Annual Report 1997 1998 - NSW Fair Trading · 2018-07-03 · for home and family ... Real Estate Institute and the Tenants Union of NSW.By liaising with ... DFT Annual Report 1997~1998

Annual Report1997~1998

Volume 1 of 2

http://www.fairtrading.nsw.gov.au

2080 DFT VOL I spitt FC-38 7/6/99 1:03 PM Page 1

Our Services 2

Strategic Intent 3

Director-General's Report 4

The Year in Summary 6

Our Structure 8

Program Allocations 9

Key Result Areas

1 Informed, educated consumers & traders 10

2 Leadership in fair trading policy based on social 19justice & competition principles

3 Effective regulation 22

4 Effective marketplace performance & dispute resolution 26

5 Quality-driven customer focused & ethical DFT 33

Financial Statements 39

Appendices 65

Index 87

Fair Trading Centres 89

Volume 2 contentsVolume 2 of this Annual Report (which is available on request) contains thefinancial statements of the following self funding entities:• Rental Bond Board• NSW Land and Housing Corporation and Rental Bond Board Joint Venture• NSW Rental Property Trust• Fair Trading Administration Corporation• Property Services Council.

Contents

ISSN 1327 – 9890New South Wales Department of Fair TradingParramatta NSWOctober 1998.

Cover: As we approach the newmillennium, electronic service deliveryis at the top of our priorities. Weare aiming for improved, faster andcheaper services, no matter where ourcustomers are.


DFT Annual Report 1997~1998

1

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The Hon J W Shaw,

QC MLC

Minister for Fair Trading

Dear Mr Shaw

I am pleased to present the Annual Report of the Department of Fair

Trading for the year ended 30 June 1998.

The Report has been prepared for presentation to the Parliament of

New South Wales in accordance with the requirement of the Annual

Reports (Departments) Act 1985 and the Annual Reports (Statutory

Bodies) Act 1984.

The Report also fulfils the statutory reporting requirements of the

Director General under:

• the Fair Trading Act 1987.

• the Landlord and Tenant (Rental Bonds) Act 1977.

• the Residential Tenancies Act 1987

• the Retirement Villages Act 1989.

D. B. O,Connor

Director-General

Department of Fair Trading

23rd September 1998


Fair Trading Centres

Other Locations


2

http://www.fairtrading.nsw.gov.auOur customers now have a fast newway to obtain information aboutwhat we do. Launched in May 1998,our website provides easy tounderstand details about all ourservices and fair trading issues.

There are nine channels:• Going Shopping is the place to

learn about consumer rights andcredit

• Cars, Bikes and Boats provides achecklist that can save buyersthousands

• Homes, Building and Rentingoffers information for anyoneinvolved in buying, building,renovating or renting a place to live

• Buying Safe Products shows howto choose safer toys and productsfor home and family

• Your Business is about businessnames, licences and setting up asassociations or cooperatives.

• About Us is the directory to allour services

• Media holds details of pressreleases, upcoming events and courtcases involving the Department

• Policy and Legislation providesinformation on the legislation weadminister and information onregulatory review

• Publications allows customers toplace orders for our publications

Fair Trading CentresOn-line access is the way of thefuture, but we still depend on 23 frontline offices around NSW for the bulkof our customer contact. These FairTrading Centres are located inMetropolitan and major regionalcentres and can provide access toevery DFT service.Our outreach activities and theGovernment Access Program providesan additional 14 locations for accessto DFT services or information.

OurServices

The Department of Fair Trading provides information and

assistance for consumers and traders on general consumer

issues, motor vehicles, home building and renovation, credit,

property and tenancy issues, plus co-operatives, associations

and business names.


• Equity for customers and staff• Integrity underlies everything we do• Professionalism is an integral part of our performance• Innovation is valued along with the strengths of the past• Openness in all our communication.

• Ethical work practices• Skilled, innovative staff• Accountable management of resources• Customer focused• Technologies and systems which support DFT outcomes• Effective strategic partnerships.

• Informed, educated consumers and traders• Leadership in fair trading policy based on social justice &

competition principles• Effective regulation• Effective marketplace performance and dispute resolution• Quality-driven customer focused & ethical DFT.


3

Our StrategicIntentNew South Wales will be

recognised for value and

fairness in the marketplace

Our Core Values

Core Capabilities

Key Result Areas


This has been the Department’sfirst full year of operation followingthe process of integration. I am pleasedto report that the administrativearrangements introduced at that timeare working well.While some finetuning has been necessary during theintervening period, each of theDepartment’s divisions performedeffectively and enthusiastically duringthe course of this year.

Meeting ExpectationsA stable structure has aided in the

development of strategies designed toprovide better services.An Access andEquity Strategy took effect in July thisyear. Groups with special needs, suchas Aboriginal people, people fromnon-English speaking backgroundsand people living in remote areas willbenefit from its initiatives.

An Aboriginal Action Plan wasformulated following research thatidentified tenancy, complex contractsand discrimination as the criticalissues facing Aboriginal consumers.One of the initiatives contained inthe Plan includes the employment ofCustomer Service Officers who willfocus on Aboriginal consumer andtenancy issues.

The completion of theDepartment’s first Equal EmploymentOpportunity Plan provides a strongfocus for the future. Over 87 percentof staff responded to a survey whichwill form the basis for futureinitiatives in this area.The diversity ofthe Department’s workforce alreadyexceeds NSW benchmarks for stafffrom racial, ethnic and ethno-religious backgrounds, women andstaff who speak a language other thanEnglish as their first language.

The Department has a diverse

client base. During the year specialattention was paid to the needs of itsbusiness customers. Steps were takento utilise web technology to improvethe Business Licence InformationService (BLIS) and the Register ofEncumbered Vehicles (REVS).And inconcert with the Ministerial Councilfor Consumer Affairs, theDepartment is developing anautomated test for screening businessnames. Business customers will savetime and money as a result.

Together, these initiatives serve tohighlight one of the major challengesfacing the Department. It is vital itsservices are delivered effectively to adiverse range of customers.To achievethis goal, its performance will bemonitored and timely action taken toremedy any shortcomings that areidentified.

A Different PerspectiveWhile the Department possesses an

impressive policy making capability, itcertainly does not regard itself as thesole repository of fair trading expertise.For this reason, the creation during theyear of four advisory councils to assistthe Minister was a welcomedevelopment.The Fair TradingAdvisory Council, the PropertyServices Advisory Council, the MotorTrade Advisory Council and the HomeBuilding Advisory Council will make ameaningful contribution to theformulation of policy.

The Department also conductsregular meetings with more than 20stakeholder groups including theHousing Industry Association, theReal Estate Institute and the TenantsUnion of NSW. By liaising withthese bodies, the Department seeks toensure the services it provides remain

relevant.This activity also helps theDepartment achieve its goal ofmaking NSW a better place in whichto do business.

Encouraging CompetitionThe review of legislation which

impacts on competition has occupieda lot of the Department’s time duringthe year. Under the NationalCompetition Policy Agreement theNSW Government is committed toreviewing 191 separate pieces oflegislation, 28 of which fall within theDepartment’s ambit.These reviewsseek to ensure Government objectives,such as consumer protection, are metin a cost effective fashion.

Strenuous efforts are made toinclude stakeholders in this process.Issues papers outlining current lawsand examining options for change arewidely distributed.And wherenecessary, public forums areconvened.This is an extremelyvaluable exercise, but it does placegreat demands on the Department’slimited resources. Nonetheless, theDepartment is on target to meet thestipulated time frames.

Consumer Redress – A New DealEffective avenues for the redress

of consumer and trader complaintslies at the heart of NSW fair tradinglaws.A review of the operations ofthe Commercial Tribunal, theConsumer Claims Tribunals, theBuilding Disputes Tribunal and theMotor Vehicle Repair DisputesCommittee was completed duringthe year.

Flowing from this, it wasrecommended that a Fair TradingTribunal be established to assumeresponsibility for the work carried out

Director-General’s Report


4


by these tribunals.The report stressedthe new arrangements must retainthose attributes – informality,inexpensiveness, timeliness – thatmade its predecessors so attractive.The Fair Trading Tribunal, tocommence operations in the first halfof next year, will have a dedicatedbudget and be entirely independentof the Department.

The Millennium BugThese days it is virtually

impossible to open a newspaperwithout coming across a reference tothe year 2000 problem – or theMillennium Bug as it is often called.While the problems it poses for bigbusiness have been well-documented,the difficulties it could cause consumershas not been accorded the sameprominence.To assist consumers buyingnew equipment or checking existingitems for Y2K compliance, theDepartment is producing a series offact sheets for distribution through itsFair Trading Centres. It is also workingclosely with other governmentagencies to produce a Y2K consumerawareness strategy for NSW.

Olympic StrategiesDuring the year the Department

released a document outliningproposals to deal with fair tradingissues likely to arise as a result of the2000 Olympic and ParalympicGames. Initiatives include theestablishment of a Visitor Helplineand the creation of a specialist unit toinvestigate complaints as quickly aspossible.A report on the potentialimpact of the events on the Sydneyrental market was also released. Itconcluded that the Sydney Olympicswere unlikely to have adverse effectsbut recommended strategies toprevent problems, includingmonitoring the Sydney rental marketto detect unusual rent movements.

Consumers, Complaints and Computers

The growing popularity ofpersonal computers has beenaccompanied by a sharp increase incomplaints to the Department.Demands for large deposits, the non-delivery or late supply of goods, andthe failure to address complaints weremajor causes for consumerdissatisfaction. Even more disturbing isthe sudden closure of computerretailers, leaving considerable numbersof consumers substantially out ofpocket. In May, the Fair TradingAdvisory Council commenced anenquiry into the personal computerindustry that will pay special attentionto “phoenix” companies – those whichfold only to re-emerge in a differentguise.The Council’s report is duein October.

Mediation WorksSince the introduction of the

Strata Schemes Management Act inJuly last year, applications for theformal resolution of disputes havefallen by a dramatic 76 percent.Thisis a direct result of the mediationmechanisms put in place by the newlegislation which also gave ownerscorporations the power to issuenotices to comply with by-laws.The ways in which mediation canbe extended to other facets of theDepartment’s operations are alsobeing explored. Mediation is alreadyused to help resolve buildingdisputes, but it could also work inretirement village matters and arange of other areas as well.

Co-operatives – Flexible, Relevant

Over the years co-operatives havemade a substantial contribution to theNSW economy.Today, they remain asrelevant as ever. In March this year animproved co-operatives formations

program was introduced to helpgroups establish new co-operatives.And the flexibility of the co-operativestructure is demonstrated by afeasibility study commissioned bythe Department on the proposedLismore-based Norco Energy Co-operative. Such a co-operative has thepotential to deliver cheaper electricityto consumers.The adoption of CoreConsistent legislation in Novembermakes the co-operative structure evenmore attractive by cutting red tapefor those co-operatives seeking totrade interstate.

The Way AheadIt has been a very productive year

for the Department of Fair Trading.Significant measures were introducedto help both traders and consumers.The year ahead promises to be just asproductive.Ways in which electroniccommerce can be utilised to makelife easier for the Department’sbusiness customers will be canvassed.The Department’s web site isdestined to become increasinglyinter-active, allowing many customersto transact business without the needto visit a Fair Trading Centre.Andbecause the Department’s FairTrading Centres handle almost600,000 telephone enquiries annually,it is imperative this service is mademore user friendly.

While the Department will notoverlook its statutory obligation tostamp out illegal trading activities,NSW businesses and consumers canbe assured the Department iscommitted to making its services evenmore accessible over the coming year.

David O’ConnorDirector-GeneralDepartment of Fair Trading


5


Informed, educatedconsumers and traders

Significant achievements

• DFT website launched • Launch of Taking Charge – an action kit

for communities facing bank closure• First National Consumers Day held in

October 1997• Sydney 2000 Olympics and Paralympics

strategy released• Aboriginal marketing research project

completed.

Activities

• 782,829 customer enquiries handled atFair Trading Centres

• 479,872 rental bonds held at end of year• Grants to community organisations

exceed $5M• 113 media releases issued; 3,721

media contacts.

The Future

• Pilot visitor helpline for Olympic visitorconsumer problems

• BLIS service available through websiteby June 1999

• Real estate agents will conduct bondtransactions through internet

• Continued extension of services toregional NSW through GovernmentAccess Program

• Year 2000/Millennium bug educationcampaign for consumers and traders.

Leadership in fair tradingpolicy based on social justiceand competition principles

• Enquiry into consumer sales of computerequipment and software

• Cooperatives Development Fund grantprovides assistance to peripheralworkforce affected by BHP’s Newcastleclosure

• DFT leads National working party ondevelopment of automated businessnames screening process

• Four new Ministerial Advisory Councilsdraw on broad field of consumer and industry expertise.

• DFT worked closely with Department ofEnergy on development of Gas Supply(Customer Protection) Regulation

• Membership of Electricity Association’sworking group for development ofEnergy Industry Ombudsman NSWScheme (EION)

• Feasibility report completed on proposedNorco Energy Co-operative

• On-going support for development ofoutworker co-operative program.

