Annual Report 2001-2002 Link to Contents Volume 1 of 2
Annual Report
2001-2002Link to Contents Volume 1 of 2
NSW Department of Fair Trading Annual Report 2001-2002
1SSN 1327 - 9890New South WalesDepartment of Fair TradingParramatta NSW AustraliaOctober 2002.
The Department of Fair Trading servesthe consumers and traders of New SouthWales. We safeguard consumer rights andadvise business and traders on fair andethical practice. Our customers includepeople renting homes and thosebuilding or renovating. There are stratascheme owners; people buying cars orlooking for consumer information. Alarge number are builders and peopleworking in a trade or running a business.
But our services go beyond thosedelivered to individuals. The legislativeframework we administer sets the sceneand the rules for fairness in the countlessdaily transactions between consumersand traders. Often behind the scenes,unfair practices are investigated andprevented.
A system of licensing and theinvestigation of residential buildingcomplaints help ensure unqualified orinappropriate people do not work inthe NSW home building industry. Thisprovides integrity to the industry andprotection for consumers from faultyor incomplete work.
Consumer help
Consumers of everyday goods andservices can use our Web site orcontact our Fair Trading Centres toobtain information on their rights andresponsibilities and assistance withresolving disputes. People rentinghomes, buying or selling property orliving in strata scheme property canturn to us for information andassistance.
Business & trader services
Traders and business people canregister business names and obtain thelicences and certificates they need tooperate in New South Wales. Buildersand contractors, people in theaccommodation and property servicesindustries and those engaged in sellinggoods or providing services can receiveinformation on their rights andobligations under fair trading laws.
Co-operatives & Associations
We actively encourage the formationand development of co-operatives andwe help community groups establishthemselves as associations.
Minister’s Foreword 2
Director-General's Report 3
Program Allocations 4
Planning Framework 5
Highlights of 2001-2002 6
Our Structure 7
Objective One 8
Appropriate safeguards for consumerswith minimal restrictions on business/traders
Objective Two 13
Maximum compliance with regulatory requirements
Objective Three 25
Accountable use of public resources
Financial Statements* 31
Appendices 53
Office Locations 72
Index 73
* Volume 2 of this Annual Report(which is available on request orthrough our Web site) contains thefinancial statements of the followingnon-operational accounting entities:• Rental Bond Board• Fair Trading Administration
Corporation• Building Insurers’ Guarantee
Corporation.
Whatwe do
Contents
NSW Department of Fair Trading Annual Report 2001-2002 Page 1
Broken Hill
Wollongong
Wagga Wagga
Lismore
Tweed Heads
Grafton
Coffs Harbour
Port Macquarie
Newcastle
Sydney BlacktownHurstvilleLiverpoolParramattaPenrith
Gosford
Armidale
TamworthDubbo
Orange
Queanbeyan
Albury
Fair Trading CentresWe operate Fair Trading Centres at the 22 locations shownopposite. These Centres provide information and assistanceon consumer issues, motor vehicles, home building andrenovation, credit, property and tenancy issues, plusco-operatives and business name registration.
Selected Fair Trading services are also availablevia Government Access Centres (GACs) andother agency locations throughout regionalNew South Wales. Call 13 32 20 forinformation on the services available in thesetowns: Balranald, Bathurst, Bega, Boggabilla,Bourke, Cobar, Condobolin, Cooma,Coonabarabran, Coonamble, Deniliquin, Dorrigo,Forbes, Forster, Gilgandra, Glenn Innes, Goulburn,Grenfell, Griffith, Hay, Hillston, Kyogle, Leeton, Maclean,Moree, Mudgee, Nambucca, Narrabri, Narrandera, Nowra,Nyngan, Quirindi, Oberon, Tumbarumba, Ulladulla, Walget, WestWyalong and Wilcannia.
Call 13 32 20
to reach your nearest Fair Trading Centre
Monday to Friday between 8:30 am and 5:00 pm.
Where we are
• Associations Incorporation Act 1984
• Business Names Act 1962
• Community Land Management Act 1989
• Consumer Claims Act 1998
• Consumer Credit Administration Act 1995
• Consumer Credit (New South Wales) Act 1995
• Consumer, Trader and Tenancy Tribunal Act 2001
• Contracts Review Act 1980
• Conveyancers Licensing Act 1995
• Co-operatives Act 1992
• Co-operative Housing and Starr-Bowkett Societies Act 1998
• Credit Act 1984
• Credit (Finance Brokers) Act 1984
• Credit (Home Finance Contracts) Act 1984
• Door-to-Door Sales Act 1967
• Electricity Safety Act 1945 Part 4C (remainder Minister forEnergy)
• Employment Agents Act 1996
• Fair Trading Act 1987
• Fitness Services (Pre-paid Fees) Act 2000
• Funeral Funds Act 1979
• Gas Supply Act 1996 Section 83A (remainder Minister forEnergy)
• Hire-Purchase (Repeal) Act 1981
• Home Building Act 1989
• HomeFund Commissioner Act 1993
Legislationwe administer• HomeFund Restructuring Act 1993 ss 14, 15, 16 and Schedule 2
(remainder Minister for Housing).
• Landlord and Tenant Act 1899
• Landlord and Tenant (Amendment) Act 1948
• Landlord & Tenant Amendment (Distress Abolition) Act 1930
• Landlord and Tenant (Rental Bonds) Act 1977
• Mock Auctions Act 1973
• Motor Dealers Act 1974
• Motor Vehicle Repairs Act 1980
• Pawnbrokers & Second-hand Dealers’ Act 1996
• Price Exploitation Code (New South Wales) Act 1999
• Prices Regulation Act 1948
• Property, Stock and Business Agents Act 1941
• Registration of Interests in Goods Act 1986
• Residential Parks Act 1998
• Residential Tenancies Act 1987
• Retirement Villages Act 1999
• Strata Schemes Management Act 1996
• Trade Measurement Act 1989
• Trade Measurement Administration Act 1989
• Travel Agents Act 1986
• Valuers Registration Act 1975
• Warehousemen’s Liens Act 1935
Page 1
Page 2 NSW Department of Fair Trading Annual Report 2001-2002
• Fair Trading Act 1987• Landlord and Tenant (Rental Bonds) Act
1 9 7 7• Residential Tenancies Act 1987• Strata Schemes Management Act 1996• Community Land Management Act 1989• Insurance (Policyholders Protection)
Legislation Amendment Act 2001.
D.B.O ’ConnorDirector-GeneralDepartment of Fair Trading18 October 2002
minister’s
Foreword
for the
Parliament
Over the past year, the Departmentof Fair Trading has worked hard toensure New South Wales is a betterand fairer environment for both theconsumer and trader.
The collapse of HIH Insurance and thetragic events of September 11 threwinsurance markets into turmoil. Fair Tradingplayed the leading role in stabilising and re-establishing home warranty insurance. In there-building process, Fair Trading worked toensure the industry remained a keycomponent of the State’s economy.
The home building industry is the focus of afar-reaching legislative package designed tolift professional standards. Licensing has beentightened, penalties increased and disciplinaryproceedings streamlined. The introduction ofcontinuing professional education programswill result in improved building practiceswith tangible benefits flowing through toNSW home-owners.
Impressive advances have been achieved inother critical areas. The new ConsumerTrader and Tenancy Tribunal beganoperation in February 2002, resulting in afairer, more effective and more efficientdispute resolution service for NSW.
The new Property, Stock and BusinessAgents Act, which will commence in 2003,creates a fairer property marketplace byproviding a more transparent buying andselling process, deterring dummy bidders atauctions, improving industry standards andsimplifying agents’ licensing process.
Consumers who borrow money from so-called ‘pay day’ lenders now receiveprotection from exorbitant charges.
Major reforms to motor trade laws will curbthe illegal trade in stolen parts and vehicles.Consumers buying vehicles from dealersthrough linked credit arrangements will havea one day cooling off period to reconsidertheir decision.
Fair Trading continued to expand its range ofservices provided to regional NSW. Electronicservice delivery initiatives significantlyenhanced services. ‘Shop front’ services toregional NSW are provided through 16 non-metropolitan Fair Trading centres as well asfrom 38 other locations, such as GovernmentAccess Centres, where the Departmentparticipates with other agencies to offerselected services. During the year, theDepartment transferred its associationincorporation functions to Bathurstproviding additional local employment.
Closer ties were forged with ethniccommunities through the Think SmartProgram. This links the Department of FairTrading in partnership with several MigrantResource Centres. The range of materialavailable in non-English languages wasincreased and the Department introduceduser-friendly community language versionsof its Web site. Reaching and protectingvulnerable consumers remains a primeconcern of the Department.
Effective consumer protection measures areessential in a dynamic marketplace. Duringthe year the Department of Fair Tradingagain demonstrated its commitment to thistask. I congratulate the Department’sexecutive and staff on a job well done.
The Hon. John Aquilina MPMinister for Fair Trading
Dear Mr Aquilina
I am pleased to present the AnnualReport of the Department of FairTrading for the year ended 30 June 2002.
The Report has been prepared forpresentation to the Parliament of NewSouth Wales in accordance with therequirements of the Annual Reports(Departments) Act 1985 and the AnnualReports (Statutory Bodies) Act 1984.
The Report also fulfils the statutoryreporting requirements of the Director-General under the following legislation:
The Hon John Aquilina, MPMinister for Fair Trading
Parliament House Sydney
NSW Department of Fair Trading Annual Report 2001-2002 Page 3
from the
Director-General
Fair trading in NSW moved forwardin 2001-2002 through a number ofimprovements to the legislativeframework which provides a fairmarketplace for consumers andtraders. Alongside this, otherinitiatives such as the newConsumer Trader and TenancyTribunal, improved thecommunity’s ability to exercisetheir rights and observe theirresponsibilities.
to review all legislation with an impacton competition by 30 June 2002 wasachieved. In many cases the final reportsshow that the legislation has a positiveimpact on the community and should beretained. The reviews have also given usthe opportunity to examine areas wherelegislation needs improving or updating.We are hoping that much of thelegislation arising from these reviewswill be finalised over the coming year.
By far the Department’s greatest focuswas in the area of residential homebuilding. Extensive consultation andnegotiation resulted in joint NSW andVictorian Government initiatives toreform home warranty insurance in thewake of the HIH collapse. This includedthe provision of reinsurancearrangements to ensure that homewarranty cover remained available tobuilders.
In related moves to boost industrycompliance and competency, the NSWParliament passed a range of newlicensing reforms. These will help weedout builders and contractors who eithercan’t or won’t operate in a fair and ethicalway. Mandatory educational and trainingrequirements will boost the skills andknowledge of professionals as well asindividuals undertaking larger owner-builder projects.
In results that should encourageconsumers, builders and sub-contractorsalike, recent building site inspectionsacross NSW revealed that the vastmajority of contractors are complyingwith licensing and insurancerequirements.
Improving community access
The NSW Government’s decision toestablish the Consumer, Trader andTenancy Tribunal (CTTT) in place ofthe former Fair Trading Tribunal and theResidential Tribunal has given thecommunity a single entry point to a low-cost dispute resolution system that spansthe range of fair trading issues.
It is the Department’s ongoing intentionthat our programs will contribute to
social justice outcomes for vulnerable,geographically remote and disadvantagedgroups. The decision to relocate ourassociation incorporation and funeralfund administration functions fromSydney to Bathurst provided a significantboost to regional employment with newjobs created at the renamed Registry ofCo-operatives and Associations. Areview of the Tenants Advice andAdvocacy Program has securedadditional funding for that program, asignificant proportion of which willdirectly benefit tenants in rural andregional NSW.
Our services for indigenous peoplecontinued to progress. We have begunworking towards improving the ‘bookup’ credit system widely used in remoteAboriginal communities. We maintainedour percentage of Aboriginal staff at 3% –significantly higher than theGovernment target of 2%. This iscontributing to our success in reachingAboriginal communities, who over thepast three years have been significantclients of our programs designed forspecial needs groups.
Our efforts to provide NESBcommunities with access to fair tradingservices continue to bear fruit. Our2001-2002 Customer Profile indicatedthat the proportion of customers fromthis target group is close to or exceedstheir representation in the NSWpopulation. A new venture, Think Smarton Consumer Education Rights, is nowbuilding long-term relationships withethnic organisations that are central todelivering information and educationservices.
Customer service
For all customers, a host of ESDinitiatives is underway. For many years,our front line staff have relied on acomputer based information system toprovide phone and counter customerswith the most accurate and appropriateproblem solving information. A projectis now underway to make this customerassistance system directly available tocustomers through the DFT Web site. Itwill provide the community with a self
Improving the legislative framework
A significant issue during the yearinvolved consumers’ access to accurateconsumer credit information. The NSWGovernment’s amendment of consumercredit legislation, concerning theactivities of so-called pay day lenders,now requires these short term creditproviders to fully disclose the cost ofloans, whose exorbitant interest rates hadpreviously been concealed fromborrowers. On the national front, NewSouth Wales also continued toparticipate in a process that will see theConsumer Credit Code amended tointroduce a mandatory comparison rate.This information will give consumersthe means to compare the real cost ofloans offered by lending bodies.
Motor vehicles are generally amongstthe most expensive purchases for mostpeople. Consequently, any consumerproblems are generally high impact forboth individuals and the industry.Following extensive communityconsultation, a comprehensive revisionof the laws covering the motor trade hasseen the introduction of a number ofmajor crime prevention and consumerprotection initiatives. Amongst otherthings, controls have been strengthenedto minimise illegal trading in parts andvehicles and for consumers, a one daycooling off period has been introducedfor cars bought on linked creditarrangements.
People who live permanently inresidential parks now have the benefit ofimproved standard tenancy agreementsand a number of administrativeimprovements to the way park rules andpark liaison committees operate. For thefirst time, the rights of long term casualoccupants in residential parks are beingexamined with a view to providing themwith fairer, more certain terms to theiroccupancies.
The Department’s objective under theNational Competition Policy agreement
Page 4 NSW Department of Fair Trading Annual Report 2001-2002
help ‘roadmap’ that can be accessed atany time from a home computer via theInternet. Several interrelated projects arepreparing our IT network and Web sitefor higher level on-line services toensure the Department meets itseGovernment obligations. Our Web sitein particular has been re-designed andre-engineered to provide customerswith a more user-friendly interface.Special versions of the Web site are nowavailable in a range of communitylanguages.
These technological improvementscontribute to the significantenhancement of our customer servicemodel which was decided upon duringthe year.
A very significant development duringthe year was the decision to updateDFT’s customer service delivery modelin line with government policy and goodinternational practice. The “seamlesscustomer service” project, which wasstill in its early stages last year, in 2001-2002 brought into much clearer focus theneed to make our services availablethrough integrated access points.
As a result of this work, we willconsolidate our call centres and simplifyour phone book entry during 2002-2003.With any significant change, there willbe an inevitable period of ‘beddingdown’ the new approach, but the endresult should both improve efficiencyand ensure high quality customerservice.
Community awareness
A critical factor in the success of any fairtrading regulator is communityawareness – that laws are in place andthat they are there to be used.Prosecutions of companies andindividuals involved in unscrupulousbehaviour were publicised throughoutthe year and are set out later in thisreport. They serve as a warning thatNSW’s laws are not mere windowdressing.
Similarly, community awareness of theseprosecutions, complemented byinformation campaigns and educationalactivities such as the inauguralConsumer Protection Awards,encourages community ownership ofthese laws. The large number ofcustomers who sought specific fairtrading information during 2001-2002highlights the community’s fair tradingexpectations.
Our people
The breadth and complexity of theservices we provide the communitydictates that our greatest asset is ourpeople – ranging from those who helpdevelop the legislative framework tothose who provide information to thecommunity, monitor compliance or whoenable the organisation to function.To enable our staff to perform to theirbest ability we have begun to formalisean improved flexible working hoursagreement trialled last year. It hasenhanced staff ’s ability to balance work
Program Allocations – Expenses Program Allocations – Average Staff(effective full-time positions)
Fair Trading Standards & Registers 14% $19.5M
Tribunals 20% $27.5M
Consumer & Trader
Services 44% $60.7MFair Trading Strategy
7.5% $10M
Marketplace Performance 14.5% $19.5M
Fair Trading Standards & Registers 17% 193 staff
Tribunals 12.5% 145 staff
Consumer & Trader
Services 48% 550 staff
Fair Trading Strategy 7% 80 staff
Marketplace Performance 15.5% 179 staff
and personal responsibilities. Training iscritical and we have instituted measuresdesigned to maintain and improve theskills of our front line staff. Specialtraining is being assessed for thoseinvestigating internet crime.
Our OH&S working group activelysought staff involvement to putlegislative requirements into practice.We catered to the needs of employeeswith a disability through supervisortraining, workplace adjustment and thedevelopment of a support network. Ourability to assist NESB customers issupported by our employment of NESBstaff whose employment levels exceedmost of the government targets forpercentages of EEO group members.
The Department’s staff once againproved their capabilities. As a result, weachieved our goals for 2001-2002. Isincerely thank them for theirdedication, professionalism andenthusiasm and look forward to similargood results for 2002-2003.
David O’ConnorDirector-GeneralNSW Department of Fair Trading
NSW Department of Fair Trading Annual Report 2001-2002 Page 5
2001-2005 planning
Framework
Performance reportingand qualityThis year’s report again builds on theimprovements of the last three years inreporting our performance planning,measurement and improvementactivities.
Since 1998-99 the report has beenstructured around the key corporateobjectives from our long-term planningframework, and the last two years sawthe publication of the first results for theperformance indicators directly linkedto these objectives. These indicators arebeing used, instead of guided self-assessment, as the basis of targetedquality/improvement initiatives. The keyinitiatives this year related to skillsaudits and customer-service training insome of our public contact areas. Theoutcomes are shown in the tables onpages 13 and 25.
With three years’ worth of data, DFT isgaining experience in what constitutes a‘normal’ result. Accordingly, this year forthe first time we have set cautious targetsfor the customer-satisfaction indicators.While fluctuations in the results are tobe expected, the Department will aim tokeep results at or above target levels. Anysignificant drop will trigger action todiagnose and, where possible, correct,emerging problems.
• Innovation and continuousimprovement of systems focussedon customer needs
• Staff development/empowerment;systems and culture oriented tosupporting staff performance
• Economical, efficient and customer-focused operations
Accountable use of public
resources
Appropriate safeguards for consumers
with minimal restrictions on business
and traders
• Policy framework creates a balancebetween interests of consumers andtraders
• Comprehensive, proactive policyand regulatory review
• Proactive education activities;responsive enquiry service
• Special focus on remote andvulnerable groups
• Targeted compliance activities;complaint handling; disputeresolution
• Responsive enquiry service; effectivelicensing/registration process
• Provision of clear, accurateinformation to consumers andtraders
• Effective compliance monitoring andenforcement
• Reliable licensing/registration/certification information
Maximum compliance with
regulatory requirements
Divisional objectives StrategiesCorporate objectives
Objective 1
Objective 2
Objective 3
Corporate planMost of the Department’s workthroughout the year stems from theongoing, core business services, such ascompliance and information provision,which are our brief from governmentand flow from the strategies in our long-term planning framework 2001-2005.
However, each year additional projectsmust be carried out to support orenhance these day-to-day services. Thisyear we again produced an annualcorporate plan setting out the priorityprojects for the financial year.
These priorities – customer serviceimprovement, access and equity,National Competition Policy reviews,home building, consumer credit and theestablishment of the new Consumer,Trader and Tenancy Tribunal – arereported on in this report.
Our Strategic IntentNew South Wales will be recognised forfairness and value in the marketplace.
Our MissionTo safeguard consumer rights and advisebusiness on fair, ethical practice.
We do this in regard to:• consumer goods and services• accommodation and property services• home building.
Our values• Access and equity for customers
and staff.• Integrity and professionalism
in all we do.• Safe, equitable, satisfying
work environment.• Innovation complementing
the strengths of the past.
• Openness in all our communication.
The Department of Fair
Trading’s programs will
contribute to social justice
outcomes for vulnerable,
geographically remote and
disadvantaged groups.
Page 6 NSW Department of Fair Trading Annual Report 2001-2002
2001-2002
Highlights
Objective 1• September 2001 – Ministerial Council
on Consumer Affairs approvesamendment of Consumer CreditCode providing for mandatorycomparison rate to identify the truecost of credit.
• November 2001 – Motor Trade LegislationAmendment Act 2001 introduces anumber of major crime prevention,consumer protection andadministrative initiatives.
• December 2001 – Pay day lendersforced to disclose full costs of short-term loans and comply with theConsumer Credit Code.
• February 2002 – Consumer, Trader andTenancy Tribunal replaces former FairTrading Tribunal and ResidentialTribunal.
• May 2002 – Home Building Amendment(Insurance) Act 2002 introducesinsurance reforms in the NSW homebuilding industry.
• June 2002 – Reviews of legislationunder the National CompetitionPolicy (NCP) agreement completed.
The future
• Implementation of uncommencedprovisions of Home Building Act
including mandatory continuingeducation for builders and contractreform.
• Regulatory regime introduced for gasappliance safety.
• Low income and disadvantaged tenantsbenefit from improvements to theTenants’ Advice and AdvocacyProgram (TAAP).
• Co-operative and RegionalDevelopment Strategy (CARDS) willidentify opportunities for cooperativesto assist rural and regionalcommunities.
Objective 2• August 2001 – Licence cancellation on
bankruptcy or liquidation groundsintroduced in the home buildingindustry.
• December 2001 – Inaugural ConsumerProtection Awards honour theconsumer protection efforts ofindividuals as well as community andbusiness groups.
• February 2002 – Registry of Co-operatives and Associationsannounced.
• February 2002 – Supreme Courtorders bind prominent ‘$2 shops’ tostringent product safety sales andproduct testing requirements.
• April 2002 – Re-engineered, re-designed and user-friendlier DFTWeb site launched.
• May 2002 – Alternative healthpractitioner fined for bogus medicalclaims.
• May 2002 – Closer ties forged withethnic communities through the ThinkSmart on Consumer Rights EducationProgram.
• May 2002 – Supreme Court gaolsfraudulent finance broker.
• July 2002 – Mandatory training coursesintroduced for owner builder projectsvalued over $12,000.
The future
• Remote Aboriginal communities tobenefit from review of ‘book up’credit system.
• New consumer guide will helpindigenous youth understand their fairtrading rights and responsibilities.
• Enhanced training for staffinvestigating fraudulent e-commerceand computer-based crime.
• Introduction of tougher criteria for therenewal of home building licences andcertificates.
Objective 3• January 2002 – DFT achieves increased
rankings in three areas of the EAPSstandards framework.
• June 2002 – Customer complainthandling review improves quality andconsistency of services provided tocustomers through Fair TradingCentres.
• June 2002 – New Network OperatingSystem improved the reliability,availability and accessibility ofcustomer services.
• June 2002 – DFT’s AboriginalEmployment Strategy maintained the
percentage of Aboriginal staff at 3% –against a Government target of 2%.
• June 2002 – Customer profile surveyindicates the proportion of DFT’sNESB and indigenous customers isclose to or exceeds theirrepresentation in the NSWpopulation.
The future
• Internet self-help facility will letconsumers and traders establish theirrights and responsibilities24 hours, 7 days a week.
• Tenants Advice and Advocacy Programfunding will be increased by 53%.
• New Aboriginal Action Plan willbuild on the successes of the first Plan.
• Interactive voice response system willgive REVS’ customers virtual 24 hour,7 days a week access to REVSinformation.
• Continued infrastructure andstructural improvements will enhanceelectronic service delivery andimprove telephone enquiry services.
NSW Department of Fair Trading Annual Report 2001-2002 Page 7
our
Structure
Tribunals Ministerial Advisory
Councils
Internal Audit
AssistantDirector-GeneralPolicy & StrategyRod Stowe (acting)
AssistantDirector-General
OperationsBrian Given
AssistantDirector-General
Property & LicensingLyn Baker
Minister
Director-General
David O’Connor
DirectorCompliance
&Standards
Chris Hanlon
DirectorLegal
Services
David Catt
DirectorCustomerServices
AndrewGavrielatos
(acting)
• Prosecutions
• Civil
litigation
• Advocacy
• Advisings
• Fair trading;
Real estate;
Building
investigations
• Product safety
• Trade
measurement
• Fair Trading
Centres
around NSW.
• Information,
complaint
handling and
services to
consumers
and traders
on all aspects
of fair trading
DirectorLicensing &Registration
Services
Steve Newton(acting)
• Business
names
• Business
licences
(except
building)
DirectorHome
Building
Peter Smith
• Building
licensing
• Building
insurance
DirectorManagement
Services
Michael Silk
• Administration
• Finance
• Human
resources
• Information
technology
• Tribunals
administration
DirectorProjects,
Funding &Equity
Susan Dixon
• Strategic
projects
• Research and
equity
• Funding
programs
• Marketing
REVS
GeneralManager
Michael Browne(acting)
Registry ofCo-operatives
& Associations
GeneralManager
Colin Crossland
• Renting services
• Strata schemes &
mediation services
• Strategic policy
• Legislation
• Planning and reporting
• Ministerial and
stakeholder liaison
Page 8 NSW Department of Fair Trading Annual Report 2001-2002
corporate
Objective 1
Major Policy Issues
Home warranty
insurance reformsAs a result of significant developments inthe home warranty insurance market theGovernment moved to protect theinterests of consumers and traders bymaking structural reforms to the homewarranty scheme.
Following the collapse of HIH, twomajor home warranty insurers remainedin the market, namely Royal & SunAlliance and Dexta (underwritten byAllianz). The international insurancelandscape experienced further massivedisruption with the events of September11. In early 2002 both Dexta and Royal &Sun Alliance advised that they could nolonger provide cover for high rise due to
45% 55% 60% 100% 100%
Appropriate safeguards for consumers
with minimal restrictions on business and traders
This is the first of two core objectives that contribute to our strategic intent of having
NSW recognised for fairness and value in the marketplace. In the fields of consumer
goods and services, accommodation and property services and home building we
aim to develop and maintain a policy and legislative framework that creates a
balance between the interests of consumers and traders.
Performance information
Key outcome/outcome measure 98-99 99-00 00-01 01-02 Target 02-03
Outcome: Appropriate safeguards for consumers withminimal restrictions on business and traders
Measure: Proportion of legislation assessed as meeting netpublic benefit test.
Interpretation/comment
It is extremely hard to devise a methodology for directly measuring the ‘fairness’ of the policy and legislative framework to allsections of the community. The Department uses an indirect measure which shows the proportion of legislation which hasundergone a rigorous process to ensure that it is necessary. As part of the National Competition Policy review programdescribed later in this report, a net public benefit test is applied, and this involves examining both social and economic factors.The table above reflects the proportion of legislation which, to date, has undergone this test or a similar process. All of the FairTrading reviews have been completed although several national reviews are awaiting consideration. This brings to 100% theproportion of legislation which has been subjected to the process described above. For the future, the Department will aim toensure that any new or amended legislation is subjected to scrutiny through this or a similar process, maintaining this item atthe target 100%.
withdrawal of reinsurance support. Theinsurers also expressed the view that thescheme, as constituted, was becomingunviable. In response to thesedevelopments the Victorian and NSWGovernments undertook intensivenegotiations with the insurance industryto find a solution.
In January 2002, a third insurer, RewardInsurance Ltd., was approved to writehome warranty insurance policies –extending the options for builders inNSW.
On March 13, 2002 the NSW andVictorian Governments announceduniform reforms to their home warrantyschemes. Key features of this newscheme were that:
• the monetary threshold for work
requiring insurance would rise from$5,000 to $12,000 bringing NSW andVictoria into line with South Australiaand Western Australia
• insurance would cover structuraldefects for 6 years and non-structuralworks for 2 years
• a cap on completion claims equal to20% of the contract price would apply
• homeowners would be able to claimagainst their policy as a last resort, thatis, where the builder is dead, hasdisappeared or is insolvent.
The $12,000 monetary threshold forinsurance came into force on April 2,2002.
In April 2002, Dexta advised that it waswithdrawing from the home warrantymarket because of the withdrawal of part
NSW Department of Fair Trading Annual Report 2001-2002 Page 9
Memorandum of Understanding(MOU) with the Independent Pricingand Regulatory Tribunal. A similarMOU is being negotiated with theEnergy and Water Ombudsman. TheDepartment is also a member of aninter-agency group monitoring theimplementation of full retailcompetition. The other members are theMarket Implementation Group, theIndependent Pricing and RegulatoryTribunal, the Ministry of Energy andUtilities and the Energy and WaterOmbudsman.
We have also been involved indeveloping better protection for tenantsand residents who are supplied with gasand electricity by landlords. Thisincludes people in residential parkswhere supplies are provided by parkowners. Changes to the Residential ParksRegulation now require that gas suppliedto people in residential parks must beprovided through a gas meter whichmeets the standards set out in the GasSupply (Gas Meters) Regulation 1997.
Consumer Credit Code
Credit card overcommitment
In July 2001, in response to communityconcerns about rapidly increasing creditcard indebtedness, the Departmentsubmitted a paper to the MinisterialCouncil on Consumer Affairs (MCCA)with recommendations to addressperceived deficiencies in the assessmentpractices of card-issuing financialinstitutions.
MCCA noted that the Departmentwould undertake further consultationwith industry and consumer groups onoptions to address these concerns.Consultation was carried out and theproposals to address credit cardovercommitment were refined as aconsequence.
Pay day lenders
During 2000, a new credit industryemerged. Pay day lenders purported toservice a ‘niche’ market – short term,low value loans, marketed as credit tomeet the financial needs of consumersuntil the next pay day – hence “pay dayloans”. Pay day lenders were able tooperate by taking advantage of anexemption in the Consumer Credit Code(the Code) which had not been intendedto encompass their activities. TheMinisterial Council on ConsumerAffairs (MCCA) agreed to an
amendment to bring pay day lendersunder the Code.
Under the terms of the AustralianUniform Credit Laws Agreement 1993,amendments to the Code are introducedinto the Queensland Parliament. Theamended legislation then applies inNSW as provided by the Consumer Credit(New South Wales) Act 1995. However, onthis occasion, an early election inQueensland delayed the nationallegislative process and due to theurgency of the situation, New SouthWales enacted its own legislation.
On 1 December 2001, the ConsumerCredit (New South Wales) Amendment (PayDay Lenders) Act 2001 commenced inNew South Wales, bringing pay daylenders under the Code in this State. TheQueensland amendments commencedon 10 December 2001. There are anumber of differences between theConsumer Credit (NSW) Amendment (PayDay Lenders) Act 2001 and the uniformamendments that were implementedthrough the Queensland Parliament.
While overlapping NSW provisions willbe repealed, non-uniform provisionsthat protect NSW credit consumers willbe retained. These require pay daylenders to disclose costs as an annualpercentage rate instead of, or as well as,fees and to charge no more than 48%annual percentage rate – calculated usingthe comparison rate formula andincluding all up-front and known feesand charges.
