Gerry Sutcliffe MP

Working Together Effectively

Before I start, let me pay tribute to my predecessor, Melanie Johnson. I know that Melanie was delighted to take over the consumer brief in 2001 and to work on an area that so directly affects everyone’s lives. And I know that she recognised and respected the critical role which Trading Standards play in ensuring that the consumer is protected, that decent traders are properly supported and that, critically, the service which you deliver to the public is as effective as it can be. Many of the innovations for the service which bore fruit while Melanie held this post, including the Modernisation Fund, the National Performance Framework and the passage of the Enterprise Act were aimed at making sure that we can all work together to deliver a better service. I am sure you will want to join me in acknowledging the excellent results, which have been achieved during her time as Minister for Consumers, Competition and Markets.

Building on that background, this year’s theme of “Working together effectively” is an apt one. Why? Because it is key to how we make a difference. We all, not just Government or Trading Standards but all those involved in and committed to protecting consumers, must work together effectively. It is an aim that the service has adopted with enthusiasm. We have already seen many achievements and benefits. I see this as the beginning of the process not the end.

The government cannot work alone to create a world-class framework for consumers and competition. Trading Standards plays a vital role in highlighting and stamping out rogue practices. Your work is critical in ensuring that consumers get a fair deal. In enforcing the law, providing information and advice to consumers and businesses. In driving local economies, encouraging competition and innovation.

For the future, we need to make sure that we know what the key areas of consumer detriment are and focus our resources to address these. We know from complaints received by OFT and others what these main areas are: home maintenance; repairs and improvement; second hand cars; personal computers; software and other white electrical goods; credit; doorstep selling and high pressure selling. This will not be a static list. 20 years ago PCs would not have featured. We cannot predict what will appear in 20 years time. But some are constant, credit and doorstep selling, for example.

The OFT estimate the cost of putting right consumer complaints at £8.3bn each year. So our work here makes a huge difference. It’s crucial that we all work together effectively to make sure that these are our priorities, the most efficient use of resources to ensure the maximum benefit for the greatest number.

There are many ways of tackling these issues, from direct action and enforcement, through help, advice and empowerment. To have maximum effect, we need to be strategic to ensure that all our actions are supportive of each other.

We need to focus our resources. The introduction of Performance Measures, based on the four national priorities, will let us make sure best practice is spread. And we must benchmark, to ensure a modern coherent and consistent service is being delivered.

This is only part of improving performance. The development of a robust peer review by the Trading Standards Institute and LACORS is fundamental and will underpin the performance measures. I look forward to the introduction of this process next year.

We are now in the third year of the Modernisation Fund. Many of you have been involved in projects supported by the Fund, developing new initiatives and new ways of working, becoming more joined up through regional coordination and more effective in the use of modern technology. They deliver concrete and effective examples of what can be achieved. I look forward to seeing the results of some of the projects supported by the Fund later today.

We are working together to empower consumers looking at the whole area of consumer education. This year we have available up to half a million pounds from the Modernisation Fund, to support innovative projects directed at improving consumer education and making a real difference to what is happening on the ground. Successful projects will build on the current evidence, the TSI's research, and work across agencies. More details will be available from DTI, TSI and LACORS shortly.

We must not be afraid to take direct action when it becomes necessary. Let me give you two recent examples. First, Yo-balls. We banned the sale of these potentially lethal toys in spring – the first ban in a decade – based on the concerns you expressed to us. A great example of partnership. And of decisive action.

Second, fireworks, you face complaints about these every year. We are supporting Bill Tynan’s new legislation, and given the support it has from the All-Party Fireworks Group and elsewhere, I hope this will become law soon.

Let me turn to more specific areas. Enforcement is your main role. So the new Enterprise Act, which came into effect last week, strengthens your powers by extending the stop now powers. Under the Act, enforcers will be able to clamp down on those traders who fail to meet their legal obligations to carry out a service with reasonable care and skill. This will go to the heart of the problems areas I listed earlier. For example rogue plumbers and builders. And it will help to ensure a more comprehensive consumer protection regime.

For the expanded Stop Now regime, in the Act, to work as efficiently and effectively as intended it is vital that enforcers are able to share information amongst themselves. Previous provisions on information disclosure did not necessarily allow for this, they were unnecessarily restrictive, inconsistent and unfocussed. The Act now creates a new regime for the disclosure of information but with appropriate safeguards. These new disclosure provisions should encourage a new, joined-up approach to enforcement between enforcement authorities.

As well as new powers and better information sharing, new technology has a significant part to play. I am pleased to announce that funds of up to £60,000 were available to all Trading Standards departments to purchase digital technology. We know that digital technology is already used for market surveillance purposes and these new funds will ensure a consistent and comprehensive approach to enforcement. Providing the latest tools to do the job and giving a significant boost to the outstanding consumer protection work that Trading Standards do.

I am delighted that Warwickshire Trading Standards has won funding from ODPM under the e-local government programme to lead a new project to improve intelligence sharing between Trading Standards services. Many of you may know this as the “E-Trading Standards National” project. Starting with authorities in the Midlands, it will bring together, electronically, information on enforcement matters, rogue practices and scams collected by Trading Standards across Britain. Information that is currently scattered across more than 200 Trading Standards services.

