Annual Report 1999-2000 - NSW Fair Trading | NSW Fair Trading

Annual Report 1999-2000Volume 1 of 2 Contents

Final Cover vol 1 22/11/00 11:21 AM Page 1

What we do 2

Planning framework 3

Director-General's Report 4

Our structure 6

Program allocations 6

Highlights of 1999-2000 7

Objective 18

Objective 2

Objective 324

Financial statements* 31

Appendices 54

Index 73

Appropriate safeguards for consumers withminimal restrictions on business/traders

Maximum compliance with regulatoryrequirements

Accountable use of public resources

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The Hon John Watkins, MPMinister for Fair TradingParliament House Sydney

Dear Mr WatkinsI am pleased to present the Annual Report of theDepartment of Fair Trading for the year ended 30June 2000.

The Report has been prepared for presentation to theParliament of New South Wales in accordance withthe requirements of the Annual Reports(Departments) Act 1985 and the Annual Reports(Statutory Bodies) Act 1984.

The Report also fulfils the statutory reportingrequirements of the Director-General under the:

Fair Trading Act 1987

Landlord and Tenant (Rental Bonds) Act 1977

Residential Tenancies Act 1987

RetirementVillages Act 1989 (this Act was repealedon 1 July 2000 but was in force during the reportingyear)

Strata Schemes Management Act 1996

Community Land Management Act 1989

Co-operation Act 1923 (this Act was repealed on 1September 2000 but was in force during thereporting year).

Director-GeneralDepartment of Fair Trading25 October 2000

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D. B. O'Connor

Contents (back to cover)

1SSN 1327 9890New South Wales Department of Fair TradingParramatta NSW November 2000.

Prosecutions 54Penalty notices 54Civil litigation 55Legislation 56Motor Dealers Compensation Fund 57DFT Insurance activities 57Portfolio authorities 57Consultants 57Overseas travel 57Freedom of Information 58Customer feedback 60Grants 60Report of Registrar of Funeral Funds 62Publications 63Rental Bond Board 64Membership of statutory bodies and

interdepartmental committees 65Internal Audit 66Statutory Report Co-operation Act 1923,

Section 123 66Ethnic Affairs Priorities Statement,

1999 - 2000 Report 67Ethnic Affairs Priorities Statement

2000 2001 Report 68Accounts payable performance 69Access and Equity Strategy: Disability Report,

July 1999 June 2000 70Property Services Compensation Fund 71Senior Executive Service 71Guarantee of Customer Service 72Report on NSW Action Plan for Women 72

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*Volume 2 of this Annual Report (which is available onrequest) contains the financial statements of the followingnon-operational accounting entities:

Rental Bond Board

NSW Land and Housing Corporation and Rental BondBoard JointVenture

Fair Trading Administration Corporation.

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Production informationVolume 1: print run 1,000; unit cost $10.86Volume 2: print run 250; unit cost $3.51Typesetting and printing :Artegra Imaging Pty Ltd

The activities of the Department of Fair Trading over the past year reflect the CarrGovernment's social justice objectives. Reforms in the retirement village industrymean a better deal for older people and emphasis was placed on making Aboriginalconsumers more aware of their rights.

Work on enhancing the information provided by REVS - the Register ofEncumberedVehicles - was almost completed. From August 2000, REVS will providedetails of written-off vehicles.This should prove an effective deterrent against cartheft in NSW.

Petrol pricing was made more transparent. Service station operators must nowprominently display the price they charge for regular unleaded fuel.

I have also raised at a national level, through the Ministerial Council on ConsumerAffairs, this State's concerns regarding petrol pricing, the provision of basic bankingservices and possible reforms relating to consumer credit, including the introductionof a mandatory comparison rate.

In a move designed to bolster economic activity in regional NSW, the Registry ofCo-operatives transferred from Bankstown to Bathurst in January 2000.TheDepartment also monitored proceedings at a large number of Sydney home auctionsto ensure they were conducted properly.The Department's strategies to counterundesirable marketplace activities during the Olympics and Paralympics were alsofine-tuned.

The financial year 1999-2000 has been challenging. However, I believe the outcomeshave been beneficial for both consumers and businesses in NSW. Throughout theyear the Department's staff displayed a high level of professionalism. I appreciate theirefforts and I am sure Fair Trading will provide a continuing high level of service tothe community in the coming year.

Minister for Fair TradingJohn Watkins MP

From the Ministerfor Fair Trading

Department of Fair Trading Annual Report 1999-2000 Previous Contents Next Page 1

Consumer educationand protection

Accommodation andproperty

Home building Business services andproducts

Consumers of everyday goods andservices can use our Web site orcontact our Fair Trading Centres toobtain information on their rightsand responsibilities and assistancewith resolving disputes. Unfairpractices are investigated andprevented.

People renting homes, buying orselling property or living in ormanaging strata scheme propertycan turn to us for information andassistance.

A system of licensing, investigation ofresidential building complaints andregional compliance programs helpensure unqualified or inappropriatepeople do not work in the NSWhome building industry.This providesintegrity to the industry andprotection for consumers from faultyor incomplete work.

Traders and business people can registerbusiness names, obtain business licencesand receive information on their rightsand responsibilities under fair trading laws.We actively promote the development ofco-operatives and help community groupsestablish themselves as associations.

What we do

Where we are

The Department of Fair Trading exists to serve the consumers and traders of New

South Wales. Our role is to safeguard consumer rights and to advise business and

traders on fair and ethical practice.

Department of Fair Trading Annual Report 1999-2000Page 2

Office HoursYou can contact our Fair Trading Centres, Monday to Friday between 8.30am - 5.00pm.

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Broken HillDubbo

Orange

Tamworth

Armidale

Tweed Heads

Lismore

Grafton

Coffs Harbour

Port Macquarie

NewcastleGosford

Wollongong

Goulburn

Queanbeyan

Albury

Wagga Wagga

BlacktownHurstvilleLiverpoolParramattaPenrith

Sydney

Planning Framework 1998 - 2001Our Strategic Intent

Our Mission

Our values

Performance reporting Detailed corporate plan

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New South Wales will be recognisedfor fairness and value in themarketplace.

To safeguard consumer rights andadvise business on fair, ethical practice.

We do this in regard to:

consumer goods and services

accommodation and property services

home building.

Access and equity for customersand staff.

Integrity and professionalism in allwe do.

Safe, equitable, satisfying workenvironment.

Innovation complementing thestrengths of the past.

Openness in all our communication.

Our Annual Report this year reflectsthe next step in a major project toimprove performance planning andreporting. The 1998-99 report had anew, simpler structure based on ourthree key corporate objectives. In late1999 a new set of performanceindicators was adopted, linked to theseobjectives.The measures include botheffectiveness and efficiency indicators.

Information on some indicatorsappears for the first time in this report,though for others, data collectionmethods are still being finetuned.Reporting on these measures will beprogressively introduced, as thereliability and validity of the data reachacceptable levels.

The new approach will greatly enhanceour ability to plan, review and improveorganisational performance and reporton it to Parliament and the community.

During the year we also produced adetailed, annual corporate plan.Thisplan covers the financial year and setsout our key projects for that period. Itcomplements our three-year planningframework, due for revision this year,which contains longer-term strategies.

The Department of Fair

Trading's programs will

contribute to social justice

outcomes for vulnerable,

geographically remote and

disadvantaged groups.

Page 3Department of Fair Trading Annual Report 1999-2000

Appropriate safeguards forconsumers with minimal restrictionson business and traders.

Maximum compliance withregulatory requirements.

Accountable use of public resources.

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Comprehensive, proactive policy andregulatory review.

Proactive education activities;responsive enquiry service.

Special focus on remote andvulnerable groups.

Targeted compliance activities;complaint handling; disputeresolution.

Responsive enquiry service; effectivelicensing and registration process.

Innovation and continuousimprovement of systems focussed oncustomer needs.

Staff development and empowerment;systems and culture oriented tosupporting staff performance.

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A policy framework creates a balancebetween interests of consumers andtraders.

Economical, efficient and customer-focused operations.�

Provision of clear, accurateinformation to consumers and traders.

Effective compliance monitoring andenforcement.

Reliable licensing, registration andcertification information.

Corporate objectivesand outcomes

Divisional objectives Strategies


A broader view

Reaching ourcustomers

Aboriginal consumers

Taking care of business

Improving accessibility

Flexible responses

The Department's responsibilitiescover a broad spectrum.Whendeveloping marketplace strategies,we welcome input from consumerand business organisations. Ourreadiness to listen to outside views isformalised by a system of Ministerialadvisory councils.The councilsmake a valuable contribution to theformulation of fair trading policyand a special effort has been made toensure regional NSW is adequatelyrepresented in these forums.Theestablishment during the year of theRetirementVillages AdvisoryCouncil now brings their number tofive.The Department also liaiseswith industry and consumer groupssuch as the Real Estate Institute ofNSW, the NSW Council of SocialServices, the Insurance Council ofAustralia and the Tenants' Union.

Our annual customer profileprovides us with a clear idea of whoour customers are - and perhapsmore importantly - which groups inthe community are not using ourservices.This year's results revealedthat the proportion of customersfrom most target groups is close to,or exceeds, their representation inthe NSW population. No doubt dueto our pro-active stance, the profileshows more and more Aboriginalconsumers are turning to us forguidance and assistance.

But our research also indicates asignificant proportion of people

from non English speakingbackgrounds remain unaware of theirconsumer rights, particularly inrelation to rental accommodation.Clearly it's an area where we must domore.

We are acutely conscious of the needsof the more vulnerable consumers inour society. During the year we madea special effort to get the fair tradingmessage across to Aboriginalcommunities in regional and ruralNSW. Our Aboriginal CustomerService Officers provide informationon a wide range of consumer matterswith emphasis on tenancy issues, carbuying and the use of credit.

We also produced consumer educationmaterial tailored for an Aboriginalaudience.And along with othergovernment and Aboriginal bodies, weare participating in a pilot mediationprogram established to resolveproblems between Aboriginal housingorganisations and their tenants.Progress has been pleasing, but if weare to make a lasting difference wemust pursue this goal even morevigorously.

The business community is animportant component of our customerbase. Our new business registrationsystem means that business names andassociations can now be registeredacross the counter at any one of our23 Fair Trading Centres.The initiativeis a real time-saver for our regionalbusiness customers, whose applications

had previously been forwarded to Sydneyfor processing.

Our Business Licence Information Service(BLIS) and Registry of EncumberedVehicles service (REVS) went on-lineduring the year. Businesses and consumersnow have 24-hour access to thesedatabases.As well, we embarked on aproject to explore ways of utilisinginformation technology to broaden therange of service options available to ourbusiness customers.

Significantly, almost seven percent of thepeople who lodged formal complaintswith the Department last year did soelectronically. Our Web site providescustomers with access to the full range ofour inquiry and complaint handlingservices. In addition, the Department'ssuite of 114 publications can be viewedand printed directly from its publicationschannel.We anticipate an increasingnumber of visitors to our Web site in theyear ahead. It's a particularly useful servicefor people living in remote areas.Weregularly monitor its performance toensure it remains relevant and user-friendly.

New powers give us greater flexibility incombating illegal marketplace practices.Wecan now enter into enforceableundertakings with traders who havebreached fair trading laws. Under thisarrangement, traders undertake to carryout, or desist from, certain conduct.Enforceable undertakings obviate the needfor expensive legal action and can beenforced through the Supreme Court.

Director-General's Report

Page 4

The past year has been a busy one for the Department of Fair Trading. An

exhaustive review of our legislation, conducted as part of the National Competition

Policy Agreement, nears completion. We acquired more flexible powers to deal with

rogue traders and our push to provide better services to our customers continued

unabated. The rapid pace of marketplace change means the year ahead will prove

even more challenging. I believe our initiatives during 1999-2000 have helped equip

us with the programs and policies needed to confront those challenges with

confidence.

Department of Fair Trading Annual Report 1999-2000Previous Contents Next

We can now also call upon traders tosubstantiate the claims they makeabout the goods and services theysell.This power has already provedeffective against traders whoblatantly misrepresent their products.

We also made more use of SupremeCourt injunctions to protectconsumers from the activities ofrogue traders, particularly unlicensedmotor dealers. Once we instituteprosecution action against thesepeople, we also apply to theSupreme Court for an injunctionpreventing them from continuingtheir activities.The strategy isproving a potent weapon in ourcontinuing fight against illegalmarketplace conduct.

Australia's aging population dictatesthat government agencies pay addedattention to their needs. Our recentretirement village reforms usher insweeping changes designed to giveresidents greater opportunity forinvolvement in the way their villagesare run. Essentially, the changes areabout dignity.They give residentsgreater control of their owndestinies.The reforms are a tacitacknowledgment that growing olderdoesn't necessarily mean beingdependent upon others to make life-style choices for us.

The home warranty insurancescheme helps protect NSWconsumers from loss resulting from

defective or incomplete building work.Its pivotal role is highlighted by ourrecent decision to link the issue oflicences with the eligibility ofcontractors and tradespeople to obtaininsurance. Builders denied insurancecoverage by private insurers will beissued with restricted licences limitingthem to work valued at less than$5000.This reform is designed to liftindustry standards and enhanceconsumer protection.

We devoted considerable effort tofinalising strategies to protect overseasand domestic visitors to the Olympicsfrom illegal marketplace practices.They include the establishment of a24-hour Traveller Consumer Helplineand the distribution of an explanatorybrochure for overseas tourists.We arealso monitoring the private rentalmarket for abnormal rent movementsand checking retail outlets to ensurecompliance with consumer protectionlaws.

Electronic commerce is a fact of life.But this method of doing businessposes challenges which Australianconsumer protection agencies mustcome to grips with.We are workingwith other agencies to improveconsumer confidence in electroniccommerce through theimplementation of an ElectronicCommerce Consumer ProtectionStrategy.The strategy aims to promotean Australia-wide regulatoryframework covering such issues asconsumer protection, security andprivacy.

And with the energy industry about toembark on the deregulatory path, we areworking to ensure the rights of NSWconsumers are protected. For residentialcustomers the natural gas market is to beopened up to competition during 2001while the electricity market willprogressively become fully competitivefrom 1 January next year.This is adevelopment we will monitor closely.

We are also taking a fresh look at disputeresolution procedures in the homebuilding industry.Wherever possible, wewant to see disputes settled before theyreach the Fair Trading Tribunal. I amconvinced our review of this aspect of thehome building industry will result intangible benefits for consumers andbuilders alike.

The past year has been extremelyproductive. It has also been verydemanding. I would like to take thisopportunity to thank the staff of theDepartment who have worked so hardover the past year to make NSW a better,fairer place in which to do business. I lookforward to their continued support in theyear ahead.

Director-GeneralDepartment of Fair Trading

David O'Connor

Retirement villagereforms

Building licensingtightened

The Olympics

The way ahead

Page 5Department of Fair Trading Annual Report 1999-2000 Previous Contents Next

Our Structure

Page 6

Minister

Tribunals

Registries

Assistant Director-General

Director-General

Assistant Director-General

Internal Audit

Ministerial AdvisoryCouncils

Marketing

Registry of Co-operatives

Register of EncumberedVehicles

Brian Given

David O'Connor

John Schmidt

Craig MillerCol Davis

Steve Newton

Director,Legal ServicesDavid Catt

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AdvisingsProsecutionsCivil litigationSolicitoradvocate

Director,Compliance &

Standards

Fair tradinginvestigationsRapid response& riskassessmentReal estateinvestigationsSafety &standardsMeasurement &technicalservicesOperationalpriorities &Intelligence,(FOIcoordination)

Chris Hanlon

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Director,Licensing &Registration

Services

Strategy &performanceLicensing(except BuildinglicensingBusinessregistrationSystemsadministration

John Devlin

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Director,Home Building &Property Services

Home Building- Building

investigations- Building

licensing- Building

insurance- Dispute

managementserviceRenting servicesStrata schemes& mediationservices

Lyn Baker

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Director,Customer Services

DivisionalservicesCustomerservices

- Sydney region- Hunter region- South region- North region- West region

OlympicsSpecialistsupport unit

Rod Stowe

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Director,Management

Services

HumanresourcesIT operationsand strategyFinanceTribunaladministrationAdministration

- Riskmanagement

- Accomodation- Building

management- Library, Records

management &mail

- Switchboard- Procurement &

fleetmanagement

Michael Silk

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DeputyDirector

StrategicprojectsResearch &equityFundingprograms

Susan Dixon

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Strategic policyLegislationPlanning &reportingMinisterialliaisonNCP reviewsMCCA &SCOCAStakeholderliaisonAdvisorycouncils

Tribunals Fair Trading Strategy Consumer & Trader Services Marketplace Performance Fair Trading Standards & Registers

Program Allocations

Program Expenses

44%

7%

18%15%

16%

Average Staff Allocations13%

6%

51%

17%

13%

Department of Fair Trading Annual Report 1999-2000Previous Contents Next

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November 1999 - Major categories of home building licenceslinked to applicants' eligibility to obtain home warranty insurance.