• Report on Computer Industry Inquirycompleted October 1998

• National Business Names test to bedeveloped

• Consumer Protection Strategy forElectronic Commerce.


6

The year insummary

Key Result Area

1Key Result Area

2


Effective regulation

• Fair Trading Amendment Act 1998assented to on 30 June 1998

• Amendment to Pawnbrokers andSecond-hand Dealers Act 1996 passedduring 1998 Budget Session

• Caravan Park and Manufactured HomeEstate tenancy laws reviewed

• Co-operatives Amendment Act 1997proclaimed on 1 December 1997

• Valuers Registration Boards Conferencehosted in May 1998.

• Two Acts reviewed as part of the NationalCompetition Policy (NCP) Agreement

• Regulatory Impact Statement preparedfor the Electricity Safety (ElectricalInstallations) Regulation 1998

• Regulatory Impact Statement preparedfor the Fair Trading (ProductInformation Standards) Regulation 1997

• 43 new Conveyancers licences granted.

• NSW REVs legislation will be consistentwith national standards

• Cooperation with other jurisdictions onuniform response to Trans-TasmanMutual Recognition Agreement

• Builder licensing will be reformed inresponse to the Report on the Reviewof Licensing in the NSW HomeBuilding Industry

• Home building warranty insurancewill be improved through the linkingof licensing and insurance and otherreforms.

Effective marketplaceperformance and disputeresolution

• New Fair Trading Tribunalrecommended to absorb roles ofCommercial Tribunal, Consumer ClaimsTribunals, Building Disputes Tribunal andMotor Vehicle Repair DisputesCommittee

• Voluntary Code of Practice for fitnessindustry developed

• DFT assumed responsibility for licensingof employment agencies

• Cooperative action with Police Serviceon enforcing Pawnbrokers & Secondhand Dealers Act.

• 52,820 customers use our stratainformation service – up 20% onprevious year

• Applications for formal strata disputeresolutions by an adjudicator drop by76% due to improved mediation

• REVS receives 715,514 vehicle enquiries• Business names registrations reach

405,321

• Building licences reach 150,000.

• Increased consumer use of REVSanticipated through computer linkwith RTA

• Faster more effective responses toresidential building complaints throughnew Dispute Management Service

• Further action to ensure proper licensingin NSW kit home industry

• Compliance survey of unsafe electricalgoods to extend to regional areas

• Implementation of fair trading strategy inrelation to Olympics andParalympics Games

Quality-driven customerfocused and ethical DFT

• Ground breaking Access & EquityStrategy adopted

• Development of Aboriginal Action Plan• Improved customer facilities through six

refurbished Fair Trading Centres• New Financial Management System

(SAP) implemented on time and to budget

• Y2K project team established.

• Funding guidelines developed for fivegrants programs

• 26 business units engaged in Y2Kassessment process

• Consistent planning indicators developedacross business units

• Improved waiting times for interviewswith Valuers Advisory Committee.

• New business names registration systemwill improve service and save $600,000 per annum for four years

• At least 15 new permanent positions forAboriginal people

• Extension of computer network to ten additional locations

• Y2K testing and remediation completedby June 1999

• Business name information brokersincrease from two to eight and provide names data 24 hours a day via internetconnection.


7

Key Result Area

3Key Result Area

4Key Result Area

5



8

Minister

Director-General David O’Connor

Ministerial Advisory Councils

Property Services Advisory Council

Commercial TribunalConsumer Claims TribunalBuilding Disputes Tribunal

Residential Tenancies Tribunal

Tribunals

Registries

Ministerial LiaisonExecutive Liaison & Co-ordinationMedia UnitFOI

Assistant Director-GeneralBrian Given

Internal Audit

Director David Catt

Compliance, Legal & Safety Division

Fair Trading Investigations

Real Estate Investigations

Safety & Standards

Operational Priorities & Intelligences

Legal Services

Trade Measurement

Pawnbroker Compliance

DirectorJohn Devlin

Licensing & Registration Services Division

Strategy & Performance

Licensing (except Building Lic)

Business Registration

System Administration

REVS

DirectorSusan Cleary

Home Building & Property Services Division

Home Building• Building

Investigations• Building

Licensing• Building

Insurance

Property• Renting

Services• Commission

Reviews• Strata Scheme

Office

Mediation Services

DirectorColleen Moore

Customer Services & Community Education

Divisional Services

Customer Services• Sydney Region• Hunter

Region• South Region• North Region• West Region

Community Education

DirectorGarry Waters

Management & Information Services Division

Human Resources

IT Operations

Finance

Administration

PSC Compensation Fund

Community Funding

Tribunal Administration

DeputyDirectorMarie Bonney

Information management

IT Strategic Developement, Policy & Planning

Library

Records

Internet

DirectorJohn Schmidt

Policy Division

Strategic Policy

Regulatory Review

Community & Research Programs

Program evaluation

Strategic Information

Corporate Planning/

Quality Managment

Advisory Council

DepuDirecSusa

StrateProjec

Registry of Co-ops

Co-operatives Policy

FTS – Olympic & Credit Code

Director-General’s Unit

Ourstructure


Marketplace Performance14.4%$15,545,000

Fair Trading Standards & Registers17.7%$19,137,000

Fair TradingStrategy6.6%$7,198,000

Tribunals11.7%$12,707,000

Consumer & Trader Services49.6%$53,680,000


9

Ministerial Advisory Councils

Property Services Advisory Council

Ministerial LiaisonExecutive Liaison & Co-ordinationMedia UnitFOI

DeputyDirectorMarie Bonney

Information management

IT Strategic Developement, Policy & Planning

Library

Records

Internet

DirectorJohn Schmidt

Policy Division

Strategic Policy

Regulatory Review

Community & Research Programs

Program evaluation

Strategic Information

Corporate Planning/

Quality Managment

Advisory Council

DeputyDirectorSusan Dixon

Strategic Projects

Fair Trading Standards & Registers17.1%200

Marketplace Performance12.9%151

Fair TradingStrategy6.2%72

Tribunals11.5%134

Consumer & Trader Services52.3%610

Program Allocations

AVERAGE STAFF ALLOCATIONSTOTAL STAFF 1,167 AT 30 06 98

TREASURY PROGRAM ALLOCATIONS


Sydney 2000 Olympic andParalympic Games

In November 1997, we releaseda strategy document (developed inconsultation with SOCOG and theOlympic Co-ordination Authority)outlining a range of proposals fordealing with fair trading issues thatare likely to arise as a consequenceof Sydney’s hosting of the 2000Olympic and Paralympic Games.Some of the initiatives outlined inthe strategy include: development ofconsumer and trader educationprograms to minimise potential areasof consumer detriment; developmentof a Visitor Helpline; development ofa Rapid Response Unit to undertakespeedy investigations and remedialaction to address urgent problems;and scrutiny of visitoraccommodation issues.

A report on the potential impactsof the 2000 Olympics on the Sydneyrental market was released during theyear.Titled 2000 Olympics and theResidential Tenancy Market, the reportestimated the extent to which anynegative impacts could apply in theSydney rental market; looked at theimpact of major events on rentalmarkets in other cities; catalogued the accommodation strategies being developed for the SydneyOlympics; and developed a range of

options for addressing potentialproblems – noting the extent towhich existing law and practicecould address these.

The report concluded that it isunlikely the 2000 Olympics will havesignificant adverse impacts on theSydney rental market but suggestedstrategies to prevent problems arising.The strategies we will implementinclude: monitoring the Sydneyrental market for any unusual rentmovements; conducting a landlordeducation campaign to dampenspeculative activity in the rentalmarket and a tenant educationcampaign to ensure tenants are awareof their rights.

We will also be contactingoverseas consumer protectionagencies to provide information totourists on the Australian consumerlandscape and to seek feedback onany Olympic related consumerproblems. Details of our plans andstrategies for the 2000 Games havebeen placed on the Fair Tradinginternet site launched in May, 1998.

A brochure for inbound touristsoutlining consumer rights andresponsibilities has been prepared fordistribution via travel agents, airlines,hotels and consulates.A pilot VisitorHelpline will commence inSeptember, 1998 to assist tourists

encountering fair trading problems.A co-operative arrangement is beingdeveloped with SOCOG to supportits Brand Protection Program inrespect of monitoring andinvestigating the sale of counterfeitOlympic goods, ambush marketingand country of origin labelling.

Website Development and Launch:http://www.fairtrading.nsw.gov.au

The website we launched inMay 1998 now enables consumersand traders with a PC linked to theinternet to easily access the wealth ofinformation provided by Fair Trading.

The website provides up-to-date, quality information onfair trading issues, including rights& responsibilities for the consumerand trader. It has been organised inbroad subject areas such as “GoingShopping”;“Homes, Buildingand Renting”;“Your Business”;“Cars, bikes, boats”.

Other features include:• email update service to alert users

to new additions to the website,particularly media releases andissues papers

• “Your Say” section enabling websiteusers to provide feedback to theDepartment about the website

• scope to provide publications inlanguages other than English

Informed, educated consumers& tradersA priority for the Department is to work towards improving consumers’ and traders’ understanding

of our State’s fair trading laws. With knowledge and understanding of pertinent issues, consumers

and traders are both able to do business with greater confidence and to resolve differences fairly

and effectively. Reaching vulnerable and remote groups is an integral part of our strategy.


10

Key Result Area

1


• access to Fair Trading Centre detailsfrom anywhere on the website.

We are also piloting threeCustomer Access Terminals atHurstville,Wollongong and PortMacquarie Fair Trading Centres toprovide access to the Department of Fair Trading website and to theNSW Government website forconsumers and traders withoutinternet access.

Internet Service DeliveryTender documents have been

released for a joint initiative withthe Commonwealth Government toimprove access to the NSW andCommonwealth licence informationservice by upgrading and extendingthe Business Licence InformationService (BLIS) computer systemonto the internet.

The proposed upgrade of BLISwill provide a responsive, friendlyand secure user interface which isspecifically designed to provide thepublic with easy and efficient accessto a ‘one-stop’ licence informationservice through world wide webtechnology.The public informationservice through the internet isexpected to be available fromJune 1999.

We have already changedthe REVS on-line system to useinternet technology to deliverservices to account clients via thenewly developed REVS ‘extranet’.Whilst this platform is still beingcompleted and extended, it isanticipated that electronic servicedelivery to clients will increasefrom 50% of total account activityto an estimated 60% of totalaccount activity in the nexttwelve months. Planned Webaccess to the new on-line systemwill assist in achievingthe anticipated increase in usage.

During 1997~1998 wemaintained a REVS web site toprovide details of its services. It isproposed to extend this service toenable web access with interactivetransactions for public enquiries inthe future.

Renting Services’ ElectronicService Delivery Strategy

Approximately 3,800 real estateagents manage over 85% of all therental bonds held by Fair Trading onbehalf of NSW private residentialtenants. During the past year a casestudy on the viability of business tobusiness transactions over the internetwas conducted to ensure thatcustomers needs and serviceexpectations would be met in thefuture.The intention is to givecustomers the ability to do businesswith DFT anywhere, anytime, sevendays a week and 24 hours a day byproviding a new service deliverychannel.The new service deliverychannel will allow real estate agentsto undertake direct businesstransactions with the Department andauthorise residential bond repaymentsto tenants via the internet.

By introducing this additionaldelivery channel significant reductionsin costs for both real estate agents andthe Department can occur, and soimprove the rental bond refundservices to tenants.We expect theRental Bond Internet Services(RBIS) Project will be commissionedduring 1998~1999.

Year 2000 is ticking awayThe Government has assigned

the Department principalresponsibility for consumerprotection in relation to the Year2000 problem. It has the potential toadversely affect not only computersystems and equipment, but any item

which has an embedded datedependent microchip such as a videoplayer/recorder, answering machineor digital clock.

A key component of ourconsumer protection, educationand awareness strategy has been theproduction of the first in a series ofYear 2000 Fact Sheets for distributionthrough Fair Trading Centres.Aneed existed to provide guidance toconsumers to assist them whenpurchasing new products or checkingon existing purchases.The fact sheetscan equally assist traders inunderstanding their responsibilityto consumers.

Consumer concerns and traderbehaviour reported through our FairTrading Centres will be monitoredregularly.The aim is to detectmisrepresentation or fraud in relationto the impact of Year 2000, in thesale or servicing of computer andembedded chip products and inrepresentations about products andthe suitability of related services.

We are also working closelywith the Office of InformationTechnology who, with theDepartment of State and RegionalDevelopment, is taking action tocreate awareness within the businesscommunity.The aim is to increasetrader awareness of obligations toconsumers particularly in the servicingof the problem and the production ofnew compliant products.

In order to implement thenational consumer education plan,we are liaising with the MinisterialCouncil on Consumer Affairs(MCCA) and the StandingCommittee of Officials of ConsumerAffairs (SCOCA). Under a MCCAinitiative, comprehensive Year 2000brochures for small business andconsumers are available from ourFair Trading Centres.


11


Fair Trading CentresAlmost 800,000 enquiries were

received through our network of23 Fair Trading Centres.The rangeof issues included: fair tradinginformation assistance; business namesregistration; building trades licensingand lodgement of claims withConsumer Claims, Building Disputes,and Residential Tenancies Tribunals.

