Gerry Sutcliffe MP

A better future for all

In a real sense, I have - I'm a native of the North West. I was born in Salford. I'm that rarity - a Man United supporter with roots in Manchester.

But being at conference also makes me feel at home. Last year, in Edinburgh, speaking to you was my first Ministerial engagement. At that point, I'd been in the job less than a week. Of course I knew something about Trading Standards, from my time at Bradford Council. But it was the first time I'd met you. The first time I'd spoken to so many of the Trading Standards community. The first time I'd had the opportunity to outline my vision for the service.

And you made me welcome. You listened. And in the months since then, we've had a vigorous debate about the service. How it's performing. How we think you can support our vision of confident, empowered consumers and businesses. What you would like from us to build a better, more joined-up, more effective Trading Standards.

Your theme this year is "Investing in a Better Future". A better future for everyone in the UK is at the heart of this government's priorities. A better future for individuals, protected from rogues and able to make their own, informed choices. A better future for businesses, knowing where they stand, and able to create wealth. A better future for all.

Your role -empowering consumers, liasing with businesses, enforcing the law - is a critical part of this.

As you know, I am a strong believer in the importance of confident, well-informed consumers. I believe that they are the key drivers that increase the competitiveness of markets for the benefit of consumers and business.

We all want to live in an economy where consumers know that they don't have to put up with shoddy customer service. And if they need to, know where to go to seek redress.

We all want to live in an economy where businesses are confident that they will be treated fairly. That the laws they need to abide by are straightforward, clear and necessary. And that they, and their competitors will be treated equally not just across the UK, but throughout the EU.

I've said this before, but it's worth repeating. OFT estimate that consumer detriment costs at least 8 billion pounds a year to put right. We need to tackle this - not just because it represents the scale of the failure in the market, but because the money could be better invested elsewhere.

I know we share this goal. I was interested in the RBA survey of heads of service, particularly in what you see as your priorities. And that of all of them dealing with rogues is up there, second on the list.

I am not trying to dodge the fact that lobbying for more resources comes first - this is an issue that all of us have to face.

But to ensure we secure ongoing investment in trading standards we have to keep up the momentum. Keep raising the profile of what this small service does. Nationally and locally. Good to see this came third on your list.

I am committed to working with you to achieve what I hope will become our shared goals. Our new consumer strategy will set out a course for the next 5 - 10 years. It will help to keep up the momentum and raise the profile. Not just for trading standards but consumers as a whole.

I spoke about the consumer strategy at the Year Ahead conference in February. About empowering consumers through accessible information and quality services. Protecting the vulnerable. Improving redress and the legal framework. This follows on from the benchmarking work we did last year.

Our overall approach is that competitive markets give the best deal to consumers. Consumers must therefore be empowered to make competition real. And where competition is not enough, we need to take proportionate, but effective, action.

Some of the challenges we face - in four key areas.

First, stakeholders tell us our legislation is complicated. Comprehensive, but complex, inflexible, duplicated. Finding a way through this is costly for business, consumers and advisers.

Second, empowered consumers need access to reliable information. There is plenty of information out there. But how do you assess the quality? How do you distinguish the good from the bad? Information about specific traders is patchy. And there are particular challenges for those with poor literacy and numeracy skills.

Third, how consumers can obtain redress swiftly and fairly when things go wrong. It is encouraging that almost two-thirds of disputes are settled directly between the consumer and the trader - good businesses know this makes sense but almost half of companies have no policies in place to deal with problems when they arise. We need to think about what this means And ensure consumers have proper mechanisms and support when they need to take further action.

And last but not least, trading standards. There are over 200 Trading Standards authorities - there's lots of good practice and strong commitment, but we want to see high quality services for all consumers and businesses. This is the challenge we all have to tackle. Currently service provision is uneven, provision is too variable across the country. Some would say this stems from too many priorities, local and national, and too many interfering Whitehall departments.