Mandatory comparison rate
A comparison rate is a figure, expressedas an interest rate, which identifies thetrue cost of credit by factoring in notonly the interest rate but also the feesand charges related to a loan. It helpsconsumers pick the cheapest loan –which may not always be the one withthe lowest interest rate. The ConsumerCredit Code already provides that acomparison rate may be given toconsumers, but it is not mandatory.
Introducing a mandatory comparisonrate is a New South Wales initiative,which has been subject to extensiveconsultation since October 1999. InSeptember 2001 the Ministerial Councilon Consumer Affairs approved theamendment of the Uniform ConsumerCredit Code to require credit providersto:
of its reinsurance. In response theGovernment announced on April 16,2002 that steps had been taken to ensurethat builders could obtain cover. TheNSW and Victorian Governments put inplace arrangements for the necessaryreinsurance for Allianz so that Dextacould re-open for business. With regardto high-rise buildings the NSWGovernment implemented a reinsurancearrangement to ensure home warrantycover remained available. As a resultbuilders were able to get cover for high-rise. This ensured that owners of high-rise apartments received the same levelof consumer protection as owners ofother dwellings. These reinsurancearrangements were extended toDecember 31, 2002.
On 9 May 2002 the Home BuildingAmendment (Insurance) Act 2002, whichprovided for the other reforms to theinsurance scheme, was passed byParliament. The Amendment Actcommenced on 1 July 2002.
CTTTOne of the major achievements of thelast year was the establishment of theConsumer, Trader and Tenancy Tribunalor CTTT. The Tribunal, whichcommenced operation on 25 February2002, took over the jurisdictions of theformer Fair Trading Tribunal and ResidentialTribunal. The Tribunal has eightDivisions that deal with all of thematters previously handled by theformer Tribunals. The supportinglegislation (Consumer, Trader and TenancyTribunal Act 2001) states that one of itsmain aims is to ensure the quality andconsistency of the Tribunal’s decision-making. A number of new initiatives areincluded to assist in achieving the aimsof the legislation.
Consumer protection for gasand electricity customersFull retail competition in the NSWenergy market began on 1 January 2002 –providing all gas and electricitycustomers with the freedom to choosetheir energy retailer. In the lead up, weworked closely with other NSWGovernment agencies, primarily theMarket Implementation Group withinNSW Treasury and the Ministry ofEnergy and Utilities, to developappropriate ways to protect consumersin this new environment.
To avoid duplication of effort and toensure a consistent approach oncommon issues, we signed a
Page 10 NSW Department of Fair Trading Annual Report 2001-2002
• provide a comparison rate in relationto fixed term credit whenever aninterest rate is included in advertisingand
• enable consumers to collect aschedule of comparison rates to helpthem shop around for a loan.
A bill to amend the Consumer CreditCode in line with the MinisterialCouncil’s decision passed through theQueensland Parliament in April 2002. Aregulation is currently being drafted toamend the Consumer Credit Regulation 1995to flesh out the details of the comparisonrate requirement. The commencementdate for the legislation will be set by theMinisterial Council, taking into accountthe need to allow the credit industrysufficient time to put compliancestrategies in place.
BankingConcerns about high bank fees andcharges, closure of bank branches andreduced services to customers continuedto be a major area of concern. Whilebanks recorded record profits, branchescontinued to close and customers wereforced to use electronic banking ortravel greater distances to do their face-to-face banking.NSW continued to address bankingissues through a number of approaches.An updated paper on minimum servicestandards was presented to theMinisterial Council on ConsumerAffairs in July 2001 and the Departmentprepared the NSW Governmentsubmission to the independent Reviewof the Code of Banking Practice. Thefinal report of the Review, released inOctober 2001, adopted some of ourrecommendations.
The Department also developed a guideto help consumers save on bank fees andcharges. Banking – reducing your transactioncosts was released in September 2001 andcontains tips for account holders such as:checking fee exemptions offered bybanks; choosing the best type of account;consolidating banking to one bank;avoiding ATMs from other financialinstitutions and using less expensivebanking services.
Tenants Advice and Advocacy
Program reviewThe Tenants’ Advice and AdvocacyProgram (TAAP) is a statewide programwhich funds non-governmentorganisations to provide tenancyinformation, advice and advocacyservices to public and private tenantsthrough casework and community
education. Funding is sourced from theRental Bond Interest Account andProperty Services Statutory InterestAccount.A comprehensive review, commissionedin 2000, found that the TAAP is well usedby low-income renters, with over half ofTAAP clients in receipt of a pension orbenefit. A range of special needs groupsincluding people with mental healthproblems, people with disabilities,refugees and recent migrants accessTAAP services. Strategies have been orare being developed to improve use ofTAAP services by residents of residentialparks, youth and boarding houseresidents.
In April 2002, after considering thereview recommendations, the Ministerfor Fair Trading announced a 53%, or $2.2million, increase in funding for theTAAP, bringing the total annual fundingto $6.4 million. In line with therecommendations, the funding boostwill cover:
• substantial staff increases for TAAPservices (particularly Aboriginal),services in rural and regional NSWand services in western and southwestern Sydney
• travel costs associated with servicinglarge geographic areas in rural andregional locations
• funding increases and improvementsto the operation of the general TAAPresourcing body, the residential parksresourcing unit and the Aboriginalresourcing unit.
The new TAAP will begin on July 1 2002.Other major improvements to theProgram that will be implemented as aresult of the review are:
• the development of ProgramGuidelines to clarify expectationsabout service performance
• changing the funding process from atwo step process to a one stepExpression of Interest process
• amendments to the funding agreementto address concerns expressed byTAAP services and to improve clarity
• revisions to reporting arrangements toimprove accountability and allow forthe provision of more qualitativeinformation on casework trends andoutcomes
• variations to budgetary arrangementsto allow for increased support ofbudget areas such as communicationand travel and greater flexibility inbudget allocations
• information technologyenhancements, to be phased in overtime
• incorporation of The TenancyHousing Information Unit (THIU)into the TAAP as the Older PersonsTenancy Advice and Advocacy Service,with a focus on tenancy (includingprotected tenancy) issues.
Entertainment industry reviewThe Department reviewed theEntertainment Industry Code of FairPractice. The review was initiated by theformer Minister for Fair Trading toaddress a range of issues, including thoserelating to:
• quality of performance
• ticketing issues for babies
• further clarification of when aconsumer should be provided with arefund and
• possible reform options for themanagement of ticketing revenues.
During the review process we consultedwith peak industry organisations andrelevant government departments. Anissues paper was released in November2001 seeking public comment withsubmissions closing on 31 January 2002.Further meetings were held in February2002 with key organisations includingthe Australian Entertainment IndustryAssociation, the Media Entertainmentand Arts Alliance, the AustralianCompetition and ConsumerCommission and the Australia Council.A final report was prepared and iscurrently being considered.
Co-operative and Regional
Development Strategy –CARDSCo-operatives have demonstrated theycan provide rural and regionalcommunities with a vehicle to combatthe effects of social and economicdecline. The unique structure of co-operatives has proven effective increating employment, meeting particularservice and consumer needs, reducingcosts, and boosting local economies.
The CARDS project is a regionaldevelopment initiative beingimplemented through the Registry ofCo-operatives and Associations. Theprincipal aim of the initiative is toidentify opportunities where the co-operative structure may be able to assistrural and regional communities toachieve their social or economicobjectives.
As part of the CARDS initiative, Registrystaff are actively building networks withrepresentatives at each level of
NSW Department of Fair Trading Annual Report 2001-2002 Page 11
Government as well as with peakindustry and professional groups tostimulate interest and develop a greaterunderstanding of the potentialopportunities that the co-operativestructure may bring to rural and regionalcommunities. CARDS recognises thebenefits of adopting a ‘whole ofgovernment approach’ which can beachieved through promoting the co-operative model across regionaldevelopment programs.
In conjunction with the CARDSinitiative, the Registry is also developinga co-operative solutions program thatwill involve a more pro-active approachto identifying communities where theco-operative structure might beeffectively used. This program will drawon the findings of a recent studycommissioned by the Fair TradingAdvisory Council that examinedsuccessful examples of co-operativeapproaches to rural renewal. The firststage of the program involves identifyinga community in which to undertake aCo-operative Solutions Pilot that can beused as a model to be replicated in otherrural communities throughout NSW.
Advisory councils
Five ministerial advisory councilsprovide advice to the Minister for FairTrading. The Fair Trading AdvisoryCouncil (FTAC) is the peak body and itprovides an integrated approach to thedevelopment of fair trading policy.
Like FTAC, the four other councils:Property Services Advisory Council(PSAC); Retirement Villages AdvisoryCouncil (RVAC); Home BuildingAdvisory Council (HBAC) and theMotor Trade Advisory Council(MTAC), each include a membership
that draws on a broad field of consumerand industry expertise.
National Competition
Policy reviewsAs part of the National CompetitionPolicy (NCP) Agreement the NSWGovernment is committed to reviewingall legislation which impacts oncompetition. In total, 191 were listed forreview in NSW of which 30 are withinour responsibility.
Reviews of legislation completed andreleased during the year included:
• Business Names Act 1962
• Credit (Finance Brokers) Act 1984
• Electricity Safety Act 1945
• Employment Agents Act 1996
• Funeral Funds Act 1979
• Pawnbrokers and Second-hand Dealers Act1996
• Property, Stock and Business Agents Act1941
• Strata Schemes Management Act 1996
The aim of the review process is toensure that Government regulatoryobjectives, such as the protection ofconsumers, are met as efficiently andcost effectively as possible. The processof each review varies according to theimpact of the legislation. However, thereviews always involve consumers andinterest groups that are affected by thelegislation. Steering committees formedto oversee the reviews have includedinterdepartmental, industry andconsumers representation.
We also release issues papers to assistconsumers and interest groups inexamining current regulations andconsidering options for change. Anumber of reviews, such as the review of
the Strata Schemes Management Act 1996 andthe review of the Fair Trading Act 1987have also involved consultative forumsthroughout NSW. Where Governmenthas approved final reports they have alsobeen released for public comment.
The National Competition PrinciplesAgreement requires reviews to becompleted by July 2002. The release ofseveral reports is pending.
Legislative change
Bills assentedThe bills assented to during the yearincluded:
• Consumer, Trader and Tenancy Tribunal Bill2001
• Co-operatives Legislation Amendment Bill2001
• Home Building Legislation Amendment Bill2001
• Residential Tenancies Amendment Bill 2001
• Motor Trade Legislation Amendment Bill2001
• Home Building Amendment (Insurance) Bill2002
• Property, Stock and Business Agents Bill2002
Statute law revisionThe Statute Law (Miscellaneous Provisions)Bill 2001 amended the:
• Community Land Management Act 1989
• Co-operatives Act 1992
• Employment Agents Act 1996
• Home Building Act 1989
• Home Building Legislation Amendment Act2001
• Travel Agents Act 1986
• Valuers Registration Act 1975• Letona Co-operative (Financial Assistance)
Act 1993 (Repealed)
The Statute Law (Miscellaneous Provisions)Bill 2002 amended the:• Fair Trading Act 1987• HomeFund Restructuring Act 1993• Landlord and Tenant (Amendment) Act
1948• Motor Dealers Act 1974• Motor Vehicle Repairs Act 1980• Strata Schemes Management Act 1996
Subordinate legislation reviewA number of regulations were madeunder our regular SubordinateLegislation Review Program as well asfor policy and administrative reasons.
Remade as at September 2001:• Conveyancers Licensing Regulation 2001• Employment Agents Regulation 2001• Funeral Funds Regulation 2001
Advisory Councils’ highlights
FTAC
Inquiry into the use of television infomercials and direct response advertising in promoting
the sale of products to consumers. The Government is currently considering the Council’s
report.
PSAC
Advice to the Minister on tenant databases and the extensive review of the Property,
Stock & Business Agents Act 1941.
HBAC
Advice to the Minister on Home Building Act reforms and a comprehensive report to the
Minister regarding the implementation of a system for on-going training and professional
development for builders.
RVAC
Public forum to canvass issues affecting retirement villages across the State. Advice to the
Minister on retirement village services and the safety and security of residents within villages.
MTAC
Consideration of amendments to the Motor Trades legislation and report on measures
to improve data sharing between the Roads and Traffic Authority and REVS.
Page 12 NSW Department of Fair Trading Annual Report 2001-2002
• Travel Agents Regulation 2001• Valuers Registration Regulation 2001.
In preparation to be remade forSeptember 2002:• Consumer Credit Administration Regulation
1996• Consumer Credit (New South Wales)
Special Provisions Regulation 1996• Fair Trading (Product Information
Standards) Regulation 1997• Home Building Regulation 1997• Trade Measurement (Measuring Instruments)
Regulation 1997• Trade Measurement (Miscellaneous)
Regulation 1997• Trade Measurement (Pre-packed Articles)
Regulation 1997• Trade Measurement (Weighbridges)
Regulation 1997• Trade Measurement Administration
Regulation 1997• Warehousemen’s Liens Regulation 1997• Gas Supply (Gas Meters) Regulation 1997.
Significant reformsIncluded in the legislation assented toduring the year were a number ofimportant reforms in the areas of homebuilding, residential parks, co-operativesand the motor trade.
The Residential Parks Regulation 1999 wasamended after a lengthy period ofconsultation with key interest groups.The changes took effect in May 2002.The Regulation, which applies topermanent residents of residential parks,includes a number of improvements tothe standard tenancy agreements and theaddition of an agreement for tenancies inparks situated within National Parks.Other changes include extra matterswhich can be dealt with in park rules, anew role for Park Liaison Committeesin supervising the use of the noticeboard, the prescribing of offencessubject to penalty notices and refinementof the process associated with thedisposal of abandoned goods.
The Home Building Legislation AmendmentAct 2001 was passed by the NSWParliament in July 2001. It provided for arange of reforms relating to the licensingscheme including:
• making disciplinary action theresponsibility of the Director-General
• making available to consumers moreinformation on the public registerabout licence holders including anyfailure to comply with Tribunal orders
• giving the Director-General power tocancel licences for bankruptcy orliquidation and other grounds
• reducing the restoration period forexpired licences from 12 months to 3months
• reducing licence work categories from389 to 49
• introducing tougher criteria for therenewal of licences and certificatesincluding that the applicant does nothave an unreasonable number ofcomplaints or non-complied withTribunal orders
• requiring applicants for owner-builder permits to complete anapproved education course.
• continuing mandatory education forlicensees (still to commence)
• licensing of building consultants (stillto commence).
The Residential Parks (Long-term CasualOccupation) Bill 2002 was released forconsultation purposes in April 2002 toaddress concerns related to non-permanent but long term casualoccupiers of residential parks. Casualoccupants (those who leave theirmoveable dwellings on rented sites forregular recreational use) are not in atraditional landlord/tenant relationshipand are not covered by the ResidentialParks Act 1998. The Bill provides for astandard occupation agreement,minimum notice periods for feeincreases and termination of agreementsand a dispute resolution process in theConsumer, Trader and Tenancy Tribunal.
The Co-operatives Legislation Amendment Act2001 commenced on 1 December 2001.The majority of the amendments madeto the Co-operatives Act 1992 were made toretain consistency with Co-operativeslegislation in other jurisdictions. Afurther amendment, the repeal of section43 of the Act, was made as a consequenceof the government’s NationalCompetition Policy Review. Finally, asmall number of amendments weremade to resolve drafting errors or otherdifficulties highlighted through theadministration of the Act.
NSW is chair of a Ministerial Councilon Consumer Affairs (MCCA) WorkingParty for Nationally Consistent Co-operative Legislation. In June 2001MCCA gave in-principle agreement to:
• incorporate Co-operative Capital Unit(CCU) fund raising provisions into
the core consistent provisions (basedon the NSW model) and
• the development of proposals toreplace the foreign registrationscheme with a form of mutualrecognition and replace the coreconsistent provisions with templatelegislation.
Once MCCA has endorsed the newproposals the Working Party intends tofocus on these immediate legislativechanges during 2002 whilst continuing todevelop the template proposal.
The Motor Trade Legislation Amendment Act2001, which is the first comprehensivereform of the legislation regulatingmotor dealers and repairers in 20 years,was passed by Parliament in November2001.
The Amendment Act includes a numberof major crime prevention, consumerprotection and administrative initiatives.
• Allowing authorised officers to placeholding orders to prohibit dealers andrepairers from altering, disposing orparting with possession of motorvehicles or their parts or accessoriesor other things for 14 days.
• Increasing the maximum penalty forunlicensed dealing and repairing to$110,000.
• Barring persons, who as adults havebeen convicted of theft of a motorvehicle or motor vehicle parts, frombeing eligible for a dealer or repairerlicence for 10 years from their date ofconviction.
• Establishing the presumption that aperson who sells more than 4 vehiclesin a 12-month period is an unlicenseddealer.
• Licensees suspected of receiving ordealing in stolen goods may be askedto show cause why their licenceshould not be revoked.
• Introduction of a one day cooling offperiod for cars bought on linkedcredit (e.g. where a consumer obtainscredit from the dealer).
• Restructuring the Motor VehicleRepair Industry Council (MVRIC) byseparating its day-to-dayadministration from its advisoryfunctions to enhance accountability.
• Allowing licensed dealers andrepairers to operate from more thanone place of business and to keep aregister at only one place of business.
NSW Department of Fair Trading Annual Report 2001-2002 Page 13
Maximum compliance with regulatory requirements
This is the second core objective contributing directly to our strategic intent. The
legislative framework creates rights and obligations for business, traders and
consumers. Maximising compliance with these requirements ensures fairness in the
marketplace. It’s an important part of our role, achieved by providing information
and education for consumers and traders, compliance monitoring and
enforcement, complaint handling and dispute resolution, and providing licensing,
registration and certification information.
Performance information
Key outcome/outcome measure
1.Outcome: Provision of accurate information to consumersand traders
Measure: Level of accuracy of information provided
2.Outcome: Effective compliance enforcementand monitoring
Measure: Percentage of prosecutions which are successful
Interpretation/comment
1. The Department conducted its third structured survey to independently test the accuracy of information provided toconsumers and traders. ACNielsen was engaged to conduct a ‘shadow shopping’ exercise. A sample of 387 calls were made tocustomer contact areas across the Department and the response to a range of questions was rated for accuracy, based onsample answers provided in advance. The contractors found that accurate information was provided in 99% of calls. This isan actual improvement in accuracy levels, though given the limitations imposed by the sample size, it is not possible toprecisely quantify the improvement. After obtaining the 1999-2000 results, the Department initiated targeted training toimprove accuracy levels, and while the 2000-2001 results showed an improvement, it was clear that further work wasrequired. The Customer Services Division introduced a regular skills audit (see page 29 for details) which has formed thebasis of a significant learning and development program. The current results are pleasing, but given the range and complexityof the legislation the Department deals with, and the frequent changes which occur, continual effort will be required tomaintain them. The Department will continue its training/audit program and will closely monitor the outcomes of thissurvey.
2. Successful prosecution means prosecutions resulting in conviction as well as prosecutions where the offence is provenbut a conviction is not recorded.
87% 93% 99%
96% 97% 96.5%
Monitoring and
enforcement
Electronic commerceFair Trading again participated in a majorInternet ‘sweep’ in January 2002. Thesweep was organised by the InternationalMarketing Supervision Network andcoordinated in Australia by theAustralian Competition and Consumer
99-00 00-01 01-02
Commission. We focused on misleadingor deceptive claims about healthproducts and services, such as “miraclecures”, “guaranteed results” and the useof alleged before and after photographs.We identified 30 questionable sites andthe ACCC has referred one matter to usfor further investigation.
The Department is also developing itsown programs to monitor e-commerce
issues in NSW, particularly the Internetactivities of industries regulated underfair trading legislation. Fair Tradingagencies throughout Australia and NewZealand have formed a working party toassess training requirements forcompliance officers, to ensure theymaintain the skills needed to investigatefraudulent e-commerce transactions andcomputer-based crime.
corporate
Objective 2
Page 14 NSW Department of Fair Trading Annual Report 2001-2002
• tornado-like winds devastated parts ofPort Stephens on 18 November 2001
• bushfires began to menacecommunities across NSW – beginningon Christmas Day 2001
• severe hailstorms hit Kingscliff on thefar north coast on 16 January 2002
• a devastating storm struck the Sydneymetropolitan area on 16 February 2002.
We maintained a regular presence atDisaster Recovery Centres across NSW– distributing information kits andproviding advice on credit, tenancymatters and building repairs – especiallyabout licensing for tradespeople carryingout repair work. We advised victims howto contact other organisations offeringhelp with mortgage assistance, financialcounselling and insurance. We also kepta watchful eye on the conduct of peopleoffering repair services.
Improving Fair Trading
prosecutionsIn February 2002, officers from FairTrading and the Attorney General’sAdministration submitted a report to theMinister and the Attorney Generalconcerning Fair Trading prosecutions inlocal courts.
The report recommended a number ofpractical measures intended to:
• raise judicial awareness in local courtsof the importance of Fair Tradingprosecutions in promoting a fair andinformed marketplace
• streamline and strengthen Fair Tradingprosecution action
• develop consistent sentencing by localcourts
• improve collection of fines andancillary money orders.
The Ministers have agreed torecommendations and action isproceeding.
Regional complianceOur regular compliance activities inregional NSW include:
• inspection programs targeting unsafeor unapproved consumer andelectrical products, or those which donot comply with required standards
• ensuring that persons licensed by theDepartment – builders andtradespeople, real estate agents, motordealers, travel agents, pawnbrokers andsecond-hand dealers – comply withappropriate legislation
• monitoring weighing scales, pre-packaged goods and petrol pumps foraccuracy.
In 2001-2002 our particular regionalfocus was on:
• inspecting owner builder sites forunlicensed building work and failureto provide contracts and insurance
• inspecting food retailers to ensurecompliance with the requirement forthe sale of meat by mass
• a packaging survey for Easterspecialities
• a Christmas products survey toidentify possible dangerous items witha focus on children’s toys andelectrical goods that do not meetAustralian Standards
• liaising with the CommonwealthGovernment to develop strategies tomonitor compliance with newAustralian fuel standards and
• monitoring major entertainmentevents as a preventative action.
These activities provide an opportunityto educate and assist traders, detect andremedy problems in the marketplace andto build business and consumerconfidence.
Co-operatives complianceThe Registry of Co-operatives andAssociations conducts ongoingcompliance and general inspections ofco-operatives, co-operative housingsocieties and Starr-Bowkett societies. In2001-2002 inspections were completedon 13 co-operatives; six co-operativehousing society groups and five Starr-Bowkett Society groups. Theinspections involve a detailed review ofoperations to determine whetherlegislative requirements are being met.In March 2002, the Registry successfullyprosecuted a director of a co-operativewho was found guilty and fined forfailure to provide required bank accountdocumentation.
Significant compliance action –Fair TradingThis year there were some notablesuccesses involving major traders. Acentral theme in a number of the caseswas the general requirement for tradersto disclose all relevant information toconsumers, and not to mislead ordeceive the public by what they say orwhat they fail to say. Our complianceaction included civil action in theSupreme Court, prosecutions,disciplinary proceedings, and obtainingenforceable undertakings under the FairTrading Act.
‘Book up’‘Book-up’ is a form of credit widelyused in remote and rural Aboriginalcommunities where consumers obtaingoods and services that are advancedagainst periodic payments to the trader.There are examples of good Book-uppractices, but frequently the system maydisadvantage consumers. It is open toabuse with some traders engaging inpredatory conduct includingovercharging, inaccurate accounts,spiralling indebtedness andinappropriate use of security.
We are aiming to help Aboriginal peopleand traders improve the Book-up systemby providing information on rights,responsibilities and options for bestpractice. A fact sheet promoting bestpractice for both traders and consumerswas recently published. It is beingwidely promoted to indigenouscommunities. Additionally, we areworking with the AustralianCompetition and ConsumerCommission to promote Storecharter –a voluntary service charter thatencourages ethical behaviour amongsttraders who serve indigenous communities.
Infomercial inquiryIn June 2001 the Fair Trading AdvisoryCouncil (FTAC) was asked to examinetelevision infomercials and directresponse advertising techniques. Mr.Kim Wilson, a lawyer and broadcastingpolicy expert, was selected to undertakethe inquiry on behalf of FTAC. Theinquiry was in response to increasingconcerns about deceptive practices ofteninvolved in the infomercial format andexaggerated promotional claims targetingvulnerable consumers.
The Inquiry report was finalised in lateFebruary 2002 and canvassed a range ofoptions to address the problems. TheReport was submitted to the Ministerand subsequently referred to thePremier for consideration.
Helping victims of natural
disastersWe use a disaster recovery strategy tohelp communities affected by naturaldisasters such as floods, bushfires andsevere storms. There are two aims. First:help victims get back on their feet byproviding fast access to information andsecond: stop those who mightdisadvantage the victims throughundesirable or illegal business practices.The strategy was put into effect on fouroccasions when:
NSW Department of Fair Trading Annual Report 2001-2002 Page 15
Timothy O’Keefe is well known to theDepartment for his history of fraudulentfinance broker activity. In July 2001 theDepartment obtained Supreme Courtorders prohibiting O’Keefe fromcarrying on business as a finance brokerand requiring him to pay refunds toaffected consumers.
O’Keefe defied the Supreme Court’sorders and following contemptproceedings in November 2001 he wasarrested. Result. O’Keefe remained incustody until 3 May 2002, when he wassentenced to 9 months gaol, with a non-parole period that expired that day. Hewas released subject to strict conditions– to be of good behaviour, to be onsupervised parole, and to undertakegambling and alcohol addictionprograms. The Supreme Court’s originalorders prohibiting his business activitiesremain in place.
Nokia. Reports of the failure of LiquidCrystal Displays (LCDs) on Nokiamobile phones, particularly the model8210, led to discussions with thecompany in December 2001. Result. InApril 2002 Nokia signed enforceableundertakings under section 73A of theFair Trading Act which are designed toaddress past and future consumercomplaints. The undertakings ensurethat consumers with Nokia 8210 phoneswill be able to have the LCD repaired atno cost, regardless of the age of thephone. Current and future warranties forthe phone are also extended by 12months, and the company has agreed toremove misleading representationsabout warranties from its advertising andpromotional material.
Sydney Home Tutors. In October 2001the Minister issued a public warningunder the Fair Trading Act about theactivities of Sydney Home Tutors andCoaching Australia, a home tutoringservice with a long record of consumercomplaints about lack of service,unqualified tutors and demands forpayment for services not provided.Result. In January 2002, the Departmentobtained Supreme Court orderspreventing the two companies fromoperating their businesses in NSW.
Jeffrey Dummett. This was theDepartment’s first prosecution of analternative health practitioner for falserepresentations relating to diagnosingand curing illness and disease. JeffreyDummett promoted himself as a‘naturopath’ in Lismore newspaper
advertisements. He claimed that hecould diagnose illnesses by a processcalled “Live Blood Analysis”, whichinvolved obtaining a pinprick of aperson’s blood and immediatelyexamining it under a microscope. TheDepartment had expert medicalevidence that his claims could notpossibly be true. Result. In May 2002,Downing Centre Local Court foundDummett guilty on all counts, andimposed fines and costs of $33,950 for 22offences under the Fair Trading Actrelating to false advertising, and threeoffences under the Business Names Act.
Debt Processing Agency. TheDepartment worked swiftly with theAustralian Securities and InvestmentsCommission to shut down DebtProcessing Agency (DPA), an Internetpyramid scheme based in Coffs Harbour.DPA sent unsolicited spam e-mailmessages and placed newspaperadvertisements, which claimed thatapplicants who paid DPA $2,200 couldhave $200,000 worth of debts paid off forthem. The advertisements did notdisclose that applicants would have torecruit many others into the scam inorder to get their money. It was a classicpyramid scheme. Result. In September2001, Supreme Court orders to ceasetrading were made against KlassicalInternational Pty Ltd, the companybehind DPA, and its two directorsJoseph and Afaf Helmy.
Harmonie Limited (formerly HealthTips Pty Ltd). This Hong Kongregistered company carried on businessin NSW under the unregistered namesof ‘Astroforce’ and ‘Maria Duval’. Majornewspaper advertisements promotedDuval as “the greatest clairvoyant in theworld”, and claimed that by obtaining atalisman from the company, a person’slife would be “carefree and happy” andthey would have “more money and luckthan ever”. Consumers responding to theadvertisement were asked to pay $59.95for “3 telepathic actions” and an“Initiate’s manual of the 7 secrets”.Result. In March 2002, the companysigned enforceable undertakings. Itagreed that it: would not trade oradvertise its products in NSW in anyway; would refund money paid by NSWconsumers if they responded to anadvertisement in another state and,would, upon request, immediatelyrefund money to any consumer who wasmisled or deceived by theadvertisements.
Century Distributors Pty Ltd. Thecompany sold audio speakers (Dynalabbrand) to customers directly from trucksor vans. We received numerouscomplaints about the company’s salestactics, including that the sellers mademisleading and deceptive commentsabout the previous history and the natureof the goods. Sometimes fake invoiceswould be produced as ‘evidence’ of theirstory. Result. In March 2002, Centuryentered formal undertakings with theDepartment. It agreed to refrain frommaking misrepresentations about thegoods; provide customers with thecompany’s full contact details onreceipts; provide unconditional refundsin certain circumstances and ensure thatits staff and contractors were fullytrained on the provisions of the FairTrading Act.
Infinity Forms of Yellow RememberPty Ltd. The Department investigatedthis company for misleading anddeceptive health claims used to promotethe sale of its bottled water. Thecompany claimed that the water couldheal a variety of diseases and illnesses,including weak hearts, PMT, migraine,anxiety, muscle fatigue, alcoholdependence, pharmaceutical drugdependence and cancer. Result. In July2001 the Minister warned the publicabout dealing with Infinity, and theDepartment has commenced legalproceedings against the company.
Motor Dealers
In 2001-2002, our compliance programtargeted unlicensed trading, odometerinterference, consignment saletransactions, supplying roadworthycertificates for vehicles not covered bystatutory warranty, keeping of prescribedrecords and sales from unlicensedpremises. Enforcement action included:prosecution of 132 defendants for 587offences, issue of penalty notices forvarious offences, and disciplinary action.
LLRAC Pty Ltd t/as CampsieIntersection. This case involvedmassive odometer interference by thecompany and its director: Elias Boutros.Odometers on 21 cars were wound backby 1.46 million kms. Result. In October2001 the Director-General suspendedthe dealer’s licence pending instigationof legal proceedings. The companysubsequently ceased trading and theDepartment is continuing legal actionagainst it.