March 2000 - Compulsory display of price of unleaded petrolhelps motorists shop around for best price.

May 2000 - New power to require traders and service providersto substantiate advertising claims.

June 2000 - Parliament passes Fair Trading Act amendmentallowing immediate suspension of licences of unfair traders.

July 2000 - Retirement village residents receive improvedprotection by introduction of RetirementVillages Act 1999.

October 1999 - Pre-Olympic inspection program targeting unfairtrading in Sydney tourist precincts begins.

October 1999 - Customers able to access full range of complainthandling services through DFT Web site.

January 2000 - last of 700 defective UFI swimming pools repaired.

April 2000 -Voluntary guideline released on safety of portablesoccer goals.

April 2000 - Traveller Consumer Helpline complaints assistancedatabase ready for Olympics.

June 2000 - Supreme Court bans unfair trader for 50 years.

June 2000 - Fair Trading Centres end the year processing almost900,000 enquiries up 28% on previous year.

September 1999 - DFT rated 100% prepared forY2K.

January 2000 - Major boost to Bathurst with transfer there of theRegistry of Cooperatives.

March 2000 - Business Licence Information Service availablethrough DFT Web site.

May 2000 - Customers access a range of services viaREVS Web site.

June 2000 - Customers now able to register business names over-the-counter at regional Fair Trading Centres.

June 2000 - Aboriginal and Torres Strait staff representationreaches 2.5%.

Highlights

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Completion of the National CompetitionPolicy reviews of legislation.

Model Licence Project will suggestlegislative changes needed for consistencyand efficiency across all business licensing.

Improved consumer protection in homebuilding industry through reforms to homewarranty insurance, licensing system andbetter dispute resolution processes.

Interactive learning experience -- involving a dedicated Web site, video

and teaching resources, helps youth dealwith consumer and financial issues.

DFT led national working group todevelop response to flood of internet scammail.

Continued compliance focus on regionalhome building contractors.

Long term customer service benefits intourism, hospitality and retail industries as aresult of Olympics/Paralympic Gamesinitiatives.

Rental Bond Internet Service will allowreal estate agents to authorise rental bondrefunds on-line.

Exploring Electronic Service Deliveryoptions for DFT services in line withGovernment policy.

Aboriginal and Torres Strait staffrepresentation to reach 3%.

Money

stuff

1999 - 2000 The Future

Department of Fair Trading Annual Report 1999-2000 Previous Contents Next

This is the first of two core objectives that contribute to our strategic intent of having

NSW recognised for fairness and value in the marketplace. In the fields of consumer

goods and services, rental and property services and home building we aim to

develop and maintain a policy and legislative framework that creates a balance

between the interests of consumers and traders.

Objective oneAppropriate safeguards for consumers with minimal

restrictions on business and traders

Performance informationThis new performance indicator is presented here for the first time.

Key outcome/outcome measure Results 1998/1999 Results 1999/2000

Outcome:

Measure:

Appropriate safeguards for consumers with

minimal restrictions on business and traders

Proportion of legislation assessed as meeting

net public benefit test.

It is extremely hard to devise a methodology for directly measuring the “fairness” of the policy and legislative framework toall sections of the community. The Department uses an indirect measure which shows the proportion of legislation whichhas undergone a rigorous process to ensure that it is necessary. As part of the National Competition Policy review programdescribed later in this report, a net public benefit test is applied, and this involves examining both social and economicfactors. The table above reflects the proportion of legislation which, to date, has undergone this test or a similar process.Over time, as the reviews are completed, the proportion of legislation which has been subjected to scrutiny by this or anequivalent process will reach 100%.

Interpretation/comment

45% 55%

Fair tradingdevelopments

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National Competition Policyreviews

Privacy and personal information

Consumer Credit Code

As part of the National CompetitionPolicy (NCP) Agreement the NSWGovernment is committed toreviewing all legislation that impacts oncompetition.We have a number ofreviews underway, including:

Conveyancers Licensing Act

Credit (Finance Brokers) Act

Employment Agents Act

Fair Trading Act

Funeral Funds Act

Property Stock and BusinessAgents Act

Residential Tenancies Act

Valuers Registration Act

Pawnbrokers and Second-handDealers Act

In addition, we are undertaking anNCP-style review of the feasibility anddesirability of introducing legislation toprotect boarders and lodgers.

The aim of the review process is toensure that the Government'sregulatory objectives, such as theprotection of consumers, are met asefficiently and cost effectively aspossible.The process of each reviewvaries according to the impact of thelegislation concerned, but the reviewsalways involve consumers and interestgroups affected by the legislation.

The major provisions of the Privacyand Personal Information Act 1998commenced on 1 July 2000.The Actintroduces privacy standards for the

NSW public sector regulating the waygovernment agencies can deal withpersonal information.

In order to comply with the Act, wehave prepared a Privacy ManagementPlan and Privacy Code of Practice thatset out the way personal informationabout customers and staff should behandled. Procedures to deal withprivacy complaints have also beenestablished.The Department's licenceand registration application forms havebeen amended to comply with the Act.

A post-implementation reportevaluating the operation of theConsumer Credit Code, introducednation-wide in 1997, was released latein 1999. It made a range ofrecommendations on improving theoperation of the Code.A research

Post-Implementation Report

Page 8 Department of Fair Trading Annual Report 1999-2000Previous Contents Next

report on consumer credit decision-making entitled Taking Credit was alsoreleased.

The recommendations of the post-implementation review are beingconsidered as part of a NationalCompetition Policy review of theCode.The Ministerial Council onConsumer Affairs (MCCA) willconsider the review's recommendationslater in 2000.

We are aiming to improve consumerconfidence in electronic commercethrough the implementation of anElectronic Commerce ConsumerProtection Strategy.The strategy seeksto promote an Australia-wideregulatory framework that addresses theneed for consumer protection, securityand privacy in electronic commerce.

To this end, we have provided input tothe development of a national uniformlegislative scheme to provide legalrecognition to electronic transactions.The NSW legislation for the scheme isthe Electronic Transactions Act 2000.

We are also participating in nationaland international initiatives to improveconsumer protection in this growingarea and helped formulate guidelines toclarify jurisdictional issues arising fromcomplaints involving electroniccommerce.The Ministerial Council onConsumer Affairs (MCCA) adoptedthese guidelines in August 1999.

The Department is a member of theEnergy Steering Committee, theGovernment body responsible foroverseeing the introduction of a fullycompetitive energy market.

The Department is a member of theGas Retail Project Steering Committeeand the Gas Consumer ProtectionWorking Group. In addition, wecontributed to the review of the GasSupply (Consumer Protection)Regulation. Fair Trading and EnergyMinisters will consider possible changesto the Regulation over the next 12months.

During the year we also participated inworking groups developingarrangements for a fully competitive

electricity market scheduled to beintroduced progressively from 1January 2001.

The Department plays an active role inidentifying and addressing consumerprotection issues in the utilitiesindustries - electricity, gas and water.We want consumers to have guaranteedservice standards, access to supply andadequate dispute resolution procedures.

We administer the funding for theUtility Consumers' Advocacy Program,a government/community partnershipthat aims to ensure a consumer focus inthe delivery of services by utilities.Wealso work closely with the Energy andWater Ombudsman who provides smallusers of water, gas and electricity withan avenue for the fast and inexpensiveresolution of disputes.

During the year we made a submissionto the Independent Pricing andRegulatory Tribunal when it reviewedSydney Water's Operating Licence.Wealso worked with the Ministry ofEnergy and Utilities on such matters asupdating the Code of Practice ofElectricity Supply to long-termresidents of caravan parks. In addition,support was provided to the LicenceCompliance Advisory Board.TheBoard reports to the Minister forEnergy on electricity licensees'compliance with licence conditions.

The Department has also been givenresponsibility for the safety of gasappliances and the testing of gas metersfollowing recent amendments to theGas Supply Act 1996.

While the responsibility for regulatingthe petrol industry lies primarily withthe Commonwealth, the NSWGovernment undertook a number ofState-based initiatives to promotecompetition and fair trading in theindustry during the year.

A regulation requiring all petrolstations to display the price of unleadedpetrol was gazetted in March 2000.Price boards promote pricetransparency and make it easier formotorists to shop around for the bestprice.The Government also fundedtwo studies into the feasibility of usingco-operatives to address petrol pricingissues.

Both reports concluded thatencouraging independent oil

companies to extend into rural andregional areas was the best way toreduce petrol prices. However, they alsoconcluded that co-operatives couldplay a vital role in smaller communitieswhere independents were unlikely toopen outlets.

We also worked with the AustralianCompetition and ConsumerCommission (ACCC) to gatherevidence of anti-competitive behaviourthat may result in high petrol prices.Aspart of this initiative, we established aweek-long Petrol Hotline duringAugust 1999.Allegations of anti-competitive behaviour were referred tothe ACCC for assessment.

As a result of community concernabout tenancy databases which are usedto compile and sell information abouttenants, the Rental Bond Boardapproved a grant to the Council ofSocial Service of NSW (NCOSS) toexamine their impact on disadvantagedconsumers seeking private rentalaccommodation.

The NCOSS report, entitled

was launched in May 2000.The report concluded that tenantdatabases can introduce inefficienciesinto the residential tenancy market andcause hardship to disadvantaged tenants.Inefficiencies are likely where databaseoperators concentrate on increasingdatabase size at the expense ofaccuracy.

Over the past year consultants engagedby the Department have beenmonitoring the Sydney residentialrental market in the lead up to theOlympics to identify any unusualincreases in rent movements.Theproject will produce eight quarterlyrental market monitoring reports.Todate, five reports for the March, June,September and December quarters1999, and the March 2000, have beenreleased.

'No Interest Loan Schemes' (NILS) arecommunity based schemes aimed atpeople who cannot obtain a loan fromcommercial lenders and can't afford thehigh interest rates charged by fringelenders. Loans for essential items such

National Competition Policy

Gas

Electricity

E-commerce protection

A competitive energy market

Utilities industries

Competitive petrol pricing

Tenancy databases

Rental market monitored

No Interest Loan Scheme

Cash and

Cowboys: Barriers for Access to Private

Rental Accommodation by Disadvantaged

Consumers


as refrigerators, washing machines orhot water services are typically forbetween $500 and $800.They allowborrowers to buy a new productwithout getting deeper into debt byhigh interest charges.

The aim of these schemes coincideswith the NSW Government's socialjustice objectives and the Department'sdesire to minimise credit problems inthe community.To assist in thedevelopment of these schemes, duringthe year we commissioned a review ofNILS schemes by an independentconsultant.The review will be used toguide the future development of NILSin NSW.

Four Ministerial Advisory Councilswere in operation during the year.They were the Fair Trading AdvisoryCouncil, the Home Building AdvisoryCouncil, the Motor Trade AdvisoryCouncil and the Property ServicesAdvisory Council.

The Advisory Councils provide theMinister for Fair Trading with adviceon issues relating to their industries andalert the Minister to emerging issues.The Fair Trading Advisory Council, asthe peak advisory body, provides anintegrated approach to thedevelopment of fair trading policies.

During the year the Minister approvedthe establishment of a new RetirementVillages Advisory Council to replacethe RetirementVillages ConsultativeCommittee.The new Council beganoperations in July 2000.

This year we continued to addressconcerns about vulnerable or remotesections of the community being leftwithout affordable access to bankingservices. In August 1999 and July 2000the Minister presented discussionpapers on banking issues to theMinisterial Council on ConsumerAffairs (MCCA).These detailed papersincluded research on approaches tobank regulation in the USA andprecedents for regulating other essentialindustries such as telecommunications.

Women often experience uniqueproblems in relation to banking andcredit.To explore and resolve theseissues, we conducted a joint projectwith the Department for Women.We

convened a workshop to canvas issuesand seek solutions. Participantsincluded representatives of the bankingindustry, women's groups, financialcounsellors and the Banking IndustryOmbudsman. Problems raised includedunravelling joint financial arrangementsupon divorce or separation and'relationship debt' where women arepressured into guaranteeing loans forhusbands, boyfriends and children.

Recommendations flowing from theworkshop will be fed into currentreviews of the Credit Code, theBanking Code of Practice and the lawon third party guarantees.To informthe community about relationship debtissues, the Department producededucational material on the subject.

In order to provide nationalconsistency in the laws regulating co-operatives, all States and Territorieshave been progressively adopting CoreConsistent Provisions legislation.Thismove is designed to facilitate interstatetrading and fund-raising by co-operatives. However, until alljurisdictions enact and implement thislegislation, co-operatives seeking tooperate interstate will continue toexperience problems.

During the year we prepared a paperoutlining options for further promotingnational consistency in co-operativeslegislation. In July 2000 the MinisterialCouncil on Consumer Affairs (MCCA)accepted its recommendations toestablish a working party to developthe recommendations for a nationalapproach to this area of the law.Theworking party is to report back toMCCA in January 2001.

We conducted a review of the Co-operatives Regulation 1977 during thecourse of the year.The Regulationapplies the account and auditprovisions of the Corporations Law toco-operatives.The review wasprompted by recent amendments to theaccount and audit provisions of theCorporations Law.The amendingregulation, which was gazetted on 1September 2000, adopts and appliesChapters 2F and 2M of theCorporations Law to co-operatives.This regulation will eliminateconfusion in the application of theaccount and audit requirements to co-

operatives and promote the properauditing of their accounts.

Over the past year the Register ofEncumberedVehicles (REVS) has beenworking closely with the Roads andTraffic Authority to provide a widerrange of information to the car buyingpublic and motor industry.As a result,from August 2000 details of vehiclesrecorded as wrecked or written-off byinsurers will be available on the REVSdatabase.Vehicles that have beenflagged due to a possible irregularity ordoubt about their identity will also beincluded.

This is an important step. It means thatREVS will be able to provide warningsof potential financial risks.This willallow its customers to make informeddecisions when buying, selling orfinancing motor vehicles. In the longerterm, it will help combat car theft andcurtail the practice of 're-birthing'motor vehicles.

During the year a number of importantreforms were made, particularly in theareas of fair trading, home building andthe retirement village industry.

was amendedto give the Director-General the powerto require traders and service providersto substantiate claims they make inadvertisements.

commenced on 12 May 2000.

waspassed by Parliament on 28 June 2000.Its intent is to minimise harm toconsumers from traders who wilfullyflout the law.The legislation gives theDirector-General the power toimmediately suspend a licence grantedunder legislation administered by theMinister for Fair Trading for a periodof up to 60 days. Licensees can apply tothe Administrative Decisions Tribunalfor a review of the suspension.Thesereforms commenced on 1 August2000.

improves the operation of the homewarranty insurance scheme andcompliance with the Home BuildingAct.The responsibility for insuringdevelopment work is now clearly

Advisory Councils

Banking paper to MCCA

Women and financial services

Review of co-operatives laws

Co-operatives accounts andaudit review

Better protection for car buyers

The FairTrading Act 1987

The FairTrading

Amendment (Substantiation of Claims) Act

2000

The FairTrading Amendment (Enforcement

and Compliance Powers) Act 2000

The Home Building Amendment Act 1999

Legislative activities


placed on the builder, rather than thedeveloper. However, a developer muststill provide a certificate of insurance topeople buying dwellings in thedevelopment.This amendmentcommenced on 30 July 1999. Before abuilding licence can be issued,applicants must have, or be eligible toobtain, home warranty insurance.Thisamendment commenced on 1November 1999.

commenced on 1 July 2000.These amendments were made toovercome difficulties in approvingpolicies of professional indemnityinsurance for conveyancers, while atthe same time ensuring that approvedpolicies continue to provide adequatelevels of consumer protection.