But this in itself demonstrates how important your services are. In DTI we are keen to find better ways for central Government and local Government to work together - at all levels of service. We have been talking to local Government and to our colleagues in Whitehall about how we can move forward. These are important issues and we want to be sure we have considered them thoroughly and properly. We have held lots of meetings and workshops, with stakeholders as diverse as Age Concern, the Disability Rights Commission, businesses and consumer groups. Many of you have been involved in them. This has taken time - more time than we first thought it would - but it has been worthwhile. It is very important to us that we work in partnership with you to improve the trading standards service.
Now I think we are nearly ready to publish our proposals. I intend that within a few weeks we will launch a consultation on our proposed way forward. I hope you will all respond to it.

Although I can't yet tell you the detail of our proposals - one thing is very plain. In all our discussions, and in all our considerations, we are clear that any future consumer strategy for the UK will have at its heart Consumer Direct.

Its launch - next month, will see the beginning of a major advance in consumer advice. The biggest step forward for years.

We are going to put consumer advice on the map. Raise its profile, its importance and the demand for it.

I say "we" because Consumer Direct is not just a DTI project. It's something we're delivering in partnership with you, with Local Authorities and with other advice providers. Working together with all of you has been fundamental to our achievements so far and the success I am sure we'll have in the future.

The first pathfinder, Consumer Direct Scotland, is now ready for operation. The advisers have completed their training and are in place. The technology is up and running. And referral protocols have been agreed with our Scottish Trading Standards partners.

Yesterday we started diverting calls from some Scottish local authority advice lines to the new contact centre just outside Stornoway. Our advisers are already giving advice to some of Scotland's consumers.

The advertising and publicity campaign is ready to start. Patricia Hewitt and I will be officially launching Consumer Direct Scotland on 12th July.

The other three pathfinders - Yorkshire and the Humber, Wales and the South West - are also very close to beginning operation. I'm eager to launch each of them in the next few months.

Let me once again thank all of you who have been involved in getting the pathfinders started. Your hard work and commitment has made this possible. I don't want to slight anyone's contribution, but as I'm here, I want to particularly thank Joe MacPhee and Harry Miller from Consumer Direct Scotland. Crispin O'Connell and Dave Holland in the Welsh team. Paul Cooper and Graham Hebblethwaite, Yorkshire and the Humber. And Dave Phillips and Jean Dunkley from Consumer Direct South West. My team - and I - know how much work has been put in by everyone. Thank you once again for helping us to get to this critical stage.

It has been a long and complicated process to get to where we are now. The selection of the pathfinders was difficult. We had some tough decisions to make evaluating the high quality proposals we received. We then had understandably arduous negotiations with each of the regions. Once we had reached agreement and signed the five year contracts with the pathfinders, the work really began.

But we have come a long way. Now the service is ready for operation I am keen to continue with the national roll out of Consumer Direct as soon as we can. Standing here in Manchester, which is not one of the first wave, I know that hard, detailed work is already underway in the other regions. We are planning to launch a further four regions in spring 2005. My hope is that the entire country will be able to access Consumer Direct by the end of 2006.

We will certainly be doing all we can to achieve this. Sharing the experience and lessons learned so far from setting up the pathfinders, and from the launch of the service in each of them. Once the pathfinders are operating it will give added momentum and encouragement.

Let me pause for a second and say a word about the contact centres themselves. The whole contact centre industry has been the subject of much debate recently. What they're for. Whether it's right that some companies are moving their centres abroad. What the impact on the UK economy will be.

Our view is clear. We want the UK to have contact centres that provide high-quality, added-value jobs. That are flexible enough to provide a wide variety of employment opportunities. That want, and will develop, the broad skills that a flexible UK workforce offers.

And I think that what we have in Consumer Direct is an outstanding example of this. Skilled jobs. Flexible working patterns. And advisers committed to the work, building their skills and learning as they progress.

Let me stress that Consumer Direct is not intended to replace existing services. Trading Standards advisers and others in our Consumer Support Networks are vital to the successful handling of the increased demand for consumer advice that the introduction of Consumer Direct will bring.

Consumer Direct provides first tier advice, giving people the knowledge, tools and confidence to resolve matters themselves.

There is a lot of demand for consumer advice out there that is currently not being met. We will make it easier for consumers to access high quality advice. Advertising and publicity will ensure consumers are aware that this advice exists, and how they can access it.

Consumer Direct will remove the burden of dealing with routine advice and enquires that can be handled over the telephone, allowing existing consumer advisers to concentrate on helping the most vulnerable and disadvantaged in society.

