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Office of Fair Trading (OFT) Annual Staff Event

Gareth Thomas MP,  Former Minister for Trade, Development and Consumer Affairs (jointly with DFID)
Mermaid Conference Centre, Puddle Dock, Blackfriars,  28 April 2009

Introduction

Pleased to be here.

The UK has among the best consumer and competition regimes in the world. The OFT plays a leading role in both regimes and the fact that we are rated so highly is, in no small measure, due to the efforts of you here today. The leadership shown by Philip and John is appreciated by government.

There are many examples of the good you do as staff here at the OFT. Your work is raising standards in the debt collection sector is hugely important given the impact these agencies can have on some of the vulnerable and troubled people in our country. Your work on Consumer Direct – as recognition is growing – is providing real help, advice and info to consumers. Thank you for the work you are doing.

One of our challenges together is not to be complacent. These are difficult times which are bringing new issues to us all.

This Government is determined to do what it can to help hardworking businesses and families survive the worst of the storm and be ready for the economic upturn when it comes.

But let me say why I think the OFT will have such an important role to play in helping us out of the recession.

First,

Competition policy

Throughout the current crisis, the UK’s competition framework has proved itself to be flexible and robust enough to respond to market volatility and failure.

Last year, it allowed this Government to make an essential intervention into the financial sector to ensure stability in the UK’s economy.

This action, in response to exceptional global circumstances, was not taken lightly or without controversy either.

And we remain as committed as ever to ensuring a legal framework that promotes competition, drives productivity and innovation and protects the vital interests of UK consumers and businesses.

It is important that we maintain competition so I welcome in particular the work the OFT is doing to keep an eye on the financial services sector through its financial services strategy.

Of course, competition isn’t always easy. The pressures and changes it brings, challenge us all.

It is therefore important the UK remains a leader in promoting competition and free trade – especially at a time when we see a worrying trend towards protectionism in other countries.

We must continue to argue that fair, competitive markets remain the best way to encourage good ideas, innovation and enterprise, to boost efficiency, prosperity and confidence and to offer consumers lower-prices and a wider choice of high-quality goods.

All these factors are essential to our quality of life and to success in the modern global economy.

Secondly,

Consumer protection

Getting out of the recession will require action from many different groups within the country, including Government and business.

But it will also require consumers to regain the confidence to go out there in to the market place and buy goods and services.

They need to feel protected from scams, cons, and downright poor quality products. We all need consumers to feel that they can complain and get a positive response if things do go wrong.

That is where you in the OFT can really help: through Consumer Direct and through the work you do with Trading Standards Departments.

Your work is making a real difference to consumers, but markets and rogues are constantly changing and we therefore need to change our regime too.

As you know we carried out a review of consumer law last year. Following this we will produce a new Consumer White Paper this year.

Key Principles

We are currently working with stakeholders and interested parties on the detail but there are a number of key principles.

• First, we are looking again at issues facing indebted consumers and the supply of credit. We already have a range of measures in place to regulate this sector, provide more debt advice and help the vulnerable. But more needs to be done.
  
  
• Second, we need a common framework of consumer protection across the EU – helping consumers who shop in the UK and across Europe. This means creating a fair balance of rights and effective cross-border co-operation on enforcement.
  
  
• Third, we must ensure an enforcement regime which tackles the most serious threats to consumers. It must be delivered in an effective, joined up way – locally and nationally where appropriate.
  
  
• And finally we must ensure consumers have the knowledge to give them the confidence to shop. We must do more to help them know their rights – for example in how to find reliable traders; and in knowing who to complain to and get redress from if things go wrong.

Enforcement Issues

Many of you I know will be interested in our work on enforcement issues. We are looking at a number of areas here.

At the heart of our plans will be a new drive to tackle internet crime. To do this we will have to build our investigative capacity further, with a greater focus on improving intelligence sharing and collaboration of enforcement agencies, including the OFT.

Modern consumers are increasingly turning to the Internet to shop and we have got to ensure we have the ability to investigate major on-line scams which cause significant harm to consumers.

Enforcement agencies working in ever more joined-up ways could enable us to carry out more investigations and prosecutions.

Removing the fraudsters will help drive up consumer confidence. It will also protect the honest business who can only thrive on a level, competitive playing field.

We also need to ensure trading standards officers have the most effective powers to reflect modern trading conditions and tackle rogues wherever they occur.

We will be working with all our enforcement agencies in the weeks ahead to fine-tune our proposals for the White Paper. I look forward to having further discussions with the OFT as part of that.

Conclusion

As I said at the start, these are difficult times for consumers and business.

There is an economic necessity that we work together – and work smarter – to rebuild consumer confidence and help businesses survive now and thrive in the future.

I am pleased at the steps that you are taking with the Competition Commission to look for ways to improve the market and merger regimes.

I am also pleased at the way that Consumer Direct has taken on the extra responsibilities for postal and energy consumers and works with industry, Consumer Focus and others to make the consumer protection regime work better for those it is meant to help – the consumers.

Lastly I look forward to working with you in Consumer White Paper. Thank you for the job you do, it is appreciated.