Where information brought together by E-Trading Standards will be of value for consumers, Consumer Direct will provide a key channel for its communication.

Many of you will have heard my predecessor speak before about how the helpline will transform the landscape for consumer advice. I have the same view, and the same aim for Consumer Direct.

Under a single nationwide number and brand, Consumer Direct will be a powerful tool to give consumers the knowledge and confidence to tackle problems themselves; to empower people so they no longer have to put up with shoddy goods and services, so they are equipped to take action and to get redress.

It cannot be right that half of people give up when they cannot resolve a problem with a trader, because they are unsure of their rights and don’t know where to turn for help. Or that as many as one and a half million consumers a year are unable to get the help and support that they need. Consumer Direct will change all this.

The West Yorkshire pilot helpline has proved:

• people want help by phone – with 80,000 calls a year being handled;
  
  
• people like the service offered – with satisfaction levels of around 90%;
  
  
• giving people practical, next steps advice to help them help themselves actually works – with over 80% of people saying that the advice they received helped them to resolve their issue with an average benefit of £100.

For those of you in the audience today responsible for developing local authority services, I would like to give a clear message that Consumer Direct is not a replacement for consumer advice services at a local level. It is certainly NOT a reason to reduce investment in such services. Quite the contrary. It is vital that robust local services should be in place to assist people where Consumer Direct alone cannot provide all of the help required.

There is also a key role for local agencies, working with Consumer Support Network partners, to actively reach out into communities to assist those unlikely ever to access Consumer Direct, or indeed other more traditional advice services, perhaps because their English is poor or where they have special needs.

Consumer Direct is gaining momentum. In close consultation with local authority and other stakeholders, the template for the service is now well advanced. In the next few weeks we will be ready to invite proposals from local authority partnerships in the English regions, Scotland and Wales to establish Consumer Direct, initially through contact centres in pathfinder areas.

Our aim is to identify these pathfinder areas by early next year and to have the service up and running by Summer 2004. With better data available through Consumer Direct and E-Trading Standards National and with new powers to tackle scams through the 2002 Enterprise Act, we are giving Trading Standards and other enforcement agencies access to the intelligence and the tools to make a real difference.

We need to look at addressing the causes of detriment as well as solutions, so we have been reviewing the Consumer Credit Act. This the first substantive looks at this area since 70s. We are making great progress on the Review, which is reaching its conclusion. I am grateful for the input from all of those who have participated in the consultation process.

I hope that I will soon be able to announce how we plan to take the whole issue of reform of consumer credit forward.

Effective consumer protection is governed by more than just UK laws. You all know that the European Union is the source of many powers. The proposals for a general duty not to trade unfairly is important here, a draft directive on unfair commercial practices now seems likely some time this summer. We will be actively and positively involved in shaping the detail. Yes, we are concerned about the potential regulatory burdens and therefore hope to see some deregulation of existing provisions. But we want to make sure that this proposal, acting as “safety net” legislation, works effectively. So the Directive must be properly targeted and not cast its net too widely, this could create legal uncertainty and unnecessary burdens on business. I am grateful that trading standards officers took part in a recent DTI workshop on the "general duty", which reinforced the importance of ensuring that any EU legislation in this area must be workable and enforceable.

A crucial complement to this is the proposal on enforcement co-operation. We very much welcome this initiative, which aims to strengthen co-operation between Member States to tackle cross-border scams.

We are improving the effectiveness of enforcement within the UK. But UK consumers are increasingly being targeted by scams from other countries. Timeshare or holiday club and fake prize draw scams are the most common, but we are also hit by numerous others. This is why we strongly support having a robust enforcement structure in and across Europe. This will be all the more important as the EU enlarges. But we know of course that these scams often come from countries beyond Europe, and so we are also signing up to other bilateral and multilateral agreements to try and tackle this global problem.

All these strands of work are important in reaching our target for world-class consumer protection and empowerment. Our benchmarking work is helping us to clarify that target. Already we have strengthened powers to work together tackle rogue practices through the Enterprise Act. We have been and will continue to be active in many specific areas, such as the fireworks safety and looking at the position of debt and the consumer credit market. We will continue to work on overhauling the Consumer Credit regime, focusing on areas where our activities can make a difference.

The Modernisation Fund has supported many innovative projects, which have embedded cross boundary, regional and partnership working. The forthcoming introduction of performance measures and peer review will enable the service to target resources more effectively, and to demonstrate that Trading Standards is striving to become a more modern vibrant service.

This work cannot be done without skilled staff. The Modernisation Fund has supported projects to raise the capability of Trading Standards personnel. The qualifications review and the development of on-line distance learning material are particular examples here. I look forward to seeing the preview of the latter shortly.

We are working to roll out Consumer Direct across pathfinder regions and then nationally to ensure that the demand for consumer advice is being met.

I want to help consumers and businesses enjoy more choice, better service, safer products and competitive prices. I know, from my days at Bradford City Council, the important work that trading standards do in support of these goals. Our success in empowering consumers and ensuring a competitive framework for businesses to thrive in depends on us continuing to work effectively together. I’m glad that I have the opportunity, so early in my new role, to be able to tell you how much I support your work.