The majority of these complex cases will be referred to Trading Standards consumer advice services. To you.

The launch of Consumer Direct is approaching fast and I know that some local authorities have taken the decision to reduce funding for their consumer advice services. Local Authorities should - in my view Local Authorities must - see the introduction of the new service as an opportunity for their advisers to help those who need them most. This is a partnership between Consumer Direct offering a national, comprehensive first tier service, and existing local authority provision supporting this with detailed local knowledge, analysis, and enforcement skills. Consumer Direct will not be the answer for all situations.

So I am pleased to say that I also know of some local authorities that value consumer advice and are investing in their advice services in anticipation of Consumer Direct.

By working together we can deliver a complete support service for consumers. One that not only provides telephone and online advice, but also face-to-face advice for those that need it, intervening on their behalf where necessary. And one that also protects consumers, supports legitimate business and helps enforcement play its intended role of stopping those who break the law.

You are a critical part of this. And Consumer Direct aims to work with you to help inform this activity. For the first time you will have access to complaint data covering not only your local area, but also your region and nationally as well.

This is an exciting time for consumer advice services and for trading standards, and our success depends on us continuing to work together effectively.

Working together is key for investing in a better future. I don't just mean working with Trading Standards but working with all our other partners. Being able to address the issues that matter. Having the powers to address the issues that matter.

The international dimension to consumer policy is growing and creating new challenges:
· High profile lottery scams from places like Canada and Spain.
· Sophisticated new website scams and fraudulent claims and advertising arriving in our inboxes
· The enlargement of the EU is opening a world of new commercial activity, but we need safeguards in place to allow us to trade with confidence.

How do we meet these challenges?

First, we need a strong co-operation framework with our counterparts in other countries. We're getting this. I am delighted to say that EU members have agreed a new Regulation on Consumer Protection Co-operation. This will strengthen and formalise co-operation between enforcement agencies in cross border cases.

This Regulation not only assists co-operation in cross border cases, but creates a forum for the EU countries to get together to work on common projects, including awareness campaigns and research. I think this will deepen communication and co-operation even further and is a big step forward.

I know that TSI were one of the many bodies who were engaged in lobbying activities in Brussels in support of this measure, and I am very grateful for - and indeed very impressed by - this highly effective influencing campaign. I wonder if we can get you to do that for all our negotiations!.

Secondly, we are also building up a network of co-operation beyond Europe. Last year, the OECD agreed a set of Guidelines for international co-operation on cross border fraud, and the UK already has co-operation agreements with the US, Canada, Australia and New Zealand. These are important links in the chain, and we are continuing to look at how and where else we need to forge closer collaboration.

Thirdly, we need to make sure that consumers' rights are fully protected throughout the EU. Some of you will have heard of the proposed EU Directive on Unfair Commercial Practices. This is intended to stop businesses trading unfairly. And it will form a benchmark against which new and innovative commercial practices will be judged. I believe that it will provide useful new tools for enforcement bodies like you.

We also need to meet challenges in sharing knowledge and networking. Nothing beats building up direct links with counterparts - not just for assistance on particular cases, but also for sharing best practice and technical expertise. One of the most effective ways to do this is to engage in international networks such as the OECD and the International Consumer Protection Enforcement Network (ICPEN). We do put a lot of energy into these networks, and I am delighted that OFT will have the presidency of ICPEN for the next year. This is a great opportunity to further the co-operation agenda.

Finally, we need to put systems in place to help consumers help themselves. The EEJ Net of dispute resolution providers and European advice centres are central to doing this. I want to see these systems continue to expand and merge across the EU to deliver a comprehensive service for consumers.

I am delighted that Citizens Advice will be the delivery agent for the new euroconsumer service which will provide advice about goods bought overseas. And even more delighted that you'll be able to access this service through Consumer Direct Online.

But closer to home. I know that regional collaboration has increased. And you are working together across boundaries to target your resources and provide a more effective service. The Modernisation Fund has been key in helping you to join up across your regions. There are many success stories and I know there are many more out there that are currently underway.

MidCOTS have reached out to their local business communities to understand their needs and expectations. Through their 'Improving the Assessment of Business Needs project', their objective has been to target their advice and education to improve business compliance.

