be without assistance ... For example, who will provide
assistance to an older consumer who is bewildered and confused and open to
exploitation" - Submission from the Consumers' Institute.
2.1.8 All the operational issues in relation to this service have
not yet been finalised. Feedback received from the focus groups and written
submissions about who will be able to access the service, whether the service
will be renamed and how it will be marketed will be considered further by the
Ministry team established to implement the recommended option.
2.1.9 The availability of this service is constrained by resources.
2.2 Low Income Consumers
Objective
2.2.1 Our objective is to inform low income consumers, using the most
appropriate means possible, so they can exercise choice and be effective in
asserting their rights and responsibilities in the marketplace.
Findings from our Research and Consultation
2.2.2 The Ministry recognises that a strong oral tradition exists amongst low
income consumers who prefer to receive information from someone they know and
trust in a familiar community setting. Offering pamphlets to many low income
consumers to address their information needs is unhelpful as pamphlets are
perceived as not for them, difficult or overwhelming unless the written
information is'explained' by someone suitable.
2.2.3 The word'consumer' has little meaning to some low income consumers and
needs to be explained in terms of consumer issues affecting peoples' daily lives
so that the information then becomes important.
2.2.4 In the interim report we identified that the Ministry did not have an
established definition of what level of income constitutes being'low income'.
Therefore, based on the available research and census information we defined a
low income consumer as an individual whose total source of income is less than
$25,000 per annum.
2.2.5 This definition was a concern at the Wellington and Christchurch focus
groups and in a number of submissions:
"Based on the 1996 census figures for residents 15 years and over
this definition would include 67.4% of the population [...there is a] real
question as to whether there is a sound basis for defining low income in the
terms that the Ministry proposes." -Submission from the Financial Services
Federation.
"The assumption ... that because 50% of the population is eligible
for the Community Services Card the measure is a reflection of a low to moderate
income is flawed. It is not appropriate to judge the level of someone's income
through comparing that income to one received by others ... any percentage of a
population, including a high percentage, could be low income earners." -
Submission from Te Puni Kokiri.
2.2.6 The Ministry recognises that Government and the wider community has
struggled with defining'low income' (some discussion is contained in Appendix
eight of the interim report). We will continue to consider a range of factors to
assist us to target low income consumers without establishing an arbitrary
income limit to define'low income.'
2.2.7 These factors will include strong networks with a variety of agencies
that regularly work with low income people (for example BAS and NZISS),
considering the types of issues that consumers want advice/assistance with,
considering the geographical location when deciding where to pitch information
and education programmes and further indicators of social disadvantage such as
language or education barriers. A significant issue to put the definition in
context is that it is a mechanism for assisting in directing resources not a
prescriptive label with any other meaning or value attached to it.
Strategy for Working with Low Income Consumers
2.2.8 We will enhance our networking and overall relationship management with
key external agencies such as:
- key community workers and agencies for example People's Resource Centres,
YWCA, parents' and church groups, NZFFBS, NZISS, CABx, CLCs and TOPs training
providers.
2.2.9 We recognise that these relationships are essential for the success of
the strategy of utilising a range of key people and agencies to explain and pass
on information to consumers and make referrals to the Ministry as appropriate.
Where the CABx or BAS is unable to assist a low income consumer with a complex
consumer matter, we will advocate on the consumer's behalf.
2.2.10 We will initiate ongoing projects rather than one-off activities, for
example regular columns and sessions on community radio and in community
newspapers and the development of more appropriate written and visual resources.
2.2.11 As part of the multi-pronged approach, we will work strategically with
business to assist low income consumers. We will target traders who deal with
low income consumers to ensure they comply with consumer law and have
appropriate complaints handling procedures. This will also benefit all
consumers. (An example of a compliance project the Ministry was recently
involved in with the CC is the Dominion Television Rental (DTR) project which
involved a systemic problem of non-disclosure by DTR with their rent-to-buy
agreements. The Ministry worked with DTR over many months to come up with a
settlement that would give affected consumers some compensation and ensure that
in future consumers would be given the financial information they are legally
entitled to).
2.3 Maori Consumers
Objective
2.3.1 Our objective is to maximise Maori control of information development
and dissemination processes through the recognition of the Treaty of Waitangi
and the practices of partnership to enable Maori to exercise choice and be
effective in asserting their rights and responsibilities in the marketplace.
Findings from our Research and Consultation
2.3.2 The most common and preferable way of obtaining information for Maori
is word of mouth. Maori are more likely to ask those people they trust for
information such as parents, whanau, friends, children, partners, and people
working in the community who are known and trusted, particularly in a problem
situation. Feedback from Maori in the Wellington focus group supported our
research in this respect and added that'grass roots' organisations such as
Kohanga are an important avenue for disseminating information rather than more
'high powered' organisations such as Maori Women's Welfare League that may be
intimidating for some Maori.
2.3.3 Maori radio, newspapers and magazines are popular mediums for
disseminating information to Maori. This is due to the way the information is
presented - reports are written for Maori by Maori.
2.3.4 Research and consultation have highlighted that the experiences of many
Maori with Government agencies have been largely negative. The way Government
agencies and other non-Maori organisations deliver services has traditionally
not been user friendly for Maori and so information delivered, particularly by
non-Maori people, is likely to be viewed with suspicion and mistrust, or
ignored. The best vehicle for delivering information is one that uses whanau,
hapu, and Iwi networks.
2.3.5 We were reminded at the Gisborne focus group that all of our
information and education work will have an impact on Maori community agencies
who are under-resourced and reliant on volunteers.
2.3.6 Comment has been made supporting the continuing provision of a
toll-free telephone advice service to reach targeted consumers, including Maori:
"We would expect that target group consumers would use the
Ministry's phone advice service much more once they knew more about its
existence and they had some basic knowledge of consumer rights [...and] without
an accessible phone advice service the basic and particular needs of even target
groups of consumers will not be met." - Submission from NZ Assn. of CABx Inc.
Head Office.
2.3.7 There will not be access to a Ministry-based
public phone advice service, because, among other reasons outlined elsewhere in
this paper, we stand by our research that shows that a telephone advice service
is not the most effective way to provide information to target consumers,
including Maori. Also, to operate any sort of phone service other than the
hotlines to community agencies is resource intensive and may not be manageable.
Strategy for Working with Maori
2.3.8 The Ministry, as with all Government agencies, is obliged to
acknowledge the Treaty of Waitangi and in particular it's significance in the
relationship between Maori and the Crown. The Ministry targets its information,
education and advice to those most disadvantaged in the marketplace, Maori being
one of these groups targeted. This strategy is premised on that obligation and
our objective stated at 2.3.1.
2.3.9 We will foster Maori control of the information development and
dissemination processes which will ensure that information and education
services are accessible, appropriate and acceptable to Maori. We will build on
our work with Te Runanga O Toa Rangatira (specifically te Iwi o Ngati Toa ki
Porirua [the Ngati Toa project]) by developing and supporting consumer education
packages in a range of learning environments for Iwi. The Ngati Toa project
involved contracting and working with Ngati Toa to design a package which
ensures that Iwi have ownership of the information dissemination process and
responsibility for educating their own about consumer rights and
responsibilities.