Thecommenced on

30 July 1999. These amendments weremade to achieve nationally consistentlegislation for the registration ofvehicle security interests.They were aresult of a 1994 NationalVehicleSecurity Project established under theaegis of the Ministerial Council onConsumer Affairs (MCCA).

cameinto full effect on 1 July 2000. It'saimed at ensuring that older peoplewho choose to live in retirementvillages are protected from exploitation.Under the new laws peoplecontemplating moving into aretirement village must be given astandard disclosure statement to assistthem in comparing villages.They mustalso receive a copy of the Department'sbooklet outlining the rights of residentsand operators.The legislation includesmeasures to improve the financialsecurity of residents and providesprotection from the withdrawal ofservices by the operator. It also ensuresthat residents can have input into therunning of the village through aresidents' committee. Residents whoown their premises are now free to settheir own price and select their ownagent when selling these premises.Thelaws also set limits on recurrent chargesfor personal services, such as meals andcleaning, if the resident is absent formore than 28 days.

, whichcommenced on 1 September 2000,replaced the Co-operation Act 1923.One of the key objectives of the newlegislation is to increase the flexibilityof those organisations to continue toprovide home ownership in a marketthat has changed dramatically since1923.Although initially planned forproclamation on 1 July 2000, theimplementation of the new Act wasdeferred until after the introduction ofthe Commonwealth Government'sGoods and Services Tax.

During the year the care labellingstandard was amended by the

toprescribe the new Australia/NewZealand Standard 1957:1998 TextilesCare Labelling.

In September 1999 we gazetted aproduct safety order prohibiting thesupply of candles with wickscontaining lead.The candles couldresult in increased levels of lead in theblood of babies and young childrenwhen burned in confined spaces.Anorder prohibiting the supply ofinflatable toys, novelties or items offurniture containing loose particles ofsynthetic materials was also made inFebruary 2000.The beads posed achoking hazard to young children.

During the year thewas

reviewed and re-made as theThe

new regulation makes amendments tothe 1994 regulation includingprescribing the minimum safetyrequirements for electrical articles asthose set out in the Australian/NewZealand Standard AS/NZS 3820:1998.

In addition, the

was amended by the

.Theamendment adopts the Australian/NewZealand Standard AS/NZS 3000:2000Electrical Installations. It promotesconsumer safety by ensuring that NSWrequirements meet the latest bestpractice for electrical installations.

During the year the MinisterialCouncil on Consumer Affairs (MCCA)agreed that a national review of trademeasurement legislation which mayimpact upon National CompetitionPolicy should be undertaken.Thereview was conducted by a committeeformed by the Trade MeasurementAdvisory Committee (TMAC) whichoperates under the auspices of theStanding Committee of Officials ofConsumer Affairs (SCOCA).The finalreport with reform initiatives fromeach jurisdiction is to be tabled withMCCA.

seeks to improve the quality ofregulations by requiring governmentagencies to assess the economic andsocial costs and benefits of regulations.In the case of a new principalregulation, a Regulatory ImpactStatement must be prepared in mostcases.During the year, six regulations weremade which involved the preparationof Regulatory Impact Statements.

commenced on 1 September1999. It prescribes matters of aprocedural and administrative natureand provides Model Rules forassociations.

commenced on 1 September 1999. Itdeals with the licensing of motordealers and record keeping, amongother matters.

commenced on 1 September1999.Among other matters, the newRegulation covers records kept bylicensees relating to traceable parts andthe display of signs and licences.

commenced on 1September 1999. It prescribes, amongother matters, the prime identifier of amotor vehicle or boat and theinformation to be lodged withapplications for the registration of aninterest.

commenced on 1 July 2000. It covereda range of issues including the forms ofdisclosure statements and condition

The Conveyancers Licensing Amendment

(Professional Indemnity Insurance) Act

2000

Registration of Interests in Goods

Amendment Act 1999

The RetirementVillages Act 1999

The Co-operatives Housing and Starr-

Bowkett Societies Act 1998

Fair

Trading (Product Information Standards)

Amendment Regulation 1999

Electrical Safety

(Equipment Safety) Regulation 1994

Electrical

(Equipment Safety) Regulation 1999.

Electrical Safety

(Electrical Installations) Regulation 1998

Electrical Safety

(Electrical Installation) Amendment

(Wiring Rules) Regulation 2000

The Subordinate Legislation Act 1989

The Associations Incorporation Regulation

1999

The Motor Dealers Regulation 1999

The MotorVehicle Repairs Regulation

1999

The Registration of Interest in Goods

Regulation 1999

The RetirementVillages Regulation 2000

Product safety standards

Product safety orders

Electrical safety regulations

Trade measurement review

Subordinate Legislation Actrequirements


reports as well as issues relating tovillage contracts and rules.

was also re-made on 16 June 2000.

and the

were re-made on 1 September2000.

In addition to Regulations made underour regular Subordinate LegislationReview Program, a number of otherRegulations were made on policy andadministrative grounds:

As part of an initiative to improveconsumer protection and enhancecompliance, the following regulationswere made to prescribe offencessubject to a penalty notice:

The use of penalty notices is a moreflexible and cost effective method ofdealing with regulatory breaches.However, penalty notices do not takeaway the person's right to have thematter determined by a court, andpayment of the penalty does notconstitute an admission of liability orprejudice any civil claim relating to thematter.

During the year we undertook areview of our licensing and businessregistration fees and charges. Many hadnot been adjusted for some years.As aresult we have introduced a system ofregular Consumer Price Indexed (CPI)based adjustments. In future, it isproposed that our fees be adjusted onan annual basis in line with movementsin the CPI.

Two orders were made under theConveyancers Licensing Act 1995relating to the education courseapproved for the purpose of meetingthe qualification requirements for thegranting of a conveyancer's licence:

In line with the Government's programof regular statute law revision, a

isprepared each year.Amendmentsproposed must be non-controversialand contain no more than minorpolicy changes. During the year wemade amendments to the followingActs:

During the year the PricesCommission, established under the

, wasabolished and its functions transferredto the Independent Pricing andRegulatory Tribunal.

The Business Names Regulation 2000

Both the FairTrading (Product Safety

Standard) Regulation 2000

Community Land Management Regulation

2000

Conveyancers Licensing Amendment

(Exemption) Regulation 2000

Co-operatives Amendment (Declaration of

Interests) Regulation 1999

FairTrading (Product Information

Standards) Amendment Regulation 1999

FairTrading (Product Information

Standards) Amendment (Petrol Prices)

Regulation 1999

FairTrading (Penalty Notices)

Amendment (Petrol Prices) Regulation

1999

FairTrading (Product Safety Standards)

Amendment (Child Restraints)

Regulation 1999

Home Building Amendment (Forms)

Regulation 1999

Home Building Amendment (Insurance

Exemption) Regulation 1999

Home Building Amendment

(Consequential) Regulation 1999

Pawnbrokers and Second-hand Dealers

Amendment Regulation 1999

Property, Stock and Business Agents

(General) Amendment (s42A Notice)

Regulation 1999

ResidentialTribunal Amendment

(RetirementVillages) Regulation 2000

RetirementVillagesTransitional

Regulation 2000

RetirementVillages (Applications to

ResidentialTribunal) Regulation 2000

RetirementVillages Amendment

Regulation 2000

Travel Agents Amendment (Travel

Compensation Fund) Regulation 2000

Home Building Amendment (Penalty

Notices) Regulation 1999

Landlord andTenant (Rental Bonds)

Amendment (Penalty Notices) Regulation

2000


(General) Amendment (Penalty Notices)

Regulation 2000

Conveyancers Licensing Order 1999

Conveyancers Licensing Order 2000

Statute

Law (Miscellaneous Provisions) Bill

Associations Incorporation Act 1984

FairTradingTribunal Act 1998

Residential Parks Act 1998

Conveyancers Licensing Act 1995

FairTrading Act 1987

FairTradingTribunal Act 1998

Landlord andTenant (Rental Bonds)

Act 1977

Landlord andTenant Act 1899

Motor Dealers Act 1974


Act 1941

ResidentialTenancies Act 1987

ResidentialTribunal Act 1998

RetirementVillages Act 1999

Travel Agents Act 1986

Prices Regulation Act 1948

Other amendments

Penalty Notices

Review of licensing fees

Orders

Statute law revision

Spring Session 1999

Budget Session 2000

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Other regulatoryinitiatives


Objective two

Maximum compliance with regulatory requirements

This is the second core objective contributing directly to our strategic intent. The

legislative framework creates rights and obligations for business, traders and

consumers. Maximising compliance with these requirements ensures fairness in the

marketplace. It's an important part of our role, achieved by providing information and

education for business and traders, compliance monitoring and enforcement,

complaint handling and dispute resolution, and licensing, registration and

certification information.

These new performance indicators are presented here for the first time.The data collection process will continue to be fine-tuned to ensure reliability and validity.The results shown will serve as a benchmark against which we will measure futureimprovements.

Performance information

Key outcomes/outcome measures Results 1999/2000

1. Outcome:

2. Outcome:

Provision of accurate information to consumers and traders

Effective compliance enforcement and monitoring

Measure:

Measure:

Level of accuracy of information provided

Percentage of prosecutions which are successful

1. In keeping with its new, systematic approach to performance measurement, the Department this year conducted its firststructured survey to independently test the accuracy of information provided to consumers and traders. SweeneyResearch were engaged to conduct a “shadow shopping” exercise. A sample of 386 calls were made to customer contactareas across the Department, and the response to a range of questions was rated for accuracy, based on sample answersprovided in advance. The contractors found that accurate information was provided in 87% of calls. While this is areasonable outcome for a first survey, given the range and complexity of the legislation the Department deals with, theresults show scope for improvement, and will be used as the basis for training and other initiatives. As this was the firstsurvey, some finetuning to the approach will be needed to maximise the value of the results. The survey will then berepeated next year.

2. Successful prosecution means prosecutions resulting in convictions and prosecutions where the offence is proven but aconviction is not recorded.


87% accuracy level

96%

Information andeducation

Increased demand

Reaching the regions

Our network of 23 Fair TradingCentres across NSW dealt with almost900,000 inquiries during the yearthat's up by 28 percent on the previousreporting period. Demand for theservices provided by our Call Centrewas particularly strong. It dealt with

more than 329,000 calls. In response tothe growing demand for our serviceswe increased staffing levels andimplemented a number ofcomprehensive staff training programs.We also continued to upgrade andimprove our telecommunicationscapabilities.

During the year almost 26,000 formalcomplaints were lodged with our FairTrading Centres a slight increase over

the previous year. Half of these relatedto general products, 26 percentinvolved services, 16 percent wereautomotive-related, five percent wereclassified as building issues while threepercent covered real estate matters.

We are committed to providingimproved services to regional and ruralNSW. Our Regional Access Program isa key component in achieving that


-

200,000

400,000

600,000

800,000

1,000,000

96/97 97/98 98/99 99/00

Enquiries at Fair Trading Centres

Telephone Counter Total

Formal complaints received at Fair Trading Centres

-

5,000

10,000

15,000

20,000

25,000

30,000

96/97 97/98 98/99 99/00

Fair Trading Real Estate Building

E-complaints

National Consumers Day

Aboriginal consumers

Our customers now have access tothe full range of the Department'sinquiry and complaint handlingservices on-line through our Web site.This service, introduced in October1999, provides greater access forpeople living in remote areas and thedisabled. Some 1900 customers madeuse of the service during the year.Significantly, almost seven percent ofpeople formally requesting ourassistance lodged their complaintforms electronically. Our customerscan also seek assistance via e-mail.

National Consumers Day sees theStates and Territories come togethereach year to focus on an importantconsumer issue. Last year it was heldon 28 October and the theme wasscams and older Australians. Researchindicates that seniors are frequentlyvictims of unscrupulous traders,particularly those targeting seniors intheir home.

To assist seniors combat theseproblems,

exposed the most commonscams being perpetrated. Producednationally, it was based on a conceptdeveloped by the NSW Departmentof Fair Trading and has provedextremely popular.

Research has consistently shown thatAboriginal consumers are at a seriousdisadvantage when it comes totenancy issues, contracts and credit.During the year the Departmentmade pleasing progress in its efforts toget the fair trading message across toAboriginal communities in NSW.

We now have 12 Customer ServiceOfficers who conduct regularoutreach visits to local Land Councils,Aboriginal Support Centres and otherorganisations used by Aboriginalpeople to obtain information orassistance.

Our officers are also making avaluable contribution to a number ofrehabilitation and welfare programs.For example, we conduct life skillworkshops for participants of theGlen Program, a rehabilitation centreon the NSW Central Coast. Similarinitiatives have been implemented atthe Grafton Correctional Centre and

The Little Black Book of

Scams

objective. Under this program our staffvisit communities across the State toprovide fair trading information andservices. Building sites, petrol flowmeters, scales, scanners and motordealers in country areas are alsoinspected on a regular basis.

We look to local media outlets to helpus publicise our activities. Over 50

newspapers carry the Department'smonthly columns.These reach some350,000 residents in regional and ruralNSW.Additionally, we provide regularoutreach services to seven NSWregional centres. Our services are alsoavailable through Government AccessCentres at Grenfell, Kyogle, Oberon,Maclean, Nambucca, Gilgandra andDorrigo.

Formal complaints received at Fair Trading Centresby category

Page 14 Department of Fair Trading Annual Report 1999-2000

Building 4%Real Estate 3%

Fair Trading 93%


elsewhere.The Department also hostsopen days at Fair Trading Centres anddistributes Aboriginal consumerinformation at cultural and sportingevents.

Over the year we produced a range ofinformation products for theAboriginal and Torres Strait Islandercommunities and feedback indicatesthese materials are proving useful.Brochures, posters, information cardsand advertising in the Koori Mail focuson general consumer rights. Fact sheetson special interest areas such astenancies, buying a car, starting abusiness and product safety have alsobeen distributed.

Our Aboriginal Action Plan providesfor a pilot mediation program to be setup to resolve problems betweenAboriginal housing organisations andtheir tenants. It is to provide aculturally appropriate service to helpAboriginal tenants and housingproviders reach a mutual, long-termsolution to disputes.

Following consultation with theResidential Tribunal,Aboriginalhousing providers, the NSWAboriginal Land Council, theDepartment of Aboriginal Affairs, theNSW Aboriginal Housing Office,Aboriginal tenants groups and theDepartment of Housing, a draftmediation model has been developedand will be refined over the term ofthe pilot.

We have engaged an Aboriginal casemanager to facilitate the program andact as a central point of contact withAboriginal housing providers,Aboriginal tenants and tenants adviceand advocacy groups.The pilot willconcentrate on a limited number ofdisputes in order to gauge theeffectiveness of the mediation model.

The third phase of our Olympic andParalympic Compliance Program wasimplemented during the course of thisyear. It is the culmination of three yearshard work on the Department's part.We are seeking to ensure thatanticipated benefits to the public aremaximised and negative impacts keptto a minimum.Issues of particular significance include:

bogus offers via the Internet

country of origin/made in Australiaissues

product safety and labelling.

Our pro-active approach to thesematters included inspection programsexamining retail outlets in the majortourist precincts in Sydney and thoseadjacent to Olympic sites.Commencing in October 1999,inspections were conducted at DarlingHarbour,The Rocks, Kings Cross andSydney Airport, as well as majormarkets at Flemington and Penrith.

