The Perspectives of the Ministry of Consumer Affairs' Stakeholders

Background Paper to Creating Confident Consumers

May 2003

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7. Potentials/Issues for MCA Raised by This Research

• 7.1 Treaty of Waitangi
• 7.2 Expectations of MCA
• 7.3 Functions of MCA
• 7.4 Research
• 7.5 Consultation
• 7.6 Strategic Approach to Relationships With Stakeholders
• 7.7 Relationship between MED and MCA
  • Possibilities Identified in the Research
• 7.8 Commerce Commission
• 7.9 Contractual Relationships and Funding of Stakeholder Groups
• 7.10 Targeting Consumers
• 7.11 Recognition of MCA Expertise

7.1 Treaty of Waitangi

The role and implementation of the Treaty of Waitangi is a fundamental issue across government.

MWWL sees MCA as not exercising the real consultation rights under the Treaty, and that MCA needs to be moving towards making this a full and equal partnership where tangata whenua has power equal to the Crown.

MWWL sees this as a consumer issue-the level of recognition that is given to the Māori viewpoint. They believe that non-Māori/Māori are the two perspectives and both should have equal positions.

MCA may need to assess the current and future role of the Treaty in this Ministry and in MED overall, and the appropriate response to that.

7.2 Expectations of MCA

In general, MCA needs to be very clear about its role and boundaries, and how it will deal with the tensions between the expectations of the stakeholders, as the potential is for the Ministry to be simultaneously pulled in all directions. Stakeholders, on the one hand, want MCA to develop policy and legislation, and on the other provide advocacy and other services directly.

7.3 Functions of MCA

Using the information arising from the review (including future trends and stakeholder expectations), MCA may identify any additions to or modification of its functions. Issues raised by the interviews with stakeholders include:

• administration of consumer legislation
• knowledge of consumer behaviour
• role and definition of advocacy
• lessons learnt in the past
• new issues, trends, expectations
• role of consumer representation.

7.4 Research

MCA may consider whether there is a role for research (empirical and other) in MCA, and, if there is a role:

• what that role is
• how research will contribute to the effectiveness of the Ministry
• whether the role can be provided within the existing budget.

Clearly this indicates a thorough analysis.

7.5 Consultation

All branches of MCA are involved in consulting consumers and traders at various points in their work. However, there does not appear to be any recommended practice associated with this consultation. The question is: should there be? Should we be the experts in consultation and set ourselves a standard?

Establishing practice guidelines or requirements would include deciding:

• when do we consult? Do we consult before we set our agenda and about what?
• how do we identify the groups we consult?
• how do we ensure that those we consult have integrity?
• what is the consultation process?

7.6 Strategic Approach to Relationships With Stakeholders

There may be benefit in taking a strategic and structured approach to our relationships with stakeholders (external and internal) and others. There is a sound base of goodwill to start from so no repairs are needed.

Such an approach would indicate:

• consideration of the balance of our stakeholders (traders and service providers, consumers, departments, other)
• analysis of the stakeholders-their goals and capabilities including, for consumer groups, the availability of volunteers
• identification of the purpose and nature of our relationships
• identification of the current and potential role of stakeholders vis-à-vis MCA's current and future needs
• development of criteria for stakeholder relationships (MCA preferences and requirements)
• identification of other potentially valuable relationships (e.g. government departments)
• funding implications.

It may be useful to include MCA's internal stakeholders-Māori Reference Group, PI Reference Group, Consumer Representatives Network, and Consumer Nominations Group-in any such discussion and planning. The relationship between MED and MCA is considered separately here.

7.7 Relationship between MED and MCA

The interviews revealed that there is general agreement that the relationship between MED and MCA is a useful relationship and there would be "significant impacts on MED if MCA was gone".

Closer integration and identification with MED is definitely proposed. Given that this is a fundamental decision, MCA needs to consider this matter comprehensively before any change occurs so that the greatest benefit comes to MCA. Consideration should include the following:

• pair analysis of MED and MCA
• how, what, why, where, when in terms of closer integration
• points of contact and identification, synergies
• consequences for MCA and MED.

Possibilities Identified in the Research

• Better integration of MCA into the strategic planning process, better identification of synergies between Ministries, and better integration overall so that the two Ministries are both more effective. This is a significant and far-reaching discussion which needs to be approached comprehensively and with care.
• "Need to look at the best fit between RCP/MCA. When is it appropriate for MCA to take the lead and when RCP?" (Mark Steel).
• MCA could take opportunities to leverage off MED's clout and credibility.
• MCA and MED to take their policy analysis to a new level by combining their forces.
• MCA perspectives to be picked up and taken more seriously within MED.

7.8 Commerce Commission

The Commerce Commission has offered an opportunity to examine how MCA and the Commission may work more closely together. MCA may choose to take this opportunity. As the Commerce Commission said, we "need a project plan which incorporates both the Commerce Commission and MCA. At the moment we work in isolation, not in tandem".

7.9 Contractual Relationships and Funding of Stakeholder Groups

Now that longer term contracts can be put in place (3-5 years), MCA may take the opportunity to look particularly at these relationships and:

• identify the extent to which these contracts meet our current needs
• upskill Non-Governmental Organisations (NGOs) by ensuring there is continuity of staff, one year contracts often mean that people are trained and then immediately lost because there is no job certainty
• investigate the contribution and value of national offices of NGOs
• identify the intentions, focus, information potential and expertise available through NGOs
• identify additional capacity which would benefit MCA
• identify the costs and benefits of building this capacity.

7.10 Targeting Consumers

Targeting is agreed by most stakeholders to be an appropriate activity for government, particularly with Māori and PI consumers. MCA may consider putting in place an appropriate evaluation of targeting so that it may identify the benefits of this policy and identify ways in which it may be more successful.

7.11 Recognition of MCA Expertise

There is an issue in the recognition of the expertise of the Ministry in every respect across government (e.g., usually low-ranked Minister outside Cabinet).

MCA also has a challenge in dealing with the perception of it as a constituency Ministry because that means that Departments have to consult them because they represent that constituency. These expectations may be problematic.

As part of the analysis of relationships, MCA may consider the perceptions of the Ministry in the marketplace and in the government arena.

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