2.3.10 We will enhance our networking and overall relationship management
with key external agencies such as:
- Runanga, Te Kohanga Reo, Maori Women's Welfare League, TPK, Maori groups
within community organisations such as the CABx, BAS and CLCs in addition to the
relationships held with their parent organisation.
2.3.11 We will provide training and support to Maori community agencies that
are disseminating information and advice about consumer matters. This will
involve their having access to the community advisory agencies'hotline,'
providing regular consumer updates and written training and resource material.
2.3.12 Where external organisations such as Maori community agencies, CABx
and BAS are unable to assist a Maori consumer with a complex consumer matter, we
will advocate on the consumer's behalf.
2.3.14 We will develop an overall communication strategy to ensure effective
use of Maori media, for example Iwi radio stations, television and the print
media.
2.3.15 The Ministry will work strategically with business to assist Maori
consumers. We will target traders with a large Maori customer base to ensure
they comply with consumer law and have appropriate complaints handling
procedures. This will also benefit all consumers.
2.4 Pacific Island Consumers
Objective
2.4.1 Our objective is to inform Pacific Island consumers, using the most
culturally appropriate means possible and while recognising that each Pacific
Island nation is a unique community in its own right, each with its own
language, culture, processes and networks, so they can exercise choice and be
effective in asserting their rights and responsibilities in the marketplace.
Findings from our Research and Consultation
2.4.2 Networking is seen by Pacific Island consumers as the most effective
way of distributing consumer information, whether through family, church,
social, or community networks. Within this networking process, face to face
dialogue is seen as the most appropriate way to get information to and from
Pacific Island communities. This stems from Pacific Island histories and
traditions where information is normally passed on orally. Where agencies can,
they need to use the expertise of Pacific Island staff/contacts to ensure
processes are followed.
2.4.3 We were reminded at all the focus groups that all of our information
and education work will have an impact on Pacific Island community agencies who
are under-resourced and reliant on volunteers.
2.4.4 Our evaluation of previous projects with Pacific Island radio stations
demonstrates that this medium is effective for disseminating consumer
information to Pacific Island people. This has been identified by Pacific Island
staff in the Ministry involved in these projects and feedback from Pacific
Island staff in the radio stations and Pacific Island community groups at the
Wellington, Christchurch and Auckland focus groups.
2.4.5 In the Wellington and Christchurch focus groups we were reminded that
for many Pacific Island consumers the issue of disadvantage in the market stems
from ethnicity more than income and support was received for the preferred
option in relation to the proposed work with Pacific Island consumers:
"The Ministry [of Pacific Island Affairs] supports the preferred
option identified by the review and the proposed establishment of a Coordinator
(Pacific Island) position [...and w]e would like to suggest that knowledge of a
Pacific Island language be a requirement in the appointment of regional liaison
workers, to enhance access and dialogue with Pacific communities" -
Submission from the Ministry of Pacific Island Affairs.
Strategy for Working with Pacific Island Consumers
2.4.6 The Ministry recognises that Pacific Island consumers prefer to receive
information visually and face to face by utilising Pacific Island staff
resources within the Ministry and key Pacific Island community agencies to
disseminate information.
2.4.7 We acknowledge that Pacific Island women are the key buyers of consumer
items. Therefore, strong networks with Pacific Island women's agencies are
essential to the success of the strategy.
2.4.8 There is an emphasis on enhanced relationship management with key
Pacific Island agencies such as:
- Pacific Island Fanau groups, Pacific Island Resource Centres, Pacific Island
Women's Project, Pacifica, Community Funding Agency Service Providers, Pacific
Island Secondary School Teachers' Association, Pacific Island Training Providers
and Boards of Trustees, Pacific Island Budget Advisors and church
groups.
2.4.9 Consumer information will be made available through key
organisations and Government agencies where Pacific Island people have constant
contact, for example Immigration, NZISS and Housing New Zealand (HNZ) offices.
2.4.10 We will provide training and support to Pacific Island community
agencies that are disseminating information and advice about consumer matters.
This will involve their having access to the community advisory agencies
'hotline', providing regular consumer updates and written training and resource
material.
2.4.11 Where external organisations such as Pacific Island community
agencies, CABx and BAS are unable to assist a Pacific Island consumer with a
complex consumer matter, we will advocate on the consumer's behalf.
2.4.12 We will have ongoing contact with Pacific Island consumers through
long term projects such as Pacific Island Radio and regular columns in Pacific
Island newspapers and strong networks with key Pacific Island agencies.
2.4.13 The Ministry will work strategically with business to assist Pacific
Island consumers. We will target traders with a high Pacific Island customer
base to ensure they comply with consumer law and have appropriate complaints
handling procedures. This will also benefit all consumers.
2.5 Business
Objective
2.5.1 Our objective is to work strategically with business, particularly
businesses that have a significant customer base of target consumers, to
increase business compliance with consumer law.
Findings from our Research and Consultation
2.5.2 Business' feedback about Ministry services highlighted the importance
of the Ministry's written information, particularly about the Consumer
Guarantees Act. Businesses look to the Ministry for guidance on interpretation
of new law and one suggestion was that the Ministry hold informal discussions
with businesses about developments in interpretation of relevant legislation.
2.5.3 Businesses support the Ministry's work in the trader compliance area,
particularly work that is more proactive. A written submission went further than
this:
"Your targeted groups may be those you perceive as least capable of
achieving ... a position [in which they can deal equitably] within the market
place but it should be questioned whether the best way of assisting them is
providing advice to them or by studying very closely the traders that
predominantly deal in that marketplace" - Submission from L.V. Martin &
Son Ltd.
2.5.4 Ninety-four percent of CABx and NZFFBS respondents supported a greater
focus on working with business. Pamphlets and information about rights and
responsibilities were identified by the respondents as the biggest priority.
2.5.5 All CLC respondents said that the Ministry should deal with businesses
who repeatedly break the law, to change bad trader behaviour. Methods included
education, prosecution, suspension from trading and publicity of a register of
'bad' businesses. CLCs encouraged the Ministry to provide information to law
centres about businesses with bad records.
2.5.6 The point was made in the Auckland focus group that the Ministry should
have enforcement power to deal with'rogue traders' and that we need to have a
system in place for community agencies to report these traders.
2.5.7 Consultation (through a questionnaire - details available in the
interim report) with community organisations, low income, Maori and Pacific
Island consumers showed that a significant proportion of consumers value good
in-store procedures for getting disputes sorted out.
Strategy for Working with Business
2.5.8 The Ministry believes that significant benefits for all consumers can
be made through working with business or the business sector. We acknowledge
that credibility with business is crucial and we will endeavour to ensure that
the Ministry retains/improves credibility with business.
2.5.9 We will work in a cooperative way and capitalise on opportunities to
involve business in information programmes aimed at them. We will seek to take
an active part in an integrated Ministry-wide approach towards business,
including trade measurement, consumer safety and consumer policy. Where
possible, the Ministry will seek a contribution from businesses targeted by an
information programme.