Regional AccessAn effective means of extending

our services to regional areas hasbeen our continued involvement inthe Government Access Program.During the year, new centres wereestablished in the south and west ofthe State in: Deniliquin, Bowral-Mittagong, Nowra, Bourke, BatemansBay, Grenfell, Gilgandra, Merimbula


12

Informed, educated consumers& traders continued

Key Result Area

1

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

97/9896/9795/9694/9593/94

282,1

48

319,9

49

422,4

77

529,5

16

368,3

88

464,1

91

566,9

06

586,7

29

742,2

42

728,8

29

37,8

01

107,0

39

95,8

03

175,3

36

196,1

00

Telephone Counter Total

ENQUIRIES AT FAIR TRADING CENTRES

0

5,000

10,000

15,000

20,000

25,000

30,000

97/9896/9795/9694/9593/94

Fair Trading Real Estate Building Services

5,9

44

5,1

45

7,8

72

6,8

39

5,0

31

20,5

00

23,0

00

24,0

93

24,3

08

27,7

14

968

938

871

814

735

TOTAL FORMAL COMPLAINTS RECEIVED AT FAIR TRADING CENTRES

Services26%8,694

Building15%5,031

Real Estate2%735

Motor Vehicles11%3,745

Products46%15,275

COMPLAINTS RECEIVED AT FAIR TRADING CENTRES BY CATEGORY


and Brewarrina. Plans are alsounderway to extend the Programto Lightning Ridge and Lithgow.

Information about Fair Tradingservices is available at all these centresand planning is also underway todirectly provide selected services.

Bank Closures in Regional NSWPeople all over Australia have

been affected by bank branchclosures.These closures are extremelyinconvenient to customers and erodebusiness for local traders.This hasbeen particularly devastating forpeople in rural and regional areas.

At least 124 bank branches havebeen closed in regional NSW overthe past three years. Some closuresleft towns with fewer branches, 36localities were left with no bank at all.

In 1997 the then Minister forFair Trading, the Hon. Faye Lo Po’MP, launched a series of initiatives toaddress the problem.We funded theNSW Council of Social Service toconduct a Banking Hotline, on10 June 1997, which received about700 calls.This formed the basis for areport Are Banks MeetingCommunity Needs?.

Regional Banking Forums wereheld at Bathurst,Wagga Wagga,Grafton and Maitland in June andJuly 1997.The Forums allowedpeople to air concerns and explorepractical solutions with all the keyplayers.The results were published inBanks:Are You Being Served?

We also produced Taking Charge –An Action Kit for Communities FacingBank Closure.The kit was launched inOrange on 6 November 1997 anddistributed widely in countrycommunities. It helps local peopletake action to retain or replacefinancial services in their locality.

As many banking issues areCommonwealth responsibilities, the

NSW Government made asubmission in early 1998 to theHouse of Representatives Inquiryinto Regional Banking Services.Since then events have movedquickly.The major banks have nowbegun to announce new serviceinitiatives for country areas, especiallyNSW. By publicising the concerns ofregional communities and suggestingways in which financial servicescould be sustained, we have led thefight to keep banking services inregional NSW.

Fair Trading Issues in theTenancy Market

In 1997 the Departmentcommissioned the BenchmarkSurvey of Consumer Issues in NSWin order to research the industrieswhere consumers most frequentlyhad problems.A high proportionof tenants indicated they hadexperienced problems, but the studydid not give more detail.We thereforedecided to conduct a further study toobtain in-depth information on thetenancy market.

This new research project – FairTrading Issues in the Tenancy Market– will investigate: the frequency andseriousness of problems; whichsectors of the market experience themost problems; and, what strategiesmight be implemented to preventproblems from occurring.The projectwill include surveys of tenants, realestate agents and property owners.

The results will provideadditional information for thecurrent review of NSW tenancylegislation.They will also be usedto fine tune our services to therental accommodation industry.The study, which is beingundertaken by research consultantsKeys Young, will be completed bySeptember 1998.

Strata Schemes EducationForums

The Strata Schemes ManagementAct 1996 commenced on 1 July1997.An overhaul of the strataschemes laws was long overdue.Theprevious laws were drafted more than20 years ago when strata schemeswere mainly residential apartments.Now strata subdivisions include townhouses, villas, commercial propertiesand retirement villages. Ensuringcommunity understanding of the newlaws was a major undertaking and weprovided specialist information,education and mediation servicesthrough the Strata Schemes Office.Ten public and industry educationforums were arranged across the Stateand were attended by over 700customers. During the first month ofthe new legislation, we distributedover 25,000 information kits tocustomers statewide.

Extensive training was providedby the Strata Schemes Office to FairTrading Centre staff across the stateto ensure integrated service deliveryfor customers and that they haveaccess to information regardless oftheir location.

Real Estate AgentsCompetencies

Licensing of real estate agents inNew South Wales is another of ourresponsibilities and we keep a closewatch on developments in the area ofindustry educational standards. InDecember 1997 Property ServicesTraining Australia (PSTA) endorsedthe recently revised National RealEstate Competency Standards. PSTAis an industry based body establishedto develop vocational and trainingguidelines for the property sector andis funded through ANTA (AustralianNational Training Authority).Theserevised competency standards form


13


part of a training package currentlyunder consideration by ANTA.Therevised standards have been draftedin simpler language with a moreaccessible format to reflect industrywork practice.

In 1996 the Standing Committeeof Officials of Consumer Affairs(SCOCA) established a workingparty to make recommendations ona nationally uniform standard for realestate agents licences.The workingparty proposed a uniform entrystandard which addresses areas ofidentified risk for consumers.Submissions are currently beingconsidered after consultation withthe real estate industry.

REVS Client TrainingOur REVS service provides an

effective one-day training workshopwhich equips financiers with theknowledge and skills necessary toensure security of their interests,through more productive lodgementof application forms, processing ofreports and familiarity with REVSoperations and functions.

A total of 81 participants from32 different financial institutionsattended the training workshopswhich were held at either the REVSoffice in Liverpool or at the client’spremises.They are held monthly at acost of $180 per person for the fullday session or $90 for one half day.Half day workshops are conducted onrequest and are customised to theclient’s needs.

REVS AdvertisingPrevious market research revealed

a significant percentage of thepopulation are not aware of theREVS service.This could translate toa high risk of repossession for buyersof second hand vehicles or boats whodon’t check with REVS.

This year a REVS advertisingcampaign, using a “Don’t risk it,REVS check it” message, wasdeveloped for radio and cinema inorder to address this problem andfulfil community service obligations.The advertising campaign targetsyoung people, specific non-Englishspeaking background (NESB) groups(Chinese,Arabic, and Spanish) andthe general community.Thecampaign is statewide with cinemascreenings in all locations.The radiocomponent reaches metropolitanaudiences, with emphasis on westernSydney and NESB communities.

Radio and cinema were selectedbecause this combination should provemost effective in communicating withthe target audience as well as beingcost-effective.The total cost of thecampaign was $361,000, coveringproduction and media placement.To capitalise on the initial productioncost, we expect these advertisementswill be used throughout thefollowing year.

It is proposed to measurethe effectiveness of the campaignand adjust media placement asappropriate.Through this advertisingcampaign process, REVS will ensurethat consumers in New South Walesare afforded protection againstrepossession by a financier whenbuying cars and boats in theprivate market.

Rental Bonds increaseThe number of private

residential tenancies and, therefore,rental bond transactions continues togrow. During the year, 24,000 morefinancial transactions were processedthan in the previous year, with282,564 new rental bond receiptsvalued at $236 million and 269,633bond refunds valued at $216 millionbeing made through 389,430payments. By the end of the year weheld 479,872 bonds – an increaseof 12,931.

Customers from across NSWexperienced significantly improvedaccess to specialist rental bond andtenancy information. During theyear, 377,690 local and freecall 1800telephone callers were assisted, almost40,000 more than the previous year.Despite this significant increase, weprovided improved service levels withaverage call waiting times reduced byup to 50%.

Electrical Safety EducationThe NSW Electrical Accidents

1997 Report was issued in February1998.The Report notes that during1997~1998 there were 17 accidentaldeaths and 202 serious accidentsinvolving electricity.This is asubstantial increase over the sevendeaths (a record low figure) thatoccurred in 1996. Major causes arosefrom carrying out electrical work(nine deaths), using electricalequipment at work (two deaths)and six deaths involving thegeneral public.

To encourage awareness ofelectrical hazards and safe use of


14


Key Result Area

1


electrical equipment by consumers,we published an Electrical SafetyGuide.The Guide was widelypublicised in the news media. It wasalso mentioned in the literaturewhich accompanied consumers’electricity accounts.

Assisting trader compliance withelectrical safety legislation is oneof our major activities. During1997~1998, we advised traders bydirect mail of the new legislativerequirements in regard to televisionreceivers and gymnasium equipment.A hazard alert was also provided toexhibition operators concerning theuse of quartz halogen lights.

Rural health care opportunitiesIn November 1997, we

co-sponsored a seminar at Yeovalin central New South Wales. Ithighlighted the options andalternatives available to smaller ruralcommunities looking for viablehealth care facilities.The model usedwas Yeoval Community Hospital Co-operative Ltd, which offershospital, nursing home and hostel,day care, physiotherapy, optometry,Xray and outreach Meals on Wheels.

Operating under a co-operativestructure, the Hospital has establisheda successful service that is owned andoperated by the community it serves.During the seminar, which wasattended by about 120 peoplefrom all over NSW, we were able tohighlight the advantages the co-operative structure provides and thesteps local communities need totake to start a health cooperativefrom scratch.

PublicationsIn April 1998 we began a

publication review process.Theprincipal objectives were to ensurethat our publications continued to be

relevant to clients and that theysupported our core activities.Wewere also looking for gaps in ourservice provisions and to make moreeffective use of our limited resources.The process involved an appraisal ofalmost 90 titles by staff at our FairTrading Centres, followed by acomparative exercise by our specialistdivisions.The results indicated thatmost publications were valued by staffand that they believed clients held asimilar view.

This process allowed us to ensurethat the information contained in themost valued publications will becarried forward into those producedduring the 1998~1999 financial year.A full list of titles currently availableappears at Appendix 12.The list isalso available on our website togetherwith a printable order form. Duringthe coming year, we intend to trialon-line lodgement of orders.

Events and exhibitionsWe took advantage of a number

of major consumer and trade showsto extend the reach of our fair tradingmessages. By far the largest was theEaster Show where we used a themeof Home & Living to focus on issuessuch as buying a home, renting andhome safety.To cover the safety issueswe staged a series of demonstrationswith the help of several industry andconsumer groups.

The National ElectricalContractors Association (NECA)assisted with demonstrations oncombating dangerous electricalsituations.The Nursing MothersAssociation and SIDA, the SuddenInfants Death Association, bothprovided demonstrations on thecorrect use of infants furniture,particularly cots.

Other major activities includedparticipation in the Commonwealth

Bank Home Show and the Pool andSpa Show, where we provided generalinformation on home building andthe use of the Department’s range ofhome building contracts.

National Consumers DayThe first National Consumers

Day was celebrated on 30 October1997. It was instigated by MCCA, theMinisterial Council on ConsumerAffairs, with national coordination ofthe event rotating between states andterritories each year.

The theme selected forNational Consumers Day 1997 waselectronic shopping. It looked at thevariety of alternative shoppingmediums and the potential benefitsand pitfalls associated with each.The day raised awareness of theseemerging technologies and providedconsumers with useful information inthe form of a brochure, a poster and anational website.

The website was the first co-ordinated online presence for States and Territories and, with an easy to remember address(www.consumer.gov.au), provides acentral entry point for consumersto government agencies.The themefor 1998 is customer service andNew South Wales was elected aslead agency.

New Co-operativesPeople considering forming a

co-operative can now take advantageof our improved co-operativesformations program which wasintroduced in March 1998. Improvedservices include being able to discussthe co-op proposal with experiencedstaff and the availability of a new co-operatives formation kit.There is alsointernet access to information, casestudies and a model set of rules forthe co-operative which can be


15


customised to the requirements ofparticular groups.

Aboriginal research studyIn 1997 we commissioned a

research project which wasconducted by Aboriginal researchersfrom the Goolangullia AboriginalEducation Centre at the Universityof Western Sydney.

The aims were:• to get updated information about

fair trading problems experiencedby both urban and rural Aboriginalcommunities

• to find the best ways forcommunicating with Aboriginalpeople

• to gather the latest statistics aboutAboriginal people.

The study found that the mostimportant issues to Aboriginalcommunities were:• tenancy issues;• access to goods and services and

poor levels of customer service;• matters involving complex

contracts and credit;• car purchase and mechanical repairs.

Tenancy stood out as themost important consumer issue forAboriginal people. But discriminationby car salespeople and serviceproviders was also seen as a majorproblem.While Aboriginal peopleknew they had consumer rights, theywere not clear what those rights wereor how to use them.