Page 16 NSW Department of Fair Trading Annual Report 2001-2002
Graeme Gavin t/as BankstownIntersection. This dealer wasprosecuted in relation to majorodometer interference. Result. On 20May 2002 the dealer pleaded guilty inBlacktown Local Court to 23 charges ofodometer interference. On 19 July 2002,he was convicted and fined a total of$67,357 including costs.
Christopher Thomas Sharp. Thisserial car cheat was involved in 40offences of unlicensed motor dealing,making false representations, usingunregistered business names and usingthe licence number of another dealerwithout that dealer’s knowledge. Result.
Fined $40,040 including costs on 25March 2002.
John Stephen Rhodin. The caseinvolved false claims to be a member ofthe Motor Traders Association andunlicensed dealing. Result. Fined $12,247in November 2001. In June 2001 theSupreme Court banned Rhodin for lifefrom trading in motor vehicles.
Nourman Group Pty Ltd. Thecompany was charged with failing toaffix prescribed notices to vehiclesdisplayed for sale. This failure meant thatconsumers were not informed abouttheir statutory warranty rights. Result.
Fined $16,000 in May 2002. TheDepartment prosecuted under section44(k) of the Fair Trading Act, arguing thatthis failure amounted to amisrepresentation about the existence ofa person’s legal rights. It was the firstapplication of this provision to a dealer’sobligations relating to prescribednotices.
Kevin Horsfall. This unlicensed motordealer wound back the odometers of twocars by a total of 672,834 kms. Result. InAugust 2001 he was fined a total of $9,000for unlicensed dealing and two counts ofodometer interference. He was alsoordered to pay $4,300 compensation tothe purchasers, forfeit $1,800 in saleproceeds, and pay the Department’scosts.
John de Freitas (aka. John Dee andJohn Demain). This unlicensed dealerbought 60 cars in 12 months fromauctions, using the names of two otherlicensed dealers without theirknowledge. Result. Fined $31,536 inSeptember 2001, including costs plusforfeiture of proceeds.
Significant compliance action –Real estateInvestigations and prosecutionsgenerally flow from a regular inspectionprogram that concentrates on agents’trust accounts. The Property, Stock andBusiness Agents Act requires licensees whoreceive money on trust from theirclients to either lodge an annual auditreport, or complete a statutorydeclaration that they did not hold anytrust money. We carried out 412inspections during the year as the resultof agents’ late or non-lodgement of trustaccount returns, and another 245 wereinspected where a qualified audit reporthad identified areas of concern. Weissued 243 penalty notices with finestotalling $129,910 for failure to lodge therequired returns. Other inspectionswere carried out as the result ofcomplaints to the Department andthrough targeting particular licensees,such as persons newly licensed.
Laza Bros Pty Ltd trading asRichardson & Wrench Randwick.The firm ceased trading in June 2001.The principal, Mr Harry Lazarou left forCyprus and has not returned. Ourinvestigators obtained incompleteagency records and inquiries revealedtrust account discrepancies. Result. Todate, the Property ServicesCompensation Fund has received claimsamounting to more than $800,000 and haspaid out claims totalling $414,013.22.Our investigation is continuing.
L J Hooker Camden. We discovered acomplex situation in this business. It hadbeen operated first by Camden PropertyManagement Pty Ltd and later byModena Investments Pty Ltd. CamdenProperty Management had beenoperating without a licensee in charge,and there were other concerns about theconduct of both companies. Result. InJanuary 2002 the Director-Generalsuspended the corporation licence ofModena Investments, and the individuallicences of John Leach, director ofModena and its licensee in charge, andAlexander Cameron, a certificate holderand former secretary of the company.Disciplinary proceedings have beencommenced against Leach, and inquiriesare continuing. The Property ServicesCompensation Fund has received 38claims amounting to $219,819 against theagency.
Mark Stephen Midson. The licenseetraded as a stock and station agent inGulargambone as Mark Midson and Co.
Investigations revealed more than$550,000 missing from his trust account,including proceeds of stock sales andproperty sales. Midson had alsoencouraged people to invest money withhim, and those investment funds werenot repaid. Result. The Department tookdisciplinary action against Midson and inJanuary 2002 the Licensing Courtimposed a life ban, finding he was not afit and proper person to hold a licence.
Adrian Francis Williamson t/asNightcap Realty. Williamsoncontinued to trade as a real estate agent inNimbin after his license expired on May21, 2000. Our investigation revealed adeficiency in his trust account of $10,222.Mr Williamson admitted he had usedtrust account funds to cover businessexpenses and his home loan repayments,but had since repaid all the missingfunds. Result. In January 2002,Williamson was banned from theindustry for life by the Licensing Courtand ordered to pay costs of $3,444 to theDepartment.
Andrew John MacDonald t/as Raineand Horne, Yass. MacDonaldcontinued to trade during a six-monthdisqualification imposed by theLicensing Court in May 2001 followingthe discovery that $13,124 was missingfrom his trust account. Furtherinvestigations during the disqualificationfound another $1173 missing. Result.
Although MacDonald had since repaidall the missing funds, he was bannedfrom the industry for life by theLicensing Court on 4 February 2002 andordered to pay $5108 in fines and costs.
Pitscore Pty Ltd formerly trading asMontano Realty Marrickville, andJustin Mathew Neave. Investigationsfound that the trust account had not beenreconciled for more than 18 months andthat $500,000 had been misappropriated.Result. In February 2002, the LicensingCourt permanently disqualified PitscorePty Ltd from holding a licence anddisqualified Justin Mathew Neave (thelicensee in charge) from holding alicence for 5 years.
Town & Country PropertyManagement Pty Ltd formerlytrading as Town & CountryParramatta. Investigations found thatthe corporation had failed to employ alicensee to be in charge of its place ofbusiness; failed to register salespersonswith the Department; failed to preparetrust ledgers and cash book and had not
NSW Department of Fair Trading Annual Report 2001-2002 Page 17
lodged an audit certificate. Result. InMay 2002, the Licensing Court fined thecorporation $28,205 and permanentlydisqualified it from holding a licence.
Retirement villages and residential
parks
Two significant cases affected residentsof retirement villages and residentialparks during the year.
Woolcott Court Retirement Village.In September 2001 we investigatedallegations that employees were notbeing paid and that contracted servicessuch as residents’ meals were not beingprovided. Result. The company wasfound to be insolvent and the Director-General obtained Supreme Court ordersappointing an administrator. We areworking closely with the administratorsand Hornsby Hospital’s Aged CareAssessment Team regarding the welfareof the remaining residents in the event ofa closure of the village.
Banora Point Caravan Park,operated by Blackington Pty Ltd. Anumber of tenants took action againstBlackington in the former ResidentialTribunal in relation to rent increases andassignment of leases. The Tribunal fixedrents payable by some tenants, orderedBlackington not to increase them for afixed period, and also ordered it toconsent to the assignment of severaltenancy agreements. When Blackingtonfailed to comply with the Tribunal’s
orders, the Department tookprosecution action against it. Result. AtMurwillumbah Local Court on 3 April2002, Blackington Pty Limited was finedover $29,000 including costs.
Significant compliance action –Home buildingThroughout 2001-2002, we continued acomprehensive compliance programtargeting licensed contractors whoseconduct caused significant problems toconsumers, and those who failed tocomply with orders of the former FairTrading Tribunal. Amendments to theHome Building Act that commenced inAugust 2001 allow the Director-Generalto take disciplinary action againstbuilding licensees. The following actionhas occurred since August 2001.
Westfield Concrete Company PtyLtd (in liquidation) and RomuloTomassetti. In August 2000, theDepartment suspended the contractorlicence held by the company, and thequalified supervisor’s certificate held byone of its directors, Romulo Tomassetti.The company had entered into at leastnine contracts in the Fairfield area, andall projects were either incomplete ordefective. Result. In September 2001 theFair Trading Tribunal permanentlydisqualified Westfield Concrete and MrTomassetti from ever holding a licenceunder the Home Building Act, and awardedcosts to the Department.
Pinnacle Homes Pty Ltd. Thisproject-home builder generatedcomplaints about shoddy work, failureto rectify faults and the abandonment ofsites – leaving the owners to pay rent aswell as mortgages on incomplete houses.Some consumers commenced privatelegal action and one obtained a FairTrading Tribunal order for $87,000against the company. Pinnacle (NSW)refused to satisfy the order. Pinnacle(NSW) went into voluntaryadministration and assigned some twentycontracts to a related company, PinnacleHomes (Sydney) Pty Ltd. Pinnacle(NSW) did not assign the contracts ofthree consumers who had taken actionagainst it leaving them with nolikelihood of having orders in theirfavour being satisfied. Result.
Disciplinary action was taken against MrBarry Pierce, a director of Pinnacle(NSW) and its nominated qualifiedsupervisor. He was disqualified fromholding an authority for two years and apenalty of $6,000 was imposed.
Rocco Vitalone. Following MrVitalone’s licence suspension in August2000 for defective building work andalleged misrepresentations toconsumers, the Department commenceddisciplinary proceedings. Result. InApril 2002 the Consumer Trader andTenancy Tribunal cancelled his licenceand disqualified him for 18 months. InJune, the Tribunal also ordered Vitalone
Home building disciplinary action
Licensee Licence No. Disciplinary action
A R Byrne Constructions Pty Ltd. of Menai 32988 Still in progress
Ahal. J. of Thornleigh R84165 Still in progress
Champion Homes Sales Pty Ltd. of Hoxton Park 92732C $8,000 penalty and restrictive licence conditions
imposed. Application for internal review under
consideration.
Cochrane. A. of Glenbrook 106035C Disqualification for 2 years from June 2002
Costa. J. of Kingsford 26410C $4,000 penalty
Dixon. D. of Liverpool 89986C Licence suspended
Drif. M. of Dover Heights B5396C Still in progress
Dunn. R. of Beecroft Q13262 Still in progress
Foreverglaze Roofing Pty Ltd of North Strathfield 79630C Still in progress
Gonzales. E. of North of Strathfield 124481C Still in progress
Henley Properties (NSW) Pty Ltd, of Baulkham Hills 52519C $10,000 penalty and restrictive licence conditions
Lawand. C. of Greenacre 223065 Permanent disqualification (currently the subject of
review by the Administrative Decisions Tribunal)
Mather. W. of Penrith 107957C $2,500 penalty (Application for internal review under
consideration)
Matlock Home Security Pty Ltd of Newcastle 100393C Still in progress
Pierce. B. of Chipping Norton 32907 $6,000 penalty and disqualification for 2 years from
15 April 2002
Stephens. L. of Guildford 15700 Still in progress
Syman. A. of Normanhurst 93113C Still in progress
Tropea. F. of Castle Hill Q14431 Permanently disqualified, $8,000 penalty imposed
Page 18 NSW Department of Fair Trading Annual Report 2001-2002
to pay one-third of the DirectorGeneral’s assessed costs relating to theproceedings.
Supreme Court action
Henley Properties (NSW) Pty Ltd.The Department investigated this majorsupplier of house and land packagesfollowing numerous complaints aboutdefective or incomplete work. In early2001 Henley acknowledged that in thepre-GST building boom, it had taken onunrealistically heavy workloads, whichcontributed to the lowering of itsstandards. Result. In June 2001, followingSupreme Court proceedings, thecompany entered into terms ofsettlement designed to identify andaddress all outstanding consumercomplaints. Subsequent relatedproceedings were finalised in June 2002when the company consented to ordersimposing stringent reporting conditionsconcerning the number of houses underconstruction and the certification ofbuilding work. The Department alsotook disciplinary proceedings against thecompany and one director. In February2002 the company was penalised $10,000and strict conditions on its buildinglicence were imposed.
Stylerite Kitchens – John Smith andDamian Smith. This unlicensed anduninsured father and son team promotedthemselves as suppliers and installers ofnew kitchens. Consumers complainedof shoddy work, or of paying excessivedeposits and then no work being done atall. The Smiths advertised innewspapers, used various trading namesand aliases, and continually changed theiraddress. Our investigators caught upwith them after posing as consumers toobtain a quote. Result. In June 2002 theSupreme Court imposed interim ordersprohibiting the Smiths from undertakingbuilding work. On 4 July 2002 John andDamian Smith both consented to finalorders being made against them, whichprohibit either of them fromundertaking building work for a periodof ten years.
Other major cases
Van Nghia Nguyen. Activities includedunlicensed building work,misrepresenting that he was licensed,charging an excessive deposit, and notproviding the consumer with aninsurance certificate. Result. Fined$8,532 in August 2001.
Grandview Pty Ltd. This builderfalsely claimed to be a member of anindustry association and chargedexcessive deposits. Result. Fines andcosts totalling $12,498.
Mr John Watts. This licensed real estateagent and kit home supplier falselyadvertised that his company, JB Land,was licensed to sell kit homes, and thatthese were immediately available at areduced cost because of a liquidationsale. Result. Convicted on both counts,fines and costs totalling $8,406 imposed.
Significant compliance action –Product safety
Miller’s Retail Ltd When Miller’sRetail Ltd bought Youngdown Pty Ltd, t/as Go Lo Discount Stores, and SungatePty Ltd, t/as Crazy Clark’s in June 2001,it also bought their poor fair tradinghistory. Since 1994 Go Lo and CrazyClark’s had been convicted of variousoffences relating to unsafe or incorrectlylabelled products. Inspections inOctober 2001 detected over 200 productsthat again failed safety and labellingstandards. Despite negotiatedarrangements to recall the products anddisplay posters alerting consumers,inspections in December 2001 foundunsafe products still on sale. Result. TheDepartment took immediate SupremeCourt action against both companies.The companies consented to ordersbeing made against them on 24December 2001, which prohibited thesupply of 18 products and required thecompanies to have safety test reportsbefore selling other types of items,including children’s nightwear and toysdesigned for children under three yearsof age.
Despite this, our officers found furtherbreaches in January 2002. On 21 February2002, the Department achieved a notableresult when the companies consented tofurther, more stringent orders in theSupreme Court that, for four years,prohibit the sale of a range of productswithout safety test reports. Similarly, notoy can be sold until they introduce acertified compliance program. Toys thatdo not comply with Fair Trading Actrequirements must be destroyed. Thecompanies further agreed to pay $80,000for the Department’s legal andinvestigation expenses.
We took related action against anotherMiller’s subsidiary, Look SharpConcepts Pty Ltd, a major importer and
supplier of the unsafe/non-compliantproducts to Go Lo and Crazy Clark’s. InFebruary 2002, the company consentedto orders against it in the Supreme Courtthat required the company to begin atesting and compliance regime. Cheapdoes not mean unsafe and we intend toclamp down further on the supply ofunsafe products by taking action rightacross the supply chain of goods to the‘$2 shop’ industry.
The Reject Shop. In September 2001,various projectile toys were purchasedfrom the company’s store at Parramatta.Tests showed that four failed to complywith the relevant Australian Standardsand posed a hazard to children’s eyes. Inresponse to the test reports, The RejectShop conducted a public recall of thosefour toys.
On 8 April 2002 the Director Generalaccepted undertakings under section 73Aof the Fair Trading Act under which thecompany agreed that for the next 3 years,it would obtain a test report oncompliance with the Standards beforeselling any projectile toys.
Dangerous products and bans
Mandatory design changes to householdblinds were announced in September2001, to commence in January 2003.
The new design rules will preventlooped blind cords being used in all newhousehold blinds after that date. Theaction followed the death of twochildren within 12 months fromstrangulation by blind cords next to theirbeds.
Lead model soldiers were offeredthrough newsagents as collectors’ items.Testing revealed they were up to 99.8%lead, which is hazardous to children.Although the supplier initially arguedthey were models for collectors ratherthan toys, it eventually issued a nationalrecall and agreed to offer a lead-freepewter replacement, or provideconsumers with refunds.
It is an offence for a trader to sell certainelectrical products that have not beenformally approved as safe and carry anapproval mark. Prior to Father’s Day inSeptember 2001, the Minister issued awarning about purchasing unapprovedpower tools, especially from markets,country shows and cheap retail outlets.During the year, the Departmentinspected 59 shops and stalls, and issued6 Directions to cease selling these tools.
NSW Department of Fair Trading Annual Report 2001-2002 Page 19
Four traders have been prosecuted andfined, and action against other suppliersis being considered.
The Sundance Collections and FoldingHeart Chair had designs and colours thatwould be attractive to children.Investigations indicated that theirmechanisms had a ‘scissor’ action thatposed a particular danger to children’sfingers. The suppliers agreed to anational recall, and in May 2002 theMinister issued a banning order relatingto these and similar types of chairs.
The Department intends to work withindustry to develop a safety standard forfolding chairs.
Prosecutions
Barunson Cre-art Pty Ltd. Sale ofbanned novelty knives from stores inWarrawong and Hurstville incontravention of a ban prohibiting thesale of knives marketed to children.Result. Fined $2,000 in September 2001.
D.Z. Import and Export TradingCompany Pty Ltd. Distribution ofunsafe toys at Parklea Markets. Result.
Fined $2,500 in October 2001.
Electrical Accidents
During 2001-2002 four fatal electricalaccidents were reported in NSWcompared to seven the previous year.
The long term incidence of electricalfatalities in NSW from 1955 – 2001shows a declining trend and for the lastfour years the fatality rate has been lessthan two per million of population.
Significant compliance action –Trade measurement
Woolworths Limited. In July 2001, webecame concerned at the number ofunderweight food items detected by ourinspectors. The company had beenprosecuted on 19 occasions for 52offences and other prosecutions werepending at the time. We raised thisconduct with the company’s seniormanagement. Result. In January 2002,after numerous meetings, Woolworthsprovided the Director-General withenforceable undertakings under section73A of the Fair Trading Act. The companyagreed to implement a comprehensivecompliance and education processwithin all its operations to ensure itmeets its fair trading obligations.
Woolworths is also required tocommission an independent audit of itscompliance program for each of the nextthree years and provide the audit reportto the Director-General.
Adulteration of petrol and diesel
The Department had receivedallegations that toluene and othersubstances were being added topetroleum to avoid Commonwealthexcise payments.
Since February 2000, samples have beencollected from service stations. Sincethen, only a small number ofquestionable test results have beenobtained and these were forwarded tothe Commonwealth for investigationunder excise legislation.
The Commonwealth’s Fuel QualityStandards Act 2000 and Regulations tookeffect from 1 January 2002. This
established a framework for settingnational fuel standards and Fair Tradinghas introduced procedures to referinformation to the Commonwealthregarding possible fuel adulteration forinvestigation under that Act.
Sale of meat
The Uniform Trade MeasurementLegislation (UTML) introduced inNSW in 1989 requires meat (includingfish and poultry) to be sold by weight.
This allows consumers to compareprices and value across competingproducts. Selling these products by thepiece without reference to the price perkilogram may disguise the ‘true’ price ofthe product, which may be significantlyhigher than consumers would pay ifcharged by weight.
To ensure traders are complying with thelegislation, we have commenced astatewide inspection program ofbutchers, supermarkets, fishmongers andpoultry retailers. Traders found to bepricing meat by the piece will be issuedwith a formal caution. Continuing non-compliance will result in enforcementaction.
Licensing, registration
and certification
Late cancellation of interests
from REVSFollowing on from the work done onthis issue in 2000-2001, changes to theREVS legislation were passed forcommencement on 1 July 2002.
A new penalty notice scheme will resultin fines for credit providers who fail to
Product recalls 2001-2002
Product Reason
July 2001. Housewares International Pty Ltd’s Space between the backrest and armrest could trap a child’s head or arm.
Peg Perego high chairs. Company agreed to supply safer armrests to correct the problem at no
cost to consumers.
September 2001. Styrox Floaties EVA Bubble Buckle on the webbing straps holding the float onto a child could
brand child’s backpack swimming aids. easily become undone, leaving the child at serious risk
February 2002. DATS Pty Ltd (similar product)
October 2001. Aussie Baby brand rocker/walkers Did not meet the safety standard requirements for braking systems that
October 2001. Kickers’ Baby walker/rockers would prevent the walkers toppling down stairs.
January 2002. Sweda brand mesh candles Risks posed by the flammable mesh surrounding the candles.
January 2002. B&D Australia garage door opener Danger of electric shocks to consumers if they operated it.
Model No. 305 - fitted to certain roller doors made
between 1999 and 2000
February 2002. Toro Z Master Series commercial Risk of fire when in use. Company agreed to fit spark arresters to the
lawn mowers. mowers to avoid the danger of fuel vapours igniting near the high
temperature insulated mufflers.
Page 20 NSW Department of Fair Trading Annual Report 2001-2002
cancel their interest from the Registerwithin 14 days of it ceasing to exist. Aclearer definition has also been includedas to when the 14-day periodcommences. These changes will providea greater incentive for credit providers toact promptly to delete the registration ofdiscontinued interests.
Implementation of Home
Building Act reformsA range of reforms was introduced in theHome Building Legislation Amendment Act2001 and a number of these wereimplemented in 2001-2002.
Failure by a home building licensee tosatisfy an order of the CTTT is nowrecorded against the builder on thePublic Register. New administrativeprocesses have been implemented by theDepartment and the CTTT to notify usof these failures.
Licence cancellation due to bankruptcyor liquidation was implemented from 10August 2001 with new links beingestablished between the Department andthe Insolvency Trustee Service ofAustralia. Administrative procedureswere introduced to ensure affectedlicensees were appropriately advised.
Licence work categories were reducedfrom 389 to 49 after extensive
consultation through the ConstructionIndustry Training Advisory Board(CITAB), which comprisesrepresentatives of industry associations,unions and various training providers.
Licence Work Categories now link tonational uniform standards wheneverpossible via the Australian QualificationsFramework (AQF). Extensive computersystem changes were made and the newcategories commenced on 1 July 2002.
From 1 January 2002, new procedureswere introduced which meant that incases where more than a set number ofcomplaints; paid insurance claims;unsatisfied CTTT Orders or PenaltyNotices occur in the 12 months prior tothe renewal date, the Departmentrequires explanation of thecircumstances prior to granting renewal.The process also links into currentinvestigations being carried out.
For applications for owner builderpermits where the value of the workexceeds $12,000, mandatory completionof an approved training course prior toissue of the Owner Builder Permitcommenced on 1 July 2002. Preparationsinvolved consultation with trainingproviders to have courses developed anddelivered on a statewide basis includingmaking provision for distance learning.
Registry of Co-operatives
and AssociationsIn February 2002, the Minister for FairTrading announced the transfer of theadministration of the AssociationsIncorporation Act 1984 and the Funeral FundsAct 1979 from the Department’s BusinessRegistration Branch in Sydney to theRegistry of Co-operatives in Bathurst.
The transfer stems from a feasibilitystudy we conducted in late 2000. Itsupports our objective to provideimproved customer service and is inkeeping with New South WalesGovernment’s commitment to provideincreased job opportunities in regional areas.
The new Registry will be called the Registryof Co-operatives and Associations and themove creates seven new permanent jobopportunities for Bathurst. The transfer tookplace on 1 July 2002.
A direct result of the transfer is that wewill be in a better position to informclients of the differences between co-operatives and associations – allowingthem to make a more informed decisionon the type of legal entity best suited totheir needs.
Information for
consumers and traders
Consumer WeekConsumer Week 2001 (10 to 14December) focused public attention onconsumer issues through extensiveefforts directed at key press, televisionand radio outlets including ethnicmedia.
The campaign cornerstone was a newpublication: The Hard Sell. It providedconsumers with information on dealingwith high-pressure sales techniques.
We worked with a number of peakorganisations to promote specificconsumer-protection messages: theCommission for Children and YoungPeople on mobile phones; theAustralian Retailers Association onrefunds and the Ryde-EastwoodFinancial Counselling Service on credit.
An Ethnic Media and CommunityLeaders Conference attracted 85attendees and led to extensiveConsumer Week coverage in the ethnicmedia. Complementary promotionalactivities resulted in very positiveregional media coverage.
In December 2001, Students from Canley Vale High School in Sydney won
$10,000 worth of computer equipment for their school after winning both the
State and Metropolitan sections of the 2001 Consumer Protection Youth Awards.
NSW Department of Fair Trading Annual Report 2001-2002 Page 21
The English version is the most popularwith over 1,000 downloads each month.The community language versions aresome of the most popular translatedmaterials on the site.
To further disseminate tenancyinformation, industry associations withmember newsletters and niche realestate media were regularly sent mediareleases and supporting information.
Co-operatives information
programWe developed a number of newresources to develop and encouragegrowth in the co-operative sector,including a twenty-minute video: Co-ops
– A Flexible Alternative and a range ofprinted and electronic publications andposters – including material forAboriginal audiences. The video featuresfour successful co-operatives in NSW,highlighting the benefits they bring totheir local communities.
The new publications included: A guideto co-operatives; How to form a co-operative;The role and services of the Registry of Co-operatives and A comparative table of businessstructures. Information for co-operativeswas expanded on our Web site includinga prominent link from the Home Page.
Fair Trading Complaints
Fair Trading Enquiries
Overall enquiries and formal complaint levels are relatively consistent
over the last couple of years
Note: graphs for relevant items throughout the Report this year use Budget Papers definitions.
Consumer Week 2001 also marked theinaugural presentation of the NSWConsumer Protection Awards –honouring the many contributions madeby individuals, communityorganisations, business and industryassociations and the media towardsconsumer protection. Home buildingDuring the year, we actively promotedinformation on significant changes tohome building legislation anddevelopments in the industry itself.Dedicated sections were created on ourWeb site with detailed information onthe home building reforms and optionsfor consumers and traders with regard tohome warranty insurance. Thesesections were regularly updated aschanges occurred or new informationbecame available.
Industry associations and niche buildingmedia were regularly sent media releasesand related information. These activitieswere supported by publicationsoutlining the changes, as well as ourrange of publications for consumers andtraders in the home building industry.
Credit educationFollowing the success of the inauguralConsumer Week in November 2000, inwhich credit issues were the primaryfocus, credit education was again afeature of several projects in thereporting year.
Credit information was incorporatedinto the publication created forConsumer Week 2001: The Hard Sell.Fact sheets on credit topics weretranslated into five communitylanguages.
Credit education was also selected asone of the topic pages for communitylanguage information on our Web site.Public relations and media activitieswere undertaken to gain exposure in themedia – seeking to match credit topicswith prominent events in the calendar. AValentine’s Day promotion: “Foreveryours…till debt do us part”, focused onrelationship debt and was well coveredby a number of regional newspapersaround the State.
Tenancy education programWe publish The Renting Guide – Your rightsand responsibilities as a landlord or tenant in 18languages including English. During2001-2002 over 600,000 copies wereprinted and distributed. All languageversions are also available on our Web site.
200,000
400,000
600,000
800,000
1,000,000
0
Telephone (includes e-mail &
website from 00-01)Counter Total
98-99 99-00 00-01 01-02
86
8,0
00
87
8,0
00
87
0,7
00
77
3,3
00
24
9,3
00
52
4,0
00
27
2,1
00
59
8,6
00
34
8,9
00 52
9,1
00
55
8,7
00
30
9,3
00
5,000
10,000
15,000
20,000
25,000
0
BuildingReal Estate Fair Trading
30,000
98-99 00-0199-00 01-02
Total
26
,00
0
25
,80
0
23
,45
0
25
,90
0
25
,60
0
24
,05
0
1,4
50
90
0
1,1
00
75
02,0
00
65
0
22
,45
0
1,4
50
2,1
00
22
,95
0
Page 22 NSW Department of Fair Trading Annual Report 2001-2002
Our new Web siteOur Web site – www.fairtrading.nsw.gov.au,was re-engineered, re-designed andofficially re-launched in April 2002. Theuser-friendlier site provides ourcustomers with better access into allpopular topics. Informationclassifications now more closely reflectcustomer priorities and there are newhome page areas highlighting mediareleases and latest developments. Thenew design complements our printedpublications with different sectionscolour coded to assist navigation. A newcontent management system and styleguide ensures information remainsaccurate, up to date, and is presented in aconsistent way. Consumers andbusinesses around NSW will benefitfrom the improvements.
Rental Bonds and TenancyAt the end of the financial year, 532,395rental bonds worth $498.2 million wereheld in trust – up 1.2 % over the previousyear. A total of 292,299 new bonds werelodged and 286,226 bonds were refundedthrough a record 409,617 separatepayments. Most customers continued toprefer electronic rather than face to faceservice. During the year, 90 % of claimswere received by facsimile and 97,226customers (34% of bond claims)requested their refund be directlycredited to their bank account - up from85,383 the previous year. Only 12,558customers (4.3% of claims) sought arefund over the counter – down from 7%on the number of counter claims in theprevious year.
Rental Bonds – number processed and held in trust
Use of our Rental Bond Internet Service(RBIS) continued to grow. In the pastyear, property managers used this highsecurity Internet system to authorise7, 000 claims, make 21, 040 inquiries andaccess a range of financial and otherreports. Overall there were 101,000separate visits to the site which operatesall the time.
Think Smart –
Ethnic Education ProgramIn May 2002 we launched the Think
Smart on Consumer RightsEducation Program as a long-termcommitment to ethnic communities. Itfocuses on building long-termrelationships with ethnic organisationswho are pivotal in deliveringinformation and education services.
The initiative includes deliveringcommunity education through formalcommunity and media partnerships,community leaders and mediaconferences, translated publications,improved information access and itencompasses an ethnic Tenancy Pilot.
The first Community Leaders andMedia Conference was held duringConsumer Week 2001 to address ethnicconsumers’ needs and report progress onthe Department’s activities. Twoconferences per year are planned from2002-2003. In 2002, we will expand ourexisting Web site services for Arabic,Chinese, Greek, Italian, Macedonian,Spanish and Vietnamese speakers.Further language groups will beconsidered in 2002-2003.
We continued to produce translatedpublications in up to 21 differentlanguages. All of these are availableelectronically – the most popular beingThe Renting Guide, which is available in 18languages, including English.
During 2002-2003 a six-month EthnicTenancy Pilot will test alternativeapproaches to using The Renting Guide toprovide essential tenancy information torenters. The targeted ethniccommunities will be new arrivals whospeak Bosnian, Dari, Indonesian andTamil and existing communities whospeak Vietnamese and Chinese. See page27 for more information about the Pilot.
More awards for Money StuffSince its launch in August 2000, MoneyStuff, our innovative educational resourcefor young Australians, has gone fromstrength to strength. Web page hits to the
During the last year the private rental market saw changes attributable
to the number of former renters taking up the Federal Government's first
home owner grant at the same time as an increase in available rental stock,
particularly in Sydney. As a result the Department responded to an extra
17,602 bond and tenancy enquiries over the previous year and the number
of bonds refunded increased by 11,846 while the total number of bonds
held only increased by 6,073.