2.5.10 We will work in the following ways:
- identify businesses that target and are used by low income, Maori and
Pacific Island consumers and develop and maintain strong relationships with
national representatives of those businesses; - undertake specific compliance work with businesses with a large low income,
Maori and Pacific Island customer base as a means of improving the treatment of
these consumers in the marketplace and to increase redress opportunities where
appropriate; - continue our compliance project work with a focus on the credit market;
- prepare articles for key industry publications on a regular basis;
- actively seek out opportunities for taking part in seminar presentations to
conferences and industry meetings that fall within the overall business
strategy, rather than responding in an ad hoc way to business groups that
initiate it; - continue to produce high quality written material (including developing new
resources for information gaps already identified in the credit/financial
services industry and new/innovative ways of making information available to
business); - contribute to the Ministry's monitoring of the Consumer Guarantees Act and
other consumer legislation; - work jointly with the CC where appropriate (for example town visits and
contributing to their Major Trader Programme); and - promote complaint handling schemes.
2.5.11 The Ministry has
limited enforcement powers - see 5.5.14 of the interim report for details.
2.5.12 We expect that information/trends relating to'rogue traders' and'bad
business behaviour' will be identified through our advocacy casework,
information via the community advisory agencies'hotline' and as a result of our
improved networking and information sharing with key community advisory
agencies.
2.6 Non-targeted Consumers
Objective
2.6.1 Our objective is to inform all consumers, through all available
avenues, so they can exercise choice and be effective in asserting their rights
and responsibilities in the marketplace.
Findings from our Research and Consultation
2.6.2 This group consists of those consumers who are outside the Ministry's
targeting criteria. Members of this group are more generally aware of their
rights than target consumers and have the ability and resources to obtain
information regarding their rights from a number of sources in addition to the
Ministry, for example Trader/Industry Organisations (such as Master Builders and
Motor Vehicle Dealers' Institute) CABx, CLCs, Consumers' Institute and
solicitors.
2.6.3 Feedback from community advisory agencies (particularly CABx) at the
focus groups reminded us that all consumers needed access to a free consumer
advice service. This sentiment was echoed in some written submissions:
"While the Federation [New Zealand Federation of Family Budgeting
Services - NZFFBS] certainly agrees that low income, Maori and Pacific Island
consumers do need access to good consumer information and advice, as target
groups, we also support the provision of specialist advice and information for
all consumers. This is particularly important in the deregulated market within
which credit and purchase decisions are now made." - Submission from NZFFBS
Head Office.
Strategy for Working with Non-targeted Consumers
2.6.4 This strategy is framed given our current resourcing. Also relevant, is
the point raised at 1.1.6 in relation to the work of the wider Ministry.
2.6.5 Non-targeted consumers will be able to obtain information on their
consumer rights through community organisations, for example CABx and CLCs,
libraries, Internet, industry dispute resolution schemes and the Consumers'
Institute, not directly by telephone from the Ministry.
2.6.6 A'hotline' for CABx, BAS, CLCs and other community advisory agencies
will ensure Ministry support for these organisations who are often the first
port of call for many consumers.
2.6.7 The Ministry will enhance the training and provision of written
resources and training material for key community advisory agencies that deal
with non-targeted and targeted consumers alike.
2.6.8 We will continue to produce regular articles for community newspapers
and general media releases (as appropriate) which all consumers have access to.
2.6.9 A specific'issues hotline' will be provided as required which all
consumers will have access to. This will be set up in response to a particular
issue ( for example the recent death of a baby in a pram).
2.6.10'Project hotlines' will also be accessible by all consumers. These
will be set up as part of specific projects to collect information for the
researching of policy or compliance projects.
2.6.11 The Ministry's compliance work with traders and the support and
training provided to community advisory agencies targeted at low income, Maori
and Pacific Island consumers will also benefit this group.
2.7 Citizens' Advice Bureaux
Objective
2.7.1 Our objective is to continue to work strategically with the CABx to
ensure they are trained and supported in their work with consumers.
Findings from our Research and Consultation
2.7.2 The CABx has submitted that the removal of the Ministry-based telephone
advice service will place considerable pressure on the already limited resources
of the non-Governmental sector, in particular their organisation. As a result,
the CABx is taking steps to secure more funding. The Ministry is actively
supporting the CABx to achieve this.
2.7.3 The CABx (and NZFFBS) have clearly indicated that the training and
support that the Ministry provides to that organisation is invaluable. However,
there is also room for improvement as noted in interim report at 5.7.5 and 5.76.
2.7.4 Aside from the need for additional funding, CABx training and support
requirements from the Ministry were articulated at all the focus groups and are
summarised in this submission:
- "On-going support from the Ministry will be very important:
- Training and updating programmes.
- An efficient hot-line service so bureau workers will receive help with the
more difficult cases. - The possibility of handing over the more complicated cases for the Ministry
to deal with. - [...T]he opportunity to give input into how the new option is working from
[the CABx] point of view, and be able to suggest changes if necessary. - A system in place so that a significant number of complaints about the same
trader can be reported to the Ministry." - Submission from CABx Consumer
Specialist Wellington
2.7.5 Feedback from business stresses the
importance of including some training about market equity alongside the consumer
law training for CABx and other community advisory agency workers.
Strategy for Working with the CABx
2.7.6 The Ministry will work in a more coordinated fashion with the CABx,
both regionally and nationally, with continued observance of a renewed
Memorandum of Understanding and the establishment of a relationship manager.
2.7.7 We will provide additional support in the area of written resources and
an ongoing training programme which is strongly focused on identified areas of
need. We will also continue to provide expert advice on credit issues.
2.7.8 We will ensure that the CABx has extra support and back-up with the
provision of a'hotline' for the CABx and other community advisory agencies.
This'hotline' will be able to be accessed immediately (or within a very short
time frame) for information and advice, as well as serving as a referral point
for passing on cases that meet the criteria for assistance by our Legal Advisors
and sharing information about recurring trader non-compliance.
2.7.9 The funding request by the CABx is part of a bigger picture for funding
non-Governmental agencies disseminating information to the public on a variety
of issues which are generated by a range of Government agencies such as, Inland
Revenue, NZISS and the Department of Internal Affairs. Therefore, the Ministry
does not have sole responsibility for the issue of resourcing community
agencies. This specific issue needs to be considered by central and local
Government.
2.7.10 We acknowledge that there will be workload implications for a range of
community agencies generated by the introduction of the Ministry's recommended
option, hence our commitment to considerably enhance the training and support
currently offered to those key agencies.
2.7.11 We will continue to work cooperatively with the CABx in relation to
the implementation of the recommended option and the impact that it will have on
their organisation.
2.8 Budget Advisory Service
Objective
2.8.1 Our objective is to strengthen our relationship with the New Zealand
Federation of Family Budgeting Services and local Budget Services and continue
to work strategically to ensure they are trained and supported in their work
with low income consumers.
Findings from our Research and Consultation
2.8.2 This group consists of those Budget Advisory Services that are
affiliated members of the NZFFBS.