As another part of our consumerprotection strategy, we inspected allcompleted Olympic and Paralympicvenues. Particular attention was paid toliquor measurement devices andpackaging.

The Department established a TravellerConsumer Helpline in the lead up tothe Olympics and Paralympics. Duringthese events this toll-free facilityprovided a 24-hour, seven day a weekservice for international and domesticvisitors. It's designed to provide a fastresponse to a wide range of potentialconsumer problems. The TravellerConsumer Helpline is now apermanent service for visitors to NewSouth Wales. It can be reached on 1300552 001.

One of our key education strategies inthis area was the production andtargeted distribution of resources aimedat informing tourists of their consumerrights and the availability of assistanceservices. During the year we developeda tourist information brochure, counterdisplays and stickers designed to helptourists and promote our TravellerConsumer Helpline.

The brochure, waspiloted with the tourist industry inNovember 1999.The feedback wereceived led to a range of design andcontent improvements as well as moreeffective distribution. In June 2000 weproduced 200,000 copies of the revisedbrochure.These were distributed totravel outlets, and associated advertisingappeared in the inbound tourismindustry newsletter.

In addition, two tenancy fact sheetsone aimed at tenants, the other at

landlords were produced in October1999.They reinforced tenancylegislative requirements and emphasisedthat reports of lucrative Olympic rentalprofits were unrealistic.

Earlier in 2000 we joined forces with anumber of government and non-government bodies to form theOlympic/Paralympic GamesCustomer Service Steering Committee.The purpose of this committee was tofoster higher levels of customer servicein the tourism, hospitality and retailsectors in the lead up to the Games.

The Committee made significantprogress in coordinating customerservice improvements which includetraining programs and initiativesassociated with the 'Welcome to theWorld' program.The benefits of theseinitiatives will be felt within thetargeted industries long after theclosing ceremonies have taken place.

Demand for rental bond and tenancyservices continues to climb. During theyear we processed 286,101 new rentalbond lodgements valued at $269million.A further 269,983 refundsworth $235 million and involving388,376 payments were also handled.At year's end 513,458 bonds worthsome $446 million were held in trustfor tenants an increase of 3.2 percenton the previous year.

We strive to make bond refunds as fastand simple as possible. Over 90 percentof claims for refunds are made by localand freecall 1800 fax services. Morethan 77,000 claimants directed theirrefund to be credited as cash to theirbank account. Demand for counterservices declined again this year withonly 2,243 customers seeking a cashbond refund from our centralisedservice.

During the year 412,693 telephonecallers were assisted by the staff of theRenting Services Branch, an increase of9 percent on the previous year.Awareness of the specialist AboriginalTenancy Queue which is designed toassist both landlords and tenants fromthe Aboriginal community continuesto grow. Up to 150 callers a monthutilise this service.

Aboriginal mediation strategy

Olympic compliance program

Checking Olympic venues

Traveller Consumer Helpline

Olympic information

Gold medal service

Assistance for renters

Have a nice stay,

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Wake of the storm

Don't buy a debt

Helping Queensland

Consumer credit

The Department was represented onthe Recovery Co-ordinationCommittee convened by the Premier'sDepartment following the devastatinghailstorm that stuck Sydney in April1999. During the year officers in ourRenting Services Branch continued toprovide information on optionsavailable to the parties concerned. Inaddition, our compliance teamsreported that the number of consumercomplaints about defective orunlicensed repairs was relatively smallgiven the extent of the damage.

REVS the Register of EncumberedVehicles provides a valuable service topeople buying cars through privatesales. By checking with REVS, buyerscan find out if the seller still owesmoney on the vehicle. It's a simpleprecaution that can preventrepossession.And a $10 REVScertificate provides proof buyers haveactually searched the register prior topurchase. It's an additional safeguardprudent consumers should be aware of.

To highlight the need for a REVScertificate, we began an extensiveadvertising campaign in December1999, which continued through toJune 2000. It included radio, cinema,television, press and magazineadvertisements. Cinema advertising wasa feature of the campaign in Canberraand the Northern Territory while theradio advertising was directed at Arabic,

Chinese, Spanish, Portuguese andRussian audiences.The televisionadvertisements were part of a regionalseries and were broadcast on countrystations. Our efforts have paiddividends. Over the year there was an11 percent increase in the sale ofREVS certificates.

The decision by Queensland REVS toout source the provision of itselectronic service delivery has providedus with an opportunity for furtherbusiness growth. In response to ourcustomers' requests to act as an on-linebroker, we are providing them withon-line access to the Queenslanddatabase for a small broking fee. It'sproviding a cost effective businessoption for a number of majorfinanciers.When it comes to providingon-line services to industry we have aproven track record, and our brokingbusiness has been positively received bycustomers.

During the year we acted as the leadagency for two strategies relating todevelopment of a best practice guidefor two important areas of the NationalCredit Code.These related to 'interest-free' offers and 'balloon repayment'transactions.The guides are designed toassist traders understand theirobligations and prevent consumersfrom being misled about the terms oftheir financial undertakings.They weredeveloped in consultation with

industry, legal and community groupsand are available from our network ofFair Trading Centres.

, released inDecember 1999, contains extensivecredit information while ourrelationship debt package,

was produced in collaborationwith the Department for Women andreleased in June 2000. In conjunctionwith its release, a fact sheet dealingwith the issue was translated into anumber of languages.

is a fun, interactivelearning experience designed to helpyoung people deal with consumerresponsibilities and personal financialmanagement. It includes a Web site anda video as well as curriculum materialfor teachers. It is being produced incollaboration with the NSWDepartment of Education andTraining.

The interactive Web site challengesstudents to buy a car, rent a home orbuy a mobile phone while the videoand teaching resources help convertthe information into lessons forcommerce, maths and English studentsacross NSW. Development of thispackage commenced in early 1999 andwas launched in August 2000.

This year we completed acomprehensive review and upgrade ofour information resources forcontractors and consumers in thehome building market. Shorterbooklets and fact sheets supported anew guide for builders andtradespeople.The 36-page publication,

, sets out licensing, insurance andfair trading requirements.

A similar guide was produced forconsumers.

a fair trading guide forconsumers is 44 pages long anddesigned to help consumers through allstages of home building and renovationprojects. It too is supported by a rangeof shorter publications.

We also refurbished our permanentdisplays at a Newcastle building displaycentre and at the Homebush SuperCentre. In June 2000 we created a newchannel on our Web site

that deals

The Shoppers' Guide

Love and

Loans

Money Stuff

Builders andTradespeople a fair trading

guide

Home Building and

Renovating

Home

Building and Renovating

Talking to youth

Home building awareness

Total enquiries processed

Potential savings to clients

Finance industry commitments registered on REVS during1999/2000

Total encumbrances held on REVS*(Based on finance industry estimates that 0.6% of encumbrances result in bad debt)

947,131

$19.4M*

$6.8 Billion

Over 2.2M

REVS vital statistics 1999/2000


Bonds Lodged Bonds Refunded Bonds Held

1995/96 1996/97 1997/98 1998/99 1999/20000

100,000

200,000

300,000

400,000

500,000

Rental Bond Processing


Page 17

exclusively with the building side ofresidential issues.

We have been selling plain Englishhome building contracts to contractorsand consumers since May 1997.Thecontracts, which have sold well sincetheir launch, are designed to reduce theincidence of disputes between theparties. Steps were taken early this yearto redevelop the contracts to includeGST issues and to accommodatelegislative changes covering privatehome warranty insurance.

The exercise also provided us with anopportunity to upgrade the design andmarketing of the contracts.They nowreflect the Department's corporate styleand new initiatives in the sales areashould generate increased sales andusage rates.

is our primaryeducation tool for tenancies. It outlinesthe rights and responsibilities oflandlords and tenants.Anyonemanaging a property, either as realestate agent or landlord, must provide afree copy to new tenants signing leases.Each year we produce and distributeover 450,000 copies.

To encourage awareness and use ofwe ran a publicity

campaign from September 1999 toFebruary 2000.The campaign includedbillboards at six city railway stations,posters inside 125 Sydney buses andadvertising in metropolitan andregional newspapers.An increase indistribution rates resulted and wereceived positive comments fromindustry and community groups for theinitiative.

Subsequent market research suggeststhat while awareness and use amongEnglish speaking tenants is good,awareness and take-up rates by NESBtenants lags well behind and could beas low as eight percent.Addressing thisissue will be a key aspect of ourmarketing plan over the coming year.

Virtually the entire range of ourpublications was reviewed, updated andredesigned to corporate standardsduring the year.We have introduced asystem where our comprehensiveguides are supported by inexpensivefact sheets.Along with greater reliance

on electronic publishing, this hascontributed to significant cost savingsover the past two years.

Our Web site publishing system wasstreamlined and our entire range ofpublications can be viewed and printeddirectly from a publications channel.This involved 114 titles, including 30translated publications all in easy toaccess PDF format. Our distributionsystems were also reviewed. Extensiveresearch into alternative methods andfeedback from Fair Trading Centresindicated that current methods wereappropriate. However, because of thesignificant costs involved, some$100,000 annually and up to threemillion items, this area will be subjectto regular scrutiny.

While printed publications remain anessential means of communicating withcustomers, our growing publishingfocus is on our Web site.The currentsite was established in 1998 and reviewssince then point to a range ofenhancements.To accommodate thegrowing amount of information on thesite, some channels were split and newones created. However, the site isbecoming congested and is over-relianton text.A major audit of content hascommenced but redevelopment of theWeb site is dependent on imminent ITupgrading throughout the Department.

During this year we finalised oursponsorship policy. Because of our rolein the marketplace, we must exercisethe highest levels of probity in oursponsorship dealings.The policyunderwent extensive review, not onlyby the Department, but also by theIndependent Commission AgainstCorruption (ICAC), before acceptance.

To pilot the policy, we accepted anoffer to sponsor our high volumepublication,Preliminary dealings with the sponsorindicated a range of practicalimprovements to the policy and thesewere introduced following furtherconsultation with ICAC.

sponsorship wasapproved in May 2000. HutchisonTelecommunications paid for theproduction and distribution of 150,000copies.This edition, released in August2000, includes an acknowledgment andtear-out product response card.TheDepartment intends attracting further

sponsorship for appropriate productsand activities and we have developedplans to seek expressions of interestfrom the marketplace.

As part of its compliance program theDepartment conducts an ongoingprogram of inspections of motordealers to ensure that fair tradinglegislation is being observed within theindustry. During March and April 2000our investigators inspected the premisesand records of 85 motor dealers in theSydney metropolitan area. Only 28dealers appeared to be fully complyingwith the law and 148 penalty noticeswere issued for various breaches of theMotor Dealers Act. Disciplinaryproceedings were commenced against11 dealers.

We also targeted dealers who displayvehicles for sale outside licensedpremises.This practice generatescomplaints, especially when dealersdisplay vehicles on footpaths makingthem unsafe for pedestrians. Over twoweekends this year we issued 70 dealerson Parramatta Road with 177 penaltynotices.

The Department during the yeartargeted consignment vehicle sales in abid to minimise possible losses byconsumers. Consignment selling isattractive to some dealers because itprovides them with an opportunity ofacquiring stock at no cost. Dealerseither charge a fee for the service orreceive a commission on the sale ofconsignment vehicles.They arerequired to operate trust accounts toensure that funds from the sale ofvehicles are available to owners.Allmoney must be paid into theseaccounts within one day and paid outwithin 14 days.

We have taken swift action againstlicensees who fail to comply withconsignment provisions.Three dealershad their licences cancelled and in twocases the directors of the businessesconcerned have been banned frombeing involved in the management ordirection of a dealership for a period offive and three years respectively. In one

Building contracts

Tenancy awareness

Publications reviewed.

Sponsorship policy

Motor dealers inspections

Motor dealers consignmentsales

The Renting Guide

The

Renting Guide

The Renting Guide.

The Renting Guide

Monitoring andenforcement

Department of Fair Trading Annual Report 1999-2000 Previous Contents Next

case we suspended the licence andappointed an administrator to lookafter the business.After investigation,the licence was cancelled.

During the year the Departmentinvestigated allegations about thewidespread sale of adulterated petrolfollowing information supplied byindustry sources.The blending oftoluene with petrol was an attempt toavoid the payment of excise duties.

Several service stations were found tobe selling petrol with abnormally highlevels of toluene, and the Ministerissued public warnings about theseunder the provisions of the Fair TradingAct 1987.An ongoing sampling andtesting program was implemented anda commitment was made that wewould continue to investigate the moreserious cases with a view to takingenforcement action if sufficientevidence came to hand.

In March 2000 the Commonwealthlegislation was amended to allow for anexcise to be applied to toluene. It isanticipated that the amendment willremove the incentive for substitution.

We are responsible for licensingpawnbrokers and second-hand dealers.Our activities are designed to minimisethe trade in stolen goods by ensuringthat certain high-risk items areproperly recorded and we work closelywith the NSW Police Service toachieve this result.

Routine inspection programs arecarried out and various complianceoptions are available to theDepartment.These include the issue ofpenalty notices and prosecutionthrough the Local Courts.Wherewarranted disciplinary action can betaken which can result in the loss ofthe trader's licence. Many of theoffences carry demerit points, andaccumulation above a certain numberentitles the Department to takedisciplinary proceedings.

During the year we took disciplinaryaction against two licensees.TonyAltavilla, who traded as Woy WoyTrading Post, had accumulated 64demerit points and his licence wassubsequently revoked for three years.Delta Trading Corporation, trading as

Delta Loan Office at Hurstville, had itslicence revoked for two years on thegrounds that it was carrying on thebusiness in a dishonest and unfairmanner. Both licensees have sinceappealed to the AdministrativeDecisions Tribunal.

Over the past few years in particular,Australians have been the target ofmany overseas promotions disguised aslotteries and windfalls.The public isincreasingly open to promotion ofthese schemes via the Internet. Manysuch scams originate in either the USAor Canada and are identifiable by theexaggerated claims made. Generallyrespondents either receive jewellery ofdubious value or nothing at all.

Consumer protection agencies areunable to prevent scam promotionsfrom reaching Australia through thepost or electronically. However, westrive to educate the public about thedanger of these promotions throughwarnings by our Minister under theprovisions of the Fair Trading Act andby issuing media releases.

We work with other agencies aroundAustralia to deal with Internet scamsthrough regular Internet monitoringdays which are coordinated by theAustralian Competition and ConsumerCommission.We also met withrepresentatives of the Australian DirectMarketing Association to discuss waysto reduce the flood of scam mail intoAustralia and the Department wasappointed convenor of a nationalworking group to develop anappropriate response.

Pyramid schemes are a constant sourceof consumer complaint. Many suchschemes induce people into paying ajoining fee with the promise of quickand easy money by recruiting newmembers. Such schemes are illegalbecause it soon becomes impossible torecruit new members and the pyramidmust inevitably collapse.Weinvestigated two such schemes recently.

In February 2000 investigators travelledto northern NSW to work withregional staff in investigating theoperations of the Phoenix Game.These participants received warningletters and following a public warningfrom the Minister, the game closeddown.

In the same month we became awareof a meeting of the Cash Club in WoyWoy.After discussions with ourinvestigators the promoters agreed tocancel the meeting and the Ministeragain issued a public warning. Ourinquiries into the Cash Club arecontinuing.

During the year two unlicensed motordealers in particular found out just howrisky it can be to flout fair trading laws.In December 2000 Keith Broadley wasprosecuted for operating as anunlicensed dealer and winding backodometers. He was ordered to pay finesand costs totalling $5750.A moresignificant penalty was imposed onLouis Maurice Cesar. He had to pay$84,624 for similar offences. Duringthe year the Department prosecutedeight defendants on 28 counts ofodometer interference and sevendefendants for unlicensed motordealing.The total of fines, costs andcompensation was $119,132.

The Department has also adopted amore effective strategy to deal with themore serious cases of unlicensedoperators. Once prosecution action hasbeen commenced, we also apply forSupreme Court injunctions to preventthem continuing their activities.During the year we obtained SupremeCourt injunctions against StanleyCoulter,Victor Coulter and KeithBroadley.