The Setsa Group have continued to build on the foundation of their existing and successful Community Safety Toolkit. Their project "Improving Community Safety through coordinated Effective Enforcement" is helping to support an environment in which the elderly, vulnerable, and socially excluded consumers are protected.

These projects are good examples of the work you do to support the NPF priority of a fair and safe trading environment. You are all working towards delivering a more modern, coordinated and consistent service. But to improve, you need to know how you are performing. To benchmark yourselves against your peers. To identify what you do well and perhaps what you can do better. The Performance Measures and peer Review process are fundamental to achieving this.

The peer review process is not another inspection or audit. We think of it as a 'helpful critical friend'. A process that should be supportive, examining the issues you identify as part of your self assessment, challenging if necessary to produce an improvement plan that is tailored to the needs of your authority. Giving you practical advice on how you can improve.

I know that many of you here will have been involved in some capacity in the development of the peer review system. I want to thank LACORS, TSI and the Society of Chief Trading Standards Officers for your commitment and support for the project and all those of you who have been involved in piloting the scheme. The lessons we learn from the pilots will help us improve the system to ensure it can deliver real benefits for the trading standards service. I am pleased that my department has been able to provide the funding for training and implementation to ensure you all have an opportunity to participate.

I look forward to the national rollout in the Autumn and I know that other local government services are watching with interest. I encourage you all to get involved.

Of course one of the key issues in improving performance is resources. All of us are facing pressure to do more, and to do it better. And all of us have to manage this with tight resources. I know many of you feel that you don't have enough resource. It's an issue that everyone in public service faces. Everyone in central government. And everyone in business. We all need to work out how to achieve more with less.

But the important thing here is to achieve more - not necessarily to do more. We have to prioritise - rigorously. Maybe we have to stop doing some things that we used to do. We have to find smarter ways to achieve our goals.

I think we need to have a more open debate about prioritisation - about what we can and can't do together. I would like us to discuss these issues together over the coming months.

One issue which many of you have told us affects prioritisation in local authorities is comprehensive performance assessment. As I said when we met at the Year Ahead event in February, we support the inclusion of regulatory services, including trading standards, in the Comprehensive Performance Assessment in England. A lot has already been achieved. The Audit Commission has explicitly recognised that trading standards may need to be covered in the corporate assessment. I welcome this. It is a step forward. And it is due to DTI's work. But more work needs to be done. The corporate assessment focuses on shared national - local priorities of promoting a vibrant local economy, safer communities and the health and wellbeing of local people. All of these are areas where the work you do can make a difference. But the corporate assessment will not look at all these issues in every authority. That would make it too big. So although it may include trading standards on some occasions the service will not be covered in every case. We now need to work on getting regulatory services fully recognised in CPA as part of the core service block assessments. So that your service is routinely included in all CPA assessments. DTI will continue to try and achieve this.

These initiatives improve the service you provide for the consumer. But who is that consumer?

Most people would automatically think of an adult. But as a parent, I'm very aware of the pressure children put on you. Nowadays these young people make a considerable contribution to the economy in their own right. Pocket money is supplemented by income from part-time jobs. This gives them substantial buying power and increases their need to become sophisticated consumers from an early age.

The inclusion of Citizenship in the English national curriculum will help achieve this. Ensuring that tomorrow's students leave school better equipped than today's in everyday consumer skills. But trading standards have a key role to play here. Through their " educational" role in schools, and through Government supported projects, like Cambridgeshire's Ask Cedric, or Warwickshire's "talkingshop".

Complementing these initiatives is the Young Consumers of the Year Award. The competition stimulates young people's interest in consumer issues at an early age. Some participants, I am told, even go on to pursue a career in trading standards! But more importantly, the competition strengthens the links between consumer educationalists and schools - an achievement that we must all build upon. I congratulate you on the 18th year of this successful competition.

We need to focus our efforts where they are most needed. The young - the UK's future consumers - are one vital area. Those most at risk are another. They include the elderly and the housebound; those who suffer at the hands of rogues and con-men; and those who are in financial difficulty because their borrowings have got out of control. I'll come back to the first in a moment - but for now, let me turn to the key issue of credit and debt.