Aboriginal people also did notknow who could help them. Only asmall number of people recognisedthe name of the Department. Fewhad contacted us.Aboriginal people

said they preferred to talk to anAboriginal organisation or anAboriginal officer if they neededhelp.They preferred person to personcontact, but pamphlets, brochures andposters were also seen as useful.

The results of the researchcontributed to the Department’sAboriginal Action Plan discussedlater in this Report.

Corporate research During the year, a positioning

study was conducted aimed atunderstanding the attitudes andperceptions of key stakeholders asthey relate to the Department.

The particular significance ofthe study was that it was concernedwith isolating a relevant andmeaningful positioning platformfor the Department, in additionto understanding how best tocommunicate this position torelevant target markets.

Key findings of the study:• The notion of consumer

protection is an extremelyimportant one within thecommunity, that consumers haverational and emotional needswhich they expect to be satisfied,and the general public now see itas their right to have recourse tosuch a facility.

• Consumers interpret theDepartment as dealing with largercommercial interests or “business tobusiness”, on the other handtraders saw the name change fromconsumer affairs as demonstrating amore balanced approach.

• Key community sectors, such as

renters, landlords, those involvedin home building & renovating,people from Non-EnglishSpeaking Backgrounds andretirement village residents havespecific issues of concern, wherethe Department has an importantrole to play.

• The Department does not have anestablished or consolidatedpositioning statement at this point.However, during the research, onestatement emerged as having thecapacity to create a strong platformfor the Department, addressing theneeds of both the community andbusiness:“The Department of FairTrading. Helping Everyone Get AFair Deal.”

• The Department’s logo is anextremely positive one, symbolisingharmony and positive resolution.

This study provides an importantimpetus in determining the strategicfocus of the Department’s marketingplans for the immediate future.

New Knife LawsAs part of a package of measures

introduced by the Government toreduce knife-related crime, from May1, 1998 it is illegal for retailers to sellknives to people under the age of16 years.

To assist other agencies inraising awareness of the new law,we distributed stickers and brochuresto retailers informing them and theircustomers of their new obligations.Copies of the brochure were alsosent to all secondary schoolsthroughout NSW.


16


Key Result Area

1


Mandatory Cot StandardEach year in Australia, unsafe

nursery furniture causes 6,500injuries to infants under the ageof four, with faulty cots being thenumber one culprit.As part of anhistoric national agreement,compulsory cot safety standardscame into force in NSW on 1 July,1998. It is now illegal to sell cots notcomplying with the new standard –“Cots for Household Use-SafetyRequirements”.

The national standard issupported by the WestmeadChildren’s Hospital, Kidsafe, theAustralian Consumers’Association,the Infant Nursery ProductsAssociation of Australia, and theSudden Infant Death Association.

We have informed NSWmanufacturers of the changes,and will continue to hold regularinspections to ensure that cots onsale comply with the law.A cot safetyfact sheet is available from FairTrading Centres.

Non Child-Resistant CigaretteLighter Ban

Young children can be fascinatedby lighters, but tragically thisfascination has resulted in horrificinjuries and even death. In 1994 theNSW Fire Brigades attended 74 fireswhich involved children playing withlighters and at least three deaths havebeen attributed to the use ofdisposable lighters by toddlers.

This prompted national action toovercome the problem and resultedin a new law being introduced from1 October 1997. Certain disposable,novelty and refillable cigarette lighterswhich are not child-resistant are nowbanned from sale across Australia.From March, 1997 it is illegal toimport such non-complying lighters.

The new legislation now requires

all disposable, novelty and certainrefillable lighters to meet prescribedperformance requirements andincorporate child resistantmechanisms.These are designed toprevent the accidental ignition andthe use of lighters by children underthe age of five and incorporate amechanism which must be activatedbefore the lighter will work.

We have provided retailers withfact sheets on the changes and regularchecks by our inspectors areoccurring to ensure that the lighterson sale comply with the law.

Community grants exceed $5MThe Department complements

and extends its services byestablishing partnerships withcommunity-based organisations.Thisyear, a record level of more than $5million was allocated to communitygroups, primarily to assist people intenancy and financial counsellingmatters.

Tenants Advice and AdvocacyProgram (TAAP)

A full and independent review ofthe statewide Tenants Advice andAdvocacy Program (TAAP) gave highpraise to the work of the communitybased services that provideinformation, advocacy andcommunity education on tenancymatters after completion of the first

triennium of funding.The review recommended

that the program continue and beenhanced to cater for increasedcommunity need for this typeof service.

The second triennium offunding, a total of $3.2 million,was allocated this year. Funding wentto a broad geographical spread ofcommunity organisations so thatservices can be provided to urbanand rural areas of NSW.

The program funds onecoordinating group, an Aboriginalresourcing group, 14 generalistservices, three Aboriginal servicesand a specialist caravan parks andmanufactured home estates service.

The generalist services offeradvice and advocacy to tenants,with emphasis on Aboriginal tenants,tenants of non-English speakingbackground or culturally diversebackgrounds, older tenants andtenants with a disability.Theservices include phone information,face-to-face interviews, helpingtenants prepare for the ResidentialTenancies Tribunal, and communityeducation programs.

Credit Counselling ProgramThe Government provides

funding for financial counselling andconsumer credit legal advice underthe Credit Counselling Program


17

PROGRAM 1997~1998 FUNDING $

Tenants Advice and Advocacy Program (TAAP) 3,284,325

Credit Counselling Program (CCP) 840,000

Financial Counselling Trust Fund (FCTF) 612,203

Tenancy and Housing Information Unit 120,704

The Aged-care Rights Service (TARS) 224,130

Building Apprentices Training Limited (BATL) 250,000

Total funding 5,331,362


(CCP), which we administer.For the period from 1

October 1996 to 30 September 1997,CCP funds were allocated to 18organisations to provide 22 projects.CCP assisted over 6,753 new clientsseeking financial counsellingassistance. Of the new clients, 1.5%were Aboriginal & Torres StraitIslanders and 9% were from Non-English Speaking Background.The number of repeat contactstotalled 5,093 for face to face andtelephone contact.The total financialcounselling contacts for the CCPwere in excess of 11,800.

The funded services alsocarried out 166 public education/information seminars with over1,925 participants attending thesessions.Various groups such as;inmates at one of the State’scorrectional centres, high schoolstudents, welfare and communityworker groups and a Koori consumergroup were participants at theeducation/information seminars.

The NSW Financial CounsellingTrust Fund (FCTF)

NSW Financial Counselling TrustFund (FCTF) provided funds forfinancial counselling, training ofpersons in financial counselling andfor education in personal financemanagement. Priority assistance isgiven to low income anddisadvantaged clients at no cost.

For the period from the 1October 1996 to 30 September 1997,funds were provided by the FinancialCounselling Trust Fund to 26organisations to provide 33 projects.

The services provided over 1,535hours of financial counselling andassisted over 3,420 new clientsseeking financial counsellingassistance. Of the new clients, 2%were Aboriginal & Torres StraitIslanders and 15% were from Non-English Speaking Background.The number of repeat contactstotalled 4,188 for face-to-face andtelephone contact.

Funded services also carried out88 public education/informationseminars with over 860 participantsattending the sessions.The FinancialCounselling Trust also providedfunding for the training of financialcounsellors.

The Tenancy and HousingInformation Unit

Using Rental Bond Board funds,this project is auspiced by theCombined Pensioners andSuperannuants Association of NSW.It has four key areas:• tenancy advice and advocacy

services (including casework)• consumer education (education

workshops for older consumers)• housing policy issues• liaison and network activities.

The Aged-care Rights Service Inc

This project, which also usesRental Bond Board funds, providesadvice and information to olderpeople in NSW in supportedaccommodation, such as nursinghomes, hostels, retirement villages andboarding houses.

Building Apprentices TrainingLimited – BATL

BATL is a non-profitorganisation which helps out of workbuilding apprentices by enablingthem to continue training and returnto employment. It received fundingof $250,000 during the year.


18


Key Result Area

1



19

Key Result Area

2

Computer industry inquiryThe sale of personal computers

has become an increasing source ofcomplaints to the Department of FairTrading. Since 1997 there have beenfour major computer retailercollapses, causing losses to manyconsumers.As a result, in May 1998,the Minister requested that the FairTrading Advisory Council conduct anInquiry into the Retail Supply ofPersonal Computers and Software.The Council is the peak fair tradingadvisory body in New South Wales.It consists of community and industryrepresentatives and the Director-General of the Department ofFair Trading.

The Terms of Reference forthe Inquiry required the Councilto consider trader demands for largedeposits or full pre-payment, thenon-supply and late delivery ofgoods, failure to address consumercomplaints about defectiveproducts and the neglect ofwarranty obligations.

Consideration was also given to“phoenix” companies – those whichfold, leaving many consumers out ofpocket, only to have their principalsreappear in a similar business utilisinga new corporate structure.

An extensive consultation

programme has been undertaken,including meetings with relevantconsumer and industry stakeholdersand a survey hotline run over twodays which received more than 700calls.Written comments on thissubject have also been invited.TheFair Trading Advisory Council is dueto report on this Inquiry to theMinister in October 1998.

Consumer protection in theenergy industry

We are actively involved inpromoting consumer protectionissues in the ongoing reform of theenergy industry.

In relation to the gas industry, weworked closely with the Departmentof Energy to develop the Gas Supply(Customer Protection) Regulationwhich commenced on 19 December1997.This Regulation is a majorachievement for consumer protectionin the gas industry.We also workedwith AGL Retail Energy Limited inthe development of the AGLCustomer Service Code, and withthe Australian Gas Association in thedevelopment of the national AGANatural Gas Customer Service Code.

In relation to the electricityindustry, the Department wasconsulted on development of the

Guidelines and Requirements Policy,which supplements the electricitydistributor and retailer licenceconditions.This Policy lists the Codesof Practice which must be developedas part of licence compliance.We havebeen involved in the development ofmany of these codes.The Departmentwas also consulted regarding theconsumer protection amendments tothe Electricity Supply (General)Amendment Regulation 1998.ThisRegulation provides for guaranteedcustomer service standards, disputeresolution, access to social programsand the establishment of an electricityindustry ombudsman scheme.

The Department was a memberof the Electricity Association’sworking group which developed theEnergy Industry Ombudsman NSWScheme (EION).The scheme waslaunched in June 1998.The role ofEION is to provide an independentforum for resolving customercomplaints.The Ombudsman, MsClare Petre, works with a Councilwhich consists of consumer, smallbusiness and industry representatives.The Minister for Fair Trading isresponsible for nominating theconsumer representatives and also isinvolved in selecting the Chair ofthe Council.

Leadership in fair tradingpolicy based on social justice& competition principlesNew South Wales is committed to the principles of social justice and fair competition. Being at the

forefront of local, state and national fair trading policy helps ensure that laws governing the

marketplace properly address the needs of all community sectors.


Utility Consumers AdvocacyProgram

Following a feasibility studyfunded by the Department of FairTrading, the Public Interest AdvocacyCentre is establishing the UtilityConsumers Advocacy Program(UCAP) with Government fundingof $360,000 over three years.We willwork closely with UCAP to identifyissues for consumers in the electricity,gas and water industries and monitorthe performance of the programunder the terms of the fundingagreement.

Ministerial Advisory CouncilsFour Ministerial advisory

councils were established in August1997 in accordance with the FairTrading Act 1987:• Fair Trading Advisory Council• Property Services Advisory

Council• Motor Trade Advisory Council• Home Building Advisory Council.

The Fair Trading AdvisoryCouncil (FTAC) provides a co-ordinated and integrated approach tothe development of fair trading policyin NSW. It plays an over-arching rolein relation to the other three councilsand refers matters requiring industry-specific input to the industry councilsfor advice or action.

The functions of the threeindustry advisory councils are toadvise the Minister in relation to:• industry-specific matters relating to

the development of policy• review of legislation• funding of research and education

programs• development and promotion of

improved industry standards,including customer service.

Members of the four advisorycouncils draw on a broad field ofconsumer or industry expertise.

Smoother process forregistering a Business Name

For some time, there has beenconcern that the growth of theregister for business names is reachinga point where it is becomingincreasingly difficult to find a businessname that does not clash with onealready registered.This difficulty inobtaining the desired name has a realimpact on the business community.The data base which is searched foreach application currently includes1.5 million names.This includesnearly 1.1 million company namesregistered with the AustralianSecurities and InvestmentCommission in addition toapproximately 400,000 namesregistered on our database.

The Ministerial Council forConsumer Affairs (MCCA) discussedthe issue at its meeting of August1997. MCCA approved a WorkingParty being formed consisting ofinterested jurisdictions, to develop, inconsultation with industry, a test forthe screening of business names

which allows automation and can bethe basis of a nationally consistentapproach. Significant progress wasmade during the year in developing adraft Model Business Names Test.

Support for OutworkersWe have been supporting, on an

ongoing basis, the development of anoutworker co-operative programaimed at establishing better and moreethical industrial practices in theoutworker garment industry.Anotheraim is to increase the opportunitiesfor outworkers to negotiatecollectively with principal contractors.