These proceedings send a strongmessage to anyone thinking aboutengaging in this sort of activity. If theycontinue operating in breach ofSupreme Court orders, they run thevery real risk of being held incontempt of the court and ending upin gaol.

Two serious cases involving the door-to-door sales of vacuum cleanersoccurred during this year.Thesalespeople are alleged to have harassedconsumers, one of whom wasintellectually impaired.This behaviouris unconscionable, illegal and will notbe tolerated.We have commenced legalproceedings against both sellers.

Petrol substitution

Pawnbrokers/second-handdealers

Internet scams

Pyramid schemes

Risky business

Dirty tactics

Significant

enforcement action


Pyramid dismantled

Budding entrepreneur didn'tdeliver

Knight 'grounded'

'Life' for model agent

In hot water

Academic angst

1999 Christmas product survey

2000 Easter Show survey

An international organisation tradingunder the name of Alpha ClubAustralia Pty Ltd was prosecuted by theDepartment during the year. It enticedconsumers to pay $5500 to participatein a scheme that promised members anopportunity to earn $64,000 withinten months for introducing newmembers. In March 2000 the AlphaClub was convicted on nine counts ofbreaching the pyramid sellingprovisions of the Fair Trading Act. Finesand costs totalling $24,600 wereincurred.Alpha has appealed.

Interaccess and Stella Communicationswere two Sydney-based IT companiesthat advertised inexpensive Internetaccess and cheap long distance phonecalls respectively.They shared acommon characteristic.They acceptedpayments from consumers but failed todeliver the promised services.

They were noteworthy for anotherreason.The companies were the brain-child of a 16-year-old Sydney schoolstudent. In February 2000 we soughtorders in the Supreme Courtprohibiting him from trading.TheCourt ordered that he be restrainedfrom supplying any goods or servicesfor a period of five years, except oncondition that he does not receivepayment until the goods or services areprovided.The youth was also orderedto compensate disgruntled customers.

Michael Helsby Knight is well knownto Australasian consumer protectionagencies. He has a long history ofunfair trading activities in Australia andNew Zealand. Knight injects little orno capital into his enterprises,preferring to fund his ventures fromadvance payments from consumers.Invariably the promised goods andservices are not supplied. People fallingfor his slick sales pitch find themselvesout of pocket.

TheVintage Jean Company,Teledotcom, Radiobiz, Credit Watch,Telecom Watch andVJC House ofLinen are just some of the companiesKnight has been associated with.Wehave investigated each of his schemesand in June 2000 institutedproceedings against him in theSupreme Court seeking orders topermanently prohibit him from tradingin NSW.

On 7 August 2000 the Supreme Courtmade consent orders permanentlyprohibiting Knight from conductingbusiness in NSW.They restrain himfrom operating a business in person,through a company or partnership, orthrough an agent or employee.Theyare the most wide-ranging orders oftheir type ever obtained by theDepartment.

In 1992 Kevin John Sims was bannedfrom trading as an employment, castingor modelling agent for five years as aresult of legal action taken by theDepartment. Mr Sims charged feesranging between $147 and $995 butfailed to provide work or promisedportfolios. But at the end of hissuspension period he was at it again. InDecember 1999 Sims was convicted often offences under the Fair Trading Act1987 and fined $25,000 plus costs.

We were not convinced this wasenough to stop his nefarious activitiesso we sought a Supreme Courtinjunction to prevent him from tradingin the industry. In June 2000 the Courtordered that Sims be banned fromworking as a modelling, casting oremployment agent in NSW for a 50year period effectively a life ban.

In June 2000 Healthland FitnessInternational Pty Ltd,Australia's largestfitness centre operator, entered into anenforceable undertaking with theDepartment after it falsely advertisedthat its new Sydney gym would havean indoor swimming pool.Theundertaking was made under section73A of the Fair Trading Act 1987.

The undertaking required thecompany to publish correctiveadvertising in Sydney weekly papersoffering consumers a release from anycontracts or agreements if they believethey were misled by the original claims.Healthland must also refrain fromrepresenting that facilities are availableon any of its premises unless thosefacilities are actually available. Inaddition, Healthland must create andmaintain an audited compliance andcomplaint monitoring system to helpprevent future contraventions of theAct.The undertaking can be enforcedthrough the Supreme Court.

We conducted an investigation into theaffairs of the University Co-operativeBookshop (UCB) in September 1999following reports of dissent betweenmembers, staff and some directors.As aresult, an inquiry into the working andfinancial conditions of UCB wasconducted by retired magistrate, DrElwyn Elms, under section 405 of theCo-operatives Act. In a report handeddown in January 2000, Dr Elmsrecommended an administrator beappointed to conduct the affairs ofUCB.

During the inquiry there were anumber of resignations from the board,with four new directors and a newchairman appointed. Our decision toadopt the report's recommendationswas opposed by the newly constitutedboard by injunctive action in theSupreme Court.The UCB argued thatthe new board had rectified theconcerns expressed by Dr Elms, andhence an administrator was no longernecessary.We then entered intonegotiations with UCB aimed at on-going supervision of its operations bythe Registry of Co-operatives withoutthe need to appoint an administrator.In July 2000 consent orders were filedwith the Supreme Court that includedan undertaking by the Registrar of Co-operatives not to appoint anadministrator.

Our inspectors visited 479 retail outletsin the lead up to Christmas last year,with emphasis placed on discountoutlets and markets. More than 50,000items were assessed.These includedChristmas lights, toys, candleholders,candles, Santa bags, inflatable pools andsunglasses.A number of products werefound to be unsafe or did not complywith safety laws and were withdrawn.Some matters are still underinvestigation.

With the co-operation of the RoyalAgricultural Society and show bagdistributors, our inspectors examinedthe contents of 259 show bags prior toSydney's 2000 Easter Show. Only asmall number of products requiredfurther attention.A similar inspection

Product and electricalsafety


was conducted at the Newcastleregional show earlier in the year.

Following the death of a ten-year-oldboy in 1999, the Minister asked theNSW Products Safety Committee toinvestigate the safety of portable soccergoals.A public inquiry wassubsequently held and a number ofoptions considered.A ban wasconsidered inappropriate due to thepopularity and versatility of thisproduct.The development of anAustralian Standard and a law based onsuch a Standard was not recommendedbecause of the difficulties inherent inregulating a market dominated by non-commercial manufacturers.

The Committee recommended that avoluntary guideline addressing allaspects of portable soccer goal safety bedeveloped. Essentially, portable goalsshould be securely anchored to preventinjury or death if they are tipped over.The Guideline was published inconjunction with Standards Australiaand released in April 2000. More than4,500 copies of the Guideline havesince been distributed to soccer clubs,local councils and schools throughoutNSW.The Department will monitorthe implementation of the Guidelineafter a suitable period of familiarisationhas elapsed.

During the year our investigatorscontinued their visits to shops sellingelectrical appliances, lighting and otherconsumer products.As a result, 59traders were advised to stop sellingelectrical articles that were eitherunmarked, unapproved or non-compliant with standards. Eighty-sixtraders were formally warned tocomply with legislative requirements.Prosecution action is being consideredagainst four other traders. Six traderswere issued with notices prohibitingthem from selling unsafe electricalproducts.

Ninety production models of approvedelectrical articles were examined underthe Department's Post ApprovalChecking program that requiresapproval holders to submit aproduction unit for examination.As aconsequence, seven approval holderswere warned for selling a product notidentical to the one approved.Theprosecution of one approval holder isbeing considered.

We undertake a regular program oflicensee inspections.This year we paidparticular attention to unlicensedactivity, and to agents who had failed tolodge returns, or whose returnsindicated failure to comply withlegislation.We conducted 597 generalreal estate and licensed conveyancerinspections in metropolitan andcountry areas.A number of these led tomore substantial investigations and legalaction.

Because of concerns expressed by alarge number of consumers about theconduct of property auctions, welaunched a special inspection programof on-site auctions and auction roomsthroughout NSW during February2000. Our officers attended 22 auctionsheld in auction rooms where 148properties were listed for sale.They alsoattended 41 on-site auctions.As aresult, valuable information wasobtained which will be assessed by theDepartment in its legislative reviewprogram and 26 warning letters wereissued to agents and auctioneers for notdisplaying the prescribed signage.Theinspection program is set to continue.

requires agents to have a copy ofthe sale contract available prior tooffering residential premises for sale.Failure to comply with thisrequirement can lead to 'gazumping'because the absence of a contractmeans prospective buyers experiencedelays in checking details of theproperty during which the propertymay be sold to another.We successfullyprosecuted a number of agents duringthe year for this offence, including JoyRealty trading as Nationwide Realty,Kingsford; and Brian Bennett Gormanand Austcorp No. 411 Pty Ltd, tradingas Richardson and Wrench, Lane Cove.

During February 2000 we commencedan intensive inspection program aimedat agents who were not renewing theirown or their corporate licences. Failureto renew licences endangers the rightof consumers to claim compensationfor financial loss by agents.We werealso keen to ensure that employees hadthe necessary certificates.When theprogram concluded in March, almost

1900 inspections had been completed.We have commenced prosecutionaction in a number of matters. Ouractivities received overwhelmingsupport from the industry and furtheroperations are planned. Our Licensingand Registration Services Branchreported a significant increase ininquiries and renewals during, andfollowing, this operation.

The Department commenced aninspection program in August 2000targeting more than 300 residentialparks in NSW which have permanentresidents.This action will support theextensive educational initiatives weintroduced following the introductionof the Residential Parks Act 1998.Theprogram is designed to bring therequirements of the legislation to theattention of both park owners andresidents. It will include seminars incountry locations and the distributionof information material.

In November 1999 the residents ofPine NeedlesVillage, a residential parkon the NSW Central Coast,commenced proceeding in theResidential Tribunal seeking variousorders in relation to their tenancyagreements, which included theimposition of charges for water.TheTenancy Commissioner determinedthat it was in the public interest tointervene as this was the firstopportunity to have the Tribunalprovide an interpretation of the newutility charges provision of theResidential Parks Act.

In May 2000, the Tribunal held that theowner of the Pine Needles village wasnot entitled to charge for water usageand ordered that money paid by theresidents be refunded.The operators ofPine Needles have since lodged anappeal with the Supreme Court.

Romaldo Sultana traded as WestsideBusiness Brokers in Penrith. Followingcomplaints, we investigated hisactivities and found that he had soldseveral businesses and placedadvertisements in newspaperspromoting the sale of others. Our

Portable soccer goals

Electrical safety inspections

Inspection program

Property auctions

Provision of contracts

Unlicensed activities

Residential parks

Charges needle residents

Unlicensed trading costly

The Property, Stock and Business Agents

Act

Real estate activities

Significant real

estate action


investigators also found WestsideBusiness Brokers was trading withoutholding or obtaining a business agentslicence. Mr Sultana was prosecuted inAugust 1999 and fined $5000.

Edward Kim and Kim and Shin PtyLtd traded as Laing and Simmons,Campsie.An investigation by theDepartment found that Mr Kim hadmisappropriated $189,000 of trustaccount funds in order to set up a golfcourse and resort in Queensland.TheSupreme Court appointed a receiver tothe business and Mr Kim eventuallyrepaid the outstanding funds somethree months later. In December 1999Mr Kim's personal real estate agentslicence was cancelled for five years andthe corporation's licence permanentlycancelled.

Michael Aitken was a licensed realestate and stock and station agent incharge of Parramatta Livestock Pty Ltd.In 1997 the owners of Leaf's GullyFarm horse stud engaged Aitken andhis company to conduct an auction saleof more than 100 horses on theirbehalf.After the sale Aitken failed tofully account to the owners for theproceeds.There was a shortfall of morethan $22,000.The owners claimed onthe Department's Compensation Fund,and the Department took disciplinaryaction against Aitken and his company.In January 2000 Michael Aitken andParramatta Livestock were permanentlydisqualified from holding a licenceunder the Property Stock and BusinessAgents Act.

We took action against a number ofreal estate agents for seriousmisconduct involving residentialtenancies during the year.

Steve Kaminski was a real estatesalesperson who provided a residentialtenancy agreement which omitted tomention that he was a co-tenant of theproperty. It also falsely stated theamount of rent and bond.This led theDepartment of Housing to makeoverpayments of Special RentSubsidies of $1,337.60 to his partner.In a settlement before the LicensingCourt in June 2000, Mr Kaminskiacknowledged his conduct. He was alsodisqualified from holding or obtainingany licence or certificate under theProperty, Stock and Business Agents

Act for a period of five years. He wasordered to pay the Department's costsof $1,162.

Frank Pascale was the propertymanager and co-proprietor of NuciforaNationwide Realty at Liverpool. In1997 he took proceedings in theResidential Tribunal in relation tounpaid rent, damage to a house andcleaning expenses incurred on thetermination of a tenancy.The Tribunalfound some of his claims questionable,and referred the case to the TenancyCommissioner. Investigations revealedMr Pascale had concocted two falseinvoices in an attempt to claim $218 ofa tenant's bond. In October 1999 theLicensing Court cancelled his licenceand disqualified him from holding acertificate of registration for sixmonths. He was also ordered to paycosts of $1,750.

Stacey Auciello was employed as a realestate salesperson. Following the leaseof a unit some years ago, a tenant hadpaid $520 in bond money.When thetenant moved to another unit, sheexpected the bond money to transferwith it. But when the tenant sought toclaim the bond in 1999, she found thatit had been claimed in 1994.Investigations revealed that Ms Auciellohad falsified a claim form and forgedthe tenant's signature in order to obtainthe money. In November 1999 theLicensing Court cancelled her licenceand she was disqualified from holding alicence for 18 months.

We finalised an extensive audit of thekitchen installation industry during theyear.The campaign targeted contractorsin the Sydney metropolitan area andmajor regional centres includingNewcastle and Wollongong. Ourofficers visited more than 400 outletsand detected a wide range ofcontraventions of fair tradinglegislation.

The audit established that manycontractors in the industry lacked anunderstanding of the requirements ofthe Home Building Act. In particular, ithighlighted the lack of awarenessamong contractors of the necessity tohold a licence for this type of work.Many contractors were also unaware of

the need to provide home warrantyinsurance where the labour andmaterials exceed $5,000.

In co-operation with the HousingIndustry Association and theFurnishing Industry Association ofAustralia, our officers participated in anumber of forums aimed at providingmembers with a better understandingof how the Home Building Act appliesto their industry. Since this activity theDepartment has noted a higher level ofcompliance, particularly among large-scale operators within the industry.

However some smaller scale kitcheninstallers are still demonstrating awillingness to cut corners with priceand quality.We will continue tomonitor the industry and take actionwhere instances of non-compliance orunfair practices are detected.

Our Regional Enforcement ActivityProgram is designed to inform regionalconsumers and contractors of theirrights and obligations when enteringinto contracts for residential buildingwork. During March 2000 the Dubbo,Condobolin, Parkes and LakeCargelligo areas were targeted.A totalof 68 contractors were interviewedwith eight found to be eitherunlicensed or operating outside thescope of their contractor licence.Eleven warning letters were issued forvarious contraventions of the Act.

In June 2000, 15 contactor site visitswere conducted in the Wagga Waggaarea resulting in the issue of fourwarning letters. One detailed siteinspection may culminate in thecommencement of disciplinaryproceedings against a licensedcontractor in the Fair Trading Tribunal.Over the coming year our officers planto target a number of other areas,including Bega,Armidale and Albury.

During the year we successfullyprosecuted 33 defendants for 127contraventions of the Home BuildingAct.These included both licensed andunlicensed contractors.The LocalCourt imposed fines and costs totalling$119,228. Five disciplinary proceedingswere also commenced.