Rental Bond and Tenancy enquiries
Total enquiries processed
100,000
200,000
300,000
0
97-98
37
7,6
90
98-99
37
7,7
41
99-00
41
2,6
93
400,000
500,000
00-01
42
6,3
50
01-02
44
3,9
52
97-98 98-99 99-00 00-01
100,000
200,000
300,000
400,000
500,000
0
Bonds RefundedBonds Lodged Bonds Held in trust
01-02
47
9,8
72
49
7,3
40
51
3,4
58
52
6,3
21
53
2,3
93
28
6,2
26
29
2,2
99
27
4,3
79
28
7,2
42
26
9,9
83
28
6,1
01
26
7,0
25
28
4,4
93
26
9,6
33
28
2,5
64
NSW Department of Fair Trading Annual Report 2001-2002 Page 23
groups, business organisations andtenants.
• Fair trading themed competitions forsenior and junior schools in the State’swest and south.
• Money Stuff promotions at universityorientation days and through TAFEcolleges.
• Local media promotions including:- 17 new ‘Your Rights’ columns in
Hunter region newspapers andcommunity newsletters
- free-to-air broadcasting of regularconsumer-protection messages inPort Macquarie
- a quarterly newsletter for keycommunity and businessorganisations in the Hunter region
- regular segments on Wollongong’sradio 2 VOX.
Strata schemes & mediationIn the five years since the introductionof the Strata Schemes Management Act 1996on 1 July 1997, the Department hasachieved considerable success inimproving the resolution of stratascheme complaints in NSW. Asignificant reduction of more than 60%in the number of applications for formal
adjudication is the result of theDepartment offering mediation servicesto help resolve strata disputes at an earlystage. These mediated disputes wouldotherwise be heard by the Consumer,Trader and Tenancy Tribunal and theyrepresent a considerable saving to theGovernment and consumers.
Traveller Consumer HelplineThe Helpline was originally establishedto help domestic, interstate and internationaltravellers experiencing consumer relatedproblems during the 2000 SydneyOlympic and Paralympic Games. It wassuch a success that we retained it toprovide continuing assistance to alltravellers to New South Wales. TheHelpline is staffed by experienced officersand operates from 8.30am to 5.30pmMonday to Friday, with a voice messageservice to handle out-of-hours enquiries.
As a result of the Ansett Airlines andTraveland collapses, the Helplinereceived an upsurge in calls. The mostfrequent were from travellers who wereeither stranded as a result of the collapseor who were looking for information onwhat to do about bookings that had been
REVS - vital statistics 2001-2002
REVS checks 1,168,000
Potential savings to clients* $15.6M
Finance industry commitments registered on REVS # $6.008 B
Total encumbrances held on REVS 2.8M
* Based on finance industry estimates that 0.6% of encumbrances result in bad debt.
# Based on total financial encumbrances registered during 2001-2002 multiplied by
average loan.
Strata Schemes Enquiries
In 2001-2002, Fair Trading provided 45,200 owners, occupiers, owners'
corporations, associations, managing agents and the public with information
about the Strata Schemes Management Act, the services provided by theDepartment and dispute resolution processes.
Enquiry services are demand driven. The 5.7% increase over the last year may
be attributed to normal increases in strata populations as well as heightened
interest in public liability insurance and the impact of new occupational health
and safety responsibilities.
Money Stuff web site passed the 1,000,000mark in early 2002, representing over32,000 visitor sessions. High Schoolteachers praised the resource in twoformal surveys, while students continueto send unsolicited words of praise viathe Money Stuff e-mail feedback address.
Last year, Money Stuff received threeprestigious awards: “Best SecondarySchool Student Educational Resource” atthe 2001 Australian Teachers of Media(ATOM) awards in May, followed inJune by “Best Secondary Teaching andLearning Package” and “Best SecondaryWeb site” at the Australian Awards forExcellence in Educational Publishing.This year Money Stuff received a silveraward in the “Best Practice ineGovernment” category at the NSWPremier’s 2001 Public Sector Awards.
Regional servicesOur 16 regional Fair Trading Centres(FTCs) ensure people living across theState receive fair access to our services.Besides providing counter and phoneservices from these offices, our regionalstaff regularly visit remote communitiesto promote the Department’s servicesand to help individual consumers,traders, communities and businessorganisations understand and benefitfrom NSW’s fair trading laws.
A range of fair trading services is nowavailable from Government AccessCentres and other agency locations,
these include: Balranald, Bathurst, Bega,Boggabilla, Bourke, Cobar, Condobolin,Cooma, Coonabarabran, Coonamble,Deniliquin, Dorrigo, Forbes, Forster,Gilgandra, Glenn Innes, Goulburn,Grenfell, Griffith, Hay, Hillston,Kyogle, Leeton, Maclean, Moree,Mudgee, Nambucca, Narrabri,Narrandera, Nowra, Nyngan, Quirindi,Oberon, Tumbarumba, Ulladulla,Walget, West Wyalong and Wilcannia.
In 2001-2002, our regional communityliaison program included the followingactivities and initiatives:
• Seniors Week seminars for localseniors groups; retirement villages;senior’s clubs and organisations;residential parks; and communityhealth care centres.
• Seniors Guide distribution to medicalcentres and other sites frequently usedby seniors citizens.
• Fair trading seminars for new businessstarters, TAFE students, communityworkers and volunteers, women’s
Number of customer enquiries
10,000
20,000
30,000
40,000
50,000
0
01-0298-99 99-00 00-01
42
,80
0
46
,70
0
42
,00
0
45
,20
0
Page 24 NSW Department of Fair Trading Annual Report 2001-2002
Hands on. The Kooris & Cars program means practical experience for these
Aboriginal youths at Taree on the mid north coast where George Galea (centre),
a DFT Mechanical Inspector, takes them through a pre-purchase and vehicle
safety inspection.
made for future travel with the companies.Travel agents too sought information ontheir position and that of their clients.
In all cases, callers were given up to dateinformation provided to the Departmentfrom the office of the Administrator, theTravel Agents Compensation Fund, theFederal Government and other travelrelated organisations that wereresponding to the crisis.
Aboriginal servicesResearch shows young Aboriginal andTorres Strait Islander (A&TSI) peopleremain unaware of their consumer rightsand responsibilities and of how FairTrading can help them – especially abouttenancy, buying cars and mobile phones,credit and shopping in general.
While we have a range of general A&TSIpublications and our Money Stuff programis reaching some A&TSI youth inschools, there is an absence of youthoriented printed materials. To counterthis, we are developing a consumerguide for indigenous youth.
We have consulted with communitygroups to ensure that the content andstyle are appropriate and appealing.When completed, we will distribute theguide through our Aboriginal CustomerServices Officers, Fair Trading Centres,and a number of community andgovernment organisations.
A face to face strategy that is alreadydelivering good results is the Kooris andCars program. This joint initiative withthe Roads and Traffic Authority providessmall groups of Aboriginal youth withhands on, ‘streetwise’ information aboutbuying a car (including credit issues) aswell as raising their awareness of driverlicensing, registration and vehicle safetyrequirements.
Since its launch in March 2001, over 550participants have attended the sessionsacross NSW.
To ensure that indigenous people inregional and remote areas of NSW havefair access to our services, our networkof 12 Aboriginal Customer ServiceOfficers conduct regular visits to landcouncils, Aboriginal support centres,community groups and relatedindigenous focal points.
Some of the key activities we conductedin 2001-2002 include:
• information sessions and displays ontenancy, general consumer rights,credit and purchasing a car including anumber of presentations at The Glen
and the Gu-Ggodah rehabilitationcentres and at the Moree ‘CrocFestival’
• a new quarterly newsletter targetingAboriginal organisations in the Hunterregion
• regular radio spots servicingAboriginal communities in westernSydney, Bourke, Wilcannia, Walgett,Goodooga and the south coast
• participation in NAIDOC weekcelebrations across NSW
• joining the Department of Housing inthe Gunyah Project to improve accessto information and the delivery ofgovernment services to indigenouspeople living in public, community orprivate housing
• sponsoring an Aboriginal artcompetition on the Central Coast.
NSW Department of Fair Trading Annual Report 2001-2002 Page 25
Accountable use of public resources
Our third key objective acknowledges that we are accountable to Parliament, the
Minister and the public for the use of community resources. We aim to provide
customer-focused services that align with the Government’s social justice objectives
and which are designed and delivered in the most economical, efficient and cost-
effective way.
Performance Information
Key outcomes/measures
Outcome: Customer-focused operationsMeasure: level of customer satisfaction with DFT’s services:
•overall quality of service•waiting time for a service•staff ’s knowledge of subject•politeness of service staff•helpfulness of service staff
Interpretation/comment
The Department conducted its third survey to independently test customer satisfaction with services to the public.Colmar-Brunton conducted the survey. 410 customers, randomly selected from those who had recently contacted us, weretelephoned and asked to respond to a questionnaire. The percentages indicate customers satisfied or very satisfied.
Satisfaction with overall service quality, politeness and helpfulness increased slightly this year. The increase for staffknowledge may be only apparent, as such a small change cannot be accurately detected within the sample size. There is amarked increase in satisfaction with waiting times since 1999-2000, but the increase on last year, while encouraging, isborderline for detectability within the sample size.
The results are pleasing. Last year’s survey led to targeted improvement initiatives, including staff training in relevant areas.With three years of data, DFT is gaining experience in what constitutes a ‘normal’ result. Accordingly, cautious targets nowappear for the first time. For aspects of service largely in our control, targets are 90%. This is a high satisfaction level – higherresults are a bonus. The target is lower for waiting times, which depend partly on demand levels. These increase sharply attimes and must be handled with available resources.
Any significant drop will trigger action to diagnose, and where possible, correct, problems. With changes forthcoming inDFT’s call centre operations, there may be initial declines during ‘bedding down.’ The results above are a benchmark forassessing the impact of change and highlighting any fine tuning necessary.
91% 89% 95% ≥ ≥ ≥ ≥ ≥ 90%
69% 75% 80% ≥ ≥ ≥ ≥ ≥ 75%
90% 90% 91% ≥ ≥ ≥ ≥ ≥ 90%
98% 94% 97% ≥ ≥ ≥ ≥ ≥ 90%
95% 91% 96% ≥ ≥ ≥ ≥ ≥ 90%
Access & EquityOur commitment to access and equity isreflected in an over-arching Access andEquity Strategy. It covers customers andstaff and is monitored for progress on aquarterly basis by the Department’sAccess & Equity Committee. In 2000-2001, the emphasis was on disabilityissues; consolidating work in theAboriginal and Torres Strait Islanderarea; targeted projects to non-Englishspeaking background customers; and
99-00 00-01 01-02 Target 02-03
consolidating EEO activities. Animportant development was the releaseof an Access and Equity Manual to staffin July 2001.
Customer profileThe annual Customer Profile Survey is akey part of our Access and EquityStrategy. The two-week random surveyillustrates the diversity of our customersand tells us how well we are reachingthem. With it we are able to identify the
proportion of indigenous and NESBcustomers, design appropriate programsand marketing campaigns, measure thesuccess of previous activities andcomment on performance indicators forkey equity target groups. Preliminaryresults indicated that the proportion ofcustomers from our target groups isclose to or exceeds, their representationin the NSW population.
corporate
Objective 3
Page 26 NSW Department of Fair Trading Annual Report 2001-2002
closing date, we conduct informationsessions for interested applicants toallow them to meet the supervisor and toask questions about the job. NewAboriginal employees also receive aninduction to the Department. Highlightsfor 2001-2002 include:
• seven new Aboriginal staff, includingone trainee
• funding from Premier’s Departmentunder the Aboriginal Employment inPractice Support Strategy
• three Aboriginal Network meetings tosupport staff and provide aconsultative mechanism formanagement
• a conference for Aboriginal staff andmanagers that focussed on improvedservice delivery to Aboriginal people
• successful sponsorship of oneAboriginal officer to the ManagementDevelopment Program for AboriginalPeople conducted by Premier’sDepartment.
Disability action planFollowing last year’s disability accessaudit of DFT premises, a working partyof senior-level representatives fromrelevant areas was formed. This group isnow developing a staged implementationplan to identify access improvementpriorities. The recent redesign of ourWeb site addressed a range of disabilityaccess issues and we will continue tolook for further improvementopportunities. Other initiatives forpeople with disabilities includeproducing an audiotape of our SeniorsGuide publication and including closedcaptions for people with hearingimpairment on our new co-operativesvideo. Our full Disability Report for2001-2002 is Appendix 24.
SpokeswomenTen spokeswomen, representing theDepartment’s divisions and regions,were elected by female staff to provide arange of information and activities tosupport women. A Spokeswomen’sPlanning Day was held on 2 May 2001during which a Spokeswomen’sStrategic Plan for 2001-2002 and targetactivities for each electorate weredeveloped. The Plan has been used bythe Government Spokeswomen’sManagement Committee as an exampleof best practice for training newspokeswomen across the Public Sector.
We completed a review of the Women’sInformation Icon on the Department’scomputer network and Working Women, asegment in the Department’s bimonthly
staff newsletter. The review showedgood support for both initiatives. Ourspokeswomen continued to maintain upto date information in Women’sResource Centres set up in regional andmetropolitan offices and a furtherResource Centre was established in theDepartment’s Library. Ourspokeswomen’s mentoring program alsocontinued successfully.
We celebrated International Women’sDay by presenting two scholarships forwomen to attend the SpringboardWomen’s Development Course and byconducting four half-day Women’sConferences in regional andmetropolitan areas. Guest speakers at theconferences included the parliamentarypatron of the Spokeswomen’s Program,Ms. Diane Beamer, MP, andrepresentatives from other governmentagencies and community groups.
Our EEO goals for 2002-2003 are to:
• use the results of staff focus groups toplan EEO activities
• implement a pilot Women andInformation Technology project toreskill women in IT
• continue building on the success ofthe Aboriginal Employment Strategy
• develop a proposal for an Aboriginalcadetship
• further develop the Spokeswomen’sProgram
• maintain the high staff response rate tothe EEO Survey
• update staff on selection procedures inaccordance with the outcomes of theMerit Review
• conduct disability awareness trainingfor staff
• develop strategies for employing morestaff with a disability, including aproposal for a Disability Traineeship.
Aboriginal action planFor the past three years our AboriginalAction Plan has represented a majorinitiative for the Department. In late1999, we sought staff feedback onwhether the Plan was working smoothlyand used the information to fine-tune itsoperation. This year we completed a fullevaluation addressing three broad issues:
• Are we focusing on the right fairtrading issues for Aboriginalcommunities?
• Are there other fair trading issues weshould add?
• Are our Aboriginal strategies effective?
Here are the major findings.
• 71% of our Customer Services
Employment EquityWe continued to achieve a high responserate to our EEO Survey of staff. Itindicated that we exceed most of thegovernment targets for percentages ofEEO group members. Our policies onan Harassment-Free Workplace andEEO were updated and promoted acrossthe Department. We advertisedopportunities for scholarships,promotional positions, and providedstaff information on childcare and eldercare on a regular basis.
We offered four six-month placementsfor people from non-English speakingbackgrounds who had overseas skills orexperience that had not been recognised.Two of these positions were filled byjobseekers and two by departmental staffwho wanted experience in the area inwhich they had overseas skills. Three ofour staff won six-month workexperience placements under theMigrant Career Development Program.Under the Community LanguageAllowance Scheme, we recognised 82staff (collectively speaking 28 differentlanguages) who aid customers from non-English speaking backgrounds.
We laid the groundwork to increase theemployment of staff with a disability by:
• implementing a physical access auditof buildings
• briefing supervisors on reasonableworkplace adjustments
• developing a proposal for disabilityawareness training
• having policies on the recruitment ofstaff with a disability and reasonableworkplace adjustment, and
• having a support network for staff witha disability.
One staff member is now an accreditedAuslan speaker for communicating withcustomers who have a hearing disability.
Two other networks (for Spokeswomenand Aboriginal employees) also metregularly to support these EEO groupsand consult on issues that affect staff aswell as customers.
Aboriginal employment
strategyOur Aboriginal Employment Strategyhas maintained the percentage ofAboriginal staff at 3.2% – against aGovernment target of 2%. We aim tosustain these levels by continuing topromote vacancies to the Aboriginalcommunity through the Koori Mail andthrough Aboriginal networks. Before the
NSW Department of Fair Trading Annual Report 2001-2002 Page 27
Divisions’ programs targeting specialneeds groups over the past 3 years havebeen delivered to Aboriginalconsumers and traders.
• The Department has improved servicedelivery to Aboriginal consumers bybuilding partnerships with multi-agency initiatives, particularly inregional and remote NSW.
• The Department has preparedculturally appropriate educationalmaterial that has been made accessibleto a wide Aboriginal audience by beingwritten in plain English, by usingAboriginal designs, pictures, includingshort tips and scenarios.
• The percentage of Aboriginal peoplecontacting the Department is higherthan the proportion of Aboriginalpeople in NSW.
• Aboriginal employees in theDepartment have increased from 1%to 3%.
The results are pleasing and willcontribute to the development of theDepartment’s future Aboriginalstrategies.
EAPS standards frameworkAs part of the NSW Ethnic AffairsPriorities Statement (EAPS) program,we submit a self-assessment reportagainst the EAPS Standards Frameworkto the Community RelationsCommission (CRC). This biennialprocess examines five activity areas –each with five ranking levels. Thanks to ateam of representatives from eachdivision who provided comprehensiveinformation and examples of itsimplementation, the CRC has acceptedthe rankings we provided in October2001. We were successful in increasingour rankings in three areas as the tablebelow shows.
• a low level of awareness of theDepartment by ethnic consumers
• that over one third of ethnic tenants donot keep the Guide.
• that ethnic tenants generally look forhelp to resolve their problem, ratherthan attempting to resolve itthemselves.
The Renting Guide is an excellent resourceand having it available in a range oflanguages is important. However, basedon the findings of the research, wecommenced a pilot program in a numberof ethnic communities to test theeffectiveness of a new simple tenancybrochure and various promotionalstrategies to inform tenants of their basicrights and options. During the pilot, TheRenting Guide will be positioned as areference tool for ethnic communitiesthat would be provided to these tenantson demand if and when a problem arose.Results of the pilot program areexpected in late 2002.
Grants
This year we continued to meet with andvisit financial counselling and tenancyorganisations, which receive grantsthrough the Department. This regularcontact with individual services and peakbodies such as the Financial CounsellorsAssociation of NSW and the TenantsUnion of NSW provides us with theopportunity to not only monitorperformance but to exchange ideas andalso gain an appreciation of the issuesfacing clients of these services.
In November 2001, the IndustrialRelations Commission of New SouthWales handed down a new Social andCommunity Services (SACS) Award andthe Department, in complying with theterms of the new Award, paid increasesto all those non-governmentorganisations it funds which are coveredby the Award.
Funding bodies need to be responsive toemerging issues when this is possibleand we were happy to respond quicklyto a grant application by the HousingIndustry Association Limited for aproject which provided support to homebuilders affected by the collapse of HIHinsurance.
This year we were pleased to providesome well-deserved recognition tovolunteers working in financialcounselling services which receivefunding through the Department. On 5
December 2001, in a ceremony atParliament House, a number ofvolunteers received course scholarshipsfor use in TAFE colleges in 2002.
Tenants Advice and Advocacy
Program (TAAP) 2002-2005A review of the TAAP was concluded inApril 2002 (see page 10 for moreinformation). Following this we calledfor expressions of interest fromorganisations interested in providingeither direct services to tenants in anumber of locations around NSW, orresource services which provideassistance and support to direct servicesthrough training, casework support,resource production and legal advice.
We provided the new TAAP Guidelinesto all applicants, along withcomprehensive Expression of Interest(EOI) documentation explaining theProgram and the EOI process. The EOIsreceived were reviewed in a three-partprocess. An assessment team firstlyensured compliance with programguidelines and EOI requirements. This
8
2
7
6
5
3
4
1
1. Tenants Advice and Advocacy
Program (TAAP) — $4,194,520
2. Credit Counselling Program —
$1,104,094
3. Other Funded Tenancy Projects —
$428,040
4. Department of Fair Trading
supplementary funding to FCTF —
$19,700
5. Financial Counselling Trust Fund —
$663,995
6. Home Building Grants Program —$564,754
7. Property Service Grants Program —
$348,250
8. Co-operatives Development Fund —
$346,684
Total grant allocations
EAPS Standards framework rankings
Activity Area 1999 2001
Planning & Evaluation 3 4
Program & Service Delivery 2 3
Staffing 3 3
Communication 3 4
Funded Services 3 3
NESB tenancy informationWe undertook a research project toreview the ethnic language versions ofThe Renting Guide to determine therelevance of current languages and theeffectiveness of the publication. Theresearch found:
• a low level of usage of the Guide byethnic tenants
Page 28 NSW Department of Fair Trading Annual Report 2001-2002
assessment was followed by a grantscommittee examining the EOIs andmaking recommendations for funding tothe Minister, who had responsibility forthe third part of the process – approvalof the committee’s recommendations.The Minister announced the successfulapplicants on 24 June 2001.
Significant increases in staffing andfunding have been approved for the2002-2005 TAAP funding triennium. Weare confident that the support providedthrough this Program to disadvantagedtenants in NSW will be furtherenhanced.
Financial counsellingDuring the past year, community serviceorganisations funded by our financialcounselling grants benefited fromstrategies that made our grantsmanagement more efficient. Theseservices can now plan more strategicallyand their financial reporting obligationshave been made easier and more costeffective for them.
Services that received a fundingcontribution from the FinancialCounselling Trust Fund weretransferred from annual funding tothree-year funding and in a smoothtransition we converted the funding yearfor both the Credit CounsellingProgram and the Financial CounsellingTrust Fund Program to a financial yearbasis. This changeover provided one-offadditional funds, which we decided tooffer to existing funded services forcommunity education projects and thepurchase of much needed capitalequipment. A number of communityeducation projects targetingdisadvantaged groups were subsequentlyfunded. Full details of these grants andthose provided for capital equipment canbe found in Appendix 20.
Electronic service
delivery
Customer assistance facilityWork has begun on a new consumer self-help facility on our Web site. TheCustomer Assistance System willprovide a ‘roadmap’ for consumersnegotiating a dispute with traders.Information and other resources willempower users to resolve matters beforethey escalate. Available 24 hours a day,seven days a week, it will complementthe services provided by our network of22 Fair Trading Centres across NSW.The system will improve on thesuccessful on-line complaint lodgementservice, which now accounts for 20% ofall complaints submitted to theDepartment.
Online licensingDFT is the pilot agency in the NSWGovernment Licensing Project. TheProject aims to provide the communitywith online access to all governmentlicensing functions. In the initial phase, alimited selection of the Department’sbusiness name and business licensingtransactions (incorporating fee paymentby credit card) will be available online.The Office of Information Technology(OIT) is responsible for the Project andwill use the DFT development as a“proof of concept” for the remainder ofthe Project.
To date, DFT has provided significantresources to the Project and, contributedto the preparation of a Request forQuote for the development of the initialphase. Representatives from thesuccessful company have commencedconsultation with key staff to confirmsystem requirements. The Office ofInformation Technology’s timetableproposes that the initial phasecommence in early 2003.
Work has already commenced inpreparation for Phase 2 of the Project,and again DFT has provided significantresources – contributing to thedevelopment of the Request for Tender.Phase 2 will see the majority of DFTlicensing transactions available online. Abusiness case was also prepared duringthe year in consultation with DFT toupgrade the Business LicensingInformation System.
Windows 2000 ProjectThe project has delivered Windows 2000Server as our new Network OperatingSystem. This infrastructure has providedan enterprise-wide and standards baseddirectory structure with a singleadministration point for userinformation, user access andapplications. Improved reliability,availability and accessibility of thisplatform will in turn offer a betterservice to all customers. The Projectcommenced in September 2000 and thepost implementation phase wascompleted in June 2002.
Internet/Intranet ProjectThe project provides the technicalinfrastructure for our online services tocustomers. This investment willimprove our ability to meet corporateobjectives and support a number of keyresult areas as well as satisfying theGovernment’s commitment toelectronic service delivery. The projecthas already delivered a re-engineeredpublic web site (see page 22 for moreinformation) and implemented some ofthe infrastructure required to supportsecure online transactions and paymentsby clients. The project will becompleted by June 2003.
Corporate communicationsOur Corporate CommunicationsProgram is aimed at designing andproviding the most appropriate
Licensing Activity
Licence Type New 00-01 New 01-02 Currently Registered
Motor Dealers 431 550 4,164
Travel Agents 120 127 1,488
Pawnbrokers & Second-hand Dealers 354 298 1,374
Private Employment Agents 477 475 2,565
Public Weighbridge 10 14 89
Trade Measurement Services 14 17 187
Property, Stock, & Business Agents Licences 1,457 1,519 24,593
Real Estate Certificates 3,765 4,257 11,509
Valuers 118 153 4,785 *
Conveyancers 70 87 357
Building 10,645 11,583 157,121
* This figure includes 1,744 non-practising Valuers
NSW Department of Fair Trading Annual Report 2001-2002 Page 29
Business Names Register Total
The annual rise in total business names registered steadied to just
over 1% in 2001-2002
underlying physical infrastructureneeded to meet the current and futurevoice, data and video needs of ourbusiness. The key objective is to delivera cost effective, flexible, secure, robustand manageable communications systemto provide efficient and customerfocused operations. Design of the newsystem was completed following acorporate-wide audit of existinginfrastructure. Implementation wasplanned to commence in July 2002.
Business Continuity/Server
Consolidation ProjectThis project was initiated in July 2001 torationalise the number and size of ourapplication servers – the aim being toimprove the performance and resilienceof the financial management, humanresources and business applicationssystems. By duplicating the infrastructureat our two main sites in Parramatta andSydney we have achieved a measure ofsystem redundancy to ensure businesscontinuity and a better service deliveryto internal and external customers.
Rental Bond Internet ServiceThe Rental Bond Internet Service(RBIS) is a secure, cost effective,business-to-business e-Commerceinitiative launched in late 2000. It enablesproperty managers throughout NSW toauthorise rental bond refunds via theInternet and to access rental bondinformation 24 hours, 7 days per week.During the year we promoted itextensively at property managementseminars organised by the Real EstateInstitute and at conferences for propertymanagers from L J Hooker and the RayWhite Group. RBIS was also promotedin the Real Estate Institute Journal and inindustry newsletters. Results have beenexcellent. The service is stronglysupported by the industry and over 500property managers have now connected.
RBIS has been identified as a model forother jurisdictions intending to provideelectronic service delivery. It is includedon the Office of InformationTechnology’s Web site as a case studydemonstrating mutual benefits tocustomers and business.
REVS – electronic billingREVS has a long history of ESD -commencing 13 years ago with REVSOn-line (1989) and later with theintroduction of an interactive Web site(2000). Together these services currentlyrepresent approximately 80% of REVS’total business transactions.
This year we successfully introduced an
electronic billing and payment system
for the convenience of our account
customers. They now receive virtually
24 hour a day, seven day a week web or e-
mail access to their account information,
monthly invoices and transaction details
as well as the convenience of paying
their monthly statements online. The
Department too has benefited by
replacing a manual operation with an
electronic one.
REVS – computer
telephony integrationTo improve REVS’ customer servicefunctions and pave the way for enhancedelectronic service delivery (includingelectronic Customer RelationshipManagement) we embarked on a two-stage computer telephony integrationproject. Stage 1 was implemented thisyear. It involved migrating REVS’ stand-alone telephone system to thetelecommunications network used bythe rest of the Department and replacingolder terminals with modern PCscapable of Computer TelephonyIntegration and Internet Protocolapplications. Next year, Stage 2 willinvolve REVS piloting Interactive VoiceRecognition technology using NaturalLanguage Speech Recognition. Thebenefits will include better customerservice, improved call centre quality andefficiency, increased call centreproductivity and various technologycapabilities for future call centreimprovements. Once successfullyproven at REVS, its widerimplementation within the Departmentwill be considered.
Customer service
improvement
Seamless customer serviceLast year the Department started workon ‘standing in the customer’s shoes’ tosee how easy it is for our very differentgroups of customers to access our widerange of services. As a result of this workwe found that while our customers arequite satisfied with most services, thereis scope to fine-tune the service modelto align more closely with governmentpolicy and good practice internationally.
As a result of this project, DFT willexplore the feasibility of integrating itsvarious phone enquiry services into asingle call-centre. Meanwhile, as aninterim step, some smaller scaleconsolidation of services will occur.During 2002-2003, we will also reviewthe phone numbers we publish in themetropolitan area to make it easier forcustomers to find the service they need.
Customer service
improvement strategyAccurate and consistent information forcustomers is paramount to theDepartment. In addition to regularcorporate Customer Satisfaction andShadow Shopping Surveys, we haveintroduced a skills audit for staff in theCustomer Services Division.Periodically throughout the year,questionnaires are prepared whichcontain typical customer questions onparticular fair trading topics. These areforwarded to every Fair Trading Centreand are completed by all relevantcustomer service officers. Staff use theirnormal information resources and are
99-00 00-01
100,000
200,000
300,000
400,000
500,000
0
47
7,3
44
28
2,9
72
30
5,5
34
33
5,5
00
36
3,2
50
37
7,1
93
39
0,2
41
40
5,3
21
42
3,9
58
45
5,4
14
98-9997-9896-9795-9694-9593-9492-9391-92 01-02
48
2,7
71
Page 30 NSW Department of Fair Trading Annual Report 2001-2002
not required to identify themselves. Thequestionnaires are then collated andscored by the Division’s Learning andDevelopment Co-ordinator who returnsthe results with the correct answers.
Where learning gaps are identified,training and information packages aredeveloped. To date, the audit results haveshown a high level of competency andhave stimulated discussion andclarification of several aspects ofconsumer law.
Complaint handling
process reviewCustomer Services Division managesthe Department’s call centre and its FairTrading Centres. During the year theDivision conducted an extensive reviewof its consumer complaint handlingprocesses to improve the quality andconsistency of services provided tocustomers. The review examineddifferent methods of complaintprocessing, surveyed customers abouttheir expectations and outcomes andresulted in the introduction of a newstandard for complaint processing. Thenew process provides a greater level ofintervention in negotiating disputesbetween consumers and traders and isexpected to result in an increase indispute resolution rates.
Staff
Flexible working hoursThe flexible working hours’ agreementthat we introduced on a trial basis inOctober 2000 has proved successful. Ithas improved staff ’s ability to managework and personal responsibilities,while continuing to meet the needs ofcustomers. A separate trial agreement forinspectors was introduced in December2001 and has also proved a success. Bothagreements are soon to be formalised.
Workers compensation
and rehabilitationOur Occupational Health & Safety(OHS) working group was active intranslating the requirements of theOH&S Act and Regulation into practicalprocedures, particularly regarding riskmanagement and in consultationmechanisms – where staff memberswere consulted on their preference. Weengaged a coordinator to oversee thereturn to work of injured employees andto improve existing rehabilitationarrangements and policies. We workedclosely with the NSW Treasury ManagedFund, the government’s self-insurancescheme administered by GIO Australia,to implement procedures required bythe new workers’ compensationlegislation.