Further progress was achievedduring the year when 88 leadingretailers and manufacturers signed theHomeworkers Code of Practice,obligating them to ensure compliancewith awards and relevant legislation.

The Government has also issueda Code of Practice on employmentand network obligations fororganisations supplying textile,clothing, footwear and related goodsand components to governmentagencies. Contractors and employersare to ensure that a copy of the Codeis available to all parties in thecontract chain includingsubcontractors, agents, suppliers andoutworkers.We have also beenassociated with a program undertakenby the Australian NationalCommittee on Refugee Women Co-operatives (ANCORW) in training agroup of Vietnamese women


20

Key Result Area

2

Leadership in fair trading policybased on social justice &competition principles continued



21

outworkers to examine options intheir employment to establish anappropriate business structure whichwould enable them to have morecontrol over production andnegotiate better working conditions.

Energy Co-operative studyEnergy Co-operative – feasible or

not? According to the energyconsultant who prepared thefeasibility report on the proposedNorco Energy Co-operative, thefindings justify preparation of adetailed business plan for an energyco-operative based in the Lismorearea.The report also indicated thatenergy co-operatives may also befeasible in many other circumstances.

The key criteria for viabilityappear to be:• significant combined electricity

consumption• opportunities for energy efficiency

improvements with short pay-backperiods

• the ability to maintain lowoverheads, for example by sharingadministrative functions withanother organisation.

Groups of customers who couldmeet these criteria might includeexisting co-operatives and theirmembers; groups of co-operatives;groups of businesses or householdersnot currently part of a co-operative;or combinations of the above.

We are assisting in thedissemination of the report tostimulate interest among relevantgroups and will provide advice onco-operative formations.

Co-operative possibilities forNewcastle workforce

A grant was approved from theCo-operatives Development Fund forthe preparation of a strategic plan toprovide assistance to the peripheralworkforce affected by the closure ofthe BHP plant at Newcastle. BHPdeveloped an assistance package

called Pathways to help its directemployees. However, the externalworkforce, such as workers employedby contractors to BHP and otherfeeder companies were not coveredby Pathways.The grant will enabledevelopment of an assistance strategyfor the external workers that will bethe equivalent to the Pathwayspackage.

The purpose of the NSWGovernment strategy is to maximiseopportunities for the affected workersin Newcastle to facilitate gainfulemployment or economic activity.The grant represents a contributionfrom the Department of Fair Tradingto the ‘Whole of Government’strategy to assist the Newcastlecommunity following the closure ofthe BHP plant.

The grant was made to theLabour Co-operative, which has beenengaged in providing employmentplacement services in the Hunterregion for the past 12 years.

0

100,000

50,000

150,000

200,000

250,000

300,000

400,000

350,000

500,000

450,000

97/9

8

96/9

7

95/9

6

94/9

5

93/9

4

92/9

3

91/9

2

90/9

1

89/9

0

88/8

9

87/8

8

86/8

7

85/8

6

84/8

5

83/8

4

82/8

3189,0

00

190,0

00

190,0

00

195,0

00

204,0

00

215,0

00

233,2

00

240,0

44

255,2

77

282,9

72

305,5

34

335,5

00

363,2

50

377,1

93

390,2

41

405,3

21

TOTAL BUSINESS REGISTRATIONS



22

Key Result Area

3

Legislative ProgramIn the 1998 Budget Session

of Parliament, the Governmentintroduced a package ofmiscellaneous reforms for the FairTrading portfolio.The Fair TradingAmendment Act 1998 and six relatedActs, which were assented to on30 June 1998 introduced reformsrelating to:• Supreme Court enforcement of

written undertakings given to theDirector-General

• applications to the CommercialTribunal concerning contraventionsof codes of practice

• caveatable and other interests inland under building contracts or kitsupply contracts

• insurance or work done undercontract for owner-builders

• changes to membership of theMotor Vehicle Repair IndustryCouncil

• termination of tenancies by tenantson the grounds of hardship

• continuation of residents’ rights andresolution of budgetary disputes in retirement villages

• penalty notices under the Landlordand Tenant (Rental Bonds) Act andthe Property, Stock and BusinessAgents Act.

Pawnbrokers and Second-handDealers Act

A number of amendments to thePawnbrokers and Second-hand

Dealers Act 1996 were passed duringthe 1998 Budget session.Theseamendments:• clarify provisions relating to the

grant and renewal of licences andthe selling of unredeemed goods atauction

• extend the time licensees mustretain goods which are suspected ofbeing stolen

• ensure pawnbrokers operate theirbusiness from fixed premises.

A number of amendments werealso made to the Pawnbrokers andSecond-hand Dealers Regulation1997.The major regulatory changes:• remove furniture and non-ferrous

metals from the definition ofsecond-hand goods

• enable exemption for certain smallscale second-hand dealers from therequirement to keep computerrecords.

National Competition PolicyLegislation Review

As part of the NationalCompetition Policy (NCP)Agreement, the NSW Governmentis committed to reviewing alllegislation which impacts oncompetition. In total, 191 Acts willbe reviewed in NSW, of which 28are within our responsibility.TheDepartment has 19 reviews currentlyunderway, including reviews of theProperty, Stock and Business AgentsAct 1941; Retirement Villages Act

1989 and Code of Practice; BuildersLicensing legislation and ResidentialTenancies legislation.The TravelAgents Act is being reviewed at anational level.

The aim of the legislative reviewprocess is to ensure that Governmentregulatory objectives, such as theprotection of consumers, are met asefficiently and cost effectively aspossible.The process of each reviewvaries according to the impact of thelegislation, however, the reviewsalways involve stakeholders who areaffected by the legislation. SteeringCommittees formed to overseereviews have includedinterdepartmental, industry andconsumer representation.

We also release Issues Papersto assist stakeholders in examiningcurrent regulations and consideringoptions for change.A number ofreviews, such as those for theProperty, Stock and Business AgentsAct, Retirement Villages Act andResidential Tenancies Law, have alsoinvolved consultative forumsaround NSW.

Caravan Parks ReviewResponding to the concerns of

residents, the Tenancy Commissionerconducted a review of the tenancylaws covering caravan parks andmanufactured home estates duringthe year.There are about 950 parksand estates in NSW housing over

Quality information strategies and policy leadership are effective tools if marketplace legislation is

appropriate and working. We continuously monitor existing laws to ensure that legislative outcomes

are being attained and recommend change or innovation where research and consultation indicate

a need.

Effective Regulation



23

50,000 permanent residents.Thesetenancies differ from conventionaltenancies because most residents owntheir dwellings but rent the siteson which the dwelling is located.To assist in the review, we establisheda working party consisting ofresident, industry and governmentrepresentatives. In September, 1997 anissues paper was released and publicforums were held at Wyong, Nowraand Coffs Harbour.The Governmenthas since approved the preparation ofa draft Bill and further consultationwith stakeholders is planned.

Core Consistent Legislation forCo-operatives

Significant changes to thelegislative framework governing co-operatives became operational on 1 December, 1997, when the Co-operatives Amendment Act 1997was proclaimed to commence.Thislegislation adopted the CoreConsistent legislation (CCP Scheme)for co-operatives.This legislation wasagreed to be implemented by all theStates and Territories and for the firsttime provides a measure ofuniformity in Australia for thelegislation governing co-operatives.The Scheme was largely based on theNew South Wales 1992 Co-operatives Act. New South Wales hasnow formally declared all the otherStates that have adopted the CCPScheme, as participating States.

The CCP Scheme will providegreater flexibility and less red tape forco-operatives wishing to tradeinterstate.To assist existing andpotential cooperatives, we have madethe Act, model standard rules andforms required under the Co-operatives Regulation available viathe Department’s Co-operativeswebsite.

Stock Exchange listing of NamoiCotton Co-operative

In April 1998, the Namoi CottonCo-operative Limited listed its Co-operative Capital Units (CCUs) onthe Australian Stock Exchange. CCUswere first introduced into the NewSouth Wales Co-operatives Act in1992, but Namoi Cotton has beenthe first co-operative to takeadvantage of accessing external capitalby listing this financial instrument onthe Stock Exchange.

We worked closely with theAustralian Stock Exchange and theAustralian Securities Commission(now the Australian Securities andInvestments Commission) to facilitatethe listing and to ensure that therewas effective regulation in place forco-operatives listing CCUs ordebentures on the Stock Exchange.An amendment to the Co-operativesRegulation 1997 was put in place toapply the appropriate provisions ofthe Corporations Law to co-operatives on matters such as theelectronic transfer system, insidertrading and continuous disclosure.

Regulatory Impact Statements(RIS)

The Subordinate LegislationAct aims to improve the quality ofregulations by requiring departmentsto assess their economic and socialcosts and benefits. In the case of anew principal regulation, aRegulatory Impact Statement (RIS)must be prepared. During 1997~1998,we prepared two Statements.

Electricity Safety (ElectricalInstallations)

An RIS for the Electricity Safety(Electrical Installations) Regulation1998 was released in June 1998.ThisRegulation, which is to commenceon 1 September 1998, replaces the

Electricity (Installation Safety)Regulation 1992 which lapsedautomatically on 1 September1998 under the SubordinateLegislation Act.

The new Regulation prescribesthe requirements for electricalcontractors when installing electricalwiring and appliances; and theresponsibility of the owner ofpremises in relation to the safemaintenance of electrical installations.Provisions relating to the obligationsof electricity distributors and theDepartment of Energy have beenremoved from the new Regulation.These are now addressed by theElectricity Supply (Safety) Regulation1997, which is administered by theDepartment of Energy.

Product SafetyAn RIS on the Fair Trading

(Product Information Standards)Regulation 1997 was released inJuly 1997. Under the SubordinateLegislation Act the Fair Trading(Product Information Standards)Regulation 1992 expired on 1September 1997.The 1992Regulation was very prescriptiveand the aim of the 1997 Regulationwas to give industry more flexibilitywhile still ensuring that essentialinformation about fibre content andappropriate care of clothing and otherproducts is available to consumers.

The new Regulation, whichcommenced on 1 September 1997:• opened the way for innovative

labelling by industry to satisfyconsumer demand

• removed unnecessary regulation ofleather goods and footwear.

Valuers Registration BoardsConference 1998

Since 1973 the RegistrationBoards of all Australian States and



24

Key Result Area

3

New Zealand have, by rotation, heldBiennial Conferences to discuss issuesaffecting the valuation professionthroughout Australasia.We hosted the1998 Conference on 28 and 29 May.The conference was attended by 27delegates from New Zealand,Singapore and Australia.

The conference provided anexcellent opportunity for theexchange of ideas and discussion ofissues affecting the valuationprofession in this region.Topicsincluded:• the impact of National

Competition Policy and the Trans-Tasman Mutual RecognitionAgreement on valuer registration

• the importance of continuingprofessional education for valuers

• the effects of globalisation anddevelopments in technology on thevaluation industry

• the recent review of the NSWValuers Registration Act 1975.

The Changing Face ofConveyancers’ Licences

Since February 1996 we have hadresponsibility for the licensing ofconveyancers under the ConveyancersLicensing Act 1995.

The Conveyancers Licensing Act1995 has expanded the scope ofconveyancing work to cover all typesof conveyancing transactions, wherepreviously licensed conveyancerscould only deal with residentialtransactions. Under the newlegislation, we took over theadministration of 43 licences, whichbecame restricted licences in view ofthe broader scope of the 1995 Act.

During the intervening period, anumber of restricted licences were

issued to conveyancers who hadcompleted the previously acceptededucational requirements, while atthe same time, restrictions were beinglifted from licences as licenseescompleted an appropriatebridging course.

As at 30 June 1998, there were126 licensed conveyancers in NSW,with 31 having restricted licences.Allother licensees with restricted licenceshad successfully completed thebridging course, thus allowing them todo the broader scope of work asindicated in the 1995 legislation.Anyone now completing the fullconveyancers course will automaticallybe able to do the full scope ofconveyancing work, once licensed.

REVS AustraliaWe are moving towards finalising

a national network with NSW REVSleading the way.A National REVSWorking Party has been progressivelyworking towards an outcome ofnationally consistent laws to supportthe linked REVS/VSR (Register ofEncumbered Vehicles/VehicleSecurities Register) systems.TheWorking Party consists ofrepresentatives from various State andTerritory Fair Trading or ConsumerAffairs Agencies and Road TransportAuthorities responsible forREVS/VSR operations.

In August 1997, the MinisterialCouncil on Consumer Affairs(MCCA) gave in-principle supportfor legislative change to achievesubstantial national consistency.

We have recommended changesto the Registration of Interests inGoods Act, 1986 which will makethe NSW legislation consistent with

national standards. Other States andTerritories are at varying stages ofmoving towards implementingnationally consistent legislation.

Important results of proposedchanges to legislation will be:• facilitate national protection for

consumers• national notification and

prioritisation of securities held overvehicles and

• consistency of outcome inpurchasing and financingtransactions.