2.8.3 Representatives from BAS reminded us at all the focus groups that many
of the workload and resourcing issues that the CABx have raised also apply to
them.
Strategy for Working with the NZFFBS and Budget Service
Members
2.8.4 The Ministry will also work in a more coordinated fashion with the
NZFFBS and its members, both regionally and nationally, with continued
observance of a renewed Memorandum of Understanding and the establishment of a
relationship manager. We believe that an increased emphasis on maintaining and
fostering a strong relationship is central to an effective and mutually
beneficial relationship.
2.8.5 We will provide greater support to BAS by developing further written
resources, providing training resources for their trainers (with a particular
focus on credit law and motor vehicles), provision of a'hotline' for BAS along
with other community advisory agencies, and increasingly working cooperatively
on case management (including advocacy). We will also continue to provide expert
advice on credit issues.
2.8.6 This'hotline' will be able to be accessed immediately (or within a
very short time frame) for information and advice, as well as serving as a
referral point for passing on cases that meet the criteria for assistance by our
Legal Advisors and sharing information about recurring trader non-compliance.
2.8.7 We acknowledge that there will be workload implications for a range of
community agencies generated by the introduction of the Ministry's recommended
option, hence our commitment to considerably enhance the training and support
currently offered to those key agencies.
2.8.8 We will continue to work cooperatively with the NZFFBS and its members
in relation to the implementation of the recommended option and to consult on
consumer issues, and the impact that it will have on their organisation.
2.9 Community Law Centres
Objective
2.9.1 Our objective is to strengthen our relationship with CLCs by firstly
acknowledging that each law centre is an independent organisation (and not all
law centres are affiliated to the Coalition) and begin working in a strategic
manner to ensure they are trained and supported (according to the needs of the
individual law centre) in their work with consumers.
Findings from our Research and Consultation
2.9.2 CLCs have indicated that they are keen for more training and they are
confident that they could handle more consumer queries as a result. However,
this is contingent on the roles of the different organisations being clarified
as they do not want to duplicate services
2.9.3 CLCs support the continued provision of a free advocacy service for low
income, Maori and Pacific Island consumers. However, it must be well advertised.
2.9.4 The CLCs are also clear that if we no longer provided consumer
education and awareness resources, that it would have a significant impact on
them.
2.9.5 All CLCs said that Ministry should deal with businesses who repeatedly
break the law and that we should take whatever action is possible i.e. maintain
and publicise a register of bad businesses.
2.9.6 At the Wellington focus group, the issue was raised of CLCs limited
access to the'hotline' because they saw clients outside business hours.
Strategy for Working with CLCs
2.9.7 The Ministry acknowledges that our relationship with CLCs has been on a
more ad hoc basis than our relationships with the CABx and NZFFBS. However, we
intend to work in a more coordinated fashion with individual law centres as well
as the Coalition of Community Law Centres, with the introduction of a
relationship manager.
2.9.8 The Ministry will support CLCs in the work they do with consumers, by
providing regular written legal information on consumer legislation and cases,
and providing regular information about the work that the Ministry is doing
(including information about trader compliance projects).
2.9.9 CLCs, along with other community advisory agencies, will have immediate
(or within a very short time frame) access to the'hotline' for information and
advice (within business hours), as well as serving as a referral point for
passing on cases that meet the criteria for assistance by our Legal Advisors and
sharing information about recurring trader non-compliance.
2.9.10 We acknowledge that there will be workload implications for a range of
community agencies generated by the introduction of the Ministry's recommended
option, hence our commitment to considerably enhance the training and support
currently offered to those key agencies.
2.10 Schools/TOPs
Objective
2.10.1 Our objective is to inform the consumers of the future so they can
exercise choice and be effective in asserting their rights and responsibilities
in the marketplace.
Findings from our Research and Consultation
2.10.2 We have defined this client group as school age children and young
persons from low income, Maori and Pacific Island families. This view has been
supported by some consumers. However, feedback from most focus groups stated
that it is important that the Ministry continues to provide educational
resources to all schools and TOPs programmes.
2.10.3 Limited evaluation of our educational resources suggests that
generally the opinion about the effectiveness of our past and current programmes
with schools and TOPs programmes is good.
2.10.4 Further research needs to be done to fully determine the effectiveness
of our educational material. However, some of the weaknesses with our current
resources for schools and TOPs have already been identified.
"Educational resources tend to date very quickly. Three to five
years is the often quoted life of a resource. I believe it is now a lot less
than this given the galloping pace of information technology." - MCA Report
-'Consumer Education and Information for Schools and TOPs -
General.'
2.10.5 It is believed that these groups are most
effectively reached in face to face learning situations in schools (in target
areas) and tertiary institutions, in particular TOPs programmes (TOPs programmes
are targeted to low achievers hence capture many disadvantaged young people).
2.10.6 Videos produced by the Ministry have mainly been purchased by schools
and TOPs programmes. There are differing opinions about the effectiveness of the
videos that the Ministry has produced in the past - 5.10.10 of the interim
report for details.
Strategy for Working with Schools and TOPs
2.10.7 We need to review our current objectives in relation to our role in
providing consumer education to children and young persons separately.
2.10.8 Specifically, we need to review our current resources in terms of
their relevance, their current usage in schools/TOPs programmes and
effectiveness in meeting the Ministry's objectives. Other areas that need
reviewing are; access to the material by TOPs providers and schools in target
areas, our current delivery methods, the way the resources are funded, and our
marketing techniques.
2.11 The Minister and Ministry
Objective
2.11.1 Our objective is to provide professional input towards meeting the
Ministry's overall objectives.
Findings from our Research and Consultation
2.11.2 Submissions were received and comments made in the focus groups
questioning how the Ministry will identify market trends and keep up to date on
current and emerging issues with the removal of the telephone advice service:
"We have seen too many [G]overnment agencies sever
operational links and their policy work lose effectiveness without
strong linkages with their'customer base.' We are not convinced that the
proposal as presented has clearly enough defined communication linkages to
ensure the Ministry is'up with the play' on current issues. While the preferred
option will ensure linkages with the target groups, it will not necessarily
ensure the full range of consumer protection are identified." - Submission
from the CABx Head Office.
Strategy for
Contributing to the Ministry's Purpose
2.11.3 Following the review of all areas of the Ministry covering the way
Ministry staff work together, how objectives are set, projects developed, and
how all of this is managed, the Ministry will be best placed to achieve our
strategic objectives.
2.11.4 We acknowledge that the different sections of the Ministry must work
together effectively so quality information obtained through operational work is
provided to support policy activities and the Ministry's resources of skills and
experience are used more effectively across the Ministry.
2.11.5 Where appropriate, staff will participate in a range of projects and
bring to each their particular skill. (For further reference please refer to
6.11.2 of the interim report). In the future, it is proposed that people from
all areas of the Ministry will be involved in Ministry-wide projects including,
staffing the'issues hotline' and'projects hotlines' (see 2.6.9 and 2.6.10
respectively of this report for more detail).
2.11.6 The Ministry is aware there is a need to ensure policy work links to
the day to day issues consumers are facing. The recommended option continues the
multi-faceted approach to ensuring policy work reflects consumer issues.