Our continuing work to develop a fair, clear and competitive consumer credit market is about ensuring responsible lending and borrowing, by putting in place an effective regulatory regime.

With the publication of our White Paper in December last year, we embarked on the most ambitious programme of reform of consumer credit law since the Consumer Credit Act came into force thirty years ago.

The White Paper set out a reform package not just for today, but one that will stand the test of time. One that is flexible enough to remain relevant for years to come. One that ensures that the market delivers the right balance of choice and protection for consumers. It's not enough for us just to promise this; we need to make sure that consumers can understand the choice and protections available to them.

We've reviewed the Consumer Credit Act, consulting extensively with the credit industry, consumer groups and regulators to ensure not just that we reach the right conclusions; but that we understand the full impact of our proposals on all the different sectors of the market.

It is only fair that consumers have access to all of the information they need in a clear and easily understood format. Allowing them to opt for the product that best suits their needs with the freedom to manage their borrowing sensibly and effectively.

So we've brought forward proposals to reform the credit advertising rules to make them simpler and easier to interpret and to enforce. To provide consumers with essential pre-contract information. To make the form and content of credit agreements more user-friendly. And to ensure a fairer deal for consumers through changes to the rebate on early settlement regulations.

But making sure that agreements are transparent is not enough. Consumers need the financial capability to understand the products they are accessing. We have worked closely with the FSA in developing their paper "Building Financial Capability in the UK", which sets out measures to address this.

The Consumer Credit Bill will set out measures to strengthen the OFT's powers to deal with lenders who impose unfair terms or extortionate interest rates on borrowers. This includes strengthening the test for a licence and making it easier for consumers to challenge unfair credit agreements through a new Alternative Dispute Resolution system. We'll also be paying close attention to the OFT's investigation of the doorstep lending market, announced last week.

But what about the illegal lenders? My Department is also taking steps to crack down on them as well. Working with you we will send a clear message to loan sharks, that we will no longer tolerate illegal lenders who prey on the poorest and the most vulnerable members of our society.

As I'm sure you know, we invested two million pounds to set up two new 'loan shark hunter' pilot programmes to be run by Trading Standards in Birmingham and Glasgow. They will go live shortly.

I know that this is not the full answer. That is why we're also encouraging local authorities to make sure that money advice and support is available to prevent new loan sharks taking the place of the old ones.

The majority of consumers manage their credit successfully. However, for some consumers, credit can lead to over-indebtedness. It is vital that these consumers are able to access timely and appropriate help and advice. And that they have access to affordable credit alternatives.

We want to improve the availability of free debt advice to consumers. Currently all too many consumers are often not aware of the options available to them. And those who do access debt advice are not always able to access the most appropriate service for their circumstances. In order to address this I am working with the free debt advice sector and the credit industry. We're developing a telephone gateway allowing consumers to access appropriate advice more easily. We're encouraging stronger working relationships between advice providers, both over the phone and face-to-face. We're developing a sustainable funding strategy for the sector. And we're looking at measures to address the short-fall in face-to-face advice.

We also want to improve access to affordable credit. The Treasury, who lead on financial inclusion, are consulting with the credit industry, the voluntary sector and with other Government departments. And will report shortly.

As you have heard, changes are underway to reform consumer credit law. These changes will generate confidence in the credit market, empower consumers to take effective action and enable fair redress for the misconduct of irresponsible lenders. And they will also generate benefits for business by improving the reputation of honest, responsible lenders who comply with the system. For those of you who want to know more about this, there's a mini-theatre at noon on Thursday.

I said earlier that we must do more to protect the weakest in society. The indebted. The victims of mis-selling and scams. Those who, in today's world, find themselves confused or scared by what is going on. Before I turn to an issue I know you all feel passionate about - doorstep selling - let me say a few words about another subject which occupies all of us - fireworks.

You all play an important role in ensuring that communities are safer places to live. With the new Fireworks Act you have been active in addressing the problems of misuse, of noise, and of ensuring that consumers receive a fairer deal.

We've already acted to regulate some aspects of fireworks use. It's now an offence for under 18s to possess fireworks in public places. It's an offence for members of the public to possess large category 4 fireworks. We're not stopping there. We're enshrining in law the industry's current voluntary ban on the supply of air bombs. And we're imposing curfews on when fireworks can be used. Decibel limits on Category 3 fireworks are also being proposed.