Trans-Tasman MutualRecognition Agreement (TTMRA)

The TTMRA is an agreementsigned between Australia and NewZealand in 1996. Commonwealth,State and Territory and New Zealandlegislation giving force to theAgreement commenced on 1 May1998.The NSW law is the Trans-Tasman Mutual Recognition (NewSouth Wales) Act 1996.The principleof the TTMRA is to removeregulatory impediments to tradebetween the two countries byacknowledging the requirementsmade for the sale of goods andregistration of occupations.Withrespect to goods, the TTMRA isintended to allow goods sold inone country to be sold in the otherwithout the application of localinspection, assessment orrelated controls.

The agreement particularlyaffects safety laws administered by theDepartment of Fair Trading and otherAustralian jurisdictions due to theabsence of similar controls in NewZealand. Harmonisation andexemption processes are being

Effective Regulation continued



25

implemented in a collaborativemanner to limit safety problems thatmay arise.

For electrical goods that aresubject to compliance requirementsof the Electricity Safety Act, a 12month temporary exemption hasbeen arranged to facilitate finalharmonisation stages.

For consumer goods that aresubject to compliance requirementsunder the Fair Trading Act, a specialexemption (initially for 12 months)has been arranged while extension,expiry or permanent exemptionoptions are being considered.

We are participating with otherState, Commonwealth and NewZealand regulatory agencies toachieve a uniform response to theobligations imposed by the TTMRA.

European Mutual RecognitionAgreement (EUMRA)

The CommonwealthGovernment is developing MutualRecognition Agreements with theEuropean Union and the EuropeanEconomic Area. One of the areascovered by the Agreement is regulatedelectrical products. Currently, many ofthe Australian Standards for electricalequipment are being harmonised withtheir international counterparts andthe implementation of the Agreementwill mainly require Australia torecognise test reports and certificatesissued by designated European bodies.

We represented Australianelectrical equipment regulators onthe safety and technical regulationissues.The EUMRA was signed on24 June 1998 during Australia/EUministerial discussions.

Television ReceiversOn 14 February 1998, following

a significant number of fires involvingtelevision receivers, all States and

Territories declared televisionreceivers under their Electrical SafetyAct. From this date it is illegal to selltelevision receivers which have notbeen approved by the Department orthe equivalent State or Territoryregulator.To obtain approval, thetelevision receiver has to pass morestringent flammability tests.

At the same time, limitedExemption Orders were issued toensure that the industry had time toadjust to the new regulatoryenvironment.

Penalty Notices ReviewA comprehensive review of the

use of penalty notices inDepartmental legislation wascommenced in 1997.There are fouraspects:• use of on-the-spot penalty notices• extension of the penalty notice

system to other Departmentallegislation

• use of penalty notices for additionaloffences under existing legislation

• review of the penalty levels forexisting penalty notice offences.

The first phase has beencompleted, with the introduction ofon-the-spot penalty notices forcertain self-evident offences underthe Motor Dealers Act,TradeMeasurement Act and Fair TradingAct.Amendments were made in the1998 Budget sittings to permit use ofPenalty Notices under the PropertyStock and Business Agents Act andthe Landlord and Tenant (RentalBonds) Act.



26

Key Result Area

4

Record Numbers,Rapid Response

A record number of customerstook advantage of our informationservices to find out how our newstrata schemes laws affected them.During the year 52,820 peoplecontacted us, an increase of almost20% on the previous year. Despite theincrease, 89% of customer telephonecalls were answered and 93% ofcustomer letters were responded towithin five days.

Fitness Industry Codeof Practice

During the year we workedwith the Department of Sport andRecreation and Fitness NSW, theindustry body representing fitnesscentres in NSW, to develop avoluntary Code of Practice for thefitness industry.The Code setsminimum standards of service, safetyand fair trading.

Among the Code’s provisions,participating fitness centres mustsupply consumers with sufficientinformation to make an informeddecision about joining, providequalified staff to run fitness and

exercise programs and offer a rangeof membership plans, including amonthly payment option. It alsoestablishes a consumer complaintsresolution process.We believe moreflexible payment arrangements willlimit the extent of losses suffered byconsumers should their fitness centresuddenly close.

Revamp of Whitegoods CodeWe recently completed a review

of the Domestic Whitegoods ServiceIndustry Advisory Code of Practice.The Code was introduced in 1993 toaddress significant market problems inthe promotion and provision of repairservices to domestic whitegoodsequipment.

Effective marketplaceperformance & disputeresolutionTo be effective, marketplace laws must be upheld and respected. Our compliance activities

encourage broader adherence and a reduction in unfair behaviour. Licensing, registration and

certification help traders understand and meet requirements. Dispute resolution systems that are

straight forward and accessible allow consumers and traders to resolve differences more quickly

and effectively.

0

10,000

20,000

30,000

40,000

50,000

60,000

97/9896/9795/9694/95

STRATA SCHEMES COMMISSIONER & COMMUNITY SCHEMES COMMISSIONER CUSTOMER ENQUIRIES.



27

The Code AdministrationCommittee includes representatives ofthe Department of Fair Trading, theAppliance Industry Association andmajor whitegoods manufacturingcompanies.The Committee consultedwith departmental staff, members ofthe Consumer Claims Tribunals,whitegoods repairers, manufacturers,retailers and the Australian ConsumersAssociation during the review process.

The revised version of the Codeproposes a change of name to theWhitegoods Repair Code of Practiceand its objectives have been updated.It has also been re-written in plainEnglish.Whitegoods repairers whosubscribe to the Code will be entitledto display a logo especially developedto promote consumer awareness ofthe Code.

Greater Protection for REVS Customers

In a major cooperative effort, theRegister of Encumbered Vehicles(REVS) and the Roads & TrafficAuthority (RTA) established a directlink between their respectivecomputer systems in May 1998. Itenables our REVS system to providean additional layer of informationthat will benefit financiers, motordealers and private car buyers.

We can access RTA information

and advise prospective buyers of anydiscrepancy in vehicle identifierdetails held by RTA and REVS. Itmeans private purchasers of vehicleswill receive more protection againstpossible fraudulent activities.The linkis also expected to result in increasedusage of REVS services because ofthe additional information provided.In turn, we anticipate an increase inrevenue through increased certificatesales and business with on-line clients.

The RTA/REVS link helps usfulfil our community serviceobligation of providing pertinentinformation to consumers andindustry groups. Consumers haveonly to make a single phone call toobtain most of the information theyneed to make informed decisionswhen purchasing second handvehicles through private sales. REVSprocessed 497,461 telephone callsduring the year, resulting in 715,514searches of the database.

Responsibility for EmploymentAgencies

From 1 July, 1998 we haveresponsibility for the EmploymentAgents Act 1996. Private employmentagents help employers fill jobvacancies and assist people seekingemployment.The transfer ofresponsibility from the Department ofIndustrial Relations has beendesigned to improve licenceadministration and scrutiny of the

LICENSING New licences New licences Total ACTIVITIES 96/97 97/98 current

Motor Dealer 478 502 4,308

Travel Agent 163 182 1,531

Pawnbrokers & Secondhand Dealers 26 1,973 1,974

Public Weighbridge 10 11 90

Trade Measurement Services 34 28 191

Property Stock & Business Agents 1,206 1,240 23,260

Valuers 193 174 4,209

Conveyancers 34 43 126

Building 9,760 10,234 150,786

0123456789

10111213141516

97/9896/9795/9694/9593/9492/9391/9290/91

$7.0

61 m

$7.1

831 m

$8.2

01 m

$8.4

21 m

$9.4

98 m

$11.1

44 m

$11.5

48 m

$14.3

47 m

REVS – POTENTIAL SAVINGS TO CLIENTS – $MBased in financial industry estimates that 1% of encumbrances result in bad debt,REVS saved clients a potential $14M over the year.



28

Key Result Area

4

industry.There are more than 2,200private employment agents operatingin NSW.The change is entailingconsiderable modifications to ourBusiness Licence System.

Pool Repairs ContinueWe are continuing our efforts to

ensure that 750 defective fibreglasspools supplied by UFI Pools and Spas(Illawarra) Pty Ltd or associatedinstallers are suitably repaired. Pools,manufactured between 1990 and1993, had developed surface blistersand unsightly black spots.The repairsbecame the Department’sresponsibility because it administersthe Comprehensive InsuranceScheme, which is now closed.

Supreme Court action broughtagainst us by an unsuccessful tendererfor repair work was settled bynegotiation during the year. Despitethe resulting delay, 112 pools wererepaired during 1997/98 at a cost of$1.4 million. Since 1996 a total of 375families have now had their poolsrepaired at a cost of some $4.6million. In a second tender process,administered for us by the Departmentof Public Works and Services, we havecalled two rounds of tenders fromeight licensed contractors.The firstround resulted in the award ofcontracts covering 99 pools while thesecond covers 94 pools.A further tworounds of tenders are planned beforethe project is completed.

Kit Homes Under MicroscopeWe have recently recruited

additional personnel for the BuildingInvestigations Branch.This hasallowed us to increase oursurveillance of the building industryto detect uninsured and unlicensedoperators. It has also permitted usto concentrate on specific industrysegments, such as the kithome sector.

There are approximately 200licensed kit home suppliers in NSW.A recent review we carried out intothe industry resulted in an increasedawareness of the licensing and private

insurance requirements amongsuppliers. Most of the suppliers wecontacted have now taken out therequired coverage, includingretrospective insurance for consumerswho have contracted with supplierssince the private insurance schemecommenced in May 1997.Themajority of the kit home supplierswho were not appropriately licensedhave subsequently obtained acontractor’s licence to supply kithomes.We intend following upthis matter and suppliers foundoperating contrary to our advicecould face prosecution.

Effective marketplaceperformance & disputeresolution continued

0

100,000

200,000

300,000

400,000

500,000

Bonds Held Bonds Refunded Bonds Lodged

97/9896/9795/9694/9593/94

256,1

23

262,0

66

398,4

96

233,0

07

421,8

06

238,7

56

270,7

86

448,4

96

244,0

96

275,2

51

466,9

41

256,8

06

282,5

64

479,8

72

269,6

33

RENTAL BOND PROCESSING



29

Managing fair trading and realestate investigations

It is neither possible nornecessary to investigate fullyevery matter that comes to theDepartment’s attention.Consequently, it is necessary toidentify priority areas for attentionand allocate resources accordingly.

We concentrate on those mattersidentified as being of majorsignificance in the marketplace andmaintain a rigorous complianceprogram in areas of high priority,including the real estate industry.

The Investigation ManagementSystem (IMS) was developed toencourage our regional offices toassume control of minor matters,whilst leaving significant issues to betackled by specialist investigationteams.The IMS also highlightsemerging unfair and unjust tradingpractices within particular industries.We analyse these trends and allocateresources to counter any emergingmarketplace problems.

Tracking Our ProgressDuring the year, we called for

tenders to replace our existingSystem for Case Management(SCAM).The major function ofSCAM is to track the progress andhistory of all the investigations,litigation and related matters wehandle. SCAM also incorporates filetracking, case status reporting, caseload and performance reportingfunctions. Following the allocation offunds and extensive departmental-wide consultations on our businessneeds, a Request for Tender wasprepared and issued in May 1998.The evaluation process is in progress.

Real Estate AgentDisqualifications

Michael Ross, trading asPeakhurst Lugarno Realty, wasdisqualified from holding orobtaining a licence for two yearsfor deficiencies in his trust fundsafter failing to account to the trustcreditors to the amount of $26,245.The Compensation Fund paid outall creditors in full.

Edward Gordon Love and GailJeanette Schmitzer, directors ofJolarno Pty Ltd, trading as New WaveRealty, Hallidays Point, weredisqualified permanently by theLicensing Court after trust accountdeficiencies to the amount of$75,451.75 were discovered.TheCorporation was also disqualified.The directors failed to makerestitution to the respective trustaccounts resulting in claims on theCompensation Fund for the totaldeficiency.

Colin Urquart, a registered valuerappeared before Mr Hans Heilpern, adelegate of the Director-General ofthe Department in relation to abreach of section 20 of the ValuersRegistration Act. Mr Urquart wasreprimanded and ordered to pay costsin the amount of $1,800 for carryingout a valuation beyond the scope ofthe limitations placed by hisregistration.

Rhonda Maree Hope, a formerlicensee, was disqualified for a periodof eighteen months from 1 April1998 by the District Court as a resultof a trust account deficiency of$20,739.81 first detected andinvestigated in 1995. Her businesspartner, Garry Muir, was alsodisqualified.The matter was firstheard in the Licensing Court in 1996where her licence was cancelled andshe was disqualified for a period ofthree years. Ms Hope subsequently

appealed this decision to theDistrict Court.

Fighting TheftThe Pawnbrokers and Second-

hand Dealers Act, 1996 brings theregulation of the second-hand tradein prescribed classes of high risk oftheft goods and pawnbroking underone piece of legislation. Its primaryfocus is to restrict the trade instolen goods.

We have entered into cooperativearrangements with the NSW PoliceService to enforce the legislation.Inspection and enforcement, coupledwith education initiatives, are essentialcompliance activities.

Compulsory computerisation oflicensees’ records, to allow the PoliceService to readily check for stolengoods, will be phased in after 1January, 1999.