2.11.7 Regional networks, our international counterparts, consumer education
packages, the increased advocacy casework, and the'hotline' for community
advisory agencies will serve as conduits for information gathering and sharing,
and an improved database will capture this information. We will ensure that we
maintain strong links with organisations such as the Commerce Commission and
Consumers' Institute who hold a wealth of information on a variety of consumer
issues.
2.11.8 This new approach will provide much more robust information and should
see early identification of trends requiring a policy or operational response.
2.11.9 Further, the Ministry proposes setting up hotlines as part of specific
policy projects to seek comment from consumers on specific policy issues as
appropriate.
2.11.10 Greater centralisation of the Ministry's resource development
function in Operations will be a better use of Ministry-wide resources.
2.12 Government and Consumer Agencies
Objective
2.12.1 Our objective is to build and maintain effective networks with
appropriate external agencies.
Findings from our Research and Consultation
2.12.2 Feedback from the Wellington and Christchurch focus groups suggested
that we need to improve our networking and information sharing with other
Government agencies, particularly in the South Island, as isolation is an
important issue.
2.12.3 Feedback from the Consumers' Institute and Commerce Commission
highlighted their willingness to continue our close relationship, with the
Consumers' Institute reminding us that we tend to overlook the research resource
the Institute has to offer.
Strategy for Working with Government and Consumer
Agencies
2.12.4 As noted in our strategies for working with low income, Maori and
Pacific Island consumers, we will build and maintain effective relationships
with those government agencies (and community agencies) who work with targeted
consumers.
2.12.5 Again, emphasis will be placed on working more effectively and
strategically with both the Commerce Commission and Consumers' Institute through
regular networking and continuing current services, for example sharing
information, and providing advice and support as appropriate.
3 MAKING IT HAPPEN
3.1 Marketing the New Service
3.1.1 Several concerns were raised in written submissions and at the focus
groups about marketing. The concerns are as follows:
- How will the Ministry market the new Consumer Information Service?
- How will the Ministry publicise the closure of the telephone advice service?
- What is the Ministry's plan for dealing with those people who continue to
ring for advice?
Marketing the Consumer Information Service
3.1.2 A Communications strategy has been established to assist the Ministry
to effectively communicate the changes to the public.
3.1.3 The Consumer Information Service will be publicly launched on 22 July
1997 in the Beehive and we will also launch the new service regionally -
southern, central, northern in October/November 1997.
3.1.4 Media strategies will be developed to promote the new service to
targeted consumers. This will involve utilising key media such as Iwi and
Pacific Island radio and print media.
Publicising the Closure of the Telephone Advice Service
3.1.5 This issue will be covered in the media releases when the new service
is publicly launched.
3.1.6 Following the launch, pre-recorded messages will be used to advise
callers that the service will cease from 1 August 1997. While recognising the
variety of agencies providing consumer information and advice, to make it easier
for the caller, the phone message will suggest they contact the CABx if they
require assistance with their enquiry.
3.1.7 The CABx have agreed to this course of action in respect of the
referral to CABx. The CABx (Head Office) commented in their submission that they
have built up a caseload and experience in consumer work for a number of years
and are committed to deliver quality client service - a service that is "driven
by responding to community needs for information and advice." In a recent
meeting with the CABx the Ministry was reminded that we need to take the lead in
publicising the changes and raising the profile of the CABx competence to answer
many consumer enquiries.
3.1.8 We will also advertise how consumers/traders/schools and others can
order resources following the closure of the toll-free lines.
3.1.9 The pre-recorded phone messages will remain for up to 12 months
depending on usage.
Plan for Dealing with Callers after the Closure of the Telephone Advice
Service
3.1.10 We will ensure that our written resources are available in as many
places as possible such as libraries, Government and consumer agencies,
community advisory agencies, trader/industry organisations and through our
internet website (http://www.moc.govt.nz/mca/) or email (MCAINFO@MOC.GOVT.NZ).
3.1.11 We will also ensure that key community advisory agencies have access
to up to date resource material and that regular ongoing training and
information sharing programmes/processes are established. Likewise, the
'hotline', which will provide specialist back-up, will become operational
immediately following the closure of the public telephone service.
3.1.12 In addition to the strategy stated above (3.1.6 - 3.1.10), we will
prepare standard responses detailing the reasons for the refocussing of the
service and other avenues that are available to seek information and assistance,
and we will continue our close relationship with the Minister's office staff.
3.2 Implementing the New Service
3.2.1 A number of submissions and comments made at the focus groups related
to the'lack of detail' in the interim report, covering specific issues such as:
- the operation of the consumer disputes service and the'hotlines';
- the roles of Coordinators and Relationship Managers for particular groups;
- the lack of financial detail; and
- what performance measures will be put in place.
3.2.2 We acknowledge that the interim report does not canvass the relevant
implementation issues. The purpose of the interim report was to report on the
findings of the Service Team who were responsible for undertaking research and
consultation with key groups/agencies about how the Ministry should provide
consumer information, education and advice, and then to evaluate the possible
options and identify the Ministry's preferred option.
3.2.3 An Implementation team has been established and is responsible for the
following:
- to prioritise transitional issues for immediate attention, identify
appropriate responses for approval and implementation (for example operation of
the'hotline' and the criteria for access to consumer advocacy assistance); - to identify specific tasks and issues that can be worked on by the team or
by other individual or small groups of staff to produce recommendations that can
be implemented (for example a group has been established to update our training
manual for the CABx and another is to look at our database requirements); - to identify appropriate performance standards for the new service;
- to identify specific resources required to operate in the new organisation,
identify costs for approval and arrange purchases through the Support Officer; - to identify for the Manager, constraints, issues that cannot be dealt with
immediately, and risks as they become apparent; - to ensure that planning and implementation is coordinated to take into
account timing and budget considerations; - to identify media implications, and work with the Communications Advisor,
the Promotions Team and other people identified as having a role in the media
strategy and to respond appropriately; and - to ensure that internal staff and external agencies concerned about the
outcomes of implementation are kept appropriately informed.
3.2.4
Details of the financial implications of the recommended option (and the
discounted options) is on file and is available under the Official Information
Act 1982.
3.3 Timeline (1997)
- 22 July
- - Public launch of the Consumer Information Service
- 23 July
- - First pre-recorded message starts
- 1 August
- - Telephone advice service ceases
- - Second pre-recorded message starts
- - Updated written resources to community advisory agencies
- 4 August
- - First day of new service
- - Community advisory agencies hotline starts
- - Interim process in place for trader compliance and advocacy casework
issues - 15 August
- - Operation of advocacy casework finalised *
- 29 August
- - Interviews held for staff vacancies
- - All Coordinator/Relationship Manager roles allocated
- 22 September
- - New staff on board
- - Staff training/team building week
- 1 October
- - Updated CABx training manual completed *
- October/November
- - Southern, central, northern regional launches
* Subject to sizing, may take longer.