OH&S audits
We are in the process of revitalising ourOH&S workplace Committees andregular workplace inspections are to beprogrammed for the coming year. AllCommittee members will receiveappropriate training in new workplaceconsultation and risk management. Thisis to form part of the audit process.
No prosecutions under OH&Slegislation were incurred.
Time lost injuries
38 new injuries were reported to theTreasury Managed Fund during the yearwith 23 being attributed to incidents atwork and 15 while travelling to or fromwork or travelling on business.
Statutory Home Building
Insurance wind-downStaff numbers associated with theComprehensive and Special InsuranceSchemes continued to decrease in linewith a declining workload which sawthe number of claims drop from 273 last
year to 199 by 30 June 2002. Claimsliability exists until May 2004. Aworkforce management plan wasimplemented in 1999-2000 to effectivelymanage the process. The plan was revisedlast year in negotiation with the PublicService Association. A new plan for thecoming year is currently being developedwith the Property & Licensing ConsultativeReference Group. This plan will again bedevised in consultation with staff and willincorporate training and staff informationsessions to ensure an effective andefficient wind-down of the Schemes.Staff are aware of the Department’scommitment to public sector redeploymentand placement policies if furtherreductions are needed as the workloaddecreases.
Accommodation
Fair Trading CentresWe relocated our Blacktown FairTrading Centre (FTC) to 13 Kildare Rdin December 2001. We also planned torelocate our Tamworth FTC to 1Darling Street from 1 July 2002. Both ofthese initiatives are part of our co-location strategy with the Consumer,Trader and Tenancy Tribunal. These‘one-stop-shop’ facilities improveservices to our customers and have proven tobe a better use of resources. We have alsorelocated our Newcastle RegionalOffice and FTC to 400 Hunter Street.
Bathurst – AssociationsrelocationWe extended our Registry of Co-operatives tenancy at 154 Russell Street,Bathurst. This was to accommodate staffchanges resulting from the transfer ofadministration of the AssociationsIncorporation Act 1984 and the Funeral FundsAct 1979 to a centralised registry nowknown as the Registry of Co-operatives &Associations. This took effect on 1 July 2002.
NSW Department of Fair Trading Annual Report 2001-2002 Page 31
Financialstatements
Page 32 NSW Department of Fair Trading Annual Report 2001-2002
Department of Fair Trading
Financial Statements for the Year Ended 30 June 2002
Statement by Director-General
In accordance with section 45F of the Public Finance and Audit Act, 1983, I state that:
(a) The accompanying financial statements have been prepared in accordance with the provisions of the Public Finance andAudit Act, 1983, the Financial Reporting Code for Budget Dependent General Government Sector Agencies, the PublicFinance and Audit Regulation, 2000 and the Treasurer’s Directions;
(b) The financial statements exhibit a true and fair view of the financial position and transactions of the Department forthe year ended 30 June 2002.
(c) At the date of this statement there are no circumstances, which would render any particulars included in the financialstatements to be misleading or inaccurate.
D B O’ Connor
Director-General
Department of Fair Trading
2 October 2002
NSW Department of Fair Trading Annual Report 2001-2002 Page 33
Department of Fair Trading
Statement of Financial Performance for the Year Ended 30 June 2002
Notes Actual Budget Actual2002 2002 2001
$’000 $’000 $’000ExpensesOperating expenses Employee related 2(a) 77,561 77,939 74,895 Other operating expenses 2(b) 34,303 33,588 32,575Depreciation and amortisation 2(c) 7,539 5,300 5,648Grants and subsidies 2(d) 15,568 16,361 18,349Other expenses 2(e) 1,575 2,555 2,070
Total Expenses 136,546 135,743 133,537
Less:
Retained RevenueSale of goods and services 3(a) 36,740 33,290 36,244Investment income 3(b) 2,129 1,782 2,414Retained fees and fines 3(c) 27,655 27,800 26,316Grants and contributions 3(d) 8,042 5,500 6,306Other revenue 3(e) 822 418 1,025
Total Retained Revenue 75,388 68,790 72,305
Gain/(loss) on sale of non-current assets 4 (6) - 597
Net Cost of Services 20 61,164 66,953 60,635
Government ContributionsRecurrent appropriation (Net of transfer payments) 5 60,026 60,062 61,623Capital appropriation 5 2,452 3,690 2,016Acceptance by the Crown Entity of employee entitlementsand other liabilities 6 4,516 1,376 4,479
Total Government Contributions 66,994 65,128 68,118
SURPLUS/(DEFICIT) FOR THE YEAR FROMORDINARY ACTIVITIES 5,830 (1,825) 7,483
NON-OWNER TRANSACTION CHANGES IN EQUITY
Net increase in asset revaluation reserve - - 215
TOTAL REVENUES, EXPENSES AND VALUATIONADJUSTMENTS RECOGNISED DIRECTLY IN EQUITY - - 215
TOTAL CHANGES IN EQUITY OTHER THANTHOSE RESULTING FROM TRANSACTIONS WITHOWNERS AS OWNERS 16 5,830 (1,825) 7,698
The accompanying notes form part of these statements.
Page 34 NSW Department of Fair Trading Annual Report 2001-2002
Department of Fair Trading
Statement of Financial Position as at 30 June 2002
Notes Actual Budget Actual2002 2002 2001
ASSETS $’000 $’000 $’000Current AssetsCash 8 21,296 15,690 16,175Receivables 10 8,730 7,172 6,222Other financial assets 9 23,306 27,464 27,464Other 11 815 - 950
Total Current Assets 54,147 50,326 50,811
Non-Current Assets
Property, Plant and Equipment 12- Plant and Equipment 30,336 30,878 28,819Total Non-Current Assets 30,336 30,878 28,819
Total Assets 84,483 81,204 79,630
LIABILITIESCurrent LiabilitiesPayables 13 1,495 1,902 1,701Employee entitlements and other Provisions 14 7,232 7,106 7,106Other 15 3,390 4,343 4,343
Total Current Liabilities 12,117 13,351 13,150
Non-Current LiabilitiesEmployee entitlements and other Provisions 14 960 904 904Total Non-Current Liabilities 960 904 904
Total Liabilities 13,077 14,255 14,054
Net Assets 71,406 66,949 65,576
EQUITY
Reserves 16 863 863 863Accumulated funds 16 70,543 66,086 64,713
Total Equity 71,406 66,949 65,576
The accompanying notes form part of these statements.
NSW Department of Fair Trading Annual Report 2001-2002 Page 35
Department of Fair Trading
Statement of Cash Flows for the Year Ended 30 June 2002
Notes Actual Budget Actual2002 2002 2001
$’000 $’000 $’000CASH FLOWS FROM OPERATINGACTIVITIES
PaymentsEmployee related (74,267) (74,540) (71,500)Grants and subsidies (15,798) (16,361) (18,908)Other (39,643) (37,365) (36,940)
Total Payments (129,708) (128,266) (127,348)
ReceiptsSale of goods and services 35,661 33,285 35,477Retained fees and fines 30,263 (1,200) 29,334Interest received 562 580 1,101Other 8,175 36,145 6,683
Total Receipts 74,661 68,810 72,595
Cash Flows from GovernmentRecurrent appropriation 60,026 60,062 61,623Capital appropriation 2,619 3,690 2,016Cash reimbursements from the Crown Entity 1,405 1,376 1,344
Net Cash Flows From Government 64,050 65,128 64,983
NET CASH FLOWS FROM OPERATING ACTIVITIES 20 9,003 5,672 10,230
CASH FLOWS FROM INVESTING ACTIVITIESProceeds from sale of Plant and Equipment 5 - -Proceeds from sale of investments 5,502 2,500 5,614Advance repayments received - - 10Purchases of Plant and Equipment (9,389) (7,359) (6,366)Purchases of investments - (1,298) (5,615)
NET CASH FLOWS FROM INVESTING ACTIVITIES (3,882) (6,157) (6,357)
NET INCREASE/(DECREASE) IN CASH 5,121 (485) 3,873Opening cash and cash equivalents 16,175 18,040 12,302
CLOSING CASH AND CASH EQUIVALENTS 8 21,296 17,555 16,175
The accompanying notes form part of these statements.
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Supplementary financial statements
Program Statement - Expenses and Revenues for the Period Ended 30 June 2002
DEPARTMENT OF Fair Trading Marketplace Fair Trading Consumer Tribunals* Not TotalFAIR TRADING’S Strategy* Performance* Standards & & Trader AttributableEXPENSES AND Registers* Services*REVENUES 2002 2001 2002 2001 2002 2001 2002 2001 2002 2001 2002 2001 2002 2001
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
ExpensesOperating expenses Employee related 5,889 5,369 11,909 12,873 11,184 8,255 32,013 32,807 16,566 15,591 - - 77,561 74,895 Other operating expenses 2,737 2,604 4,809 4,452 4,541 3,278 14,525 15,134 7,691 7,107 - - 34,303 32,575Depreciation andamortisation 368 352 643 767 1,195 909 4,074 2,803 1,259 817 - - 7,539 5,648Grants and subsidies 886 1,097 1,847 2,051 2,252 2,539 8,890 10,491 1,693 2,171 - - 15,568 18,349Other expenses 119 52 352 538 177 274 841 1,079 86 127 - - 1,575 2,070Total Expenses 9,999 9,474 19,560 20,681 19,349 15,255 60,343 62,314 27,295 25,813 - - 136,546 133,537
Retained RevenueSale of goods and services 1,838 1,667 4,796 4,323 7,001 6,344 18,005 18,810 5,100 5,100 - - 36,740 36,244Investment income 99 144 218 314 247 372 1,363 1,249 202 335 - - 2,129 2,414Retained fees and fines 171 1,596 421 3,485 1,985 4,812 24,728 12,716 350 3,707 - - 27,655 26,316Grants and contributions 560 438 1,204 844 1,367 1,079 3,701 3,054 1,210 891 - - 8,042 6,306Other revenue 12 41 615 337 38 110 125 425 32 112 - - 822 1,025Total Retained Revenue 2,680 3,886 7,254 9,303 10,638 12,717 47,922 36,254 6,894 10,145 - - 75,388 72,305Gain/(loss) on disposalof non-current assets - 37 - 81 - 96 (6) 297 - 86 - - (6) 597NET COST OFSERVICES 7,319 5,551 12,306 11,297 8,711 2,442 12,427 25,763 20,401 15,582 - - 61,164 60,635
Government contributions** - - - - - - - - - - 66,994 68,118 66,994 68,118
NET EXPENDITURE/(REVENUE) FORTHE YEAR 7,319 5,551 12,306 11,297 8,711 2,442 12,427 25,763 20,401 15,582 (66,994) (68,118) (5,830) (7,483)
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Program Statement - Expenses and Revenues (cont.)
Fair Trading Marketplace Fair Trading Consumer Tribunals* Not TotalStrategy* Performance* Standards & & Trader Attributable
Registers* Services*ADMINISTERED 2002 2001 2002 2001 2002 2001 2002 2001 2002 2001 2002 2001 2002 2001EXPENSES ANDREVENUES $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Administered ExpensesTransfer payments - - - (9) (11) - - - - - - (9) (11)Other - - - - (1) - (2) - (1) - - - (4)Total AdministeredExpenses - - - (9) (12) - (2) - (1) - - (9) (15)
Administered RevenuesTransfer receipts - - - - 9 11 - - - - - - 9 11Consolidated Fund - Taxes, fees and fines - - - - 46,742 44,054 1,588 1,517 - - - - 48,330 45,571 - Other - - - - 4,998 5,186 - - - - - - 4,998 5,186Total AdministeredRevenues 51,749 49,251 1,588 1,517 - - - - 53,337 50,768AdministeredRevenues lessExpenses - - - - 51,740 49,239 1,588 1,515 - (1) - - 53,328 50,753
* The name and purpose of each program is summarised in Note 7.** Appropriations are made on an agency basis and not to individual programs. Consequently, government contributions must be included in the “Not Attributable”
column.
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Supplementary financial statementsSummary of Compliance with Financial Directives
2002 2001Recurrent Expenditure/ Capital Expenditure/ Recurrent Expenditure Capital Expenditure
Appropriation Net Claim on Appropriation Net Claim on Appropriation AppropriationConsolidated Consolidated
Fund Fund
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000ORIGINAL BUDGETAPPROPRIATION/EXPENDITURE
•Appropriation Act 60,062 59,979 3,690 2,452 62,453 61,553 2,447 2,01660,062 59,979 3,690 2,452 62,453 61,553 2,447 2,016
OTHERAPPROPRIATIONS/EXPENDITURE
•Treasurer’s Advance - - 20 - - -
•Section 22 – expenditure for certain works and services 47 47 - - - - - -
•Transfers from another agency (s25 of the Appropriation Act) - - 70 70 - -
47 47 - - 90 70 - -Total Appropriations/Expenditure/Net Claim onConsolidated Fund (includestransfer payments) 60,109 60,026 3,690 2,452 62,543 61,623 2,447 2,016Amount drawn down againstAppropriation 60,026 2,619 61,623 2,016Liability to ConsolidatedFund * - 167 - -
The Summary of Compliance is based on the assumption that Consolidated Fund moneys are spent first (except where otherwise identified or prescribed).* The liability to Consolidated Fund represents the difference between the “Amount Drawdown against Appropriation” and the “Total Expenditure/Net Claim on Consolidated Fund”.The difference between capital appropriation and expenditure is related to under expenditure in three projects - the Customer Assistance System,the Home Building Disputes System and the Wide Area Network.
NSW Department of Fair Trading Annual Report 2001-2002 Page 39
NOTES TO AND FORMING PART OF THE FINANCIALSTATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES
(a) Reporting Entity
The Department of Fair Trading, as a reporting entity,comprises all the activities under its control,including its self-funding commercial branch, theRegister of Encumbered Vehicles (REVS). TheDepartment performs administrative functions forthe Rental Bond Board, the Fair TradingAdministration Corporation and the BuildingInsurers’ Guarantee Corporation. Costs associatedwith these functions are recouped from these entitieson an operational basis in relation to activities performed.
The Departmental Reporting Entity also encompassesfunds which, while containing assets which arerestricted for specified uses by the Department arenevertheless controlled by the Department (ie theMotor Dealers Compensation Fund, Real EstateServices Compensation Fund and Statutory InterestAccount). In the process of preparing the financialstatements for the economic entity consisting of thecontrolling and the controlled entities, all inter entitytransactions and balances have been eliminated.
The reporting entity is consolidated as part of theNSW Total State Sector and as part of the NSWPublic Accounts.
(b) Basis of Accounting
The Department of Fair Trading’s financial statementsare a general purpose financial report which has beenprepared on an accrual basis and in accordance with:
• applicable Australian Accounting Standards;
• other authoritative pronouncements of theAustralian Accounting Standards Board (AASB);
• UIG Consensus Views;
• the requirements of the Public Finance and Audit Actand Regulations; and
• the Financial Reporting Directions published in theFinancial Reporting Code for Budget DependentGeneral Government Sector Agencies or issued bythe Treasurer under section 9(2)(n) of the Act.
Where there are inconsistencies between the aboverequirements, the legislative provisions have prevailed.
In the absence of a specific Accounting Standard,other authoritative pronouncements of the AASB orUIG Consensus View, the hierarchy of otherpronouncements as outlined in AAS 6 “AccountingPolicies” is considered.
Except for certain investments and plant andequipment, which are recorded at valuation, thefinancial statements are prepared in accordance withthe historical cost convention.
All amounts are rounded to the nearest one thousanddollars and are expressed in Australian currency.
(c) Administered Activities
The Department of Fair Trading administers, butdoes not control, certain activities on behalf of theCrown Entity. It is accountable for the transactionsrelating to those administered activities but doesnot have the discretion, for example, to deploy theresources for the achievement of the Department’sown objectives.
Transactions and balances relating to theadministered activities are not recognised as theDepartment’s revenues, expenses, assets andliabilities, but are disclosed in the accompanyingschedules as “Administered Revenues”,“Administered Expenses”, “Administered Assets”and “Administered Liabilities”.
The accrual basis of accounting and all applicableaccounting standards have been adopted for thereporting of the administered activities.
(d) Revenue Recognition
Revenue is recognised when the Department of FairTrading has control of the good or right to receive, it isprobable that the economic benefit will flow to theDepartment and the amount of revenue can be measuredreliably. Additional comments regarding the accountingpolicies for the recognition of revenue are discussedbelow.
(i) Parliamentary Appropriations andContributions from Other Bodies
Parliamentary appropriations andcontributions from other bodies (includinggrants and contributions) are generallyrecognised as revenues when theDepartment obtains control over the assetscomprising the appropriations/contributions. Control over appropriationsand contributions is normally obtainedupon receipt of cash.
An exception to the above is whenappropriations are unspent at year-end. Inthis case, the authority to spend the moneylapses and generally the unspent amountmust be repaid to the Consolidated Fund inthe following financial year. As a result,unspent appropriations are accounted for asliabilities rather than revenue.
(ii) Sale of Goods and Services
Revenue from the sale of goods and servicescomprises revenue from the provision ofproducts or services ie user charges. Usercharges are recognised as revenue when theagency obtains control of the assets thatresult from them.
(iii) Investment Income
Interest revenue is recognised as it accrues.
(e) Employee Entitlements
Page 40 NSW Department of Fair Trading Annual Report 2001-2002
(i) Salaries and Wages, Annual Leave, SickLeave and On-Costs
Liabilities for salaries and wages andannual leave are recognised and measuredas the amount unpaid at the reporting dateat current pay rates in respect ofemployees’ services up to that date.
Unused non-vesting sick leave does notgive rise to a liability as it is notconsidered probable that sick leave takenin the future will be greater than theentitlements accrued in the future.
The outstanding amounts of payroll tax,workers’ compensation insurancepremiums and fringe benefits tax, whichare consequential to employment, arerecognised as liabilities and expenseswhere the employee entitlements towhich they relate have been recognised.
(ii) Long Service Leave and Superannuation
The Department’s liabilities for longservice leave and superannuation areassumed by the Crown Entity. TheDepartment accounts for the liability ashaving been extinguished resulting in theamount assumed being shown as part ofthe non-monetary revenue item describedas “Acceptance by the Crown Entity ofEmployee Entitlements and Other Liabilities”.
Long service leave is measured on anominal basis. The nominal method isbased on the remuneration rates at year-end for all employees with five or moreyears of service. It is considered that thismeasurement technique produces resultsnot materially different from the estimatedetermined by using the present valuebasis of measurement.
The superannuation expense for thefinancial year is determined by using theformulae specified in the Treasurer’sDirections. The expense for certainsuperannuation schemes (ie Basic Benefitand First State Super) is calculated as apercentage of the employees’ salary. Forother superannuation schemes (ie StateSuperannuation Scheme and StateAuthorities Superannuation Scheme), theexpense is calculated as a multiple of theemployees’ superannuation contributions.
(f) Insurance
The insurance activities of the Department of FairTrading are conducted through the NSW TreasuryManaged Fund Scheme of self insurance forGovernment agencies. The expense (premium) isdetermined by the Fund Manager based on pastexperience.
(g) Accounting for the Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net ofthe amount of GST, except:
• the amount of GST incurred by the agency as apurchaser that is not recoverable from theAustralian Taxation Office is recognised as part ofthe cost of acquisition of an asset or as part of anitem of expense.
• receivables and payables are stated with the amountof GST included.
(h) Acquisition of assets
The cost method of accounting is used for the initialrecording of all acquisitions of assets controlled bythe Department. Cost is determined as the fair valueof the assets given as consideration plus the costsincidental to the acquisition.
Assets acquired at no cost, or for nominalconsideration, are initially recognised as assets andrevenues at their fair value at the date of acquisition.
Fair value means the amount for which an asset couldbe exchanged between a knowledgeable, willingbuyer and a knowledgeable, willing seller in an arm’slength transaction.
Where settlement of any part of cash consideration isdeferred, the amounts payable in the future arediscounted to their present value at the acquisitiondate. The discount rate used is the incrementalborrowing rate, being the rate at which a similarborrowing could be obtained.
(i) Plant and Equipment
Single items of plant and equipment costing $5,000and above are capitalised. Computer Equipmentcosting in excess of $4,000 and those items costing inexcess of $1,500 attached to one of the Department’scomputer networks are also capitalised.
(j) Revaluation of Physical Non-Current Assets
Plant and equipment is valued based on the estimatedmarket value having regard to the purchase of similarplant and equipment in the market place.
Each class of physical non-current assets is revaluedevery 5 years. The last such revaluation was
completed on 30 June 2000 and was based on an
independent assessment.
Physical non-current assets have been revalued tomarket value, and not by reference to current pricesfor assets newer than those being revalued. As a result,any balances of accumulated depreciation existing atthe revaluation date in respect of those assets has beencredited to the asset accounts to which they relate.The net asset accounts have been increased ordecreased by the revaluation increments ordecrements.
NSW Department of Fair Trading Annual Report 2001-2002 Page 41
The recoverable amount test has not been applied asthe Department is a not-for-profit entity whoseservice potential is not related to the ability togenerate net cash inflows.
Revaluation increments are credited directly to theasset revaluation reserve, except that, to the extent thatan increment reverses a revaluation decrement inrespect of that class of asset previously recognised asan expense in the surplus/deficit, the increment isrecognised immediately as revenue in the surplus/deficit.
Revaluation decrements are recognised immediatelyas expenses in the surplus/deficit, except that, to theextent that a credit balance exists in the assetrevaluation reserve in respect of the same class ofassets, they are debited directly to the assetrevaluation reserve.
Revaluation increments and decrements are offsetagainst one another within a class of non-currentassets, but not otherwise.
(k) Depreciation of Non-Current Assets
Depreciation is provided for on a straight line basisfor all depreciable assets so as to write off thedepreciable amount of each asset as it is consumedover its useful life to the entity. All material separatelyidentifiable component assets are recognised anddepreciated over their shorter useful lives, includingthose components that in effect represent majorperiodic maintenance. The applicable rates ofdepreciation are :
Motor Vehicles - Trade Measurement 20%Motor Vehicles - Other 8%Fitouts, Furniture and Fittings 10%Electronic Equipment 20%Computer Equipment and Development 33%Trade Measurement Equipment 4%
(l) Leased Assets
A distinction is made between finance leases whicheffectively transfer from the lessor to the lesseesubstantially all the risks and benefits incidental toownership of the leased assets, and operating leasesunder which the lessor effectively retains all suchrisks and benefits.
Where a non-current asset is acquired by means of afinance lease, the asset is recognised at its fair value atthe inception of the lease. The corresponding liabilityis established at the same amount. Lease payments areallocated between the principal component and theinterest expense.
Operating lease payments are charged to theStatement of Financial Performance in the periods inwhich they are incurred.
(m) Receivables
Receivables are recognised and carried at cost,based on the original invoice amount less aprovision for uncollectable debts. An estimate fordoubtful debts is made when collection of the fullamount is no longer probable. Bad debts arewritten off as incurred.
(n) Other financial assets
“Other financial assets” are generally recognised atcost, with the exception of TCorp Hour-GlassFacilities and Managed Fund Investments, whichare measured at market value.
For non-current “other financial assets”,revaluation increments and decrements arerecognised in the same manner as physical non-current assets (see Paragraph j).
For current “other financial assets”, revaluationincrements and decrements are recognised in theStatement of Financial Performance.
(o) Trust Funds
The Department receives monies in a trusteecapacity for various trusts as set out in Note 21. Asthe Department performs only a custodial role inrespect of these monies, and because the moniescannot be used for the achievement of theDepartment’s own objectives, these funds are notrecognised in the financial statements.
(p) Other assets
Other assets including prepayments are recognisedon a cost basis.
(q) Payables
These amounts represent liabilities for goods andservices provided to the agency and other amounts,including interest. Interest is accrued over theperiod it becomes due.
(r) Budgeted Amounts
The budgeted amounts are drawn from the budgetsas formulated at the beginning of the financial yearand with any adjustments for the effects ofadditional appropriations, s 21A, s 24 and/or s 26 ofthe Public Finance and Audit Act 1983.
The budgeted amounts in the Statement ofFinancial Performance and the Statement of CashFlows are generally based on the amountsdisclosed in the NSW Budget Papers (as adjustedabove). However, in the Statement of FinancialPosition, the amounts vary from the Budget Papers,as the opening balances of the budgeted amountsare based on carried forward actual amounts ie perthe audited financial statements (rather than carriedforward estimates).
Page 42 NSW Department of Fair Trading Annual Report 2001-2002
2. EXPENSES 2002 2001 $’000 $’000
(a) Employee related expenses comprise the following specific items:Salaries and wages (including Recreation Leave) 63,798 61,656Superannuation 5,849 5,673Long service leave 2,567 2,640Workers’ compensation insurance 820 283Payroll Tax and Fringe Benefit Tax 4,496 4,418Redundancies 31 225
77,561 74,895(b) Other operating expenses
Auditor’s remuneration- audit of financial reports 111 108Bad and Doubtful Debts 914 954Rental expense relating to operating leases 10,238 10,127Insurance 242 254Telephones/Postage 4,345 4,626Fees 6,216 5,151Stores 1,774 1,651Motor Vehicle Expenses 1,083 957Travel 1,302 1,342Advertising 1,558 1,190Fitout of Premises 121 258Books, periodicals, newspapers and subscriptions 366 421Gas/Electricity 322 272Minor Equipment 4,443 3,966Maintenance contracts 398 379Other Expenses 870 919
34,303 32,575
(c) Depreciation and amortisation expenseComputer equipment and development 5,848 4,093Electronic equipment 209 159Fitouts, Furniture and Fittings 1,413 1,309Trade Measurement equipment 25 25Vehicles 44 46
7,539 5,632Amortisation of premium on investment - 16
7,539 5,648
(d) Grants and subsidiesCredit Counselling services 917 898Co-operative Development Fund 184 124Tenancy Advice and Advocacy Program 1,766 1,482Building Education Grants 385 382Real Estate Education Grants 237 291Subsidies to Fair Trading Administration Corporation 12,000 15,000Other 79 172
15,568 18,349
(e) Other ExpensesLegal Assistance 217 330Motor Dealers’ Compensation Fund Payments 264 583Property Services Compensation Claims 620 480Written Down Value of Assets Written Off 321 357Other Expenses 153 320
1,575 2,070
NSW Department of Fair Trading Annual Report 2001-2002 Page 43
3. REVENUES 2002 2001 $’000 $’000
(a) Sale of goods and servicesSale of publications 120 33Other goods 35 41Fees charged by REVS for provision of services and registeringof encumbrances over vehicles 8,184 7,959Fees charged for the lodgement of a claim before the:- Consumer Trader & Tenancy Tribunal 1,521 1,430Fees charged for search of Business Names database 2,152 1,744Fees charged for establishment and renewal of Associations 264 244Electrical Appliance Testing 778 659Administrative Assistance 23,491 23,918Other services 195 216
36,740 36,244
(b) Investment IncomeInterest - Investments 1,454 2,050 - Bank Accounts 675 364
2,129 2,414
(c) Retained fees and finesMotor Dealers Compensation Fees 667 996Real Estate License Fees 864 826Property Services Compensation Fund 1,604 625Statutory Interest 21,890 23,155Owner Builder Permit Fees 2,570 688Fines/Penalties 60 26
27,655 26,316
(d) Grants and contributionsContribution from Rental Bond Board (i) 7,013 6,154Grants from Department of Industry, Science and Resources - 89Grants from Department of Treasury (ii) 806 -Grants from Premiers Department (iii) 132 -Grant from NSW Department of Housing (iv) 91 -Employment Grants - NSW Department of Training and Education Co-ordination - 9Sponsorships - 54
8,042 6,306
(i) The cost of running the residential tenancy function of the Consumer Trader and Tenancy Tribunal is split 50/50by the Rental Bond Board and the Property Services Statutory Interest Fund. This grant reflects the Rental BondBoard’s contribution to the cost of administering this function.
(ii) A grant of $806,000 was provided by NSW Treasury for reimbursement of HIH costs.
(iii) A grant of $120,000 was received from the Premier’s Department to fund the Electronic Self Service Project. Afurther grant of $12,500 was provided for funding under the Premier’s Department’s Aboriginal Employment inPractice Support Strategy.
(iv) A grant of $90,909 was received from the Department of Housing toward the development of an ElectronicService Delivery system within the Consumer Trader and Tenancy Tribunal.
(e) Other RevenueTelstra Rebate 70 249Legal Costs Recovered 656 304Other 96 472
822 1,025
Page 44 NSW Department of Fair Trading Annual Report 2001-2002
4. GAIN/(LOSS) ON DISPOSAL OF NON-CURRENT ASSETS
2002 2001$’000 $’000
Gain/(loss) on disposal of plant and equipment Proceeds from disposal 5 - Written down value of assets disposed (11) -Net gain/(loss) on disposal of plant and equipment (6) -
Gain/(loss) on disposal of investments Proceeds from disposal 5,502 5,614 Written down value of investments disposed (5,502) (5,017)Net gain/(loss) on disposal of investments - 597
Gain/(loss) on disposal of non-current assets (6) 597
5. APPROPRIATIONS
Recurrent appropriationsTotal Recurrent drawdowns from Treasury(per Summary of Compliance) 60,026 61,623Less: Liability to Consolidated Fund - -
(per Summary of Compliance) 60,026 61,623
Comprising: Recurrent appropriation (per Statement of FinancialPerformance) 60,026 61,623
Total 60,026 61,623
Capital appropriationsTotal Capital drawdowns from Treasury(per Summary of Compliance) 2,619 2,016Less: Liability to Consolidated Fund 167 -
(per Summary of Compliance) 2,452 2,016
Comprising:Capital appropriations (per Statement of Financial Performance) 2,452 2,016
Total 2,452 2,016
6. ACCEPTANCE BY THE CROWN ENTITY OF EMPLOYEEENTITLEMENTS AND OTHER LIABILITIES
The following liabilities and/or expenses have been assumed by theCrown Entity:Superannuation 3,014 2,927Long Service Leave 1,315 1,368Payroll Tax 187 184
4,516 4,479
7. PROGRAMS/ACTIVITIES OF THE DEPARTMENT
44.1.1 Fair Trading Strategy
This program includes the Departmental Division, Policy and Strategy (excluding the Funding Programs Branch).
Objectives: To develop and promote value and fairness in the New South Wales marketplace.
44.1.2 Marketplace Performance
This program includes the Departmental Divisions, Compliance and Standards (excluding the Trade MeasurementBranch) and Legal Services.
Objectives: To detect, remedy and deter unfair trading practices.
NSW Department of Fair Trading Annual Report 2001-2002 Page 45
44.1.3 Fair Trading Standards and Registers
This program includes the Departmental Divisions, Licensing and Registration Services and Home Building(excluding the Home Building Insurance Branch) and the Registry of Co-operatives and Associations.
Objectives: To maintain confidence in the marketplace through the provision of registration and licensingservices.