Fernbank Retirement VillageIn 1995, two residents of the

Fernbank Retirement Villagecommenced Supreme Courtproceedings against the manager anddeveloper of the Village to set asidethe contractual arrangementsbetween themselves and the manageron the basis the agreements wereillegal and unconscionable.Theresidents were granted legal assistanceby the then Commissioner forConsumer Affairs. Having beenunsuccessful in the hearing beforeJustice Rolfe, the residents appealedon the illegality ground only.TheCourt of Appeal handed down itsdecision on 26 March 1998.

The Court found that FernbankManagement Pty Ltd was illegallycarrying out the duties of a stratamanaging agent because it did nothold a licence as required by law.Thisillegality tainted the managementagreement between the body



30

Key Result Area

4

corporate and the manager.As aresult, the ancillary documents werenot enforceable by the manager.The Court was unable to deal with allissues between the parties and a newtrial was ordered.That hearing willbe confined to the manager anddeveloper’s defence of estoppel andtheir claim for restitution.Themanager and developer have appliedfor special leave to appeal to theHigh Court. Quite separately, theparties to the litigation have agreed toattempt to mediate the dispute.

MatchmakersMr Raynor operated a number of

introduction agencies in NSW.Wecommenced proceedings againstthem in the Supreme Court inNovember 1997 for making false andmisleading statements about theservices provided by their businesses.We sought:• declarations that the defendants

engaged in false and misleadingconduct and unconscionableconduct; and

• orders that the defendants berestrained from, in any way,carrying on the business of anintroduction agency for a period of10 years; and

• orders that the complainants in thematter be compensated for money paid to the defendants;

Interim injunctions restrainingthe defendants from advertising wereobtained in November 1997 and

January 1998.The hearing of thesubstantive proceedings took place inMarch and April, 1998. Judgment hasbeen reserved.

Pool builder barredBuilders must ensure that certain

classes of building work are coveredby insurance. In November 1997,Bowpure Pty Ltd, trading as KoalaPools, had its insurance arrangementscancelled, yet the company continuedto represent to consumers that it wasable to construct swimming pools.Wesuccessfully applied to the DistrictCourt to have the company’s licencesuspended for the maximum time of60 days.The licence was latercancelled because the company wasunable to comply with otherprovisions of Home Buildinglegislation.

Ensuring Electrical SafetyDuring 1997/98 our investigators

undertook a wide-ranging survey ofelectrical goods traders in the Sydneymetropolitan area.We wanted toassess the level of compliance withproduct safety laws. Shops in 22suburbs were visited together withmarkets, trade shows and exhibitions.Our investigators subsequently issued80 notices ordering traders to stopselling products that did not complywith legislative requirements.Thesurvey will be extended toNewcastle,Wollongong, Goulburnand Bathurst next year. Our activities,

and those of regulators in other statesand territories, meant that 25 unsafeelectrical products were recalled fromsale in NSW last year.

Certified SafeOur staff processed 1,999

applications for the certification ofelectrical appliances during the year.The average time taken to processapplications has dropped from 6.8 to6.2 working days and over the sameperiod productivity has climbed from22.5 to 32 certificates per staffmember.

Audit for Licensed TradeMeasurement Certifiers

Licensing of service organisationsto certify measuring instruments is anon-going activity.There areapproximately 190 licensees who inturn employ some 800 registeredcertifiers.This year we havedeveloped and introduced an on-siteaudit program.This involves an auditof the licensees’ facilities, referencestandards of measurement,documentation and records. Financialdesktop audits of licensees is anotheron-going activity.

An audit program of all PublicWeighbridge Licensees hascommenced and is expected to becompleted early in 1999.

Effective marketplaceperformance & disputeresolution continued



31

International Internet SweepDay

On 16 October 1997, weparticipated in a world-wide sweep ofthe internet for ‘get rich quick’scams. Co-ordinated by the AustralianCompetition and ConsumerCommission (ACCC), it involvedaround 70 consumer affairsenforcement agencies.

Once suspicious sites wereidentified, the operators of those siteswere sent an email message outliningthe fact that the activities theyappeared to offer may be regulated insome countries.The operators werethen referred to the ACCChomepage for more information.

In November 1997, sites werefollowed up to assess the operator’scompliance with the original email.Of the 1,100 sites initially visited,almost 30% of the operators wereeither removed or altered. It isintended to run another Sweep Dayin late 1998.

Mediation A Big HitWe also introduced mediation to

help settle strata disputes. Under thenew Strata Schemes Management Actmediation must be attempted beforean application for an order can betaken to the Strata SchemesAdjudicators. However, for mediationto proceed both parties must agree tothe process. Encouraging people todiscuss their disputes in a bid to reachmutual agreement is preferable toapproaching an Adjudicator directly.

Statistics indicate mediation isworking very successfully. During theyear, our Strata Schemes Officefinalised 740 applications formediation. During the same period360 applications were made forformal dispute resolution by anAdjudicator which is a reduction of76% on the previous year, when a

total of 1516 applications were madefor orders under the old Act.Mediation is proving an attractive andcost effective alternative for peopleliving or working in the State’s strataschemes.

Fair Trading TribunalDuring 1997 an independent

review of all tribunals within the FairTrading portfolio was carried out.The review recommended that theCommercial Tribunal, ConsumerClaims Tribunals, Building DisputesTribunal and Motor Vehicle RepairDisputes Committee be merged intoa new Fair Trading Tribunal. It alsorecommended that the ResidentialTenancies Tribunal be restructuredand together with the Strata SchemesBoard be renamed the ResidentialTribunal.The Government hasendorsed these proposals.

The review concluded thatamalgamation of existing tribunalswould lead to increased efficiencyand effectiveness as a result of acommon membership structure,

elimination of duplicated registryfunctions, increased capacity to co-ordinate proceedings and significantpotential for the better utilisation ofresources.

The review also found that thevolume of applications and variednature of the jurisdiction in theresidential area including traditionaltenancy disputes, as well as strata,retirement village and mobile homematters would more appropriately fitwithin a separate but improvedtribunal structure.

Both tribunals will operate on adivisional basis, incorporate moreflexible procedures, improve access toalternative dispute resolutionmechanisms and have a limited rightof rehearing. Legislation to establishthe new tribunals is being prepared.

Settling Building DisputesDuring the year we established a

Dispute Management Service (DMS)to provide a faster, more effectiveresponse for consumers withresidential building complaints.When

400

600

800

1,000

1,200

1,400

0

200

1,600

97/9896/9795/9694/95

STRATA SCHEMES COMMISSIONER MEDIATION REDUCES NUMBEROF ORDERS TO STRATA SCHEMES ADJUDICATORS



32

Key Result Area

4

Effective marketplaceperformance & disputeresolution continuedcomplaints are received at any one ofour 23 Fair Trading Centres, they areimmediately despatched to the DMSwhere they are assigned to managerswho assume responsibility for themanagement of the matter rightthrough to resolution. Our casemanagers make contact with bothparties within three working days ofthe date of lodgement of thecomplaint.This approach ensures ourcustomers receive a professional andtimely response to their residentialbuilding problems.

Bigger role for home buildingand property mediation

Demand for our mediationservices remained high throughoutthe year.Although the impact ofprivatised insurance schemes and theimplementation of the DisputeManagement Service (DMS) hascaused some tapering off in the useof mediation in the home buildingsector, our move to use mediation ina wider range of consumer disputes,including retirement village and stratascheme matters, will inevitably leadto greater demand for these services.Mediation is a voluntary processthrough which consumers and tradersare often able to reach mutuallyacceptable settlements. Even wheremediation is unsuccessful, the partiesusually come away with a betterunderstanding of the issues involved.

Over 3,500 home buildingdisputes were referred to our

Mediation Services Branch in1997~1998, slightly up on theprevious year.Although the numberof actual mediations fell marginally,the percentage of successful outcomesremained high.The mediation serviceis available free for matters within theDepartment’s jurisdiction.

Mediation for Co-operativesMembers of NSW co-operatives

gained access to cost effective disputeresolution during the year. New rulescovering disputes between a memberand a co-operative, or betweendifferent members, were introducedunder the Co-operatives AmendmentAct 1997.These provide for theresolution of disputes under themediation rules of the NSW LawSociety.The Society’s rules arecontinually upgraded to enhance theenforceability of agreements. In thecase of trading co-operatives, wheremediation cannot be commenced, therules pass the matter to arbitrationunder the Commercial ArbitrationAct 1984.



33

Access and Equity To ensure everyone has access to

our services we have developed agroundbreaking Access and EquityStrategy.The Strategy contains aseries of change management projectsbeginning from July 1998. Mostprojects will be finalised by mid1999, but others are longer term.Some of these projects include:• revising any of our forms which are

hard to understand or not in plain language

• reviewing our interpreter services toensure they are used appropriately

• cultural diversity training for staff• building a profile of DFT customers

to find out who is missing out onour services

• recruiting more Aboriginal staff totake our services to Aboriginalcommunities

• consultation with representatives ofdisadvantaged groups.

Groups with special needsinclude Aboriginal people, peoplefrom non-English speakingbackgrounds, people with disabilities,older people, young people, andpeople who live in remote areas.Previously there was a separatestrategy for each group.TheDepartment’s approach now is todevelop an over-arching strategy tomeet the needs of all customers.

While the Strategy targets thespecific needs of these groups and

others, it has been devised to ensurethat all our customers receive themost efficient and appropriateservice.The Strategy is linked to theCorporate Plan and most initiativesare Department-wide.

Aboriginal Action PlanResearch and consultation we

have conducted indicates thattenancy, complex contracts anddiscrimination are the mostimportant consumer issues forAboriginal people.Aboriginal peoplealso tell us they are more likely to askother Aboriginal people for help, andthat they prefer face to face contact.Unfortunately, our research also tellsus that many Aboriginal peoplecurrently miss out on our services.

Given this information, we havedeveloped an Aboriginal Action Plan.It sets out how we will provide betterservices to Aboriginal communities.We will employ 12 Customer ServiceOfficers to focus on Aboriginalpeople and tenancy issues.They willvisit Aboriginal communities toprovide outreach programs and assisttenants, landlords and housingorganisations.We will also employtwo Aboriginal writers to prepareappropriate educational material.

Under the Plan there will be atleast 15 new permanent positionscreated for Aboriginal people.These will improve our service to

Aboriginal communities as well asproviding jobs for Aboriginal people.

Other initiatives in the Planinclude:• a pilot mediation project to help

Aboriginal tenants and housingorganisations resolve disputes

• cultural awareness training fordepartmental staff

• increased use of the Aboriginalmedia

• joint projects with the Anti-Discrimination Board to addressdiscrimination issues.

We will continue to fund fourcommunity based Aboriginal TenantsAdvisory Services and we willcontinue to consult with Aboriginalcommunities.

Aboriginal Co-operativesTraining

As part of our strategy, workshopsfor Aboriginal co-operatives are beingplanned for regional and ruralcommunities to provide informationand education which will:• cover the basic issues in a

co-operative organisation• be relevant to the needs of

participants• develop confidence• develop an appreciation of

complying with co-operativeslegislation

• be culturally appropriate wherepossible.

Quality-driven, customerfocused & ethical DFTCustomers are the focus of all our activities. Consumers and traders, regardless of community group

or location can expect an ever improving, quality service – delivered fairly and equitably and with the

highest level of integrity.

Key Result Area

5



34

Key Result Area

5

PERCENT OF TOTAL STAFF BY EMPLOYMENT BASIS

Subgroup as % of Subgroup as Estimated Percent of Total Staff in each Category Total Staff in each Employment Category

Permanent Full-Time 914 91% 45% 55% 1.0% 27% 23% 12% 4.8%

Part-Time 58 86% 10% 90% 0.0% 26% 22% 12% 4.0%

Temporary Full-Time 131 79% 36% 64% 1.9% 29% 24% 8% 2.9%

Part-Time 17 71% 29% 71% 0.0% 33% 8% 0% 0.0%

Contract SES 10 100% 60% 40% 0.0% 10% 20% 0% 0.0%

Non SES 0

Casual 20 80% 10% 90% 0.0% 25% 25% 6% 0.0%

Total 1,150 89% 41% 59% 1.0% 27% 23% 11% 4.4%

Estimated Subgroup Totals 1,021 477 673 11 313 267 125 50

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Employment Basis

PERCENT OF TOTAL STAFF BY LEVEL

Subgroup as % of Subgroup as Estimated Percent of Total Staff in each Category Total Staff in each Employment Category

<$23,339 3 67% 67% 33% 0.0% 0% 0% 0% 0.0%

$23,339 – $34,269 346 80% 25% 75% 1.5% 33% 30% 11% 6.5%

$34,270 – $43,366 336 94% 35% 65% 1.3% 32% 28% 10% 1.9%

$43,367 – $56,080 308 92% 56% 44% 0.7% 20% 16% 12% 4.6%

>$56,080 (non SES) 127 93% 72% 28% 0.0% 19% 12% 14% 5.9%

SES 10 100% 60% 40% 0.0% 10% 20% 0% 0.0%

Total 1,130 89% 42% 58% 1.0% 27% 23% 11% 4.5%

Estimated Subgroup Totals 1,005 475 655 12 308 264 123 50

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Employment Basis



35

A survey was conducted amongstthe 30 Aboriginal co-operatives toidentify training needs and the resultsshowed an encouraging response tothe proposed workshops.