4 APPENDICES
APPENDIX ONE
4.1.1 The following table outlines the key elements, advantages and disadvantages of the discounted options, and the reasons why these options are not considered to be feasible.
| 0800 | 0900 | Joint Call Centre | Contracting Out | Centralised Service | |
|---|---|---|---|---|---|
| What would this option involve? | Centralised phone service
Open to all consumers and traders First port of call for all MCA inquiries Provide brief advice Use of recorded information All calls recorded on a database Limited advocacy work for target consumers Referral point for complex disputes involving target consumers Phone service staffed by people trained in consumer law Same services provided for CABx, BAS, CLC as now |
Centralised user pays phone service
Open to consumers and traders Focus on generalist information service rather than advice Use of recorded information All calls recorded on a database CABx, BAS and CLC hotline (free) Referral point for complex disputes involving target consumers Phone service staffed by people trained in consumer law More advocacy work for target consumers Consumer Awareness programmes for target consumers |
Combine the inquiries function of the Ministry and the CC (FTA division) in a phone service First port of call for all MCA and some CC services Focus on information, not advice Accessible to consumers and traders All calls recorded on a database Phone service staffed by people trained in consumer law Limited advocacy work for target consumers Referral point of complex disputes involving target consumers |
Interested community groups would tender for the advice work presently done by the Regional Advice Service (in CHCH, AK & WLG) Tenders may be presented by CABx, CLCs or Consumers' Institute Complex disputes involving target consumers would be referred to our Legal Potential to increase regional presence with the help of community agencies |
CABx, BAS and CLC hotline (free)
No universal telephone advice service Information and Education programmes for target consumers The centralised service is based on the preferred option, however without |
| 0800 | 0900 | Joint Call Centre | Contracting Out | Centralised Service | |
|---|---|---|---|---|---|
| How is it different from what we do now? |
Phone service centralised rather than regional Currently there is a number of points of entry for consumers to all areas of Improved database Emphasis on providing consumers with written material Use of recorded messages and push button options on phone Phone staff not legally qualified No regional offices |
User pays
Centralised number rather than three regional numbers Improved database Use of recorded messages and push button options on phone Phone staff not legally qualified |
Combines the inquiries functions of both agencies Agencies share resources Centralised 0800 number Use of recorded messages and push button options on phone Phone staff not legally qualified |
No Ministry Regional Advice Service
Advice Service is run by locally contracted service agents who provide a |
Centralised rather than regional
No telephone advice service No regional presence CAB/CLC/BAS hotline rather than just priority status All information and education work provided from Wellington |
| 0800 | 0900 | Joint Call Centre | Contracting Out | Centralised Service | |
|---|---|---|---|---|---|
| What are the advantages of this option? |
Will have a higher national profile, may increase calls from target consumers Access to all of MCA Database will record all calls to 0800, enables the Ministry to provide Access point to our Legal Advisors for assistance |
A user pays system frees the operational budget and enables the Ministry to undertake project work as listed in the preferred option Legal Advisors can concentrate on complex disputes involving target consumers |
Sharing of resources between agencies
Integration of databases (if agreed upon) Virtual technology enables calls to be answered at separate sites and Database will record all calls to 0800, enables the Ministry to provide Access point to our Legal Advisors for assistance |
Potential for the Ministry to have a wider regional presence than it has now Potential for the service available to consumers to be of a higher level than Community agencies (CABx and BAS) consulted by the Ministry consider a local |
Easy to manage
All staff are based in Wellington, so planning and development is simplified Staff skills are readily available Those targeted most effectively in this scenario are traders who can be |
| 0800 | 0900 | Joint Call Centre | Contracting Out | Centralised Service | |
|---|---|---|---|---|---|
| What are the disadvantages of this option? |
The Ministry is not funded to provide a universal legal service Does not meet MCA's objective of providing information and education to Research indicates few target consumers are likely to use the 0800 service Cost and resource intensive, means regional offices would have to be closed, Cost of traveling for staff is high An 0800 number is likely to further dramatically increase calls Every call will not be answered personally |
Unlikely target consumers will use 0900 service Doubtful traders will use 0900 service Difficult to assess the number of calls such a service will attract A user pays system may raise public expectation of service provided Duplication of CABx information provision role The Ministry will be subject to the same legal obligations as a private Cost recovery charges are based on current call numbers, if these numbers are |
May not be able to find technology compatible with the objectives of each agency The CC has a different objective from MCA (they are an enforcement agency, Duplication of CABx information provision role Does not meet MCA objective of providing information and education to target Essentially continues the status quo |
Issues of legal obligations of both contracting parties in terms of agency and accountability, need to be explored thoroughly Objectives and outcomes will differ depending on the skill and expertise of Skills in the area of contract drafting will need to be acquired by the Unless the cost of managing contracts is offset against the amount granted to Advice Service will become a commercial enterprise with concomitant |
Effective targeting and consultation relies on local networks, staff who are accepted and can operate appropriately within the group targeted, local knowledge of community dynamics is essential Travel costs will greatly increase in order to reach target consumers Staff will have to travel regularly to regions and the cost would offset Geographical distances, particularly in the South Island may result in fewer |
| 0800 | 0900 | Joint Call Centre | Contracting Out | Centralised Service | |
|---|---|---|---|---|---|
| Conclusion | The Ministry is not funded to provide a universal legal service Option essentially a continuation of the status quo with the provision of a The service is resource intensive, therefore, regional offices would need to Phone is not an effective medium of communicating with target consumers Limited provision of information and education service On balance, this option is not feasible given the resources and Ministry's |
The Ministry is not funded to provide a universal legal service, and although this option is a user pays model, it would mean the Ministry providing a service that research shows target consumers will not use The figures given are projections only and call numbers will need to be high Downward movement in call figures would threaten the Ministry's operational On balance, this option is not feasible given the resources and Ministry's |
The CC is not ready at this point in time to look at a joint call centre The CC has a different role from MCA (they are an enforcement agency whereas The CC target traders and not consumers On balance, this option is not feasible given the resources and Ministry's |
The Ministry is not funded to provide a universal legal service. This option would see this continue but contracting an external agency to deliver the service MCA would be required to commit resources that would otherwise be shifted to On balance, this option is not feasible given the resources and Ministry's |
The option of providing all the Ministry's operational services from Wellington will be easier to manage. However, the cost of travel is unacceptable To centralise MCA's service goes against research in respect of reaching and On balance, this option is not feasible given the resources and Ministry's |
APPENDIX TWO
REPORT ON CONSUMER FOCUS GROUPS
Purpose
The purpose of the focus groups was two-fold:
- to brief participants on the Ministry's preferred option for how we propose
to provide consumer information, education and advice in the future; and - to gather participant's feedback on our interim report findings -
particularly about the preferred option and its likely impact on the
communities/agencies that were represented.