44.1.4 Consumer and Trader Services
This program includes the Departmental Divisions, Customer Services and Property and Licensing (excludingmediation services provided by the Strata Schemes and Mediation Branch), the Home Building Insurance Branch ofthe Home Building Division, the Funding Programs Branch of the Policy and Strategy Division, the TradeMeasurement Section of the Compliance and Standards Division, and REVS.
Objectives: To foster fairness and ethical trading in the marketplace.
44.1.5 Tribunals
This program includes the Consumer, Trader and Tenancy Tribunal and mediation services provided by the StrataSchemes and Mediation Services of the Property and Licensing Division.
Objectives: To ensure impartial forums for the resolution of marketplace disputes.
8. CURRENT ASSETS – CASH
Cash comprises cash on hand, Hourglass Cash and Cash Plus facilities and bank balances within the Treasury BankingSystem. Interest is earned on daily bank balances at the monthly average New South Wales Treasury Corporation(TCorp) 11am unofficial cash rate adjusted for a management fee to Treasury. The applicable rate at 30 June 2002 for theTreasury Banking System was 3.73% (4% 2000/2001) and TCorp interest for Hour-Glass Cash and Cash Plus was 4.61%(6.01% 2000/2001) and 4.67% (5.93% 2000/2001) respectively.
2002 2001$’000 $’000
Cash at Bank 20,317 4,206Cash on Hand 48 48Cash Facility 8 4,928Cash Plus Facility 923 6,993
21,296 16,175
For the purposes of the Statement of Cash Flows, cash includes cash on hand, Hour-Glass Cash and Cash Plus and cashin bank.
Cash assets recognised in the Statement of Financial Position are reconciled to cash at the end of financial year as shownin the Statement of Cash Flows as follows:
Cash (per Statement of Financial Position) 21,296 16,175
Closing Cash and Cash Equivalents 21,296 16,175(per Statement of Cash Flows)
9. CURRENT ASSETS – OTHER FINANCIAL ASSETS
The Department has investments in TCorp’s Hour-Glass Investment facilities. The Department’s investments arerepresented by a number of units of a managed investment pool, with each particular pool having different investmenthorizons and being comprised of a mix of asset classes appropriate to that investment horizon. TCorp appoints andmonitors fund managers and establishes and monitors the application of appropriate investment guidelines. Theseinvestments are generally able to be redeemed with seven days notice (dependent upon the facility). The value of theinvestments held can decrease as well as increase depending upon market conditions. The value that best represents themaximum credit risk exposure is the net fair value. The value of the above investments represents the Department’sshare of the value of the underlying assets of the facility. Those assets are stated at net fair value as advised by the NewSouth Wales Treasury Corporation as at 30 June 2002, with an effective interest rate of 5.54%(6.73% 2000/2001).
Page 46 NSW Department of Fair Trading Annual Report 2001-2002
2002 2001$’000 $’000
The Department’s investments are:
TCorp Hour-Glass Bond Market Facility 23,306 27,464
23,306 27,464
10. CURRENT ASSETS – RECEIVABLES
All trade debtors are recognised as amounts receivable at balance date. Collectability of trade debtors is reviewed onan ongoing basis. Debts, which are known to be uncollectable, are written off. A provision for doubtful debts is raisedwhen some doubt as to collection exists. The credit risk is the carrying amount (net of any provision for doubtfuldebts). No interest is earned on trade debtors. The carrying amount approximates net fair value. Sales are made on 30day terms.
Receivables currently comprise:Sale of goods and services 830 1,008Retained fees & fines 10,032 8,141Unallocated Income – Remitting Account - 62Interest for Operating Accounts 361 160Administrative Assistance due 2,131 1,191Inter-agency Transfers – Rental Bond Board 92 -GST Input Taxes 655 475Other 1,015 890
15,116 11,927Less: Provision for doubtful debts- Motor Dealers’ Compensation Fund 2,040 1,783- Property Services Compensation Fund 4,346 3,922
6,386 5,705
8,730 6,222
Receivables amount due written off during the year were:Motor Dealers’ Compensation Fund 114 -Other 119 12
233 12
11. CURRENT ASSETS – OTHER
Prepayments 815 950
815 950
12. NON CURRENT ASSETS – PROPERTY, PLANT AND EQUIPMENT
Computer Equipment and DevelopmentAt Cost 13,512 4,135At Valuation 11,484 13,600
24,996 17,735
Accumulated Depreciation at Cost 1,449 181Accumulated Depreciation at Valuation 8,454 3,886
9,903 4,067
15,093 13,668Electronic EquipmentAt Cost 471 289At Valuation 654 664
1,125 953
Accumulated Depreciation at Cost 99 22Accumulated Depreciation at Valuation 264 134
363 156
762 797
NSW Department of Fair Trading Annual Report 2001-2002 Page 47
2002 2001$’000 $’000
Fitouts, Furniture and FittingsAt Cost 4,224 1,918At Valuation 12,087 12,840
16,311 14,758
Accumulated Depreciation at Cost 86 11Accumulated Depreciation at Valuation 2,552 1,282
2,638 1,293
13,673 13,465Trade Measurement EquipmentAt Cost 25 25At Valuation 703 703
728 728
Accumulated Depreciation at Cost 1 -Accumulated Depreciation at Valuation 48 24
49 24
679 704Motor VehiclesAt Cost - -At Valuation 215 231
215 231
Accumulated Depreciation at Cost - -Accumulated Depreciation at Valuation 86 46
86 46129 185
Total Property, Plant and Equipment at Net Book Value 30,336 28,819
Reconciliations
Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of thecurrent and previous financial year are set out below.
Plant & Equipment Total$’000 $’000
2002Carrying amount at start of year 28,819 28,819Additions 9,389 9,389Disposals (333) (333)Depreciation expense (7,539) (7,539)
Carrying amount at end of year 30,336 30,336
Plant & Equipment Total$’000 $’000
2001Carrying amount at start of year 27,911 27,911Additions 6,367 6,367Disposals (357) (357)Net revaluation increment less revaluation decrements 215 215Depreciation expense (5,631) (5,631)Other movements 314 314
Carrying amount at end of year 28,819 28,819
A revaluation of all physical non-current assets to market value was completed on 30 June 2000, in accordance with thepolicy of revaluing each class of physical non-current assets every 5 years. An independent valuation of the market valuewas carried out by Paul Stokes, Licensed Auctioneer and Valuer, of James R Lawson Pty. Ltd.
Page 48 NSW Department of Fair Trading Annual Report 2001-2002
13. CURRENT LIABILITIES – PAYABLES
The liabilities are recognised for amounts due to be paid in the future for goods and services received, whether or notinvoiced. Amounts owing to suppliers (which are unsecured) are settled in accordance with the policy set out inTreasurer’s Direction 219.01. If trade terms are not specified, payment is made no later than the end of the monthfollowing the month in which an invoice or a statement is received. Treasurer’s Direction 219.01 allows the Ministerto award interest for late payment. There were no claims for late payment interest during the reporting periods.
2002 2001$’000 $’000
Trade Creditors 1,177 1,402Other Creditors 318 299
1,495 1,701
14. CURRENT/NON CURRENT LIABILITIES – EMPLOYEE ENTITLEMENTS AND OTHER PROVISIONS
Employee EntitlementsCurrent :Recreation leave 5,050 4,760Accrued salaries and wages 2,169 2,336
7,219 7,096SES Liabilities 13 10
7,232 7,106Non Current :Payroll Tax on Long Services Leave 960 904
960 904
Aggregate employee entitlements 8,192 8,010
15. CURRENT LIABILITIES – OTHER
Real Estate Licenses – prepaid 590 548Provision for outstanding claims 2,800 3,795
3,390 4,343
Trowbridge Consulting carried out an Actuarial Review of the Property Services Compensation Fund as at 30 June2002. The purpose of this review was to ascertain the possible liability of the Compensation Fund. The Actuaryrecommended that the outstanding claims provision for this fund be reviewed every two to three years. The nextactuarial assessment will be obtained as at 30 June 2004.
The outstanding claim provisions recommended by the Actuary in the advice dated June 2002 total $2.8 million (2001- $3.5 million). This figure included a prudential margin of $0.3 million (2001 - $0.3 million). This margin represents20% of the Actuary’s net central estimates for outstanding claims and has been recommended by the Actuary to allowfor the uncertainty in the claims and estimation processes and possible future changes to the risk profile. A provisionof $ 1 million (2001 - $2.0 million) has been made to cover the possibility of one large event occurring during 2002/2003.
16. CHANGES IN EQUITYAccumulated Asset Total Equity
Funds Revaluation Reserve2002 2001 2002 2001 2002 2001
$’000 $’000 $’000 $’000 $’000 $’000Balance at the beginningof the financial year 64,713 57,230 863 648 65,576 57,878
Changes in equity –other than transactionswith owners as ownersSurplus for the year 5,830 7,483 - - 5,830 7,483
Increment on revaluation ofplant and equipment - - - 215 - 215Balance at the end of thefinancial year 70,543 64,713 863 863 71,406 65,576
NSW Department of Fair Trading Annual Report 2001-2002 Page 49
Asset revaluation reserveThe asset revaluation reserve is used to record increments and decrements on the revaluation of non-current assets.This accords with the Department’s policy on the ‘Revaluation of Physical Non-Current Assets’ and ‘Investments’, asdiscussed in Note 1.
17. COMMITMENTS FOR EXPENDITURE2002 2001
$’000 $’000(a) Capital Commitments
Aggregate capital expenditure for the acquisition of computer &office equipment contracted for at balance date but not provided for:Not later than one year 646 755Later than 1 year and not later than 5 years - -Later than 5 years - -
Total (including GST) 646 755
(b) Other Expenditure CommitmentsAggregate other expenditure for outstanding grants payments and theacquisition of office supplies and services contracted for at balancedate but not provided for:Not later than one year 805 874Later than 1 year and not later than 5 years - -Later than 5 years - -
Total (including GST) 805 874
(c) Operating Lease CommitmentsFuture non-cancellable operating lease rentals not provided for and payableNot later than 1 year 8,206 8,653Later than 1 year and not later than 5 years 12,250 8,635Later than 5 years 435 254
Total (including GST) 20,891 17,542
The above represent the leases for the Department’s offices throughout the state.These capital, other expenditure and operating lease commitments are not recognised in the financial statements asliabilities.
Contingent AssetThe total ‘other expenditure commitments’ above includes input tax credits of $2.0 million that are expected to berecoverable from the Australian Tax Office.
18. CONTINGENT LIABILITIES
Estimated legal liability 80 948
80 948
The Department is currently involved in one legal case where costs have been awarded against it. It is estimated thatthese costs may total $80,000.
19. BUDGET REVIEWActual Budget Variance Comment
2002 2002 Budget to Actual$’000 $’000 $’000 %
Statement of Financial PerformanceNet Cost of Services 61,164 66,953 (5,789) (8.6) (a)
Statement of Financial PositionTotal Current Assets 54,147 50,326 3,821 7.6Total Non-Current Assets 30,336 30,878 (542) (1.8)Total Assets 84,483 81,204 3,279 4.0 (b)
Total Current Liabilities 12,117 13,351 (1,234) (9.2)Total Non-Current Liabilities 960 904 56 6.2Total Liabilities 13,077 14,255 (1,178) (8.3) (b)
Net Assets 71,406 66,949 4,457 6.7
Page 50 NSW Department of Fair Trading Annual Report 2001-2002
Statement of Cash Flows (c)
Cash Inflow/(Outflow) fromOperating Activities 9,003 5,672 3,331 58.7Cash Inflow/(Outflow) fromInvesting Activities (3,882) (6,157) 2,275 (36.9)
Net Increase/(Decrease) in Cash 5,121 (485) 5,606 n/a
(a) Net Cost of Services
The actual net cost of services was lower than budget by $5.8m. This was primarily due to an increase in therecoupment of costs from the self funding entities, income from the sale of goods and services and grants andcontributions. This has been offset, in part, by increased operating expenditure relating to computer purchases early inthe year which has had the effect of increasing depreciation.
(b) Assets and Liabilities
Relative to the budget, the increase in the level of net assets during 2001/02 is a result of an increase in revenue, anincrease in receivables relating to the recoupment of expenses from self-funding entities and a decrease in payables.
(c) Cashflows
The change in cash flow can be attributed to an increase in proceeds from the sale of investments and an increase in thesale of goods and services, including the recoupment of costs from the self funding entities, which is partly offset by anincrease in other operating expenditure.
20. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO NET COST OF SERVICES
2002 2001$’000 $’000
Net cash provided by operating activities (9,003) (10,230)Cash Flows from Government/Appropriations 64,050 64,983Acceptance by the Crown Entity of employee entitlements and other liabilities 3,111 3,135Liability to Consolidated Fund (167) -Depreciation and amortisation 7,539 5,648Increase in provision for doubtful debts 681 945Increase/(decrease) in Employee Entitlements and Other (771) 165(Increase)/decrease in prepayments and other assets (3,054) (1,604)Increase/(decrease) in creditors (206) (489)Net loss/(gain) on sale of plant and equipment 6 (597)Written Down Value of assets written off 321 357Recognition of assets after stocktake - (314)Valuation gains on TCorp investments (1,343) (1,364)
Net cost of services 61,164 60,635
21. TRUST FUNDS
The Department holds moneys in a Miscellaneous Trust Fund held at New South Wales Treasury that is used forpayments to Funeral Fund claimants and McFadden Compensation. These monies are excluded from the financialstatements as the Department cannot use them for the achievement of its objectives. The following is a summary of thetransactions in the trust accounts:
Funeral FundCash balance at the beginning of the financial year 112 113Add : Receipts - -Less : Expenditure - 1
Cash balance at the end of the financial year 112 112
NSW Department of Fair Trading Annual Report 2001-2002 Page 51
2002 2001$’000 $’000
McFadden CompensationCash balance at the beginning of the financial year 4 83Add : Receipts - 6Less : Expenditure 4 85
Cash balance at the end of the financial year - 4
22. SPECIAL PURPOSE FUNDS ADMINISTERED BY THE DEPARTMENT
Motor Dealers Property Services Statutory Home BuildingCompensation Compensation Interest Administration
Fund Fund Account Fund$’000 $’000 $’000 $’000
Balance as at 1/7/2001 1,537 26,243 14,133 -Receipts 489 2,413 22,237 1,869Expenditure – Administrative 363 3,895 19,508 609Expenditure – Capital - 83 1,961 -
Balance as at 30/6/2002 1,663 24,678 14,901 1,260
The Motor Dealers Act 1974 established the Motor Dealers Compensation Fund to provide protection to personswho have suffered a loss in connection with a motor vehicle through their dealings with a motor dealer or a car-market operator. Licensing fees paid by full dealers and car-market operators finance the fund. Claims are usuallymade on the fund when a motor dealer ceases to trade either on a voluntary basis or a forced closure.
The Property, Stock and Business Agents Act 1941 established the Property Services Compensation Fund which issupported by:i) investment income earned on the investments of the fund;ii) contributions or levies paid by licensees; andiii) other lawful receipts.
Money in the Compensation Fund is applied to:i) payment of claims, as provided by the Act;ii) legal expenses in relation to claims, licensing objections and complaints for cancellation, incurred in relation
to the Fund;iii) the expense involved in the administration of the Fund; andiv) other lawful expenses.
The Statutory Interest Account is supported, under Sections 36AC and 63D of the Property, Stock and Business AgentsAct 1941, by interest earned on trust money held by agents and investments made by the Department.
The Statutory Interest money is applied to:i) Schemes for establishing and conducting courses leading to license qualifications prescribed by the Act and
educational meetings organised by or for the Department for licensees;ii) trustee status housing programs;iii) the payment to the Department for expenses of the collection of interest and investment administered under
Sections 36D and 36AC of the Act; andiv) meeting half the costs, charges and expenses of the Tenancy Advice and Advocacy Program and the residentialtenancy functions of the Consumer Trader and Tenancy Tribunal and the full costs, charges and expenses of the StrataSchemes and Mediation Service.
The Home Building Administration Fund is supported by:i) prescribed fees for contractor licences, registration certificates, owner-builder permits and building consultancy
licences;ii) investment income earned on the investments of the Fund; andiii) other lawful receipts.
Money in the Home Building Administration Fund is applied to:i) meeting the costs of operating the scheme;ii) meeting the costs of administering the Home Building Act 1989; andiv) the making of any authorised investments.
Page 52 NSW Department of Fair Trading Annual Report 2001-2002
23. ADMINISTERED ASSETS AND LIABILITIES2002 2001$’000 $’000
Administered AssetsReceivables Note 25 71 175Other 36 42
Total Administered Assets 107 217
Administered LiabilitiesLiability to Consolidated Fund (i) 36 42
Total Administered Liabilities 36 42
i) Treasury letter dated 29 April 1997, advised of their decision to provide an interest-free advance to the Administratorof the AWU and Guardian Co-operative Housing Societies. The payment of $102,000 was to be made by theDepartment of Fair Trading and the repayments made to the Department of Fair Trading and then onforwarded toTreasury. Repayments of $6,000 were received by the Department of Fair Trading during the period 1 July 2001 to 30June 2002 and onforwarded to Treasury. Balance of loan of $36,172 is shown as Other Administered Assets.
24. ADMINISTERED REVENUE – DEBTS WRITTEN OFF
Business Name Registration 51 25Trade Measurement 1 -Other - 29
52 54
25. ADMINISTERED REVENUE – SCHEDULE OF UNCOLLECTED AMOUNTS
License Fees 25 51Business Registrations 23 33Trade Measurement 23 91
71 175
Aged Analysis of Administered Revenue
Current 57 158Between 30 days and 59 days old 4 6Between 60 days and 89 days old 4 3Over 90 days old 6 8
71 175
26. AFTER BALANCE DATE EVENTS
The Department of Fair Trading is not aware of any circumstances that occurred after balance date which wouldrender particulars included in the financial statements to be misleading.
End of audited financial statements
NSW Department of Fair Trading Annual Report 2001-2002 Page 53
1 Customer Feedback ..................................................................................... 54
2 Guarantee of Customer Service ................................................................... 54
3 Energy Management & Waste Reduction ................................................... 54
4 Accounts Payable Performance ................................................................... 55
5 Consultancies Over $30,000 ......................................................................... 55
6 Official Overseas Travel ................................................................................. 55
7 Penalty Notices ............................................................................................. 56
8 Civil Litigation ................................................................................................ 56
9 Prosecutions .................................................................................................. 57
10 Director-General’s Report on Funeral Funds .............................................. 57
11 Risk Management and Insurance ................................................................. 57
12 Rental Bond Board ....................................................................................... 58
13 Publications ................................................................................................... 58
14 Portfolio Authorities ....................................................................................... 59
15 Freedom of Information ................................................................................ 60
16 Senior Executive Service ............................................................................... 61
17 Internal Audit .................................................................................................. 62
18 Privacy Management Plan ............................................................................ 62
19 Membership of Statutory Bodies and Interdepartmental Committees ...... 63
20 Grants ............................................................................................................. 64
21 NSW Action Plan for Women ....................................................................... 67
22 Equal Employment Opportunity Statistics .................................................. 68
23 Staff Classification Profile .............................................................................. 68
24 Disability Action Plan .................................................................................... 69
25 Ethnic Affairs Priorities Statement ................................................................. 70
26 Building Insurers’ Guarantee Corporation ................................................... 71
appendices
Page 54 NSW Department of Fair Trading Annual Report 2001-2002
2. Guarantee of Customer Service
Service delivery standards vary with thenature of the particular services providedin different divisions of the Department,and are set out in detail in the Guarantee ofCustomer Service, which was updatedduring the year.
1. Customer Feedback
The Department operates a customerfeedback systems known as “YourOpinion Counts” that allows customersto comment on the services offered bythe Department. “Your Opinion Counts”forms are lodged by mail or through theDepartment’s Web site.
During the year, 26 complaints werereceived. These were resolved eitherthrough ministerial correspondence orby conciliation with program managers.No allegations of suspected corrupt
00-01 01-02
Total 215 223 179 174
Compliment 90% 86% 81% 85%
Complaint 10% 14% 19% 15%
conduct or illegal behaviour werereceived through the customer feedbacksystem. These 26 complaints related to:
• Service delays 15%• Actions of staff 19%• Inability to register/pay online 11%• DFT Web site inadequacies 31%
The standards set out in this documentwere met in most service areas duringthe year. However, there were delays onoccasion during the year in the propertylicensing area, attributable to very highdemand volumes.
Energy management planWe have an energy management plan andwe are committed to achieving savings inenergy usage and to sustained energymanagement principles. We have threelarge sites that purchase electricity onthe contestable market including thatfrom renewable resources. This helps tolower our costs and also assists inachieving a reduction of greenhouse gasemissions.
We are endeavouring to reduce energyconsumption in all of our tenancies. Tohelp achieve this, we have taken action toinclude all remaining sites in the nextgovernment contract for electricitysupply effective 1 July 2002. This is beingarranged through the Department ofPublic Works and Services.
We are developing a new tenancy inTamworth as a ‘green site’ to help reduceenergy wastage and cost. All lighting willuse tri-phosphorus tubing and will be
activated by motion detectors and turnoff automatically when not needed.Activation of lighting will also besynchronised with the security accesssystem. Air conditioning will be on atiming system set to work only duringthe office’s business hours.
We are trialing two dedicated LPGsedans and one duel LPG/petrol stationwagon.
Accountability and responsibility forenergy management has been establishedby appointment of an energy managerand an energy coordinator.
Waste reduction andpurchasing planWe have a waste reduction andpurchasing plan aimed at optimising theuse of material with recycled contentand reducing the amount of waste thatgoes to land fill.
• Accuracy of information given 12%• Other/misc. 12%
A major redesign of the DFT Web siteduring 2001-2002 is expected to result inreduction of complaints concerning Website inadequacies.
3. Energy Management & Waste Reduction
We have a partnership arrangement witha key supplier under NSW Governmentcontract for photocopier/facsimilemachines that can operate effectivelywith recycled paper. This includes theuse of recycled toner cartridges underthe maintenance contract.
We also have a policy on the purchase ofcopy paper with recycled content and apreferred supplier for general stationerywith the clear intention of utilisingproducts with recycled contentwherever possible. This includes thepurchase of recycled and recyclabletoner cartridges.
We are actively reviewing anddeveloping our internet/intranetfacilities to reduce paper usage andwaste.
Examples of our commitment to wastemanagement are shown on the WRAPPweb site (www.wrapp.nsw.gov.au).
NSW Department of Fair Trading Annual Report 2001-2002 Page 55
4. Accounts Payable Performance
Aged analysis at the end of each quarter:
Quarter Current Less than 30 30-60 60-90 More than 90
days overdue days overdue days overdue days overdue
$ $ $ $ $
September 299,016 2,821 29,763 0 0
December 559,376 11,962 12,562 151,227 0
March 537,636 6,827 1,274 0 0
June 885,175 7,500 0 0 0
Accounts paid on time within each quarter:
Quarter Total Accounts Paid on Time Total Paid
Target % Actual % $ $
September 96.00 98.01 22,271,952 22,788,862
December 96.00 97.67 22,839,530 23,210,471
March 96.00 98.64 19,902,626 20,647,196
June 96.00 98.00 25,235,799 25,570,420
Commentary:• A detailed transaction analysis/investigation was undertaken to more accurately determine the actual number of accounts paid
on time. The new method of calculation has revealed an average increase of 6.67% as against the former less accurate method ofcalculation.
• During 2001-02 there were no instances of interest being paid in respect of late payments.
5. Consultancies over $30,000
Consultant $ Cost Title / Nature
Information Technology
Tactics Consulting P/L 80,321 Web site information design
CMG Admiral 78,954 Electronic Service Delivery (ESD) – Internet/Intranet
architecture project
Crowe Associates P/L 51,881 Review of Customer Assistance System on-line
business case and preparation of the request for
quotation for the project
Total consultancies of $30,000 or more: 211,156
Consultancies less than $30,000
During the 2001-02 financial year 11 other consultancies were undertaken in the following areas:
Information Technology: 118,691
Program/Process Review: 25,250
Management Services: 7,955
Total consultancies less than $30,000: 151,896
Total Consultancies: $363,052
6. Official Overseas Travel
Officer Dates Destination Purpose
Alexander Krestovsky 17 to 20 July 2001 Singapore Undergo training in performance assessment
of electrical articles for registration with
mandatory requirements
Rod Hawks 25 Feb to 2 Mar 2002 Wellington, New Zealand Attend standards and regulatory meetings
Page 56 NSW Department of Fair Trading Annual Report 2001-2002
7. Penalty Notices
Penalty notices are used in relation to breaches of prescribed statutory provisions. Penalty notices do not take away the person’sright to have the matter determined by a court and payment of the penalty does not constitute an admission of liability orprejudice any civil claim relating to the matter.
Penalty notices and fine totals
Acts Defendants Offence Penalties $
Business Names 26 27 5,400
Fair Trading 10 21 4,900
Home Building 10 13 4,250
Landlord & Tenant (Rental Bonds) 0 0 -
Motor Dealers 132 587 29,050
Pawnbrokers & Second-hand Dealers 14 28 12,200
Property Stock & Business Agents 208 243 129,910
Trade Measurement 38 74 22,150
Trade Measurement (Weighbridges) Reg 1 1 250
Total: 439 994 208,110
Court/Tribunal Act No. of matters
Court of Appeal
Appeal CL 1
Total 1
Supreme Court
Injunction FT 18
Other HB 2
FT 4
RV 1
CL 1
Contempt SC 2
Total 28
District
Licence Complaints PSBA Act 1
Total 1
Local Court
Licence Complaints PSBA 12
Objections PSBA 31
Total 43
Administrative Appeals Tribunal
Appeal MR 1
Total 1
Administrative Decisions Tribunal
Licence Appeals HB 10
MD 2
FT 3
PSHD 5
CLA 1
Total 21
Consumer, Trader & Tenancy Tribunal
Show Cause HB 8
Insurance Appeals HB 50
Total 58
Total all Civil Litigation 153
8. Civil Litigation
Civil Litigation includes:• injunctive and ancillary relief in the
Supreme Court• complaints in the Local and District
Court• objections in licensing matters under
the Property Stock and Business Agents Act• proceedings in the Administrative
Decisions Tribunal regarding reviewof decisions under the ConveyancersLicensing Act, Fair Trading Act, HomeBuilding Act, Motor Dealers Act,Pawnbrokers and Second-hand Dealers Actand the Travel Agents Act
• proceedings in the Consumer Traderand Tenancy Tribunal under the HomeBuilding Act relating to buildinginsurance and licence disciplinarymatters.
The Department’s Legal ServicesDivision also acts or instructs in variouscourts and tribunals where the Ministeror Director-General intervenes inproceedings or action has been takenagainst the Minister or Director-General.
LegendCL - Conveyancers Licensing Act,
FT - Fair Trading Act,
HB - Home Building Act,
MD - Motor Dealers Act,
MR - Mutual Recognition Act,
PSBA - Property, Stock & Business
Agents Act,
PSHD - Pawnbrokers and Second-
hand Dealers Act,RV - Retirement Villages Act
SC - Supreme Court Act
NSW Department of Fair Trading Annual Report 2001-2002 Page 57
9. Prosecutions
Act Defendants Offences Penalties $
Business Names 11 20 21,373
Conveyancers Licensing Act 3 3 924
Door To Door Sales Act 1 1 -
Electricity Safety Act 14 63 18,230
Fair Trading 21 141 116,072
Home Building 19 63 54,008
Motor Dealers 34 172 164,179
Pawnbrokers & Second-hand Dealers 9 35 22,910
Property Stock & Business Agents 31 84 179,259
Residential Tenancies Act 2 5 23,049
Residential Parks Act 1 1 790
Trade Measurement 15 146 41,258
Landlord & Tenant (Amendment) Act 1 1 2,500
Total 162 735 644,552
As at 30 June 2002, the funeral fundregister had 15 registered funds and 30funds exempted under Section 114B(1)of the Act that were currently active.
The exempted funds are primarilycontributory funds. The exemptionswere granted on the basis that the fundsdid not take on new members.
Registered funeral funds are required toprovide the Department with statementson an annual basis, which set outoperational details of the funds asprescribed by legislation. During theyear, we undertook a major initiative toimprove the compliance rate of funeralfunds in lodging annual returns. Thefunds responded positively andimprovements in the compliance rateswere evident during 2001-2002.
The Department also continues tomaintain a trust fund for contributors tothe Russell Kinsela group of companies,
which went into liquidation in the early1980’s. Funds retrieved from onecompany in the group have been retainedin trust by the Department to partiallysettle claims made by previouslyunidentifiable contributors to theschemes run by the group. There wereno claims from former contributorsduring the 2001-2002 financial year. Theamount held in trust at 30 June 2002 was$111,955.17.
A review of the Funeral Funds Act 1979was conducted in accordance with therequirements of the NationalCompetition Policy review agenda. Thereview embraced both the industry andcommunity in its consultation process. Areport with recommendationsanticipated to improve regulation of thesector was released in April 2002.
The Report concluded that continuedregulation of the funeral funds industryis appropriate. Proposed reforms
10. Director-General’s Report on Funeral Funds
include measures to improve consumerprotection, clarify and update existinglegislation and stimulate competitionwithin the industry.
The Report is in the consultation phase.Comments have been invited frommembers of the public, industry andconsumer groups.
The Department in its pursuit ofcontinuously improving customerservice is transferring the administrationof funeral funds to the newly formedRegistry of Co-operatives andAssociations located in Bathurst.
This initiative also links with thecommitment of the New South WalesGovernment to provide increased jobopportunities in regional areas. Thetransfer was effective from 1 July 2002.
DFT has implemented a riskmanagement planning framework in linewith Australian Standards (AS/NZS4360). Risk management plans are beingproduced for the 2002-2003 year by eachdivision after workshops facilitated byDFT Internal Audit. Risk management ismonitored by a sub-committee of theDFT Executive Internal AuditCommittee.
Risk management strategies in place toprotect our employees, assets andbusiness reputation include:
• a business continuity plan to helpensure our ongoing operations in the
11. Risk management and insurance
event of a major disruption to essentialservices.
• a staff code of conduct
• developed plans covering a range ofessential functions such asinformation technology,telecommunications andaccommodation.
• emergency exit procedures andevacuation practices.
• a monitored electronic access systemin our major tenancies. This is beingexpanded to other tenancies as theopportunity arises.
• a records management systemcomplying with the State Records Act.
• policies on the use and maintenance ofmotor vehicles including minimumstandard features for all departmentalmotor vehicles and other specialfeatures for vehicles used in countryareas.
• an active OH&S Working Committeethat promotes our OH&S policystatement and actively pursues itsimplementation. During the year wereconstituted our workplacecommittees.
• Maintenance of up-to-date insurancepolicies for motor vehicles, property,workers compensation and publicliability.