Out of bounds

Livestock agent banned

Serious misconductKitchen industry 'audited'

Regional compliance program

Home building activities

Significant home

building action


Page 22

Warning letters

Builder banned

Roof restorer named

Pool repairs now complete

Strata services popular

Strata mediation effective

Home warranty insurancemonitored

During the year the Department issued1,096 warning letters to contractorsand tradespeople for contraventions ofthe Home Building Act and other fairtrading legislation.Their activities willbe monitored and if they contravenethe same provisions again they will beprosecuted. In these instances thepreviously issued warning letter will beused in court to support our case.

Gary Cohen was a Sydney-basedbuilder who had held a licence since1974. In 1998 he formed a companycalled Action United Pty Ltd whichwas granted a building contractorlicence in the same year. Mr Cohenwas its director and nominatedsupervisor.

From May 1997 licensees entering intobuilding contracts had to take outprivate building insurance in their ownnames and provide a certificate ofinsurance to their clients.While MrCohen had arranged private insurance,his company wasn't covered.

We received complaints from eightconsumers about Mr Cohen's conductbetween 1997 and 1998.They involvedincomplete work with significantdefects.Two of the contracts were withMr Cohen who was not insured at thetime. He later rectified that situation.The other six contracts were withAction United Pty Ltd. It had neverbeen insured. In this case thecomplainants were unable to claim onthe private insurers.

We commenced disciplinary action inthe Fair Trading Tribunal against MrCohen for his conduct as an individual,director and nominated supervisor.Atthe same time we also obtained a seriesof temporary orders from the DistrictCourt to suspend Mr Cohen's licence.In December 1999 the Tribunal foundMr Cohen guilty of improper conductand disqualified him from holding alicence for 10 years.

Following 11 consumer complaints tothe Department, the contractor licenceheld by L&R Heritage RoofRestorations Pty Ltd was cancelled bythe Director-General in April 2000. Itis alleged the company charged forwork that was not carried out, took anexcessive deposit, split contracts, didnot comply with home warrantyinsurance requirements and failed to

complete work in a proper manner.Yetdespite the cancellation, it continued toactively seek work that required acontractor licence.

As a result, in June 2000 the Ministerpublicly named this former licensedcontractor under section 23 of theHome Building Act.The company hassince gone into liquidation.

A major project to repair defectivefibreglass pools supplied by UFI Poolsand Spas (Illawarra) Pty Ltd orassociated installers was completed inJanuary 2000. Pools manufacturedbetween 1990 and 1993 had developedosmosis related defects, resulting inblisters and unsightly black spots.TheDepartment was responsible for theirrepair because they were covered by itsComprehensive Insurance Scheme.Some 700 pools have now beenrectified since April 1996 at a cost of$8.1 million, including cashsettlements.

During the year 46,725 people soughtinformation from the Strata Schemesand the Community SchemesCommissioner on matters relating tostrata or community living an increaseof nine percent on the previousreporting period. Improvements to thetelephone queue line service meantthat 93 percent of all calls wereanswered.

Under the Strata SchemesManagement Act, mediation must be

attempted before an application can bemade to the Strata SchemesAdjudicator. Our skilled mediatorsencourage people to resolve disputeswithout resorting to more formal andexpensive adjudicative procedureswhere a decision is imposed, ratherthan agreed to.

Our Strata Schemes and MediationServices Branch received 881applications for mediation during theyear, a 2.5 percent increase on theprevious year. Individual ownersrepresented 69 percent of allapplications with 61 percent involvingeither alterations to common areas orbreaches of by-laws.

Over 57 percent of these matters wereresolved through mediation while thenumber of applications lodged foradjudication rose from 369 to 470.Thisis substantially less than the annualaverage of 1,300 processed in the yearsprior to the introduction of mediationin 1997.

Amendments to the Home BuildingAct made in 1997 established a HomeWarranty Insurance Scheme thatreplaced the government operatedschemes.The following five companiesor their agents were approved by theMinister for Fair Trading to offerHome warranty insurance:

HIH Casualty and General

Home Owners Warranty

Mercantile Mutual Insurance(Australia)

Zurich Australia Ltd

Dexta Corporation.

Complaint handling

�

�

�

�

�

Department of Fair Trading Annual Report 1999-2000

Strata Schemes Commissioner & Community SchemesCommissioner information services

0

10,000

20,000

30,000

40,000

50,000

60,000

95/96 96/97 97/98 98/99 99/00

Number of customer enquiries


Page 23

Contractors undertaking residentialbuilding work valued at over $5,000are obliged to provide consumers withinsurance cover of at least $200,000 fora period of seven years.This protectsconsumers against loss from defectiveor incomplete work by the builder ortradesperson.And in a move designedto provide even greater protection toconsumers, since November 1999 theAct has linked the renewal of a licenceto the eligibility of certain categories ofcontractors and tradespeople to obtaininsurance in order to prevent insolventor unviable businesses undertakinglarge scale building work.

The intention of the private insurancescheme is to provide consumers withdirect access to the insurer for claimsprocessing and to enable insurers totake recovery action against thecontractor.The Department monitorsapproved insurers' claims-handlingprocedures and provides information toconsumers on avenues for disputeresolution. During the year theDepartment hosted meetings anddiscussions with insurers and industryto improve operations of the scheme,particularly in areas of disputeresolution and reporting requirements.

Recent amendments to the HomeBuilding Act 1989 mean theDepartment now examines theeligibility of applicants for homewarranty insurance before it decides togrant, renew or restore certain

categories of contractor licences. Homewarranty insurance must be taken outfor all projects where the value oflabour and materials exceeds $5,000.

All 118,000 licence holders wereadvised in September 1999 of thecritical nexus that now exists betweenthe issue of a licence and the ability toobtain home warranty insurance. Dueto the large number affected, it wasdecided to progressively implement thenew requirements, commencing with30,000 building contractors.

In the eight months to June 2000, theDepartment received over 21,000applications for renewal by affectedcontractors. Some 60 percent provideddetails of insurance.Those failing toprovide this information had acondition imposed on their licencerestricting them from contracting forwork in excess of $5,000. It appearsmany licensees are not actively engagedin undertaking building work but areretaining their licence for professionalpurposes such as TAFE teachers andbuilding consultants.

The Trade Measurement Act 1989applies to all measurements made fortrade purposes.The legislation aims atpromoting fair trade in relation totransactions conducted by reference tomeasurement. It also providesprotection from inaccuratemeasurement.

A major focus of the trademeasurement compliance inspection

Building licence insurance link

Supermarkets targeted

Licensing, registrationand certification

Trade measurement

program for the 1999-2000 financialyear was in-house packing andweighing practice and procedures forfood items by supermarket chains.Thisprogram resulted in a substantialincrease in the number of successfulprosecutions instigated by theDepartment.

The trade measurement inspection andtechnical services also providedsubstantial technical support to ourinvestigations into alleged fuelsubstitution.The support includedresearch into the current standards forfuel, identification of testinglaboratories, evaluation of test methods,development of sampling proceduresand analysis of reporting test results.

The licensing of service organisationsto certify measuring instruments in usefor trade is an ongoing activity. Some200 organisations are licensed toconduct the majority of routine testing.Our inspectors monitor their work andconcentrate on the compliance aspectsof the trade measurement legislation.

During the year we conducted industryadvice seminars for servicingorganisations in Coffs Harbour, PortMacquarie, Sydney and Moama. Ourstaff also gave presentations on therequirements of trade measurement toindustry associations and delivered in-house training sessions to a number ofprivate service companies.

The physical and legal traceability ofmeasurement standards is crucial to thetrade measurement system. OurStandards Laboratory calibrated some3,500 reference standards ofmeasurement for both internal andexternal clients during the year.

Fuel substitution

Licensed service organisations

Industry seminars

Laboratory operations

Department of Fair Trading Annual Report 1999-2000

0

200

400

600

800

1000

1200

1400

1600

94/95 95/96 96/97 97/98 98/99 99/00

Applications for Orders

Reduction in numbers of orders being sought fromStrata Adjudicators



Objective three

Accountable use of public resources

Our third key objective acknowledges that we are accountable to Parliament, the

Minister and the public for the use of community resources. We aim to provide

customer-focused services that align with the Government's social justice objectives

and which are designed and delivered in the most economical, efficient and

cost-effective way.

This new performance indicator is presented here for the first time.The data collection process will continue to be fine-tuned toensure reliability and validity.The results shown will serve as a benchmark against which we will measure future improvements.

Performance information

Key outcomes/outcome measures Results 1999/2000

91%

69%

90%

98%

95%

Overall quality of service

Waiting time for a service

Staff's knowledge of subject

Politeness of service staff

Helpfulness of service staff

In keeping with its new, systematic approach to performance measurement, the Department this year conducted its firststructured annual survey to independently test the level of customer satisfaction with the services it provides directly to thepublic. ACNielsen were engaged to conduct the survey. A sample of 410 customers, randomly selected from those who hadcontacted any of these areas within the past week, were telephoned and asked to respond to a questionnaire. Thepercentages above indicate those customers satisfied, or very satisfied, with DFT's services. While these are positive firstresults, waiting times is one area which the Department is looking at more closely. Many services can be provided promptly;however, there are some very heavy traffic areas which place extremely high demands on the available resources. Morework is being done on options to address this. The survey will be repeated next year.

Outcome:

Measure:

Customer-focused operations

Level of customer satisfaction with DFT's services:


�

�

�

�

�

Monitoring ourperformance

�

�

�

�

�

Customer service profileWe conducted our second annualcustomer profile survey during the year.It is designed to tell us the proportionof our customers in various equitytarget groups:

Aboriginal and Torres Strait Islanders

People who speak a language otherthan English at home

Women

People in non-metropolitan areas

People aged under 25 and over 65

The survey highlights groups that maybe having difficulties accessing ourservices.The information is used toidentify areas for action in futureplanning. Overall, the results of thisyear's survey show the proportion ofcustomers from most of these targetgroups is close to, or exceeds, theirrepresentation in the NSW population.The survey also charts the effectivenessof our programs for these groups. Forexample, it revealed that we areincreasing our accessibility for

Aboriginal customers, particularly inlocations where Aboriginal staff havebeen appointed.

In accordance with our quality plan,five quality improvement projects werecompleted during the year. A reviewof the processes involved in lodgingannual statements and fees byincorporated associations was finalisedwith the introduction of our newbusiness registration system inNovember 1999.A service that allowsour customers to lodge inquiries and

Quality and guided self-assessment



complaints via the Department's Website was also introduced. It's a veryconvenient service for the disabled,rural consumers and the Internetcommunity.

In addition, a guide for staff workingon projects involving consultation withcommunity and interest groups wasdeveloped.The processes involved incollecting learning and developmentdata were also reviewed. Proceduresassociated with the administration ofthe annual real estate audit programwere reviewed as well, with a numberof efficiency and cost-saving measuresbeing identified.

We pursued our commitment tobenchmarking during the year, takingpart in a best practice benchmarkingworkshop organised by the AustralianQuality Council. In addition, we havecommenced our own Call Centrebenchmarking project. Our Guaranteeof Service was updated and relaunchedin March 2000, and is available on ourWeb site.

Because of the range and depth ofinformation captured by the newperformance indicators discussed onpage 3, the results from these willreplace guided self-assessment as thefocus for our quality improvementprojects, at least for the short tomedium term.

With the establishment of theAdministrative Decisions Tribunal,certain decisions of the Director-General or his delegates relating to therefusal, cancellation, suspension orimposition of conditions or restrictionson licences or certificates can bereviewed by the Tribunal. Prior to a

Explaining our actions

Licensing activity

Motor Dealers 502 418 487 4,221

Travel Agents 182 141 157 1,551

Pawnbrokers & Second hand Dealers 1,973 435 398 1,475

Private Employment Agents* 459 703 2,336

Public Weighbridge 11 14 5 90

Trade Measurement Services 28 27 10 201

Property, Stock & Business Agents 1,240 1,384 1,602 23,927

Valuers 174 142 139 4,493**

Conveyancers 43 47 84 241

Building 10,234 11,069 11,436 153,228

*Previous numbers not available as Department of Fair Trading only assumed responsibility for Private Employment Agents on 1 July 1998** This figure includes 832 non-practising valuers

New Licences 97/98 New Licences 98/99 New Licences 99/00 Current

review by the Tribunal, applicants canrequest a statement of reasons for thedecision and the Department mustundertake an internal review. OurLicensing Branch now provides detailedstatements of reasons to customersautomatically.This information allowscustomers to make an informeddecision whether it is worthwhilepursuing the matter further.

Last year we introduced a newcomputer system to support theadministration of the registration ofbusiness names and the incorporation ofassociations.The new system, known asBRS, was designed and developed in-house. It is a state of the art Windowsbased system that enables a substantiallevel of automated decision-making tobe introduced into the registrationprocess. Despite encountering a numberof hurdles during the development andimplementation phases, the system cameon-line in November 1999.

This development has dramaticallyimproved the level of service we canprovide to our business customers. Itallows our network of Fair TradingCentres to register business names andassociations on-the-spot. Our regionalcustomers no longer have to wait 24hours for applications to be processed byour Sydney office.Following the introduction of BRS inour Sydney and Parramatta Fair TradingCentres, a roll-out of the system tookplace around the State.The roll-out wascompleted on schedule when theAlbury Fair Trading Centre linked inJune 2000.We are confident theautomation provided by BRS, togetherwith its user friendliness, will translateinto tangible benefits for our customers.

Our Business Licence InformationService (BLIS) is a convenient one-stopshop for businesses seeking to find outprecisely what State andCommonwealth licences or permitsapply to their operations. Earlier thisyear, as part of the preparatory work forthe Internet version of BLIS, all NSWGovernment agencies were requested to

Better business services

BLIS the next generation

Improving our services

0

100000

200000

300000

400000

500000

Total Business Registrations

91/92 92/93 93/94 94/95 97/9895/96 98/9996/97 99/00

282972

305534

335500

363250

377193

390241

405321

423958

455414



check the accuracy of the informationprovided by BLIS.This helped ensurethe Internet version was as up-to-dateas possible.The Internet version of BLIS wasreleased in March 2000 and allowssmall businesses to access its services 24hours a day.When customers havefinished searching, they can order acomplete package of licenceinformation and application formswhich will then be forwarded to themby conventional mail, electronic mail orfacsimile. BLIS has always been a great,free service for business, and it is noweven better.The Internet version canbe accessed onwww.fairtrading.nsw.gov.au

The popularity of the REVS Web site,launched in May 2000, has exceededour expectations. In its first twomonths of operation over 10,000transactions were recorded, 38 percentof which were public inquiries.TheWeb site provides consumers, financiersand motor dealers with 24-hour, sevenday a week access to information onvehicles registered in NSW, the ACT,the Northern Territory, Queensland,Victoria and South Australia.

The Rental Bond Internet Service(RBIS) is a cost-effective, business-to-business e-commerce initiative that willenable NSW real estate agents toauthorise the refund of residentialrental bonds to tenants, among otherfunctions. During the year we oversawthe detailed scoping, development andtesting of the service, with a pilotservice that commenced in July 2000.The RBIS promises to deliversignificant advantages to agents,landlords and tenants.

E-commerce and technology-basedbusiness services are becomingincreasingly popular with the businesscommunity and the generalcommunity.The Department hasrecently embarked on a project thatwill facilitate a fundamental shifttowards doing business on-line withgovernment, providing significantbenefits to all parties over the longterm.

It is anticipated that the ESD On-lineRegistry Project will be completed inthree phases.The first will commencewith a feasibility study to determine

whether we should continue with theplanned development strategy orpursue another alternative. Subsequentphases could result in the developmentof a common interface to our licensingand business registration systems toallow electronic lodgement ofapplications and annual reports, accessto renewal processes, on-line searchfacilities and other basic transactions,such as register searches and changes ofdetails.

The aims of the project are to:

assist the Department keep pace withrapid improvements in Internettechnology-based initiatives, such asElectronic Service Delivery, withinthe business community

achieve ongoing improvements incustomer service

broaden the range of service optionsavailable to customers

provide greater, more efficient accessto government services from anylocation within or outside the State.