Participants
Wellington - 17 June 1997
- Te Puni Kokiri - Elizabeth Ashton
- Nga Kaiwhakamarama I Nga Ture - Charmaine Ross
- Te Aho Ruruku - Samantha Tamanui
- Lower Hutt Budget Advice Service - Serenah Nicholson
- Law Commission - Makere Papanui, Joanne Morris, Bridgit Laidler
- Department of Internal Affairs - Roy Hoerara
- PACIFICA - Jane See
- Pacific Island Resources Trust - Sophia Godfrey
- Samoan Capital Radio - Fa'aso'o Toetupelua
- Tongan Community - Niuselu Uesi
- Niuean Community - Lagi Sipili
- Fijian Community - Malaki Curulala
- Cook Island Community - David Isaia
- Citizens' Advice Bureaux - Meg Flux, Janet Berry
- Budget Advisory Services (affiliated to NZFFBS) - Raewyn Nielsen, Robyn
Evans - Whitireia Community Law Centre - Bill Bevan
- Wellington South Community Law Centre - Belinda Rynhart
- Consumers' Institute - Helen Wi Neera
- NZ Income Support Service - Misty Williamson
Gisborne - 20 June 1997
- Te Runanga o Turanganui-a-Kiwa - Sharon Maynard
- Te Puni Kokiri - Albert Stewart
- Ngati Porou Social Services - Judy Kururangi
- Radio Ngati Porou - Phil Reed
- Citizens' Advice Bureau - Phil Hilder
- Budget Advisory Service - Thelma
- Maori Women's Welfare League - Evelyn Te Kani
- Gisborne District Council - Bub Apelu
- Link Centre - Albie Gibson
Christchurch - 20 June 1997
- Te Puni Kokiri - Pura Parata
- Ministry of Pacific Island Affairs - Michelle O'Berg
- Pacific Island Fanau - Fred Sopoaga, Audrey Enright
- St Pauls Trinity Pacific - Rev Lapana Faletolu
- Pacific Island Evaluation Inc. - Maiava David Johnson
- Christchurch Community Law Centre - Nick Mc Bride, Kerry Nalder
- Kingdom Resources Trust (& Budget Advisory Service) - Susan Gill
- Christchurch Budget Advisory Service - Jan McKillop
- Southland Community Law Centre - Bob McLauchlan and another representative
- Citizens' Advice Bureaux - Peter Francis, Norm Thornton, June Woodham,
Daniel Doubleday, Jean Mclean, Bob Ryburn - Department of Internal Affairs (Greymouth) - Jenny Robertson
Auckland - 23 June 1997
- Kaitaia Community House - Leanne Edwards
- Ngati Arohanui Trust - Betty Wark
- Maori Pacific Island Women's Heatlth Collective - Jacinta Thompson
- Te Runanga o Ngati Whatua - Danny Patuawa
- Pacific Island Advisory Council - Siapu Tyrell, Lorna Lakua and two other
representatives - Radio 531PI - Sef Haouli
- Sosaiete Tina Samoa - Joanna Fuimaono
- Samoana - Kristina Maugatai
- Flaxmere Community Law Centre - Georgina Wahi
- Whakawatea Kaporeihana - Sandra Thompson
- Samoan Community Worker
- Free Budget Service - Trisha Halkert
- Youth Law Project - Nicole Robinson
- Mangere Community Law Centre - Andrew Lawson
- Grey Lynn Neighbourhood Law Office - Robyn Martin
- Citizens' Advice Bureaux - Robyn Allpress, Sylvia Warren, Pat Goodchild,
Margot Hart, Tony Smyth
Feedback
Feedback was received on the following issues:
- The Ministry's purpose
- General feedback on the interim report's findings
- Targeting
- Definition of'low income'
- Pressure on community agencies
- Operation of the Consumer Disputes Service
- Operation of the community advisory agencies''hotline'
- Training and resources
- Networking and information dissemination
Notes were made of each session at each focus group and these are on file.
The Ministry's Purpose
General comments were made at many of the focus groups that the Ministry
should provide consumer information, education and advice programmes for all
consumers. Those participants that expressed that view believed that Government
should better fund the Ministry to achieve that end.
Others commented that with additional funding the Ministry could increase its
regional presence to provide a better service regionally (Christchurch and
Auckland focus groups).
Some felt that the Ministry should have enforcement power to deal with'rogue
traders' who do not comply with legislation - in particular, the Consumer
Guarantees Act.
General Feedback on the Interim Report's Findings
There was divided opinion at the focus groups about the withdrawal of the
telephone advice service. Generally, representatives from Maori and Pacific
Island communities and agencies considered that the withdrawal of the telephone
service would have little impact on them because a telephone-based service is
not a preferred method for receiving information. However, many community
advisory agencies (such as CABx, BAS and CLCs) considered that removal of the
telephone service would have significant impact on them in relation to fielding
more consumer enquiries. Other community advisory agencies (Christchurch focus
group) were supportive of the withdrawal of the telephone service because they
felt that the service was largely reactive and resource intensive, which meant
that the Ministry had limited capacity to undertake proactive work.
Comment was made (Wellington focus group) that the Ministry should have
considered the 0900 Call Centre option more fully.
Targeting
At each focus group there was general discussion about the Ministry's
targeting policy. Aside from the comments made that the Ministry should target
all consumers, there was universal acceptance that the Ministry's target groups
(low income, Maori and Pacific Island people) were appropriate in that those
groups consisted of many disadvantaged consumers. However, an opinion commonly
held by CABx representatives was that there are other disadvantaged consumers
that the Ministry is failing to reach with its current targeting policy, such as
the elderly and new immigrants
Another opinion that was commonly held, by representatives of Maori and
Pacific Island communities/agencies (Wellington and Christchurch focus groups)
was that the Ministry's targeting policy was entirely appropriate because the
underlying issue of vulnerability in the marketplace was due to ethnic and
cultural background rather than a limited income.
Feedback from all the focus groups supported the Ministry targeting the next
generation of consumers (particularly strong message from the Auckland focus
group).
Support was also given for the Ministry's enhanced work with traders and
ensuring that traders in isolated areas are targeted too.
Many participants at the focus groups agreed that the Ministry should
continue targeting issues involving significant consumer detriment (such as
credit and motor vehicles). However, comment was made (Wellington focus group)
that we should also focus on electricity contracts, superannuation and life
insurance.
Definition of Low Income
Concern was raised over the Ministry's proposed definition of'low income'
(such as will the Ministry be means-testing? - Wellington focus group) and
general comment was made about the difficulty of attempting to define such a
group. However, there was universal agreement that those with incomes at benefit
levels were receiving a'low income'. Some alternative definitions were made
such as using the minimum wage, an income level of $30,000 per annum, income at
benefit levels.
Pressure on Community Agencies
There was universal opinion that the preferred option would impact on all
community agencies. The Ministry was reminded at all the focus groups that all
community agencies rely on unpaid labour and have very limited resources.
Comments were made that the additional pressure will require agencies to obtain
more volunteer staff, consumer specialists and equipment such as extra
phonelines and a fax.
Specific criticism was made that the Ministry has a formalised relationship
with only a limited number of community agencies. This is reflected in the
preferred option in references to the support and training offered to agencies
such as the CABx and BAS. The Ministry was reminded of the additional need for
further information and advice that is generated by information and education
programmes and projects such as Iwi and Pacific Island radio ones (strong
message from Gisborne and Christchurch focus groups).