Page 58 NSW Department of Fair Trading Annual Report 2001-2002
12. Rental Bond Board
The Rental Bond Board was establishedin 1977 under the Landlord and Tenant(Rental Bonds) Act 1977 to act as animpartial custodian of rental bonds paidfor residential tenancies in New SouthWales.
The Board is a statutory bodyrepresenting the Crown and is subject tothe control and direction of the Ministerfor Fair Trading.
The Board is comprised of the Director-General, Department of Fair Trading asChairperson, representatives of theDirector-General of the Department ofHousing and the Secretary of theTreasury and two persons withexperience in real estate or tenancymatters appointed by the Minister.
The legislation gives the Boardresponsibility for the management andinvestment of bond money and interestearned on investments and for themaking of grants or loans, with theapproval of the Minister, for rentaladvisory services and other projectswhich benefit the residential tenancysector.Interest earned on the investment ofbond money is used to pay interest onbond refunds, to partially fund theConsumer, Trader and Tenancy Tribunaland to contribute to the cost ofadministering tenancy legislation. TheBoard also provides funds for advisoryservices, including the Tenants Adviceand Advocacy Program.
The Department provides administrativesupport to the Board, including:• rental bond lodgement, refund andenquiry services• tenancy information and education• accounting, investment, financial andlegal services• assessment of applications for fundingand preparation and administration offunding agreements.The Rental Bond Board financialstatements for the year ended 30 June2002 are contained in Volume Two ofthis Annual Report.Enquiries about the Board and requestsfor copies of funding guidelines may bedirected to the Rental Bond BoardSecretary on telephone (02) 9338 8992.
Rental Bond Board Members Term of appointment Meetings attended
David O’Connor, Director-General, Department of
Fair Trading - Chairperson Ex officio 6
Alternate:
• Mr John Schmidt, Assistant Director-General 5
Director-General, Department of Housing Ex officio
Deputy:
• Ms Kerrie Bigsworth, A/Executive Director, Policy & Strategy 1
• Mr Paul Vevers, Executive Director, Policy & Strategy 5
Secretary, NSW Treasury Ex officio
Deputy:
• Mr Brian Waddington, Senior Financial Analyst 6
Ms Lynette Tamsett, Licensee, KG Hurst, Eastwood, Ministerial appointment
to 1 May 2003 5
Ms Michelle Burrell, Solicitor, Ministerial appointment
to 1 May 2003 6
13. Publications
º New and revised publicationsproduced in 2001-2002* Electronic only
Corporate Publications:
• Annual Reports 1997-1998, 1998-1999,1999-2000*
• Annual Report Vol 1, 2000-2001 º
• Customer service standards – our guarantee ofservice – English, Arabic, Chinese,Greek, Italian, Vietnamese
• Fair Trading and the NSW Privacy Law
• Our Services – English º
• We can help you – Arabic, Chinese,Croatian, Farsi*, Fijian*, Filipino*,Greek*, Hindi*, Italian*, Japanese*,Khmer*, Korean, Macedonian,Polish*, Portuguese*, Russian*,Serbian*, Spanish*, Turkish*,Vietnamese
• We can help you – English º
• Advertising checklist for the use of media staff*
Property and Tenancy Publications:
• Buying a home
• Buying into a strata scheme
• Buying or selling at auction
• Conveyancing*
• Discrimination and renting
• Ending a tenancy
• Holiday lettings* º
• Property management
• Renting holiday homes* º
• Residential park liaison committees
• Residential park living
• Residential park owners
• Retirement village living
• Retirement Villages Act - Dealing withprospective clients
• Retirement Villages Act - Effect of the newAct on existing contracts
• Retirement Villages Act - Financial accounts
• Retirement Villages Act - Recurrent chargevariations
• Retirement Villages Act - Residents committees
• Retirement Villages Act - Statements ofexpenditure
• Retirement Villages Act - Strata retirementvillages º
• Selling your home
• Starting a tenancy
• Strata disputes º
• Strata living º – English, Chinese,Vietnamese*, Arabic*
• Strata mediation
• The Renting Guide º – English, Arabic,Chinese, Croatian, Farsi, Greek,Italian, Japanese, Khmer, Korean,Macedonian, Polish, Portuguese,Russian, Serbian, Spanish, Turkish,Vietnamese
• The renting guide (poster)
Building Publications:
• Becoming an owner/builder º
• Building a pool
• Building inspections – a home buyer’s guide
NSW Department of Fair Trading Annual Report 2001-2002 Page 59
English, Arabic, Chinese, Vietnamese
• Door-to-door sales º – English, Arabic,Chinese, Italian, Vietnamese
• Electrical power tools º
• Exercise your rights – new rules for fitnessservice providers
• Graffitti
• Help with credit problems
• In good hands – baby products and you º
• Inflatable pools
• Lay-bys information for consumers
• Little black book of scams º
• Love and loans º
• Moneystuff kit
• More tips for travellers
• Pyramid schemes º
• Relationship debt – English, Arabic,Chinese, Vietnamese
• REVS - cars and boats
• REVS – one in 5 used cars repossessed(poster)
• REVS – would you buy a car or boat(poster)
• Safety switches – information for consumers º
• Shopping and refunds – information forconsumers º
• Some things to consider before you borrowmoney – English, Arabic, Chinese,Vietnamese
• The hard sell º
• The seniors’ guide º
• The shoppers’ guide º
• Toy safety checklist*
• Vanity publishing
• Your consumer rights – a seniors’ guide
Business Publications:
• A guide to co-operatives º
• Balloon Payments – a guide for business
• BLIS
• Business names
• Compulsory sign for pawnbrokers
• Customer service guidelines
• Dealing with business scams
• Disposable cigarette lighters – safety laws
• How to form a co-operative º
• Inflatable pools – suppliers
• Interest free offers and promotions – a guide forbusiness
• Knives – full kit
• Knives - brochure
• Knives - sticker
• Laser pointers – safety laws
• Model rules for incorporated associations
• Recliner chair º
• Refunds info for business º
• Refunds (poster) º
• Registry of co-operatives º
• Running an incorporated association º
• Sale of meat º
• Setting up an association º
• Soda siphons
• Trade measurement – a better balance
• Work from home scams º – Arabic,Chinese, Italian, Vietnamese
• Work from home scams º
• Work from home scams (poster) º
Aboriginal Publications:
• Aboriginal housing providers º
• Book-up º
• Book-up: What to look for º
• Buying a car
• Co-operatives º
• Co-operatives (poster) º
• Discrimination and renting
• Don’t get caught out with credit
• Fair go º
• Fair go (poster)
• Keeping your kids safe
• Know your rights (poster)
• Need credit? Well, think again!
• Problems leasing your home
• Renting a home
• Renting information for Aboriginal housingproviders
• Electrical accidents in 1999 º
• Electrical accidents in 2000 º
• Electrical safety for plumbers
• Electrical safety guide
• Electrical safety for workers
• Home building checklist – English, Arabic,Chinese, Macedonian, Vietnamese
• Home building contract º – packet 2 (cost$10.85)
• Home building contracts – why you shoulduse one
• Home building reforms as at 1 July 2002 º
• Home warranty insurance º
• Minor works building contract - pad 10(cost $10.85)
• NSW HIH rescue package – consumers º
• NSW HIH rescue package – builders anddevelopers º
• Protect your home from termites
• Renovations contract - pad 10 (cost $10.85)
• Resolving building disputes º
• Swimming pool contract – packet 2 (cost$21.50)
Consumer Publications:
• A student’s guide to consumer rights º
• Backpacker accommodation* º
• Banking - reducing your transaction costs º –English, Arabic, Chinese, Italian,Vietnamese
• Booking a holiday through a travel agent* º
• Borrowing money – English, Arabic,Chinese, Vietnamese
• Buying a mobile phone º – English,Arabic, Chinese, Italian, Vietnamese
• Buying a used car º – Arabic, Chinese,Italian, Vietnamese
• Buying a used car – English
• Car rental* º
• Check the safety of your pool
• Child safe blind and curtains º
• Consumer help for the busy traveller
• Credit cards, and ‘interest free’ deals –
14. Portfolio Authorities
Consumer, Trader and TenancyTribunalStockland HouseLevel 5, 175 Castlereagh StreetSydney NSW 2000Ph: 1300 135 247
Co-operatives Council154 Russell StreetBathurst NSW 2795Ph: 02 6333 1400
Registry of Co-operatives &Associations154 Russell StreetBathurst NSW 2795Ph: 02 6333 1400
Rental Bond BoardLevel 4, 234 Sussex StreetSydney NSW 2000Ph: 02 9377 9000
Statutory Bodies:• Fair Trading Advisory Council
• Home Building Advisory Council
• Property Services Advisory Council
• Motor Trade Advisory Council
• Retirement Villages Advisory Council
Level 20, 227 Elizabeth StreetSydney NSW 2000Ph: 9338 8979
Registrar of Funeral Funds154 Russell StreetBathurst NSW 2795Ph: 02 6333 1400
New South Wales Products SafetyCommitteeLevel 4, Enterprise House1 Fitzwilliam StreetParramatta NSW 2150
Page 60 NSW Department of Fair Trading Annual Report 2001-2002
15. Freedom of Information
These statistics are set out in accordance with the format prescribed in the NSW Premier’s Department FOI ProceduresManual.
Personal Other Total
FOI requests 00-01 01-02 00-01 01-02 00-01 01-02
New 8 6 83 82 91 88
Brought forward 2 0 19 8 21 8
Total 10 6 102 90 112 96
Completed 10 5 85 77 95 82
Transferred 0 0 0 0 0 0
Withdrawn 0 1 9 9 9 10
Total 10 6 94 86 104 92
Unfinished 0 0 8 4 8 4
Results of FOI applications:
Personal Other
FOI results 00-01 01-02 00-01 01-02
Granted in full 4 3 30 22
Granted in part 5 1 50 44
Refused 1 1 5 11
Deferred 0 0 0 0
Completed 10 5 85 77
00-01 01-02
Ministerial Certificates issued 0 0
Formal consultation Issued 48 54
Formal consultation completed 45 54
Amendment of personal records 0 0
Amendment - agreed 0 0
Amendment - refused 1 0
Number of requests for notations 0 0
Basis of disallowing access:
Personal Other
Section 00-01 01-02 00-01 01-02
19 application incomplete, wrongly directed 0 0 0 0
22 deposit not paid 0 0 1 3
25(1) (a1) diversion of resources 0 0 0 0
25(1) (a) exempt 6 2 52 46
25 (1)(b), (c), (d) otherwise available 0 0 0 0
28(1) (b) documents not held 0 0 2 6
24(2) deemed refused 0 0 0 0
31(4) released to Medical Practitioner 0 0 0 0
Total 6 2 55 55
Costs and Fees:
00-01 01-02
Costs/Fees $ $
Assessed cost 19,254.25 17,412.50
Fees received 6,657.00 5,907.50
Discounts allowed:
Personal Other
Type of discount 00-01 01-02 00-01 01-02
Public interest 0 0 0 0
Financial hardship – pensioner /child 0 0 1 1
Financial hardship – non profit group 0 0 0 1
Significant correction of personal records 0 0 0 0
Total 0 0 1 2
NSW Department of Fair Trading Annual Report 2001-2002 Page 61
Days to process:
Personal Other
Elapsed time 00-01 01-02 00-01 01-02
0-21 days 6 5 38 43
22-35 days 2 1 16 20
Over 35 days 2 0 40 23
Total 10 6 94 86
Processing time:
Personal Other
Hours 00-01 01-02 00-01 01-02
0-10 9 5 79 75
11-20 0 1 15 7
21-40 1 0 0 2
Over 40 0 0 0 2
Total 10 6 94 86
00-01 01-02
Number of internal reviews finalised 6 5
Number of Ombudsman reviews finalised 0 0
Number of Administrative Decisions Tribunal reviews finalised 0 1
Basis of Internal Review:
Personal Other
00-01 01-02 00-01 01-02
Access refused 0 0 0 2 upheld
Deferred 0 0 0 0
Exempt matter 1 varied 0 2 upheld, 2 varied 1 upheld, 2 varied
Unreasonable charges 0 0 0 0
Charge unreasonably incurred 0 0 0 0
Amendment refused 1 upheld 0 0 0
Despite a slight reduction in the numberof applications received in 2001-2002, incomparison to the previous year, many ofthe requests were complex and/orrequested access to a substantial numberof documents. Although this situationresulted in an increase in the number ofthird party consultations required underthe Freedom of Information Act, it did notimpact detrimentally on theDepartment’s response times.
There was no major impact on theDepartment’s administration arisingfrom the number of FOI applicationsdealt with and no formal complaintsfrom the Ombudsman’s office. Internalreviews remained steady with a notablyhigh number of applications concerningaccess to documents not held.
The Department appeared before theAdministrative Decisions Tribunal for
the first time in relation to an appeal ofan internal review made under the FOIAct. The application was, however,withdrawn when the Tribunal confirmedthat there were no such documents, asdescribed by the applicant, among thoseto which access had been refused.
Senior Executive Service
00-01 01-02
No. of SES 7 (7 positions) 8 (8 positions)
Level of positions
6 1 1
4 2 2
3 1 2
2 1 1
1 2 2
No. of positions filled by women 2 3
Remuneration details of level 5 and above Senior Executive Service Officers
Position Title Name Total Remuneration Package
Director-General David O’Connor $208,239
Performance of Chief Executive
Mr. David O’ConnorDirector-General, SES Level 6
The Minister for Fair Trading hasexpressed his satisfaction with Mr.O’Connor’s management of theDepartment and dedication to servicethroughout 2001-2002.
Mr. O’Connor has successfullyaddressed the key result areas of hisperformance agreement by leading theimplementation of a number of significantstrategies.
The Hon. J. J. Aquilina MPMinister for Fair Trading25 July 2002
16. Senior Executive Service
Page 62 NSW Department of Fair Trading Annual Report 2001-2002
17. Internal Audit
Internal Audit services were provided byDFT staff assisted by contracted servicesfor specialist IT audit tasks.
Approximately 55% of the annual auditplan was achieved. Major variations tothe annual plan arose from:
• Internal Audit involvement/facilitationof risk management framework withinDFT
• The management and investigation ofvarious matters concerned withalleged corrupt conduct and otherallegations.
• Review and redraft of DFT Code ofConduct.
At the time of reporting, the 2001-2002survey of client satisfaction with InternalAudit services was being performed(customer satisfaction in 2000-2001 was91.3%). The Executive Internal AuditCommittee met twice during the year.
Actual Audit Tasks 2001-2002
• Internet Usage
• REV’s On-line operations
• Sponsorship
• Rental Bond Internet Service
• Corporate Credit Cards
• Penalty Notice System
• REVS IT operations
• Fleet Management
• Investments
• Rental Bond System IT operations
Planned Audit Tasks 2001-2002
• GST Administration
• ADT/Internal Reviews and Appeals
• DFT Risk Management Framework
• Purchasing/Contractors & Consultants
• Fixed Assets
• FBT Administration
• Internet Usage
• Business Licensing
• Associations operations
• Customer Service Inspectionsoperations
• Co-operatives – Compliance/Monitoring operations
• Property Compensation Fund
• SAP Financial System
• Fair Trading InvestigationsNB. Audit plan may be subject to change
Corporate Credit Cards
In accordance with the Treasurer’sDirections, the Director-General hascertified to the Minister that credit carduse over 2001-2002 has been inaccordance with established governmentrequirements. The certification wasqualified to the extent that a very smallnumber of transactions did not fullymeet DFT usage policy and procedures.
DFT Code of Conduct
The DFT Code of Conduct wasreviewed over 2000-2001 and was re-issued during 2001-2002. Improvementsincluded:
• expanded examples for staff guidance
• inclusion of specific reference toOmbudsman Amendment (Child Protection& Community Services) Act
• inclusion of DFT policy regardingDFT staff holding/applying for DFTregulated licences and certificates.
The Privacy and Personal InformationProtection Act 1998 introduced a set ofbinding privacy standards for the NSWpublic sector. These standards, known asinformation protection principles,regulate the way public sector agenciesdeal with personal information inrelation to its collection, storage, use anddisclosure.
In accordance with the Act, theDepartment has a Privacy ManagementPlan that sets out the policies andpractices adopted to ensure compliancewith the legislative provisions; as well asestablishing procedures to deal withcomplaints about its conduct and thedisclosure of personal information heldon public registers.
18. Privacy Management Plan
In addition, the Department of FairTrading has a Code of Practice thatmodifies the provisions of the Act intheir application to the Department.The Code of Practice authorises noncompliance with the informationprotection principles where theyprevent the Department from carryingout its functions.
The Department is also covered by theprovisions of the Investigation Code ofPractice, the Code of Practice for Inter-agency Transfers of Information and thePrivacy Code of Practice for the NSWPublic Sector Workforce Profile.
The Privacy Management Plan has beenlodged with the Privacy Commissionerand the Code of Practice approved by
the Attorney General. Copies of bothdocuments are available to members ofthe public upon request. A factsheet, forthe information of staff and customers, isalso available. The procedures forcomplaint handling and the release ofpersonal information from publicregisters are in operation.
Individuals can apply under the Act foraccess to personal information held bythe Department. A complaint, or internalreview, can be lodged if a personbelieves the Department has breached aninformation protection principle underthe Act or its Code of Practice.
For the year 2001-2002, the Departmentdid not receive any access applicationsand there were no internal reviews.
NSW Department of Fair Trading Annual Report 2001-2002 Page 63
Representation Key:[c] - Chairperson; [m] - Member;[t] - Trustee.
Australia New Zealand ReciprocityAssociationMichael Carroll [m]
Builders Licensing AustraliaPeter Smith [m]
Building and Construction Council(BACC)Peter Smith [m]
Business Broking CompetencyStandards Development Project SteeringCommitteeBarbara Fernandez [m]
Central Coast Regional CoordinationManagement GroupSean Lonergan [m]
Construction Industry TrainingAdvisory BoardMichael Carroll [m]
Consumer Products AdvisoryCommitteeJohn Furbank [m]
Co-operatives CouncilBrian Given (c)
Co-operative Housing & Starr-BowkettSocieties Standards CommitteeChristine Gowland (m)
Co-operative Housing Society AdvisoryCommitteeBrian Given (c)
Electrical Equipment Safety AdvisoryCommitteeAlex Krestovsky [c]
Electrical Regulatory AuthoritiesCouncilJohn Furbank [m]Michael Carroll [m]
Energy Steering CommitteeJohn Schmidt [m]Susan Dixon [m]
Fair Trading Advisory CouncilDavid O’Connor [m]
Fair Trading Operations AdvisoryCommittee (FTOAC)Malcolm Finger [m]
Fitness Centres Code of Practice, CodeAdministration CommitteeLynne Murray [m]
Hazardous Chemicals AdvisoryCommitteeSteve Hutchison [m]
Home Building Advisory CouncilDavid O’Connor [m]
Hunter Regional CoordinationManagement GroupRichard Buckley [m]
Illawarra Regional CoordinationManagement GroupPaul Humble [m]
Illawarra Building ForumChristine Ambs [m]
Interim Committee for a NSW Instituteof TeachersTerry Downing [m]
Jewellery and Timepieces IndustryCode Administration CommitteeMalcolm Finger [m]
Joint FRC Consultative CommitteeSusan Dixon [m]
Ministerial Taskforce on AffordableHousingDavid O’Connor [m]
Motor Trade Advisory CouncilDavid O’Connor [m]
Motor Vehicle Repair Industry CouncilBrian Given [m]
National Inter-DepartmentalCommittee on Migrant SettlementLyn Baker [m]
National Time CommitteeVictor Lawrence [c]
National Standards CommissionVictor Lawrence [commissioner]
North Coast Regional CoordinationManagement GroupMarilyn Richmond [m]
North Coastal Sydney RegionCo-ordination Management GroupAndrew Gavrielatos [m]
Northern Tablelands RegionalCoordination Management GroupMarilyn Richmond [m]
NSW Car Theft Action GroupBrian Given [m]Steve Newton [m]
NSW Financial Counselling Trust FundBrian Given [t]
NSW Food Advisory CommitteeMerilyn Betty [m]
NSW Government Licensing ProjectSteering CommitteeDavid O’Connor [m]
NSW Government Licensing ProjectLegislation Consultative CommitteeMary-Louise Battilana [m]
NSW Injury Prevention ForumJohn Furbank [m]
NSW Treasury Managed Fund ServiceLevel Working GroupDarrel Cummings [m]
Partnership Against HomelessnessCommitteeSusan Dixon [m]
Pawnbrokers & Secondhand DealersIndustry Consultative CommitteeGabbie Mangos [m]
Pest Control Licensing Committee(WorkCover)Merilyn Betty [m]
Poisons Advisory CommitteeSteve Hutchison [m]
Products Safety CommitteeDavid Catt [c]John Furbank [m]
Property Services Advisory CouncilDavid O’Connor [m]
Rental Bond BoardDavid O’Connor [c]
Residential Parks Consultative CommitteePeter Berry [c]
Retirement Village Advisory CouncilDavid O’Connor [m]
Riverina Murray RegionalCoordination Management GroupJan Malone [m]
SCOCA Car Rental Working PartySteve Jones [m]
South Coastal Sydney Regional Co-ordination Management GroupAndrew Gavrielatos [m]
Standing Committee of Officials ofConsumer Affairs (SCOCA)David O’Connor [m]
Tow Truck Industry CouncilBarbara El Gamal [m]
Trade Measurement Advisory CommitteeVictor Lawrence [m]
Travel Compensation FundBrian Given [t]
Uniform Consumer Credit CodeManagement CommitteeMargaret Raffan [m]
Western Area Regional CoordinationManagement GroupPaul Coles [m]
Western Sydney Regional CoordinationManagement GroupRod Stowe [m]
Whitegoods Repair Code of Practice,Code Administration CommitteeLynne Murray [c]Sean Lonergan [m]
19. Membership of Statutory Bodies and Interdepartmental Committees
Page 64 NSW Department of Fair Trading Annual Report 2001-2002
20. Grants
Figures shown do not include 10% GST allowance paid on all grants. This allowance is ultimately recouped from the AustralianTaxation Office as the Department is not classified as an end user.
Program area: Consumer and Trader ServicesProgram: Tenants Advice and Advocacy Program (TAAP) 2001-2002
Funded organisations Purpose Funding $
Canterbury-Bankstown Migrants Resource Centre Inc. Southern Sydney TAAP service 252,697.49
Central West Community College Ltd South Western NSW TAAP service 222,404.00
Combined Pensioners and Superannuants Residential Parks TAAP service 134,389.47
Association of NSW Inc
Dtarawarra Pty Ltd Aboriginal Resource TAAP service 62,150.00
Durahrwa Training and Development Aboriginal Northern NSW Aboriginal TAAP service 197,564.36
Corporation
Eastern Area Tenants Service Inc Eastern Sydney TAAP service 189,522.60
Hunter Region Neighbourhood Centre Forum Hunter TAAP service (provided by this organisation 183,571.68
from 1 November 2001 – 30 June 2002)
Illawarra Legal Centre Inc South Coast TAAP service 192,395.17
Management & Advisory Services South Western Aboriginal TAAP service 197,564.36
Aboriginal Corporation
Marrickville Legal Centre Ltd Inner Western Sydney TAAP service 221,110.56
Northern Area Tenancy Service Inc Northern Sydney TAAP service 189,522.60
Northern Rivers Community Legal Centre Inc Far North Coast TAAP service 165,974.34
Orange Community Resource Organisation Inc North Western NSW TAAP service 229,610.81
Port Macquarie Neighbourhood Centre Inc Mid North Coast TAAP service 160,809.28
Redfern Legal Centre Ltd Inner Sydney TAAP service 189,522.60
South West Sydney Legal Centre Inc South Western Sydney TAAP service 189,522.60
Tenants Union of New South Wales Co-op Ltd TAAP Co-ordinator service 346,919.24
The Uniting Church in Australia Property Trust (NSW) Western Sydney TAAP service 287,156.99
Thubbo Aboriginal Medical Co-op Western NSW Aboriginal TAAP service 197,564.36
Wirringa Baiya Aboriginal Women’s Legal Centre Inc Greater Sydney Aboriginal TAAP service 64,035.22
Wyong/Gosford Community Legal Service Inc Central Coast TAAP service (& Hunter TAAP service 248,598.54
for period 1 July – 31 October 2001)
Special Purpose Fund Provision for ad-hoc projects and interpreter and 71,914.00
translator costs for services funded under the TAAP.
Total Note – All figures include SACS Award increase for 4,194,520.27
eligible services for period
28 November 2001 – 30 June 2002
Program area: Consumer and Trader ServicesProgram: Credit Counselling Program
Funded Organisations Purpose Funding $
Creditline Macarthur Community Education – Budgeting & Community 3,070.00
Education for the Hearing Impaired
Illawarra Legal Centre Community Education – Money Troubles project – 12,600.00
development of a culturally appropriate booklet for the
Illawarra Aboriginal community
Kempsey Neighbourhood Centre Community Education – Money Matters project targeting 15,000.00
the Aboriginal community in the Kempsey area
Lifeline Central West Community Education – Financial Management project 14,720.00
for Aboriginal consumers in the Central West
Lismore Neighbourhood Centre Community Education – Development of Culturally 15,000.00
Appropriate Financial Management Resources for
the Community project
Ryde Eastwood Financial Counselling Service Community Education – Young People & Credit project 15,177.00
(West Ryde)
Salvation Army Moneycare Program Community Education – Train the Community Education 3,000.00
Trainer project
Total 78,567.00
NSW Department of Fair Trading Annual Report 2001-2002 Page 65
Program area: Consumer and Trader ServicesProgram: Credit Counselling Program
Funded organisations Purpose Funding $
Macarthur Legal Centre Inc Macarthur Legal Centre Credit/Debt Legal Advice Service 23,144.00
CARE Queanbeyan Queanbeyan Financial Counselling Service 32,506.80
Centacare Port Macquarie Centacare Financial Counselling Service 31,560.00
Coffs Harbour Neighbourhood Centre Coffs Harbour Financial Counselling Service — 21,040.00
Coffs Harbour/Toormina
Coffs Harbour Neighbourhood Centre Coffs Harbour Financial Counselling Service - 10,520.00
Grafton Outreach
Consumer Credit Legal Centre (NSW) Inc. Consumer Credit Legal Centre 126,240.00
Eastlakes Family Support Service Inc Eastlakes Financial Counselling Service 17,673.60
Illawarra Legal Centre Inc. Illawarra Legal Centre – Credit/Debt Legal Advice Service 52,600.00
Kempsey Neighbourhood Centre Inc. Kempsey Financial Counselling Service 32,086.00
Lismore Neighbourhood Centre Inc. Lismore & District Financial Counselling Service 37,346.00
Lismore Neighbourhood Centre Inc. Lismore & District Financial Counselling Service – 23,144.00
Mullumbimby & Byron Bay
Mission Australia Mission Australia Campbelltown 33,664.00
Mission Australia Mission Australia Creditworthy Wollongong 31,560.00
Murwillumbah Community Support Centre Inc. Murwillumbah Financial Counselling Service 24,722.00
Redfern Community Legal Centre Redfern Legal Centre Credit/Debt Legal Advice Service 18,936.00
The Uniting Church in Australia Property Trust (NSW) Credit Helpline 231,440.00
The Uniting Church in Australia Property Trust (NSW) Creditline Sydney 97,310.00
The Uniting Church in Australia Property Trust (NSW) Creditline Macarthur 19,462.00
The Uniting Church in Australia Property Trust (NSW) Creditline Fairfield 54,178.00
The Uniting Church in Australia Property Trust (NSW) Creditline, Newcastle and Hunter 31,560.00
Total Note – All figures include SACS Award increase for 950,692.40
period 28 November 2001 – 30 June 2002
Program area: Consumer and Trader ServicesProgram: Credit Counselling Program
Funded Organisations Purpose Funding $
Anglicare Financial Counselling Service Capital Equipment Grant 1,215.00
Bankstown Community Services Co-operative Capital Equipment Grant 2,399.00
Creditline Nowra Capital Equipment Grant 4,618.00
Creditline Penrith Capital Equipment Grant 2,016.00
Creditline Sydney Capital Equipment Grant 4,990.00
CreditHelpline Capital Equipment Grant 2,016.00
Eurobodalla Family Support Service Capital Equipment Grant 2,424.00
Gosford City Community & Information Service Capital Equipment Grant 2,699.00
Hunter Valley Financial Counselling Project Capital Equipment Grant 3,410.00
Kempsey Neighbourhood Centre Capital Equipment Grant 2,799.00
Lismore & District Financial Counselling Service Capital Equipment Grant 4,774.00
Mission Australia – Creditworthy Wollongong Capital Equipment Grant 2,000.00
Murwillumbah Community Support Centre Capital Equipment Grant 2,360.00
Ryde Eastwood Financial Counselling Service Capital Equipment Grant 769.00
(West Ryde)
Wagga Wagga Family Support Service Capital Equipment Grant 3,946.00
Woodrising Neighbourhood Centre Capital Equipment Grant 900.00
Total 43,335.00
Program area: Consumer and Trader ServicesProgram: Credit Counselling Program
Funded Organisations Purpose Funding $
The Uniting Church in Australia Property Trust (NSW) Training of financial counsellors 17,500
Christian Community Aid Service Inc Training of financial counsellors 14,000
Total 31,500
Page 66 NSW Department of Fair Trading Annual Report 2001-2002
Program area: Consumer and Trader ServicesProgram: Other Funded Tenancy Projects
Funded organisations Purpose Funding $
The Aged-Care Rights Service Inc. Aged-Care Rights Service 286,045.00
Combined Pensioners and Superannuants Tenancy Housing Information Unit 141,995.39
Association of NSW Inc
Total 428,040.39
Program area: Consumer and Trader ServicesProgram: Department of Fair Trading supplementary funding to the Financial Counselling Trust Fund 2001-2002
Funded organisations Purpose Funding $
Uniting Church in Australia Property Trust (NSW) Creditline Penrith 19,699.75
Total 19,699.75
Program area: Consumer and Trader ServicesProgram: Financial Counselling Trust Fund
Funded organisations Purpose Funding $
Anglicare—South East Anglicare Financial Counselling Service 16,832.00
Bankstown Community Services Community Bankstown Family Support Service 31,560.00
Co-operative Ltd.
