The Perspectives of the Ministry of Consumer Affairs' Stakeholders

Review of the Ministry of Consumer Affairs

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5. Stakeholder Expectations of MCA

5.1 Provide the Consumer Perspective

MCA is expected to know and provide the consumer perspective on relevant issues.

Can't leave it to the Consumers Institute and the Citizen's Advice Bureaux to provide the consumer perspective. The consumer perspective is a specialist area and it must be fed into the government decision-making process, the public policy machine, otherwise the consumer view won't be put forward properly and effectively.

Must have a detailed knowledge of consumer interests and knowledge of economic interest so they can provide balance in discussions across departments. Also expect them to provide advice at a slightly more practical (operational) level.

5.2 Conduct Research

There is an expectation that MCA has expertise in consumer needs, interests, and perspectives. This knowledge is important to the outcomes set within MED and also to other agencies who generally lack and appreciate that expertise. The level of expertise described is considerable.

MCA needs to provide good, robust analysis of the impacts on consumers, particularly around any reforms.

MCA needs to understand how consumers behave, what they need to trust markets and have effective markets. It needs to be on top of recent developments/know the nature of consumer problems and what can be done about them.

5.3 Develop Policy/Legislation

There is no doubt that MCA must provide policy, particularly to protect consumers and deal with market failure. This is seen as core business.

There is also an expectation that we will continue to update and administer legislation. There was also some comment that MCA should administer all the consumer legislation it is responsible for. Particular reference was made to overlapping legislation administered by more than one department.

MCA is there to provide public policy advice to government on consumer issues. That has to be done. There does need to be a consumer perspective fed into the government decision-making process. It is a specialist area.

MCA must develop policy. That is how you get others doing the Ministry's work (e.g. the Electricity Commission).

New Zealand needs high levels of consumer confidence and trust to develop new markets. MCA needs to provide for consumer protection and develop policies to maximise confidence in transactions between consumers and business.

There is consumer legislation that needs to be administered, updated, and made to work effectively. There will always be feral organisations and you have to have someone to intervene and protect those who cannot protect themselves.

5.4 Provide Information

The provision of information for consumers and business is seen as core business.

MCA must be responsible for ensuring that consumers and retailers know their rights and responsibilities, and consumers have access to information and support.

5.5 Advocate for Consumers

Advocacy is seen as an important function of MCA. The definition of advocacy matters, however. If you are talking about advocacy that doesn't bring a researched and balanced view then that isn't what MCA does. If you are talking about MCA coming from the consumer perspective in a broader debate and representing consumer interests where others are representing other interests then that is seen as our function.

MCA must be the advocate for the consumer. The Consumers Institute acts for its members, someone must act for all. And the Ministry must be able to stand firmly behind the consumer-e.g. the Electricity Commissioner is necessarily impartial which means that she depends on a strong industry and a strong MCA to ensure a robust relationship.

MCA is there to represent consumers, as advocates. If there was no MCA our members' (retailers) customers would be disenfranchised not our members.

There is an element in any population Ministry where they need to have credibility with, understanding of, and be sympathetic to the group they are representing. This means MCA does need to be part-advocate and part-dispassionate advisor. It is a tension but you do have to make consumers feel that their interests are being reflected.

It is quite difficult for a policy Ministry to perform [the watchdog] function but the role does need to be performed and a public watchdog does need to be taken seriously by the government. Perhaps MCA funds someone to do this?

5.6 Target Specific Consumers

MCA currently targets low-income consumers and Māori and Pacific Island consumers particularly. The targeting of those least able to look after themselves is an expectation of government in general. The extent and nature of the activities associated with the targeting were a matter of discussion.

SLT members were also interested in knowing whether the present targeting is effective.

MCA must look after the interests of those least able to represent themselves, represent consumer interests in government circles, continue its overview of legislation and coordinate it.

Protecting the vulnerable and disadvantaged is a legitimate role for government and not an unreasonable proposition. But MCA needs to look for long-term solutions.

MCA needs to provide service in languages other than English and fix problems brought to them by disadvantaged consumers, not just give advice.

5.7 Support Self-Regulation Schemes

The self-regulatory bodies stand apart from MCA on a day-to-day basis. MCA is, however, involved in the review of the various schemes and largely represents the consumer perspective in these reviews. In addition, the Minister of MCA appoints the consumer representatives to these bodies.

By and large the expectation is that MCA will continue to do what it does. The Ombudswomen and the Electricity Commissioner are all tasked to act in an impartial manner and they, therefore, see MCA as providing the consumer representation which necessarily balances the industry representation.

The Ministry having integrity with the [electricity] industry is very important to me so they can be strong in an argument. Self-regulation is only good if it's robust, only good if people keep an eye on it and are able to have robust debate about issues. [The] Ministry must be strong. If the Ministry is not, then consumers lose power because the commissioner's role is to be independent.

MCA has a role in arguing with the industry, persuading them to see the consumer view.

5.8 Provide Training

The groups contracted to provide consumer information services expect that MCA will continue to provide training for their volunteers.

5.9 Promote Itself

The low profile of MCA was mentioned several times during the interviews. There was not necessarily an expectation that MCA would deliberately raise its profile, but there was some discussion of the benefits of raising MCA's profile in terms of consumers knowing what we do.

Need more promotion of MCA (especially radio and especially in PI and other languages) so that people know about MCA outside the government sector. (Pacific Island Reference Group, MCA)

5.10 Remain Focused on Core Business

MCA needs to stay focused on the things that otherwise fall through the cracks rather than making a material input into every government paper.

|Index|Phase One: Report : Background Papers|Phase Two: Final Report|

Review of the Ministry of Consumer Affairs