Concerns were raised by a number of participants from CABx, CLCs and BAS that
agencies such as CABx and BAS were moving more into an inappropriate role of
'giving advice' which is fraught with issues in terms of the agencies' ability
and who can legally provide'legal advice'. An observation was made (Auckland
focus group) that the appropriate distinction should be drawn between providing
information and'advice'.
Operation of the Consumer Disputes Service
Most participants were supportive of this feature of the preferred option.
However, comments were made about the lack of detail in the interim report
concerning this service. Most concern appeared to be about who could access this
service and focused on the Ministry's statement that the service would likely be
restricted to target consumers. Some felt that access to the service should be
more focused on the consumer's ability to'help themselves' rather than their
income (Wellington focus group). Others felt that the service should be
available to any consumer who needed assistance with a complex matter that
required the Ministry's specialist legal skills (Auckland focus group).
Other comments stressed the importance of defining the parameters of this
service such as whether the service will include a dispute resolution and/or an
arbitration function.
Operation of the Community Advisory Agencies''Hotline'
There was also universal support for this feature of the preferred option.
However, a number of specific concerns were raised in relation to its operation.
Most felt that it was imperative that it was adequately staffed. Others were
concerned about the hours the service will be available (at the Wellington focus
group the issue was raised that some law centres give advice outside normal
business hours).
Some sought clarification on practical issues such as whether resource orders
could be made through the hotline and whether it was an appropriate avenue for
passing on information about rogue traders or bad business practices.
The Ministry was reminded by Maori and Pacific Island community
representatives that the hotline needs to be available to them too.
Training and Resources
All community agencies said they needed additional resources, particularly in
view of the Government trend of increasingly relying on community agencies to
disseminate information and provide services to the public - services that are
seen by these agencies as being ones that Government are responsible for
providing.
Many agencies requested more consumer training from the Ministry and the
continued provision of written resources for the public and for agency workers
to assist them in dealing with consumer enquiries (for example an updated
consumer manual, regular updates about changes in legislation and trader
compliance projects). Most Maori and Pacific Island community agency
representatives requested access to the Ministry's training and appropriate
resources too.
Those agencies that want more Ministry training and written/video resources
urged the Ministry to make it a priority and to fund their agency's consumer
specialists.
Networking and Information Dissemination
Most participants agreed that effective networking was essential and must be
ongoing. The Ministry was reminded to include other Government agencies when
networking (in particular Te Puni Kokiri (TPK), New Zealand Income Support
Service, Department of Internal Affairs) and to focus on'grass roots'
organisations as well as national organisations (Wellington focus group).
Some Maori participants commented that Maori women gather most of their
information from other Maori women and that many do not know how to access
information when required and will not enquire further if it requires travel,
cost and/or leaving children (Wellington focus group). Other suggestions made
for disseminating information was to link up with TPK (Christchurch) to be
included in their mailout to South island Iwi (Christchurch focus group), the
Ministry to participate in youth expos and to run more education programmes with
specific Iwi (Gisborne focus group).
Pacific Island participants also made suggestions about disseminating
information to Pacific Island people. Many suggested that we start by focusing
on church groups (Wellington and Christchurch focus groups). Others suggested
specific Pacific Island associations (such as the Cook Island Association in
Porirua, Nuie associations in the Wellington area, Pacific Island Fanau in
Christchurch and Nelson, Pacific Island Resource Centres) and meeting Pacific
Island media representatives (Auckland focus group). Most of the Pacific Island
participants considered that Pacific Island radio, television and newspapers
were a very effective way to reach Pacific Island people (Wellington,
Christchurch and Auckland focus groups).
Conclusion
The focus groups were a useful way to brief and seek feedback from key
community and agency representatives. This is particularly true for reaching
Maori and Pacific Island communities compared with the poor return rate of
questionnaires that were sent by the Community Impact team last year.
Prepared by: Lesa Kalapu 7 July 1997
APPENDIX THREE
NEW REGIONAL STRUCTURE
| Manager Head Office Wellington | ||
| Christchurch
1 Legal Advisor 1 Projects Advisor |
Wellington
3 Legal Advisors 3 Projects Advisors 2 Support Staff |
Auckland
2 Legal Advisors 1 Projects Advisor |
The roles of Project Advisors and Legal Advisors will include the following:
- participation in the operation of the hotline for community agencies;
- provision of a targeted advocacy service (Legal Advisors only);
- liaison with local community agencies to identify issues and provide
training; - participation in project activities such as consumer awareness programmes,
radio and other media work and specifically targeted projects such as Iwi
consumer education projects; - identification and implementation of local strategies to meet the
informational needs of low income, Maori and Pacific Island consumers; - work with local traders to promote compliance;
- provision of information that will enhance policy development; and
- participation in national projects and projects with other agencies.
Emphasis is on joint activities, good networking (including a local
support group of commmunity based people), and carefully targeted activities to
meet our objectives.
Activities will not be confined to the area in which they are based.
APPENDIX FOUR
LIST OF SUBMISSIONS
Submissions received from the following organisations as at 7 July 1997:
- Ashburton Promotions Association (Inc.) Information Centre (from Pauline Wilson - Manager)
- Citizens' Advice Bureau - Central City Wellington (from Patsy Armour - Consumer Specialist)
- Citizens' Advice Bureau - Invercargill (from Wendy Baker - Consumer Team and National Committee Consumer Liaison Person South Region)
- Citizens' Advice Bureau - Porirua (from Janet Berry - Coordinator)
- Citizens' Advice Bureau - Christchurch North (from Peter Francis - Consumer Convenor South Region)
- Citizens' Advice Bureau - New Plymouth (from David Giles - Consumer Convenor Central Region)
- Citizens' Advice Bureau - Mt Roskill Auckland (from Tony Smyth - Consumer Liaison Officer North Region)
- Citizens' Advice Bureau - Cambridge (from John and Ngaire Tunnicliff - Consumer Trainers Waikato/Bay of Plenty Region)
- Citizens' Advice Bureau - Timaru (from W. West - Member of Consumer Team Timaru)
- Consumers' Institute (from David Russell - Chief Executive)
- Department of Internal Affairs - Wellington (from Jo Roach - Client Support Officer)
- Financial Services Federation - Wellington (from Justin Kerr - Executive Director)
- Kaitaia Community House (from Leanne Edwards - Coordinator)
- L.V. Martin & Son Ltd - Wellington (from Trevor Douthett - Joint Chief Executive)
- Ministry of Pacific Island Affairs - Wellington (from Louisa Kea on behalf of Acting Chief Executive)
- New Zealand Association of Citizens' Advice Bureaux Inc - Wellington (from Margy-Jean Malcolm - Executive Officer)
- New Zealand Federation of Family Budgeting Services (Inc.) - Auckland (from Barbara Menzies - Executive Officer)
- Pacific Island Advisory Council - Hamilton (from Siapu Tyrell - Secretary)
- Te Puni Kokiri - Wellington (from Paora Howe - Manager Service Policy)
- The Warehouse Limited - Auckland (from Val Faulkner - Advertising Manager)
- Wellington South Community Law Centre (from Sarah Mackenzie - Solicitor)