Our customers can gain access to theRegisters of Business Names andIncorporated Associations by eitherdirect contact with us or throughauthorised private information brokers.During the year, the number ofauthorised information brokerscontracted to the Departmentincreased from eight to ten.Thisservice is very popular, with the vastmajority of inquiries to the Registersbeing made via the broker network.

During the year we conducted areview of product recall procedures atboth a local and national level.We arenow seeking inter-government supportfor a national review of the productrecall powers and procedures withinFair Trading portfolios in Australia andNew Zealand.

To ensure a whole of Governmentapproach to the provision of rentalstatistics to the public, the Departmentsigned a Memorandum ofUnderstanding with the Department ofHousing that covers the productionand distribution of statistics.This willlead to the establishment of oneconsistent and comprehensive source ofinformation on the rental market inNSW.

During the year we introduced afortnightly reporting system for highpriority cases.The system keeps theExecutive abreast of their progress,streamlines decision making andensures a strategic corporate approachto determine the most appropriateenforcement options.

In 1999 we contracted for thedevelopment and implementation of anew database and case managementsystem referred to as 'SCAM'. It willaccommodate all our investigations andlegal activities and provide greatlyimproved reporting and search facilitiesthat will be available to both headoffice and regional compliance officers.The system is scheduled to beoperational later in 2000.

Our Access and Equity Strategyprovides a framework for ensuring ourprograms meet the needs of all ourcustomers.This year we integrated ourEqual Employment Opportunityprojects with the Access and EquityStrategy.This was in recognition of thesynergies between the projects tobenefit customers and staff. During theyear we focused our initiatives onimproving services to Aboriginalpeople, women, people from non-English speaking backgrounds andpeople with disabilities.

We are currently reviewing ourlanguage services in a bid to improvethe services we provide to customerswhose first language is not English. Forexample, accredited bilingual frontlinestaff will wear badges indicating thecommunity languages they speak.Using the results of the customerprofile survey as a guide, we haveidentified Fair Trading Centres whereextra bilingual staff are needed.Thisinformation is also being used inrecruitment and staff rotation decisions.A full report on our Ethnic AffairsPriorities Statement is included atAppendix 19.

The Community Language AllowanceScheme (CLAS) is an allowance paid toaccredited bilingual staff. It helps usassist customers with basic consumerinquiries in languages other thanEnglish and we encourage bilingualstaff to sit for the CLAS exam.Currently 67 of our staff who speak a

REVS on-line proves popular

Internet bond service

Our electronic future

Business names brokers

Product recalls

Consistent rental statistics

Executive case management

Development of SCAM

Access and equity strategy

Language services

Community Language Allowance Scheme

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1140 Staff currently employed in Dept of Fair Trading @ 30 June 2000.Staff numbers do not include statutory appointments.

Dept of Fair Trading staff classification profileLibrary No. SES No. Senior Officers No. Clerks No.

Senior Librarian 1 Director-General 1 Senior Officer 7 Clerk Grade 12 29

Senior Library Tech 0 Senior Executive Officer 7 Clerk Grade 11/12 14Librarian 2 Clerk Grade 11 25Technician 1 Clerk Grade 9/10 98

Clerk Grade 7/8 140Clerk Grade 5/6 175Clerk Grade 3/6 40Clerk Grade 3/4 229Clerk Grade 1/2 261Clerk General Scale 12

Legal Officer Grade IIII 17 Clerical Off Grade 3/4 16 Clerical Asst Class 1 1 Media Officer 1

Legal Officer Grade III 1 Clerical Off Grade 1/2 53 Clerical Asst Gen Scale 1

Legal Officer Grade IIIIV 2

Legal Officer Grade IV 2Legal Officer GradeV 3

Legal Officer GradeVI 1

Total 26 Total 69 Total 2 Total 1

Total 4 Total 8 Total 7 Total 1,023

total of 25 languages receive the CLASallowance.

We translate key publications intocommunity languages.This year weupdated and translated

into 17 languages and threecredit fact sheets were translated intothree community languages.We alsotranslated the general fact sheet

into 21 languages.Abuilding checklist was translated intofour languages and Strata Living isbeing translated into Chinese. Inaddition, contact stickers forcommunity works were produced in20 languages and we commencedmaking our translated materialsavailable on our Web site.

The implementation of our AboriginalAction Plan proceeded smoothlyduring the year with several projectsbecoming a permanent component ofthe Department's programs.As our 12Aboriginal Customer Service Officershave settled in, the regions havedeveloped innovative local projects tobuild links with Aboriginalcommunities and improve the deliveryof our services. Our customer serviceprofile survey revealed that moreAboriginal consumers are turning to usfor assistance.

During the year our AboriginalEmployment Strategy helped increasethe proportion of Aboriginalemployees from one percent to 2.5percent.The Department's AboriginalNetwork meets three times a year toformulate ways to support Aboriginalstaff. It also organises an annualAboriginal Staff Conference andensures Aboriginal staff have a careerpath management plan and access totraining and development.

We intend conducting a formal reviewof our Aboriginal Action Plan duringthe coming year.

The following outcomes were achievedin the course of this year:

Increase in respondents to EEOsurvey to 96 percent

EEO included in corporate planningframework

Conference conducted on meetingthe needs of the Aboriginalcommunity and supportingAboriginal staff

Support networks established forAboriginal and Torres Strait Islanderstaff, spokeswomen and staff with adisability

Spokeswomen's Strategic Plandeveloped

International Women's Dayscholarships established for twowomen to attend women'sdevelopment training

Two staff featured in the booklet TheChanging Roles of Women,WomenOn-Line, Stories by Women in IT

Aboriginal staff representation is 2.5%

Two officers with overseas experienceplaced in the Department as part ofthe Migrant Work ExperienceProgram

Staff from non English speakingbackgrounds provided withopportunity to attend Skillmax course

EEO policies available on ourcomputer system

Our goals for 2000/2001 are:

Staff exit interviews conducted

Career planning package for staffdeveloped

Information on mentoring to all staff

3% representation of all Aboriginaland Torres Strait Islander staff

Flexible Working Hours Agreementimplemented

Staff with a disability requiringadjustment, provided with appropriateadjustment

Review of staff selection inaccordance with outcomes of theMerit Review.

Translations

The Renting

Guide

We

Can HelpYou

Aboriginal action plan

Equal Employment Opportunityreport

Administrative initiatives

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Subgroup as percent of

total staff at each level

Subgroup as estimated percent of total staff at each level

Lev

el

Tota

lstaf

f(n

um

ber

)

Res

ponden

ts

Men

Wom

en

Aborigin

alpeo

ple

&Torres

Strai

tIslander

s

Peo

ple

from

raci

al,ethnic

,ethno-relig

iousm

inority

gro

ups

Peo

ple

whose

languag

efirst

spoken

asach

ild

was

not

English

Peo

ple

with

adisab

ility

Peo

ple

with

adisab

ility

requirin

gwork

-relat

edad

justm

ent

< $26,276

$26,276 - $38,582 347 95% 23% 77% 2% 32% 28% 12% 6%

$38,583 - $48,823 277 97% 35% 65% 5.60% 34% 26% 7% 2.20%

$48,824 - $63,137 352 97% 53% 47% 1.80% 21% 17% 12% 3.80%

> $63,137 (non SES) 152 96% 68% 32% 21% 15% 14% 6.20%

SES 8 100% 75% 25% 13%

Total 1,136 96% 42% 58% 2.50% 27% 22% 11% 4.30%

Estimated subgroup totals 1,096 476 660 28 309 254 124 49

Note:Above table does not include casual staff.

Percent of Total Staff by Level

Percent of Total Staff by Employment Basis

Note: Figures for EEO groups other than women have been adjusted to compensate for the effects of non response to the EEOdata collection. EEO statistics reported in years prior to 1998 may not be comparable due to a change in the method of estimatingEEO group representation.

-

Subgroup as % of total

staff in each category

Subgroup as estimated percent of total staff in eachemployment category

Em

plo

ymen

tbas

is

Tota

lSta

ff(n

um

ber

)

Res

ponden

ts

Men

Wom

en

Aborigin

alpeo

ple

&Torres

Strai

tIslander

s

Peo

ple

from

raci

al,ethnic

,ethno-relig

iousm

inority

gro

ups

Peo

ple

whose

languag

efirst

spoken

asach

ild

was

not

English

Peo

ple

with

adisab

ility

Peo

ple

with

adisab

ility

requirin

gwork

-relat

edad

justm

ent

Permanent Full-time 924 97% 46% 54% 2.70% 28% 23% 12% 4.50%

Part-time 93 95% 9% 91% 22% 18% 7% 6.80%

Temporary Full-time 86 94% 35% 65% 3.70% 27% 22% 7% 1.20%

Part-time 17 88% 6% 94% 20% 13%

Contract SES 8 100% 75% 25% 13%

Non SES 8 100% 75% 25% 13% 13% 13%

Casual 20 50% 20% 80% 30% 30% 10% 10.00%

TOTAL 1,156 96% 42% 58% 2.40% 27% 22% 11% 4.40%

Estimated subgroup totals 1,106 480 676 28 315 260 126 51



Business registration integrated

Co-operatives move to Bathurst

Statutory home buildinginsurance wind-down

Human resource developments

Investigator training

Accommodation/communicationstrategies

Network replacement project

Saving energy

GST ready

Y2K compliance

During the year the operations of theSydney Business Registration ServiceCentre were integrated with theSydney Fair Trading Centre.As a result,our customers now have access to thefull range of consumer protection,business registration and associationincorporation services at one location.The success of the establishment of aone-stop shop for our city customerswas followed by the integration of thesame services at our Parramatta FairTrading Centre and regional FairTrading Centres.

In January 2000 the Registry of Co-operatives relocated from Bankstown inSydney to Bathurst. Bathurst waschosen in part because theGovernment had earlier established theAustralian Centre for Co-operativeResearch (ACCORD) as a jointventure between the University ofTechnology Sydney and Charles SturtUniversity based on the Bathurstcampus.The move, which wascompleted ahead of schedule andwithin budget, has provided the localeconomy with a welcome boost and ispart of the Government's commitmentto regional development opportunitiesin NSW.

Following the closure in May 1997 ofthe Government fundedComprehensive and Special Insuranceschemes , there has been a significantdecrease in the number of claimsprocessed. During the year claims fellfrom 799 to 507. Claims for generaldefects expired in May 2000 and claimsfor major structural defects will expirein May 2004.The number of eligibleinsurance claims is set to decreasemarkedly in the years ahead.

We have now commenced planning toachieve an orderly wind-down of thescheme. In consultation with the PublicService Association and affected staff, aWorkforce Management Plan has beendrafted to achieve a reduction inoperating costs in line with decreasingactivity. It aims to identify the timing ofstaff reductions and incorporates amajor training component to assist stafffind alternative positions.

Following a review by the Office ofthe Council on the Cost of

Government we have moved fromface-to-face training to on-linelearning. During the year a number ofon-line training manuals were released.These include material on performanceplanning and feedback as well as staffinduction.Work has commenced onmodules dealing with reportingworkplace injuries and an introductionto communication skills for supervisorsand managers.

A system of performance planning andfeedback was introduced in December1999 and staff and supervisors trainedin the new procedures.The initial six-month reporting and feedback periodpassed successfully and we are currentlyreviewing the system.

Negotiations on a new flexibleworking hours agreement werefinalised during the year. Itacknowledges the commitments of staffto work and families.The agreementsupports service delivery requirementsand provided staff with options tomanage work commitments andaddress transport difficulties during theOlympics.

The CHRIS payroll system wasintroduced during the year in order toachieveY2K compliance.To assist usersof the system, a payroll processingmanual was developed. It is a livedocument that is available to payrollstaff on-line.

The training provided to ourcompliance staff was given highpriority during the year. In July 1999the first group of 20 personnelattended a five-day residentialinvestigation course conducted byCharles Sturt University at theGoulburn Police Academy.

The course concentrates on coreinvestigation skills, includingidentifying elements of the offence andpossible defences, the requirements ofthe Evidence Act, interviewing skillsand statement taking, exhibit handlingand courtroom techniques and tactics.A further 31 head office investigatorsand regional inspectors attended similarcourses in April, May and June 2000.

Internal training was also provided toinvestigators on the operation of thepenalty notice scheme, recording andmaintaining evidence and theelectronic recording of interviews.

Following the completion in 1999 ofour CBD Strategic AccommodationPlan, we successfully implemented aVirtual Private TelecommunicationNetwork spanning our CBD andParramatta locations together with thePenrith Call Centre.This significantlyenhanced the telecommunicationsservices to our broad range of externalclients as well as substantially reducingour operational costs. In addition to theVirtual Private Network, a number ofFair Trading Centres had theirtelecommunication facilities upgradedto improve service delivery.

The Network Operating System(NOS) replacement project wasinitiated in 1999 as a 'critical businesscontinuity' project. Our current systemis based on the BanyanVines productwhich is to be 'sunset' in early 2001,exposing the Department to potentialbusiness and technology risks. Fundingof $1.56 million was sought andgranted from Treasury to undertake theproject encompassing the selection,design and implementation of areplacement Network OperatingSystem.The project commenced inApril 2000 and will be completed byJune 2001.

We are committed to achieving savingsin energy usage and to sustained energymanagement principles.We have twosites that purchase electricity on theopen market including six percent ofpower from renewable sources and areworking towards reducing energyconsumption in all our tenancies. OurEnergy Management Plan was finalisedearlier this year.

We were GST ready by 30 June 2000.Over 99 percent of our revenue hasbeen determined as exempt from taxes,fees and charges under the new taxarrangements. Our financialmanagement system was upgraded tocomply with GST requirements andstaff were provided with theinformation and training needed tohelp them implement new procedures.Our licence and registration formswere also amended to comply with therelevant legislation.

OurY2K program covered every aspect



of the Department's operations andinvolved a threefold approach:

a review of legislation to determine ifdate change problems might affectour statutory obligations

a review of our internal systems,which were amended and testedwhere necessary

a comprehensive advertisingcampaign to raise awareness ofY2Kissues among consumers and traders.

The Department was rated 100 percentready by the Office of InformationTechnology in September 1999.Thetotal budget for theY2K project was$14 million.

In March 2000 we completed a servicedelivery plan to identify and managethe impact of the Sydney Olympics onour operations.We introduced moreflexible working hours during theOlympics as well as temporarilyrelocating some staff to office locationscloser to home.We also provided some40 staff to assist various agenciesinvolved in staging the event.

We have been a leading agency inimplementing records policies andpractices flowing from theimplementation of the State RecordsAct 1998.We have introduced a suiteof policies, manuals and trainingmaterial, some of which is being usedby the State Records Authority ofNSW as examples of best practice.

During the year we engaged theservices of a RehabilitationCoordinator to assist with themanagement of return to workarrangements for staff following bothwork related and non-work relatedinjuries.This enables us to meet ourlegislative requirements and advancethe well being of staff through ourstrategies to improve management ofworkers compensation and general riskmanagement.

A Business Continuity Plan to providefor ongoing operations of all essentialfunctions in emergency circumstanceshas been under development.Electronic data is stored offsite.

We have a staff code of conduct andhave developed strategic plans covering

a range of essential functions such asinformation technology,telecommunications andaccommodation.We have introduced arecords management system that issupported by a number of key policiesaimed at meeting our records keepingresponsibilities under the State RecordsAct.

We are part of the NSW TreasuryManaged Fund, the State Government'sself-insurance scheme.The Fund isadministered on behalf of theGovernment by GIO Australia andcovers the Department for workers'compensation, comprehensive motorvehicle, property loss and publicliability, as well as miscellaneous cover.Coverage is for all the Department'soperations, worldwide.

Our two major risk areas are workers'compensation and motor vehicles andwe have developed strategies to ensureour exposure to risk is minimised.Policies covering the use andmaintenance of motor vehicles, andoccupational health and safety are inplace.We also have an activeoccupational health and safety WorkingCommittee as well as WorkplaceCommittees operating at strategiclocations throughout the Department.The Working Committee identifieswhole of department OH&S issues andmakes recommendations to theExecutive on policy development. Italso promotes our OH&S policystatement and actively pursues itsimplementation.

