PAPER D

FIRE AND PUBLIC SAFETY SELECT COMMITTEE – 15 NOVEMBER 2004

CONSUMER DIRECT

REPORT OF THE PORTFOLIO HOLDER FOR FIRE, EMERGENCY PLANNING AND CONSUMER PROTECTION

REASON FOR SELECT COMMITTEE CONSIDERATION

This report provides the Select Committee with an update on the rollout of the National Consumer Direct Scheme and the benefits that it should bring to the operation of the Trading Standards Service, local consumers and businesses.

ACTION REQUIRED BY THE SELECT COMMITTEE

To note progress so far and to support the Trading Standards Service in its involvement with the Consumer Direct Scheme for the benefit of local consumers and businesses.

BACKGROUND

1. Confident informed consumers are central to the Government’s vision for a productive and dynamic economy, promoting competition, innovation and growth (Modern Markets: Confident Consumers – 1999 White Paper) Reflecting this vision, Consumer Direct is a Department of Trade and Industry (DTi) initiative to establish a single, widely publicised national telephone number, providing consumers with a standard level of high quality and easily accessible first tier level consumer advice. In many ways Consumer Direct can be likened to the familiar NHS Direct. Consumer Direct will work in partnership with local authority Trading Standards Services and Consumer Support Network members, and will be available through a single 0845 national telephone number. It will become the first point of call for consumers seeking first tier consumer advice. Its existence will allow Trading Standards Services to concentrate on assisting consumers on more complex issues, the provision of specialist face-to-face support and providing assistance to more vulnerable consumers. By relieving officers of the necessity to provide first tier consumer advice, Consumer Direct will allow those officers to build upon a developing programme of consumer and business information and education initiatives and to target rogue traders more effectively. Other benefits of Consumer Direct include the provision of intelligence to Trading Standards Services, which is vital in the fight against rogue traders and unfair trade practices. It will also provide for currently unmet demand for consumer advice, which is estimated nationally by the DTi at 1.5 million calls a year, over and above the number of calls currently made to local authorities.

2. Consumer Direct is intended to complement and extend, not replace, existing advice services. Sometimes consumers will need further help, such as specialist advice, intervention, advice based on documentary evidence, local knowledge and personal consultation. In such cases Consumer Direct will refer callers to Trading Standards Service. Consumer Direct will not intervene with traders on a consumer’s behalf.

3. From a practical point of view Consumer Direct will operate as follows. When a consumer rings the Consumer Direct number their call will automatically be directed to the contact centre for their area. Similarly, callers to the Trading Standards Service who

only require first tier consumer advice will be switched to the Consumer Direct number. This will not hinder or prevent contact with the Trading Standards Service for any other purpose. Advice from Consumer Direct is free. The caller pays only for the cost of the call at local telephone rate. Where the call reveals more complex issues, enforcement issues, the need for intervention, specialist skills etc the case will be positively referred to the appropriate Trading Standards Service for further work. Consumer Direct will be available to consumers in the first instance from 08:00 to 18:30 Monday to Friday and 09:00 to 13:00 on Saturday.

4. The DTi consumer strategy is based on informed, confident consumers contributing to the economic prosperity of their communities, driving innovation and promoting business competitiveness. This is considered so vital that for the period until the end of 2006-07 financial year, the DTi is putting £30 million into the provision of Consumer Direct. The DTi is committed to Consumer Direct’s long-term success and has contracted with the pathfinders (see below) until 2010. The DTi and the Trading Standards Service nationally have built a good relationship and the DTi has a strong desire for local authorities to be at the heart of delivery of Consumer Direct.

5. Consumer Direct is being rolled out in stages and the national helpline will not be immediately available in all areas. The South West of England, Yorkshire and the Humber, Scotland and Wales were chosen as four pathfinder areas for launch in the summer 2004. The experiences of these areas will be invaluable for the launch in other parts of the country.

Wave 2 of Consumer Direct launches are scheduled for spring 2005 and will include the South East of England (including the Isle of Wight) and the Thames Valley. Seventeen Trading Standards Services in the South East and Thames Valley have formed a partnership in order to bid for the right to provide the Consumer Direct contact centre for the area. To facilitate this a limited company, Trading Standards South East Ltd, has been formed and was incorporated on 1 November 2004. Each of the constituent authorities are being invited to be founder members of the company and will be able to nominate an officer to be a director on the board of the company. It is proposed that the board, or sub-committees agreed by the board, will deal with the main day-to-day issues and management that will be required in the relationship with the contact centre. The Isle of Wight Trading Standards Service supports this approach and the Trading Standards Manager has indicated his willingness to serve on the board. With such a tight timescale, much work has already been completed in connection with the bid to the DTi to operate the contact centre. A selection process was carried out within the area and Kent County Council were chosen to provide the contact centre. The company will therefore contract with Kent County Council for the provision of the contact centre. Whilst the bidding process to the DTi is not yet complete there is every reason to believe that the bid will be successful.

6. The provisional timetable for the launch of Consumer Direct on the Island is as follows; 15 March 2004 will see the soft launch, i.e. when several Trading Standards Services switch their first tier consumer advice calls to the contact centre. During the following two weeks the remaining Trading Standards Services will switch over their first tier consumer advice calls. This process is designed to allow the contact centre to build a robust and smooth running operation. During the first week of April 2005 a high-level publicity campaign for the 0845 telephone number will be launched. Currently the Isle of Wight Trading Standards Service is working in close partnership with other Trading Standards Service in the South East and Thames Valley to develop working protocols with the contact centre. This will enable correct and specifically local messages to be given to

consumers about the services available in their own area. This will be very important where cases are referred to the local Trading Standards Service for action. It will also dovetail with the Isle of Wight Trading Standards Service “Buy with Confidence” Scheme. Each local Trading Standards Service will have access to details of all consumer contacts with the centre and the protocols developed will allow direct notifications where desired or appropriate. This in turn will facilitate more accurate targeting of local resources.

RELEVANT PLANS, POLICIES, STRATEGIES AND PERFORMANCE INDICATORS

Consumer Protection Service Plan

National Performance Framework for Trading Standards Services

The empowerment of consumers, better intelligence for the Trading Standards Service, a greater emphasis upon education of consumers and the addressing unfair trading practices and rogue traders are issues consistent with the Council’s corporate objectives:-

· Improving health, housing and the quality of life for all

· Encouraging job creation and economic prosperity

· Raising education standards and promoting lifelong learning

· Creating safe and crime-free communities

CONSULTATION PROCESS

Partners within the Isle of Wight Consumer Support Network have been widely consulted and play an active part in the generation of protocols.

Nationally wide consultation has taken place as a result of the 1999 DTi white paper “Modern Markets: Confident Consumers.”

FINANCIAL, LEGAL, CRIME AND DISORDER IMPLICATIONS

There are no immediate direct financial implications. Consumer Direct, however, is likely to result in greater demands upon the Trading Standards Service with the referral of higher numbers of complex cases and matters for enforcement action. Consumer Direct will serve to raise the profile of many Trading Standards activities and it can be anticipated that this will bring greater demands for the Trading Standards Service.

BACKGROUND PAPERS USED IN THE PREPARATION OF THIS REPORT

“Consumer Direct – Strengthening Consumer Protection Nationwide” DTi (2004)

“Consumer Direct – A National Helpline” DTi (2003)

APPENDICES ATTACHED

None

Contact Point: Richard Stone, Trading Standards Manager,

Tel: 823381, Email: [email protected]

CLLR DAVID KNOWLES

Portfolio Holder for Fire, Emergency Planning and Consumer Protection