Christian Community Aid Service Inc Ryde/Eastwood Financial Counselling Service 15,780.00
— Granville Outreach
Christian Community Aid Service Inc Ryde/Eastwood Financial Counselling Service 22,092.00
— Auburn/Lidcombe Outreach
Christian Community Aid Service Inc Ryde/Eastwood Financial Counselling Service 42,080.00
– West Ryde
The Entrance Neighbourhood Centre Central Coast Financial Counselling Service 50,496.00
Eurobodalla Family Support Service Inc. Eurobodalla Financial Counselling Service 32,612.00
Gosford City Community and Information Service Ltd Gosford Community Financial Counselling Service 33,664.00
Hunter Valley Financial Counselling Project Hunter Valley Financial Counselling Project 36,820.00
Lifeline Central West Inc. Creditline Central West Financial Counselling Service 44,184.00
San Remo Neighbourhood Centre Incorporated San Remo Financial Counselling Service 21,040.00
The Salvation Army (NSW) Property Trust Moneycare—Campsie 16,832.00
The Salvation Army (NSW) Property Trust Moneycare Forster/Tuncurry 10,520.00
The Salvation Army (NSW) Property Trust Moneycare—Parramatta 25,984.40
The Salvation Army (NSW) Property Trust Moneycare—Lethbridge Park 25,984.40
The Salvation Army (NSW) Property Trust Moneycare – Taree/Wingham 21,040.00
The Trustee of the Society of St. Vincent de Paul (NSW) St.Vincent De Paul Society Broken Bay 21,040.00
Financial Counselling Service
The Uniting Church in Australia Property Trust (NSW) Creditline Penrith—Outreach Richmond 21,040.00
The Uniting Church in Australia Property Trust (NSW) Creditline Penrith—Outreach Quakers Hill/ Blacktown 21,040.00
The Uniting Church in Australia Property Trust (NSW) Creditline Financial Counselling Service—Penrith 24,484.25
The Uniting Church in Australia Property Trust (NSW) Creditline Nowra 33,664.00
The Uniting Church in Australia Property Trust (Victoria) St David’s Care Credit Line Albury 26,300.00
Wagga Wagga Family Support Service Inc. Wagga Wagga Financial Counselling Service 37,346.00
Woodrising Neighbourhood Centre Inc. Creditline Westlake Macquarie 31,560.00
Financial Counselling Service
Total Note – all figures include SACS Award increase 663,995.05
for period 28 November 2001 – 30 June 2002
Program area: Consumer and Trader ServicesProgram: Home Building Grants Program
Funded organisations Purpose Funding $
Building Apprentices Training Limited Sydney Illawarra Apprentice Training Program 250,000
Redfern Legal Centre Publishing Building and the Law Book 25,554
MBA Newcastle Group Training Pty Ltd Group Training services for building trade apprentices 106,500
Housing Industry Association Limited Better Business Management in the Home Building Industry 53,200
Housing Industry Association Limited Builder Assistance Program for NSW – 120,000
Meeting Insurance underwriting standards
Swimming Pool and Spa Association of NSW Limited Swimming Pool and Spa Industry Training Research Project 9,500
Total 564,754
NSW Department of Fair Trading Annual Report 2001-2002 Page 67
Program area: Fair Trading Standards & RegistersProgram: Co-operatives Development Fund
Funded Organisations Purpose Funding $
University of Technology Sydney Funding for the Australian Centre for Co operative 300,000*
Research and Development (ACCoRD)
Co operatives Council Video – Co ops: a flexible alternative 16,920
Fair Trading Advisory Council Report – Building Sustainable Communities: 19,975
Co-operative Solutions to Rural Renewal
Nambucca River Co operative Society Limited Printing Publication Undaunted – The Centenary History 3,425
Nambucca River Co operative Society Limited 1903-2003
Australia at Work Limited Feasibility Study – Bulahdelah Working Village project 6,364
Total 346,684
* This figure excludes amounts that should have been accrued for the 2000-2001 financial year. It also includes the full amountpaid in respect of ACCoRD and does not include the offset in salaries.
The principles of equality, access, rightsand participation are the basis for theNSW Government’s work in the area ofwomen. The NSW Action Plan forWomen 2000-2002 aims to ensurewomen’s needs are recognised andaddressed in government policies andservices. That means recognising that insome areas of social, political andeconomic life, women have differentexperiences and needs from men. Inaddition, age, race, ethnicity, location,and social and economic circumstancesall affect women’s needs and options.
The Department of Fair Trading hascontributed to achieving the objectivesof the Action Plan for Women throughthe following initiatives.
• Information strategy using radio andpress to alert women to the pitfalls ofrelationship debt; distribution of abooklet called Love and Loans and a factsheet with information and casestudies, available in English, Arabic,Chinese and Vietnamese
• Participation in the national Womenand Motor Vehicle Industry Project toaddress discrimination faced bywomen when buying or repairing amotor vehicle. The introduction ofthe Motor Trade Legislation Amendment Billinto Parliament, containing provisionsfor a cooling-off period for thepurchase of new and used cars boughtwith linked credit will benefit womenconsumers.
• Free information and assistance ontenancy, credit and financial issuesthrough the funding of communitybased services. Financial CounsellingServices received $1.5 million in 2001-02. The Tenants Advice and AdvocacyProgram received $4.2 million in2001-02, with approximately 62% ofthis program’s customers beingwomen.
• Development and distribution ofpublications to older people, themajority of whom are women,including:- The Seniors’ Guide- Retirement Village Green- Retirement Village Living.
21. NSW Action Plan for Women
• Development and distribution ofconsumer information of particularrelevance for women, including:- The Shopper’s Guide: a comprehensiveguide to all consumer protectionaspects of shopping with a particularemphasis on credit- Love and Loans: a comprehensivebooklet on relationship debt- A range of factsheets on topics suchas borrowing, credit cards, becoming aco-borrower or guarantor andrelationship debt- In Good Hands: a comprehensiveguide to product safety for children,including inflatable pools, childresistant cigarette lighters and nurseryfurniture- Keeping Your Kids Safe: a factsheet andtoy safety checklist aimed specificallyat the Aboriginal community.
• Participation of 10 elected femaleofficers in the Spokeswomen’sProgram to raise issues affectingfemale staff with management, as wellas support for women working in theDepartment.
Program area: Consumer and Trader ServicesProgram: Property Service Grants Program (Round 3)
Funded Organisations Purpose Funding $
Stock & Station Agents’ Association NSW Inc Professional Development & Education Program 130,100
University of Western Sydney (School of Construction, Development and writing of the Bachelor of Commerce
Property and Planning) (Property Economics) External Course — Stage 3 66,000
Real Estate Institute of New South Wales Refinement of Institute website as an interactive medium 20,000
for property related advice and assistance to consumers
and real estate practitioners
Real Estate Institute of New South Wales Research the needs of consumers on real estate and 23,650
property matters and produce factsheets
Institute of Strata Title Management Ltd. Continuing Professional Development Program 9,000
Institute of Strata Title Management Ltd. 2001 A Skills Odyssey 29,500
Australian Property Institute Inc. Continuing Professional Development Program for 70,000
Valuers and Related Property Professionals
Total 348,250
Page 68 NSW Department of Fair Trading Annual Report 2001-2002
Percent of Total Staff by Level 2001-2002
Subgroup as percent of Subgroup as estimated percent
total staff at each level of total staff at each level
Total staff
Level (number) A B C D E F G H
< $27,606 5 100% 20% 80% 80.0%
$27,606 - $40,535 374 95% 24% 76% 3% 34% 29% 12% 6%
$40,536 - $51,293 258 99% 32% 68% 5.9% 36% 29% 6% 1.2%
$51,294 - $66,332 351 95% 52% 48% 1.2% 21% 16% 13% 4.5%
> $66,332 (non SES) 162 97% 62% 38% 0.6% 21% 17% 11% 4.4%
SES 8 100% 63% 38% 13%
Total 1,158 96% 40% 60% 3.2% 28% 23% 11% 4.1%
Estimated Subgroup Totals 1,117 461 697 37 325 269 125 48
Note: Above table does not include casual staff.
Percent of Total Staff by Employment Basis
Subgroup as percent of Subgroup as estimated percent of total
total staff in each category staff in each employment category
Total Staff
Employment basis (number) A B C D E F G H
Permanent Full-time 971 97% 44% 56% 3.3% 29% 24% 12% 4.5%
Part-time 114 98% 11% 89% 2.7% 21% 21% 5% 3.6%
Temporary Full-time 49 88% 27% 73% 2.3% 33% 19% 9%
Part-time 14 100% 21% 79% 7% 7% 14%
Contract SES 8 100% 63% 38% 13%
Non SES
Training Positions 2 100% 100% 50.0%
Retained Staff
Casual
Total 1,158 96% 40% 60% 3.2% 28% 23% 11% 4.1%
Estimated subgroup totals 1,117 461 697 37 326 269 124 48
Note: Figures for EEO groups other than women have been adjusted to compensate for the effects of non-response to the EEOdata collection. EEO statistics reported in years prior to 1998 may not be comparable due to a change in the method of estimatingEEO group representation.
A. Respondents E. People from racial, ethnic, ethno-religious minority groups
B. Men F. People whose language first spoken as a child was not English
C. Women G. People with a disability
D. Aboriginal people & Torres Strait Islanders H. People with a disability requiring work-related adjustment
23. Staff Classification Profile
1998-1999 1999-2000 2000-2001 2001-2002
SES 10 8 7 8
Senior Officers 4 7 12 15
Clerks 1062 1023 1033 1088
Legal Officers 22 26 28 24
Clerical Officers 78 69 72 59
Clerical Assistants 2 2 2 2
Librarian/Library Technicians 6 4 1 1
Technical Officer 0 0 1 0
Total 1184 1140 1156 1197
These staff establishment numbers do not include statutory appointments relating to the operation of independent tribunals.
22. Equal Employment Opportunity Statistics
NSW Department of Fair Trading Annual Report 2001-2002 Page 69
• The DFT web site is being designedto take into consideration disabilityaccess standards. Information ondisability initiatives and a copy of theDAP in PDF format are available onthe DFT web site for public access.DFT’s TTY contact numbers areincluded on the web site. Customerscan access information or lodgecomplaints and there are links andtelephone contacts to relevant areas forthose issues.
• The DFT Seniors’ Guide was producedon audiotape by the Royal BlindSociety and distributed to people withvision impairment, NSW blindnessand disability organisations,community-based legal centres,Migrant Resource Centres andmetropolitan libraries.
• DFT included closed captions on avideo produced about co-operatives toallow people with hearing impairmentto read descriptions of sounds andread the words spoken by the actors.
• DFT continues to provideinformation via regional outreachactivities by participating ininteragency forums and presentationsto providers of carer services, HACCfield workers and Centrelink socialworkers.
Complaints proceduresCustomer feedback is received by theDepartment through mail (generalcorrespondence and reply paid forms),telephone, or via the DFT Web site. Aplanned review of customer feedbackprocedures was not completed in the2001-2002 year. This will now beundertaken in the 2002-2003 year andwill look at improving access issues forthe lodgement of compliments andcomplaints about services provided byDFT.
Training of StaffA proposal for training in disabilityissues for staff has been approved.Discussions are being held with theDepartment of Ageing, Disability andHome Care regarding training options.
Disability awareness information isavailable via the Department’s Accessand Equity Manual, which is also
available online to staff. The detailedDAP is available on the DFT Intranet.
Employment in the PublicSectorNew recruits and staff who had notresponded to the EEO Survey wereasked to respond to the EEO Survey andall staff were invited to update their EEOinformation regularly during the year.
There were two meetings of theDisability Support Network (staff with adisability and staff with an interest indisability issues).
Supervisors were briefed on reasonableadjustment as required. Adjustmentswere provided as required.
Work experience was provided for aperson with hearing impairment, for aperiod of six weeks, in the BusinessRegistration Branch.
Two staff members attend courses forpeople with hearing impairment (DeafEnglish & Math group, computerliteracy skills).
Following assessment by the DeafSociety, a staff member now receives theCommunity Language Allowance forAuslan.
Appropriate modifications were made tothe REVS departmental motor vehicle toenable its use by a REVS officer with aphysical disability.
The staff electronic newsletterTradewinds is provided in text only formatto staff with vision impairment.
A sign language interpreter was providedfor staff with hearing impairment at theDFT International Women’s Dayconference.
Advertisements for some CustomerService Officer positions encouragedapplications from people with adisability.
Communication of DisabilityAction PlanInformation on disability initiatives and acopy of the DAP in PDF format are availableon the DFT Web site for public access.
24. Disability action plan
ConsultationConsultation conducted previously hasprovided information on issues faced bypeople with a disability. Thisinformation, together with results fromthe disability access audit and the reviewof DFT communication and servicedelivery mechanisms, will now be usedto form part of the next Disability ActionPlan (DAP) for 2003-2005.
Physical AccessAudit Reports of Departmental premiseshave been compiled, following adisability access audit of DFT premises.A comprehensive final report of all DFTpremises, including the barriersidentified and suggested strategies forenhancing access has been completed.
A DFT Working Party consisting ofsenior level representatives fromrelevant areas has been formed todevelop an implementation plan for therecommendations. This will involveprioritising the strategies and identifyingresponsibilities, timeframes and costs.The implementation plan will be a long-term staged process.
Accessibility requirements are taken intoconsideration when selecting newpremises or for refurbishment ofexisting premises.
Provision and Promotion ofServicesFollowing a review of the delivery ofinformation and services to people witha disability, current DFTcommunication and service deliverymechanisms are being reviewed for theirappropriateness to the range of needs ofpeople with a disability. Animplementation plan is being developedto address these issues.
Successful initiatives include:
• “The Glen” is a joint DFT-Anti-Discrimination Board project toprovide information about rights andresponsibilities of consumers forparticipants in a Central Coast drugand alcohol rehabilitation program.The focus of the education sessions isto provide residents with the life skillsthey would need to confidently dealwith social problems instead ofreverting to substance abuse.
Page 70 NSW Department of Fair Trading Annual Report 2001-2002
EAPS Report for 2001–2002The 2001-2002 Ethnic Affairs PrioritiesStatement (EAPS) was part of theDepartment’s 2001-2002 Access andEquity Strategy and followed theCorporate Plan format. Some projectshad a specific focus on cultural diversityissues; others aimed to improveoutcomes for a range of equity targetgroups.
Ongoing programs
Language Services
We continued to provide free languageservices to customers as needed. Theseservices included telephone or in-person interpreter services, staffaccredited as Language Aides, TTYfacilities (telephone typewriter forpeople who are deaf or have a speech orhearing impairment).
The CLAS (Community LanguageAllowance Scheme) program isimplemented within DFT as a valuabletool in assisting communication withour customers by utilising the languageskills of our staff. The CLAS program isreviewed annually in conjunction withtesting conducted by the CommunityRelations Commission. DFT now has 89CLAS recipients accredited in 29languages (including Auslan – signlanguage).
Community Liaison
Our work with ethnic communitiescontinues through the development ofpartnerships with key groups andindividuals as well as using appropriatemedia to inform the communities of ourservices.
During the year we forged closer linkswith the ethnic community in theIllawarra. A strong partnership wasestablished with the local IllawarraMigrant Resource Centre whichdistributes our translated fact sheets. Weprovided fact sheets about our servicesin Vietnamese, Macedonian and Turkishwhich represent some of the keycommunity groups in the Illawarra. Aclose relationship was also formed withrepresentatives from local ethnic media,2 Vox FM, Macedonian radio along withother service providers andrepresentatives of the many local ethniccommunity associations.
We also attend large community eventsto promote our services and this year we
were present at the Chinese New Yearcelebrations at the Cabramatta LunarFestival which attracted 40,000 people.
These approaches have also been used inother regions that have a significantethnic community. Over 500 NESBpeople participated in seminarsconducted by DFT.
Publications and educational activities
• The Renting Guide is available in 17community languages (plus English)in booklet form and on the Web site.
• Fact sheets are translated into otherlanguages, as needed and placed on theWeb site
• The We can help you fact sheet isavailable in 24 community languageson the Web site
• The Customer Service Standards fact sheetis available in 5 community languages
• Information campaigns include ethnicpapers and radio
• Translated media releases areproduced for key ethnic events.
Improved accessibility of translatedinformation on the Web site in 2001-2002, provided direct access to existingtranslated publications and additionalinformation in seven languages. Furtherlanguage groups and issues will beconsidered in 2002/2003.
The Think Smart on Consumer RightsEducation Program for ethniccommunities was launched in May 2002.This program maintains ongoing liaisonwith peak, regional and local groupsregarding the Department’s services.The main focus of this program is todevelop partnerships with ethniccommunity and media groups.
REVS’ marketing campaign includes anNESB component based on the resultsof the Department’s annual CustomerProfile Survey. The current campaignpromotes advertisements in ethnic printmedia including Arabic, Chinese andVietnamese.
Equal Employment Opportunity
program initiatives
DFT provided 4 positions to placepeople with overseas skills andqualifications under the Migrant CareerDevelopment Program. Three staff fromDFT were successful in gaining MCDPplacements, two in DFT and one outsidethe Department.
Change projects
Language Services Review
Implementation
DFT has developed guidelines on theuse of language services. Theseguidelines help staff identify when toseek language assistance and provideinformation on the appropriate type oflanguage services and how to accessthem. The guidelines are included onthe DFT computer network for easyaccess by staff and are included inrelevant training programs.
Information on telephone interpreterand TTY services, as well as a space toidentify customer language needs, areincluded on relevant DFT forms.
A review of standard DFT letters willconsider the inclusion of multilingualinformation on the reverse side ofcorrespondence.
Guidelines on funded services
Funding guidelines and agreements werereviewed in light of CommunityRelations Commission Standards. Forexample, funding application kits forFinancial Counselling Programs (FCP)contain funding guidelines, which statethat a key priority in competitiveassessment is the “number of people inapplicant’s area of non-English speakingbackground”. ABS ethnicity data is also akey factor in the allocation of grantfunding.
Funding agreements for FCP includethe requirement to “consider the use ofinterpreters and multilingualinformation” and to “give priority topersons who are otherwise sociallydisadvantaged as the result of languageand/or literacy skills”.
Under the Tenants Advice and AdvocacyProgram (TAAP) Guidelines “theSpecial Purpose Fund will providefunding for translations of publicationsinto community languages and use ofinterpreters for client interviews”.TAAP community education activities“should principally be directed tovenues where low income and high risktenants can be effectively targeted, suchas Adult Migrant Education Services”and include “information sessions fortenants from specific language groups”.
The performance of funded services ismonitored and ethnicity data is assessed
25. Ethnic Affairs Priorities Statement
NSW Department of Fair Trading Annual Report 2001-2002 Page 71
twice yearly. A compulsory ethnicity datacollection sheet is used to monitor theperformance of funded services.
Plain English Forms Review Project
Forms are revised on a needs basis. Theplain English guidelines developed bythe project have been used by REVS andthe Registry of Cooperatives to reviseand develop their forms. The REVSforms are now in use, including on theWeb site. Licensing and RegistrationServices Division contracted aconsultant to revise the Association’sIncorporation forms. Input has beenprovided to the Department’s “formsonline” project and discussions havetaken place with Planning and ReportingBranch about improved coordination offorms online.
Review tenancy information provision
to NESB people
The Department undertook a researchproject to review the ethnic languageversions of The Renting Guide todetermine the relevance of currentlanguages and the effectiveness of thepublication. The review comprised ataskforce to capture grass roots feedbackfrom ethnic communities andconsultation with relevant communityand industry associations.
Based on the findings of the research, theDepartment has commenced a pilotprogram in a number of ethniccommunities to test the effectiveness ofa new simple tenancy brochure andvarious promotional strategies ineducating tenants of their basic rightsand options for help. Results of the pilotprogram are expected in late 2002.
Performance Indicators
Ethnic advertising
Expenditure on ethnic advertising was$9,136 or 3% of total advertisingexpenditure.
External reporting
100% of external access and equityreporting requirements were met.
Staffing profile
19% target of staff whose language firstspoken as a child was not English wasachieved.
Consumer Confidence
The level of confidence in the fairoperation of the marketplace this yearfor the first time appears to be lower forNESB groups compared to otherconsumers. Within the limits of thesample size, it is not possible toprecisely quantify the difference. As aresult, the Department will analyse theapparent gap.
Customer Satisfaction
There was no significant differencebetween the levels of satisfaction withDFT services for NESB and othercustomers, within the limits arisingfrom the sample size.
Customer Profile survey
The proportion of NESB customersaccessing main DFT services exceededABS benchmark levels for relevantpopulations.
General
DFT has established an EAPSconsultative team of divisionalrepresentatives to coordinate andprovide input to EAPS processes acrossthe Department.
Information on ethnic affairs initiatives,as well as a copy of the EAPS in PDFformat, is available on the DFT Web sitefor public access.
EAPS Plan for 2002–2003The Ethnic Affairs Priorities Statementis incorporated into the Department’sAccess and Equity Strategy, which flows
from the Corporate Plan. Our corporatevalues include access and equity forcustomers and staff, with a special focuson remote and vulnerable groups.
Ongoing programs
Services to people from diverse culturaland linguistic backgrounds will include:
• free telephone or in-personinterpreter services, as required
• language assistance from staff receivingthe CLAS allowance
• publications printed in communitylanguages and also available on theWeb site.
Information and educational activitieswill include ethnic communities andethnic media as appropriate.
Liaison with peak, regional and localgroups regarding DFT services andpolicy initiatives will include ethniccommunity organisations andcommunity workers.
The Equal Employment Opportunityprogram will contain initiatives for stafffrom diverse cultural and linguisticbackgrounds.
Change projects
• Finalisation of formal guidelines forboards & committees
• Projects to address requirements ofspecial needs groups e.g. refugees
• Integration of cross-cultural traininginto DFT training strategy as a whole
• Language Services Review projects
• CLAS projects
• Marketing initiatives.
When HIH Casualty & GeneralInsurance Limited was placed inprovisional liquidation on 15 March2001, the NSW Government establisheda rescue package to assist homeownerswho had been covered by a HIH HomeWarranty Insurance policy. Homeownerswho would have been entitled to coverunder these policies are covered by theGovernment’s package with claims being
paid from the Building Insurers’Guarantee Fund. The fund wasestablished under the Insurance(Policyholders Protection) LegislationAmendment Act 2001 and it commencedon 30 June 2001.
The Fund is administered by theBuilding Insurers’ GuaranteeCorporation, whose administrative
functions are managed by theDepartment of Fair Trading. By 30 June2002, claims to the value of $20,417,000had been paid to homeowners under therescue package. The Corporation’sfinancial statements for 2001-2002 appearin Volume Two of this Report.
26. Building Insurers’ Guarantee Corporation
Page 72 NSW Department of Fair Trading Annual Report 2001-2002
Fair Trading CentresOur Fair Trading Centres (FTCs) are located at the following addresses. If you arelocated outside the Sydney Metropolitan region you can contact the Fair TradingCentre nearest you on 13 32 20. Calls to this number from within the SydneyMetropolitan region and from all mobile telephones will be received at ourPenrith Call Centre.
400 Hunter StreetNewcastle 2300
184-186 Lords PlaceOrange 2800
1 Fitzwilliam StreetParramatta 2150
518 High StreetPenrith 2750
30 Clarence StPort Macquarie 2444
110 - 112 Monaro StreetQueanbeyan 2620
Level 21227 Elizabeth StreetSydney 2000
Cnr Kable Ave & Darling StreetTamworth 2340
43 Wharf StreetTweed Heads 2485
8 Baylis StreetWagga Wagga 2650
63 Market StreetWollongong 2500
1 Fitzwilliam StreetParramatta NSW 2150
Head Office
Tel: 9895 0111Fax: 9895 0222
REVS
Tel: 9633 6333or 1800 424 988 (outside Sydney)Fax: 9891 5135
234 Sussex StreetSydney NSW 2000
Rental Bonds
Tel: 9377 9000 or 1800 422 021Fax: 9377 9371
Tenancy Services
Tel: 9377 9100 or 1800 451 301Fax: 9377 9371
Aboriginal Tenancy Information
Tel: 9377 9200 or 1800 500 330Fax: 9377 9371
Strata Schemes and
Mediation Services
Tel: 9338 7900or 1800 451 431 (outside Sydney)Fax: 9338 7999
77 Lakemba streetBelmore NSW 2192
Standards Laboratory
Tel: 9750 8188Fax: 9750 7590
154 Russell StreetBathurst NSW 2795
Registry of Cooperatives &
Associations
Tel: 6333 1400 or 1800 502 042Fax: 6333 1444
490 David StreetAlbury 2640
85 Faulkner StreetArmidale 2350
Level 3A13 Kildare RoadBlacktown 2148
32 Sulphide StreetBroken Hill 2880
22 Park AvenueCoffs Harbour 2450
48 Wingewarra StreetDubbo 2830
19-21 Watt StreetGosford 2250
50 Victoria StreetGrafton 2460
Level 34-8 Woodville StreetHurstville 2220
29 Molesworth StreetLismore 2480
Shop 1R33 Moore StreetLiverpool 2170
office
Locations
Annual Report production details
• 1000 copies of Volume 1 of this Report were produced at a unit cost of $5.48
• 250 copies of Volume 2 were produced at a unit cost of $3.59.
• DFT did not incur external costs for artwork or photography.
NSW Department of Fair Trading Annual Report 2001-2002 Page 73
Index
Aboriginal communities 14, 24, 26
Aboriginal employment 26
Access & equity 25
Accommodation 30
Accounts payable 55
Advisory councils 11
Associations 20
Banking 10
Book-up credit 14
Building Insurers’ Guarantee Corporation 71
Business continuity 29
Business names 29
Certification 19
Chief executive officer 61
Civil litigation 56
Co-operatives 10, 11, 12, 14, 21
Co-operatives & associations 10, 14, 20, 30
Co-operatives compliance 14
Co-operatives Development Fund 66
Code of conduct 62
Complaint handling 30
Computer telephony integration 29
Computer-based crime 13
Consultancies 55
Consumer Credit Code 3, 9, 10
Consumer Protection Awards 4, 21
Consumer Protection Youth Awards 20
Consumer Week 20
Cooling off period 2, 3, 12
Corporate credit cards 62
Corporate objectives 5, 8, 13, 25
Corporate plan 5
Credit cards 9
Credit counselling 28, 64, 65
Credit education 21
CTTT 2, 3, 5, 9
Customer Assistance System 28
Customer feedback 54
Customer profile 25
Customer satisfaction 5, 25, 29
Customer service 29
Dangerous products and bans 18
Disability action plan 26, 69
E-commerce 13
EAPS standards framework 27
EEO 26, 68
Electronic billing 29
Electronic commerce 13
Electronic service delivery 28
Energy management 54
Energy retail competition 9
Entertainment industry 10
Ethnic Affairs Priorities Statement 27, 70
Ethnic communities 20, 22, 25
Ethnic tenancy 22, 27
Fair Trading Advisory Council 11
Fair Trading Centres 1, 23, 30, 72
Fair trading complaints 21
Fair trading compliance 14
Fair trading enquiries 21
Fair Trading Tribunal 9
Financial counselling 28
Financial Counselling Trust Fund 28, 66
Flexible working hours 30
Fraudulent e-commerce 13
Freedom of information 60
Funeral funds 20, 57
Gas and electricity consumers 9
Government Access Centres 1, 2, 23
Grants 27, 64
Guarantee of customer service 54
HIH Insurance 2, 3, 8, 71
Home Building Advisory Council 11
Home building compliance 17
Home building grants 66
Home building reform 2, 12, 20
Home warranty insurance 3, 8, 30, 71
Infomercials 14
Internal audit 62
Kooris and Cars 24
Legislation 1
Legislation change 11
Legislation reviews 11
Licensing 19, 28
Mandatory comparison rate 3, 9
Meat sales 19
Membership of statutory bodies 63
Mission 5
Money Stuff 22
Monitoring and enforcement 13
Motor trade 2, 3, 12, 15
Motor Trade Advisory Council 11
National Competition Policy 3, 5, 8, 11
Natural disaster strategy 14
Natural language speech recognition 29
Network operating system 28
Office hours 1
Office locations 72
OH&S 4, 30, 57
On line licensing 28
Organisation chart 7
Overseas travel 55
Owner builder permits 20
Pay day lenders 2, 3, 9
Penalty notices 15, 16, 20, 56
Performance information 5, 8, 13, 25
Petrol and diesel adulteration 19
Physical access 69
Planning framework 5
Portfolio authorities 59
Printing costs 72
Privacy management 62
Product recalls 18
Product safety compliance 18
Program allocations 4
Property service grants 67
Property Services Advisory Council 11
Prosecutions 13, 14, 57
Publications 58
Quality 5
RBIS 29
Real estate compliance 16
Regional compliance 14
Regional NSW 2, 23
Registration 19
Rental Bond Board 58
Rental Bond Internet Service 22, 29
Rental bonds 22, 29
Renting Guide 21, 22, 27
Residential parks 3, 12
Residential parks - long term casuals 3, 12
Residential Tribunal 9
Retirement villages & residential parks 17
Retirement Villages Advisory Council 11
REVS 19, 23, 29
Risk management and insurance 57
Seamless customer service 4, 29
Senior executive service 61
Shadow shopping survey 13, 29
Skills audit 13, 29
Spokeswomen 26
Staff 30, 68
Starr-Bowkett societies 14
Statute law revision 11
Storecharter 14
Strata schemes & mediation 23
Strategic intent 5
Subordinate legislation review 11
TAAP 10, 27, 64
Tenancy 10, 21, 22
Tenants advice and advocacy 10, 27, 64
Trade measurement compliance 19
Traveller Consumer Helpline 23
Uniform credit laws 9
Waste reduction 54
Web site 4, 22
Women 67
Workers compensation and rehabilitation 30
phone13 32 20
October 2002
For help on any fair trading issue call your nearest Fair Trading Centre or call thespecialist service listed below which is relevant to your inquiry. A range of FairTrading services are also available via Government Access Centres (GACs) andother agency locations throughout regional New South Wales. For details, visit theWeb site www.fairtrading.nsw.gov.au
Language assistance
Ring the telephone interpreting service on 13 14 50 and ask for an interpreter in yourlanguage.The interpreter can then contact the Department of Fair Trading.
TTY ............................................................................9338 4943* Telephone service for the hearing impaired.
Fair Trading Centres – call 13 32 20
Department of Fair Trading1 Fitzwilliam Street Parramatta NSW 2150 PO Box 972 Parramatta NSW 2124Tel. 9895 0111
Specialist Services
Rental Bond Inquiries ................................................9377 90001800 422 021
Tenancy Inquiries........................................................9377 91001800 451 3019377 9099 (*TTY)
Strata Schemes and Mediation Services ......................9338 79001800 451 431 (outside Sydney)
REVS ........................................................................9633 63331800 424 988 (outside Sydney)
1300 369 889 (*TTY)
Business Licence Information......................................9619 87221800 463 976 (outside Sydney)
www.fairtrading.nsw.gov.au
Fair TradingCentre locations
AlburyArmidaleBlacktownBroken HillCoffs HarbourDubboGosfordGraftonHurstvilleLismoreLiverpoolNewcastleOrangeParramattaPenrithPort MacquarieQueanbeyanSydneyTamworthTweed HeadsWagga WaggaWollongong