We intend to propose a licence for traders to supply fireworks during a specific time period. With the help of Customs and Excise, clamp down on the imports of fireworks. I'm sure you will agree that these measures should have a considerable impact on the problems members of the public have been experiencing with fireworks in recent times.

Now - doorstep selling. You've been in the forefront of raising the profile of this issue. 18 months ago it was the subject of National Consumer Week. Many of you have been active regionally in drawing people's attention to the misery and financial loss which doorstep sellers can cause. You backed Andrew Robathan's Bill in Parliament. I was at Portcullis House before Andrew took the Bill to second reading, and I heard Brian Steele - who I know is here today - give a characteristically robust speech about the subject.

You've all been waiting for the outcome of the informal supercomplaint on this subject. As I'm sure you know, the Office of Fair Trading published the report on their market study of doorstep selling last month.

Of course, the Trading Standards Institute have a particular interest in the report and recommendations about cold calling to offer property repairs or improvements. The Institute played a major part in highlighting the issue of bogus traders and their effect on vulnerable people. I am sure that you all have been waiting to see the report as eagerly as I have.
I know that the subject of doorstep selling and cold calling in the energy and telecoms sectors is to be discussed later today. I am sure that it will be an interesting discussion and I am pleased to see British Gas and BT taking part in such an event. Regulation of energy sales is outside my direct Ministerial responsibility but, as Minister for Consumers, I am of course aware of the problems there have been in this sector.

These problems have been recognised, not only by DTI, but also by the regulators, consumer bodies and the suppliers themselves. 2002 saw the introduction of the EnergySure scheme for training and overseeing sales staff and a Code of Practice on doorstep selling. More recently, Ofgem used its enhanced powers to fine London Electricity two million pounds for mis-selling. I am delighted to be able to say that these measures have significantly improved the behaviour of sales staff.

But the OFT's report has also highlighted other concerns about the way in which goods or services are sold in people's homes. Not least the questionable techniques being used to put pressure on consumers to buy. This confirms that we were right to wait. Right to be able to consider the options for tackling consumer detriment across the doorstep selling market as a whole.

And, of course, we cannot ignore the serious issue of connections between bogus traders and crime. Which is why I have called for a cross-departmental Ministerial Group to see how we can best tackle this issue.

But it is clearly in the interests of not only consumers but also legitimate businesses to see the rogues put out of business. Because the rogues represent unfair and unscrupulous competition and undermine trust and confidence in legitimate traders.

I welcome the OFT's Report. It contains some very important conclusions and recommendations and you won't be surprised to hear that it is being considered very carefully, by DTI and by other interested Departments.
I expect to respond formally to the OFT report by the 90 day deadline, which would take us to 10 August. We will consult widely and thoroughly on any proposed changes to existing consumer protection measures. This is a serious issue with far reaching consequences. We need to take a long hard look at the legislation which governs this area. And if the need arises, I'm determined to act. The problems highlighted by the OFT report do not lend themselves to instant or easy answers. But nor are they problems we can afford to ignore or neglect.

I've talked about a lot of initiatives this morning. What they have in common is that they're all focused on our overall goal - a better future. Whether it's a better future for those in financial difficulty, more able to manage their debt, or a better future for those most at risk from doorstep sellers. A better future for all consumers, young and old, whether learning new skills or having easier access to advice through Consumer Direct.

We can achieve this best by working together. Investing not just money but time and expertise. The DTI is investing money -we've invested millions of pounds from the Modernisation Fund in the last three years. Thirty million pounds setting up Consumer Direct. But it doesn't end there. That thirty million is only the start. We expect to spend around one hundred million pounds on Consumer Direct by the end of this decade. In short, we've put our money where our mouth is. And we want local government to respond in kind.

But it's not just money. It's training. It's cooperation and coordination. It's developing the service to deliver better, more focused outputs. It's making sure that our common aims are properly supported by all our actions.

I want to thank you for all the hard work you've put in. For all your contributions. And for working in partnership with us to ensure that we can deliver a better environment for the consumer. A better environment for business. And a better future for all.