EEO surveyThe Department’s first EEO Plan

provided a strong focus for the future,with 87% of staff responding to anEEO survey which developed ourinformation base for EEO programs.The diversity in our workforceexceeds NSW benchmarks for stafffrom racial, ethnic and ethno-religious backgrounds, women, andstaff who speak a language other thanEnglish as their first language.

Equal Employment OpportunityThe following outcomes were

achieved during 1997/98:• establishment of a sound EEO

information base from conductingan EEO staff survey and achievingan 89% response rate

• development of an AboriginalEmployment Strategy

• EEO Executive Committeeestablished to contribute toDepartmental EEO outcomes

• implementation of aSpokeswomen’s Network

• EEO included in the corporateplanning process

• development of EEO; Dealingwith Employee Work-relatedConcerns and Grievances andHarassment FreeWorkplace Policies

• integration of EEO in thePerformance Planning and

Feedback system.Our goals for 1998/99 are:

• two percent staff representation ofAboriginal and Torres StraitIslander people

• establishment of a consultative andsupport network for Aboriginalstaff and staff with a disability

• development of a DisabilityEmployment Strategy

• development of an AboriginalMentor Program

• increase in the diversity of staff atall levels

• staff trained in the grievancemechanism,Aboriginal CulturalAwareness and the PerformancePlanning and Feedback System

• review of DFT staff selection inaccordance with NSW PublicSector guidelines

Improved strata servicesDuring the year we took initial

steps towards establishing theDepartment’s new ResidentialTribunal by integrating the Registryof the Strata Schemes Board(previously part of the Strata SchemesOffice) with the Registry of theResidential Tenancies Tribunal.TheStrata Schemes Commissioner andthe Community SchemesCommissioner both saw thisrationalisation as an important part ofimproving the delivery of qualityservices to our customers.

Easier forms for associationsAssociations are generally run by

hard working community spiritedpeople who devote their time and

energy to a cause for the love of it.The last thing they need is to have tospend valuable time trying tointerpret the forms we requirethey use.

This year we have been workinghard to simplify and reduce the rangeof forms that an association mustsubmit as part of normal practice.Particular attention has been paid tothe redevelopment of the form usedfor the lodging of Annual Statementsfollowing the Annual Generalmeeting of an association.

Experience has shown that thiscommonly used form caused the mostconfusion among our clients.Therevised form is expected to alleviatethe previous difficulties and is savingthat most valuable resource of theunpaid community worker – time!

Faster service for ValuersSince early 1998, valuers will

have noticed a considerableimprovement in the waiting times forinterviews with the Valuers AdvisoryCommittee.

In the past,Valuers applying tohave limitations removed from theirRegistration had to wait somemonths for an interview.The formersystem allowed applicants to book aninterview well in advance but cancelat the last minute if their documentswere not complete.This practicedisadvantaged other applicants whowere ready to proceed.

Our new procedures are simple,straight forward and have eradicatedthe waiting list entirely.Applicants arenow booked in for an interview only

Quality-driven, customerfocused & ethical DFT continued



36

Key Result Area

5

Quality-driven, customer focused & ethical DFT continuedwhen all documents are received bythe Department.The only wait nowis for the next Valuers AdvisoryCommittee meeting.These are heldmonthly but may be more frequent ifdemand requires.

New Business RegistrationSystem

Significant benefits to servicedelivery and savings in running costswill be achieved through thereplacement of the AustralianSecurities and InvestmentsCommission’s ‘ASCOT’ system, usedby the Department for registeringbusiness names.

The new system, purpose builtfor the Department, will beoperational by June 1999. It will usea more effective user interface, andprovide functionality that is notcurrently available. Savings from thenew system, including lowermaintenance costs, are projected to beapproximately $600,000 annually overfour years.

Customers will benefit throughits increased availability in regionalareas through our Fair Trading Centrenetwork. It will also improve accessfor information brokers via adedicated Internet enquiry service.

Easier Business Name searchesFor some time now we have

worked with specialist informationbrokers in making business namesearches available to the businesscommunity and the general public.

During the year, several potentialnew information providers

approached us to provide businessnames search services and we werepleased to enter negotiations withthem.The results have been positiveand we expect that by late 1998, ourcustomers will have access to businessname searches through an additionalsix private information brokers.Thiswill bring the total number of privateproviders to eight, who will haveaccess to names data 24 hours a daythrough an internet connection.

Business registration Qs & Ason line

To provide customers, includingthose in remote locations, with themost accurate and up-to-datebusiness registration information weare developing a TelephoneReference Database (TRD). It willallow our registration staff toconfidently answer the hundreds ofdifferent questions posed bycustomers, knowing that all dataincluded is regularly updated andthoroughly researched beforeinclusion.When introduced nextyear, we are confident it will becomea key part of the Department’sregistration infrastructure.

Better renting informationDuring the year, we implemented

a six day staff training program toimprove the consistency and qualityof the renting services informationwe provide to customers.The trainingcovered issues relevant to tenants,landlords and real estate agents underresidential tenancy law. Staff feedbackwas positive with many indicating

increased confidence in dealing withtenancy enquires.The centrally runtraining also produced side benefitsfor regional staff by allowing them toform networks with other similarservice providers.

Improved customer facilitiesTo ensure our customers are

provided with appropriate servicefacilities we continued with ourprogram of refurbishing Fair TradingCentres. During the year a further sixlocations were either redesigned orrelocated to achieve better access.These included Armidale, CoffsHarbour, Port Macquarie, Orange,Wollongong, Gosford and WesternSydney at Penrith.

We are currently reviewingour accommodation needs atHurstville, Liverpool, Blacktown,Albury, Queanbeyan, Grafton andTweed Heads and these offices willbe either refurbished or new officesleased and fitted out in the1998~1999 financial year.

Information technologystrategies

We are committed to providingour customers with the mostappropriate and convenient services.As so many of our services are basedon IT solutions, we have investedconsiderable effort in ourInformation Management andTechnology (IM&T) strategic plan.The plan provides a frame-work toguide and manage our use andmanagement of IM&T over threeyears (from January 1997).The plan is



37

fully compliant with the directionsset down in the Government’s IM&TBlueprint and is crucial to theoperations of the Department,particularly in relation to the largevolumes of data and information thatwe manage.

Following an assessment of thebusiness direction of the Departmentand the current status of our IM&T,ten potential areas for IM&Tinvestment were selected forimplementation over the next threeyears, these being:• extension of the data

communications network to tenadditional locations

• renovation or replacement of theFinancial Management System(FMS)

• telephone systems upgrade• use of the Internet• implementation of a new Records

Management System• replacement of the System for Case

Management (SCAM)• replacement of the Business

Registration system• enhancement of the Client

Advisory System (CAS)• upgrade of the Department’s

licensing systems• development of the Fair Trading

Tribunal case management system.In addition, a number of

supporting projects were proposed tobe undertaken such as integration ofthe Department’s three existing datacommunications networks andbusiness continuity planning.

As at June 1998, the first fourprojects had been completed with theremainder expected to be finalised byJune 1999.

Year 2000 readinessWe have given the Year 2000

problem the highest priority.There isa large inventory of some 3,000 odd

items, comprising 144 categories ofhardware and software that is beingassessed.The project is expected tohave a significant impact on ourresources as staff will be needed toassist with the testing of key items toconfirm their level of compliance,especially during the remediationprocess.The high level cost estimatefor remediation is anticipated to be inthe order of $14M.To assist staffunderstand the problem and itsimpact, an internal education andawareness program has beenimplemented.

A key component of our strategyfor addressing the Year 2000 problem,has been the establishment of aworking group representing our 26business units under the direction ofa dedicated Year 2000 project team.We have adopted the Year 2000Business Risk Analysis Handbook asthe basic methodology for addressingthe problem.This method is based ona seven-phase approach which movesthe project from its initial scopingthrough to testing and remediation ofall affected systems and equipment.We are required to report on ourprogress to the NSW Office ofInformation Technology, thecoordinator of the “Whole-of-Government” approach to the Year2000 problem.At the time of writingthis Annual Report, we had achievedOIT requirements by successfullycompleting Phase six.

Contingency and disasterrecovery planning has also progressedin accordance with OITrequirements and externalcertification is being provided by theInternal Audit Bureau.

Information management &electronic service delivery

An Information Management &Electronic Service Delivery Program

is established to ensure that theDepartment maximises the value of itsinformation collections and to leadthe search for new ways to deliver ourservices to our clients using the latesttechnologies.We are currentlycontributing to the development of aNational Business Information Servicewhich will provide one-stop-shopaccess to all relevant business-relatedinformation from across government.

An Internet Usage Policy wasdeveloped to guide staff in the use ofour recently introduced Internetfacilities.The policy describes bothacceptable and unacceptable uses ofour web browsing and Internet E-mail services.

Records and librarymanagement

New records managementsoftware and best practices wereintroduced to streamline informationmanagement operations throughoutthe Department in line with theWhole of Government Frameworkfor Records Management and theState Records Act, 1998.

The library collection of theformer Building ServicesCorporation was successfullyintegrated with the main collectionand the Library’s databases have alsobeen successfully rationalised toimprove access. Enhanced internetaccess with customised links andrelated references was also finalised.

Financial managementWe have implemented a new

Financial Management System, SAP.The benefits expected from thesystem are measurable and includethe streamlining of processes and theelimination of non value addedactivities such as data entryduplication of journals and accountsreceivable information.



38

Key Result Area

5

Other improvements include asimple and shortened close at monthand year end leading to an improvedquality and accuracy of reportinginformation and an improved abilityto service our customers.Also, simpleand easy to use interfaces betweenpayroll, bank statement and therevenue systems are significantimprovements.

The project was implemented ontime and within budget, with benefitsbeing apparent from the outset.

Risk Management & InsuranceAs an inner budget Department,

we are part of the NSW TreasuryManaged Fund which is the StateGovernment’s self insurance scheme.The Fund is administered on behalfof the Government by GIO Australiaand covers us for workers’compensation, comprehensive motorvehicle, property loss and publicliability and as well providesmiscellaneous cover. Coverage is forour operations, worldwide.

Our two major risk areas areworkers’ compensation and motorvehicles and strategies exist to helpensure exposures are minimised.Detailed written policies have beenissued covering the use (andmaintenance) of Departmental motorvehicles and occupational health andsafety.An occupational health andsafety Working Committee has alsobeen activated and is charged with(among other things) identifyingwhole of Department OH&S issuesand making recommendations to theExecutive as required, and promotingour OH&S policy statement andactively ensuring its implementation.

As a result of integration, wesuffered from several large claimsunder our workers’ compensationcoverage which resulted in ourpremium for 1997~1998 being

increased by 61% over that for1996~1997.A concerted effort wasmade during the year to address theissue of outstanding claims and anumber of claims reviews were heldwith the Managed Fund.This willresult in a better outcome for1998~1999 and ensuing years.

Good management of our motorvehicle fleet achieved a credit on ourMotor Vehicle Hindsight Premiumfor 1996~1997 of $16,890.

Recent statistical informationfrom the Managed Fund indicatesthat total workers’ compensationclaims for the year were 11 fewerthan for 1996~1997 and the averagecost of claims had fallen by almosttwice the Fund average.

Other Risk Managementinitiatives include:• Regular meetings of the Internal

Audit Committee to addressstrategic audit and internalcontrols;

• A current Code of Conduct• Implementation of the annual

Internal Audit Plan• Issue of policies on Dealing with

Employee Work-Related Concernsand Grievances and DFT InternalRedeployment.

Planning, quality andperformance measurement

The Department of Fair Tradingis committed to achieving bestpractice.As part of our qualitystrategy the Department, immediatelyfollowing integration, undertook aguided self assessment across thewhole agency.The first action planwas developed in early 1997. Ithighlighted the need, because of themajor structural change, to revisit theapproaches to performance reportingin the agencies which had merged.

During 1997-98 considerablework was done in developing more

consistent indicators across businessunits.The planning framework is alsobeing simplified to tighten thelinkage with corporate objectives.Although further finetuning isrequired, the streamlined frameworkwill allow clearer and moremeaningful performancemeasurement and reporting.We arealso working on the next phase ofthe quality strategy, to ensure thatimprovement initiatives arecoordinated across the Departmentand aligned with corporate priorities.

Community Grants and FundingProgram guidelines

We administer several specialisedfunding programs which contributeto consumer protection in particularsegments of the New South Walesmarketplace.

The Department developedFunding Guidelines for the PropertyServices Grants Program; HomeBuilding Grants Program; RentalBond Board Grants; Co-operativesDevelopment Grants Program andCredit Counselling and FinancialCounselling Trust Fund GrantsPrograms.These guidelines are inaccordance with our Grants andFunding Programs Policy.


Documents

Annual Report 1997 1998 - NSW Fair Trading · 2018-07-03 · for home and family ... Real Estate Institute and the Tenants Union of NSW.By liaising with ... DFT Annual Report 1997~1998