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Establishment and Development of the Ministry of
Consumer Affairs
Background Paper to Creating Confident
Consumers
May 2003
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The Call for
a Consumer Affairs Agency
Prior to the election of the Labour government in 1984, the
Labour Party had promised the establishment of a Ministry of
Consumer Protection to undertake consumer law reform, support
consumer groups, co-ordinate consumer policy across government,
and undertake consumer education (Consumer Affairs Unit, 1985).
A Minister of Consumer Affairs was appointed in 1984. Shortly
afterwards the Consumer Affairs Unit (CAU)
was established within
DTI,
[2] reporting directly to
the new Minister on policy matters. The purpose of
CAU was to report to
the government on the objectives, functions and structure of a
Ministry of Consumer Affairs (the Ministry), and related consumer
policies.
Key issues identified in
CAU's 1985 report included (Consumer Affairs Report,
1985):
- The unco-ordinated and fragmented approach to consumer law
in New Zealand.
- The lack of a representative structure for providing
consumer advice to government.
- The international trend of growing consumer involvement in
policy development, which was not mirrored in New Zealand
(mainly due to the two points noted above).
- Recognition that consumer protection legislation was
ineffective if consumers were unaware of their rights. Existing
consumer information/ education initiatives were criticised as
middle class-orientated and as failing to reach the regions.
- Recognition that voluntary consumer organisations provided
worthwhile services but faced a number of constraints including
funding, resources and training.
- A trend in most countries to locate government consumer
agencies within organisations dealing with commercial and
economic matters.
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