The Co-operative Development Fundis designed to assist the NSW co-operative sector grow and remain aviable sector of our economy. Duringthe year we provided funding for twofeasibility studies into enhancingcompetition in the petroleum industryand the development of co-operativestructures with the potential to lowerpetrol prices in NSW.We also providedgrants to facilitate research into twoenergy-related co-operatives in theHunterValley and mid-North Coastregions of NSW.

Grants were also provided to theorganisers of the 2000 Workshop for

Consumer Co-operatives and theLabour Co-operative which prepared aseries of working papers focussing onthe 'peripheral' workforce adverselyaffected by the BHP closure inNewcastle.We continued to supportthe Australian Centre for Co-operativeDevelopment (ACCORD) as part ofthe Government's commitment to assistACCORD during its first three yearsof operation.

Submissions for funding are made tothe Registry of Co-operatives whereeach application is assessed foreligibility against predeterminedselection criteria before being reviewedfor approval.

The Department of Fair Tradingoversees a number of grants programs.Broadly, these can be categorised intogrants provided to community-basedorganisations or grants provided toindustry bodies. The Department givespriority to organisations whose servicesor projects target people fromdisadvantaged backgrounds.

The Department complements its ownconsumer information and protectionservices by funding community basedorganisations to provide advice,information advocacy and communityeducation on issues related to thelegislation administered by theDepartment. These areas includetenancy, financial counselling and creditand debt issues.

In 1999/2000, we provided $5,689,902to community groups to assist peopleunder the Tenants' Advice andAdvocacy Program, the FinancialCounselling Trust Fund, CreditCounselling Program,The Aged CareRights Service and the TenancyHousing and Information Unit.

We also provide grants for the propertyservices and home building industry tofund education, training or researchprojects that will result in enhancedservice to the consumers of thoseindustries. In the 1999/2000 fundingyear, $957,253 was provided fromstatutory interest funds andconsolidated revenue toward theProperty Services Grants Program andthe Home Building Grants Program.

Details of individual grants arepresented in Appendix 12.

Olympic preparedness

Information management

Occupational health and safety

Risk management and insurance

Co-operatives DevelopmentFund

Grants

Community Grants

Industry Grants

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Support for externalorganisations




DEPARTMENT OF FAIR TRADING

STATEMENT BY DEPARTMENT HEAD

Pursuant to Section 45F (1) of the Public Finance and Audit Act 1983,

I state that:

(a) the accompanying financial statements have been prepared in accordance with the provisions of the PublicFinance and Audit Act 1983, the Financial Reporting Code for Budget Dependent General GovernmentSector Agencies, the applicable Clauses of the Public Finance and Audit (General) Regulation 1995 and theTreasurer's Directions;

(b) the statements exhibit a true and fair view of the financial position and transactions of the Department; and

(c) there are no circumstances, which would render any particulars included in the financial statements to bemisleading or inaccurate.

Director-GeneralDepartment of Fair Trading

27 September 2000

D B O'Connor



OPERATING STATEMENT FOR THE YEAR ENDED 30 JUNE 2000

Operating expensesEmployee related 2(a) 73,812 75,124 73,868Other operating expenses 2(b) 32,485 33,153 33,332

Depreciation and amortisation 2(c) 5,567 3,500 3,998Grants and subsidies 2(d) 3,543 4,610 4,313Other expenses 2(e) 2,825 1,716 2,350

Less:

Sale of goods and services 3(a) 12,125 11,729 11,397Investment income 3(b) 2,165 3,216 1,802Retained fees and fines 3(c) 22,571 18,940 18,767Grants and contributions 3(d) 6,439 19,110 19,962Other revenue 3(e) 24,783 13,944 17,987

4 (19) - 13

24(a)

Recurrent appropriation (Net of transfer payments) 5 46,978 46,353 44,702Capital appropriation 5 2,603 2,689 660Acceptance by the Crown Entity of employee entitlementsand other liabilities 6 3,920 5,015 3,915

NOTES ACTUAL BUDGET ACTUAL2000 2000 1999$'000 $'000 $'000

EXPENSES

Total Expenses 118,232 118,103 117,861

Retained Revenues

Total retained revenues 68,083 66,939 69,915

Gain/(loss) on sale of non-current assets

NET COST OF SERVICES 50,168 51,164 47,933

Government Contributions

Total Government Contributions 53,501 54,057 49,277

SURPLUS FOR THEYEAR 3,333 2,893 1,344

The accompanying notes form part of these statements.


NOTES ACTUAL BUDGET ACTUAL

ASSETS $'000 $'000 $'000

TOTAL ASSETS 72,256 76,160 68,179

Total Current Liabilities 13,510 8,025 13,369

Non Current Liabilities

EQUITY

2000 2000 1999

Current Assets

Total Current Assets 39,312 35,905 38,223

Non Current Assets

Total Non Current Assets 32,944 40,255 29,956

LIABILITIESCurrent Liabilities

Total Non Current Liabilities 868 5,200 811

TOTAL LIABILITIES 14,378 13,225 14,180

NET ASSETS 57,878 62,935 53,999

TOTAL EQUITY 57,878 62,935 53,999

The accompanying notes form part of these statements

Cash 8 12,302 14,184 14,238Investments 9 20,486 19,681 19,326Receivables 10 6,524 2,040 4,659

Plant and equipment 11 27,911 35,253 24,892Investments 12 5,033 5,002 5,050Receivables 13 - - 14

Accounts payable 14 2,190 4,025 1,484Employee entitlements 15 6,881 4,000 6,772Other 16 4,439 - 5,113

Employee entitlements 15 868 800 811Other - 4,400 -

Reserves 17 648 102 102Accumulated funds 17 57,230 62,833 53,897


STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2000


NOTES ACTUAL BUDGET ACTUAL2000 2000 1999$'000 $'000 $'000

CASH FLOWS FROM OPERATING ACTIVITIESPayments

Total Payments (108,155) (108,962) (108,364)

Receipts

Total Receipts 64,337 65,972 73,746

Cash Flows from Government

Net Cash Flows from Government 50,648 49,915 46,349

NET CASH FLOWS FROMOPERATING ACTIVITIES 6,830 6,925 11,731

CASH FLOWS FROM INVESTING ACTIVITIES

NET CASH FLOWS FROMINVESTING ACTIVITIES (8,766) (4,913) (10,591)

NET INCREASE/(DECREASE) IN CASH

CLOSING CASH AND CASH EQUIVALENTS 12,302 16,250 14,238

The accompanying notes form part of these statements.

Employee related (70,817) (71,171) (69,977)Grants and subsidies (3,401) (4,610) (4,313)Other (33,937) (33,181) (34,074)

Sale of goods and services 11,268 25,208 11,409Retained fees and fines 21,352 (1,404) 16,892Interest received 982 1,416 1,562Other 30,735 40,752 43,883

Recurrent Appropriation 46,988 46,353 44,702Lapsed appropriation for 1998/99 repaid toConsolidated Fund (10) - -Capital Appropriation 2,603 2,689 660Cash reimbursements from Crown Entity 1,067 873 987

24(a)

Proceeds from sale of plant and equipment 66 - 108Proceeds from sale of investments - 2,500 7,250Advance repayments received 61 12 135Purchases of plant and equipment (8,893) (6,809) (16,516)Purchases of investments - (616) (1,568)

(1,936) 2,012 1,140Opening cash and cash equivalents 14,238 14,238 13,098

23


STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2000


Fair

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2000

1999

2000

1999

2000

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1999

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00

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00

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00

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00

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00

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00

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118,2

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117,8

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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Reporting Entity

(b) Basis of Accounting

(c) Administered Activity

The Department of Fair Trading as a Reporting Entity comprises all the activities under its control, including its self-funding commercial branch, the Register of EncumberedVehicles (REVS). The Department performs administrativefunctions for the Rental Bond Board and the Fair Trading Administration Corporation. Costs associated with thesefunctions are recouped from these entities on an operational basis in relation to activities performed.

The Departmental Reporting Entity also encompasses funds which, while containing assets which are restricted forspecified uses by the Department are nevertheless controlled by the Department (ie the Motor Dealers CompensationFund, Real Estate Services Compensation Fund and Statutory Interest Account). All transactions and balances betweenthe funds and entities comprising the Department have been eliminated in the process of preparing the financialstatements.

The Department of Fair Trading's financial statements are a general purpose financial report which has been prepared onan accrual basis and in accordance with:

applicable Australian Accounting Standards;other authoritative pronouncements of the Australian Accounting Standards Board (AASB);Urgent Issues Group (UIG) ConsensusViews;the requirements of the Public Finance and Audit Act and Regulations; andthe Financial Reporting Directions published in the Financial Reporting Code for Budget Dependent GeneralGovernment Sector Agencies or issued by the Treasurer under section 9(2)(n) of the Act.

Where there are inconsistencies between the above requirements, the legislative provisions have prevailed.

In the absence of a specific Accounting Standard, other authoritative pronouncements of the AASB or UIG ConsensusView, the hierarchy as outlined in AAS6 “Accounting Policies” is considered.

Except for certain investments and plant and equipment, which are recorded at valuation, the financial statements areprepared in accordance with the historical cost convention. All amounts are rounded to the nearest one thousand dollarsand are expressed in Australian currency. The accounting policies adopted are consistently applied except as dealt with inNote 1(d)(i).

The Department of Fair Trading administers, but does not control, certain activities on behalf of the Crown Entity. It isaccountable for transactions relating to those administered activities but does not have discretion, for example, to deploythe resources for the achievement of the Department's own objectives.

Transactions and balances relating to the administered activities are not recognised as the Department's revenues,expenses, assets and liabilities, but are disclosed in the accompanying schedules as “Administered Revenues”,“Administered Expenses”,“Administered Assets” and “Administered Liabilities”.

The accrual basis of accounting and all applicable accounting standards have been adopted for the reporting of theadministered activities.

�

�

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(d) Revenue Recognition

(e) Employee Entitlements

Revenue is recognised when the Department of Fair Trading has control of the good or right to receive consideration, itis probable that the economic benefit will flow to the Department and the amount of revenue can be measured reliably.Additional comments regarding the accounting policies for the recognition of revenue are discussed below.

(i) Parliamentary Appropriations and Contributions from Other Bodies

From this financial year there is a change in accounting policy for the recognition of parliamentary appropriations.Parliamentary appropriations are generally recognised as revenues when the Department obtains control over theassets comprising the appropriations/contributions. Control over appropriations and contributions is normallyobtained upon receipt of cash.

An exception to the above is when appropriations are unspent at year-end. In this case, the authority to spend themoney lapses and generally the unspent amount must be repaid to the Consolidated Fund in the following financialyear. As a result, unspent appropriations are now accounted for as liabilities rather than revenue.

This change has no effect on the statements of the Department of Fair Trading for the year ended 30 June 2000, asthere was no amount owing to the Consolidated Fund.

(ii) Sale of Goods and Services

Revenue from the sale of goods and services comprises revenue from the provision of products or services ie usercharges. User charges are recognised as revenue when the agency obtains control of the assets that result from them.

(iii)Investment Income

Interest revenue is recognised as it accrues.

(i) Wages and Salaries,Annual Leave, Sick Leave and On-Costs

Liabilities for wages and salaries and annual leave are recognised and measured as the amount unpaid at the reportingdate at current pay rates in respect of employees' services up to that date.

Unused non-vesting sick leave does not give rise to a liability as it is not considered probable that sick leave taken inthe future will be greater than the entitlements accrued in the future.

The outstanding amounts of payroll tax, workers' compensation insurance premiums and fringe benefits tax, whichare consequential to employment, are recognised as liabilities and expenses where the employee entitlements towhich they relate have been recognised.

(ii) Long Service Leave and Superannuation

The Department's liabilities for long service leave and superannuation are assumed by the Crown Entity. TheDepartment accounts for the liability as having been extinguished resulting in the amount assumed being shown aspart of the non-monetary revenue item described as “Acceptance by the Crown Entity of Employee Entitlementsand Other Liabilities”.

Long service leave is measured on a nominal basis. The nominal method is based on the remuneration rates at year-end for all employees with five or more years of service. It is considered that this measurement technique producesresults not materially different from the estimate determined by using the present value basis of measurement.

The superannuation expense for the financial year is determined by using the formulae specified in the Treasurer'sDirections. The expense for certain superannuation schemes (ie Basic Benefit and First State Super) is calculated as apercentage of the employees' salary. For other superannuation schemes (ie State Superannuation Scheme and StateAuthorities Superannuation Scheme), the expense is calculated as a multiple of the employees' superannuationcontributions.


(f) Insurance

(g) Acquisition of assets

(h) Plant and Equipment

(i) Revaluation of Physical Non-Current Assets

( j) Depreciation of Non-Current Physical Assets

(k) Leased Assets

(l) Investments

(m) Trust Funds

The insurance activities of the Department of Fair Trading are conducted through the NSW Treasury Managed FundScheme of self insurance for Government agencies. The Fund Manager based on experience determines the expense(premium).

The cost method of accounting is used for the initial recording of all assets controlled by the Department. Cost isdetermined as the fair value of the assets given as consideration plus the costs incidental to the acquisition.Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fair value atthe date of acquisition.

Fair value means the amount for which an asset could be exchanged between a knowledgeable, willing buyer and aknowledgeable, willing seller in an arm's length transaction.

Single items of plant and equipment costing $5,000 and above individually are capitalised. Computer Equipment costingin excess of $4,000 and those items costing in excess of $1,500 attached to one of the Department's Computer Networksare also capitalised.

Each class of physical non-current assets is revalued every 5 years. The last such revaluation was completed on 30 June2000.

Physical non-current assets have been revalued to market value, and not by reference to current prices for assets newerthan those being revalued. As a result, any balance of accumulated depreciation existing at the revaluation date in respectof those assets has been credited to the asset accounts to which they relate. The net asset accounts have been increased ordecreased by the revaluation increments or decrements with a net increase equal to $546,284.

The recoverable amount test has not been applied as the Department is a not-for-profit entity whose service potential isnot related to the ability to generate net cash flows.

Depreciation is provided for on a straight line basis for all depreciable assets so as to write off the depreciable amount ofeach asset as it is consumed over its useful life to the entity. The applicable rates of depreciation are :

MotorVehicles - Trade Measurement 20%MotorVehicles - Other 8%Fitouts, Furniture and Fittings 10%Electronic Equipment 20%Computer Equipment and Development 33%Trade Measurement Equipment 4%

The Department has entered into a number of operating lease agreements for buildings and equipment where the lessorseffectively retain all of the risks and benefits incidental to ownership of the items held under the operating leases. Equalinstalments of the lease payments are charged to the operating statement over the lease term as this lease is representativeof the pattern of benefits to be derived from the leased property.

Marketable securities and deposits are valued at market valuation or cost. Non marketable securities are brought toaccount at cost.

The Department receives monies in a trustee capacity for various trusts as set out in Note 25. As the Departmentperforms only a custodial role in respect of these monies, and because the monies cannot be used for the achievement ofthe Department's own objectives, they are not brought to account in the financial statements.


(a) Employee related expenses comprise the following specific items:Salaries and wages (including Recreation Leave) 61,061 60,704Superannuation 5,171 4,900Long service leave 2,111 2,652Workers' compensation insurance 547 575Payroll Tax and Fringe Benefit Tax 4,398 4,666Redundancies 524 371

(b) Other operating expensesAuditor's remuneration 107 106Bad and Doubtful Debts 1,035 588Rental expense relating to operating leases 10,031 10,219Insurance 234 184Telephones/Postage 5,074 4,993Fees 4,829 6,047Stores 1,721 1,753MotorVehicle Expenses 1,109 939Travel 1,340 1,264Advertising 1,392 2,766Fitout of Premises 360 132Books, periodicals, newspapers and subscriptions 333 410Gas/Electricity 306 266Minor Equipment 3,467 2,304Maintenance contracts 362 700Other Expenses 785 661

(c) DepreciationComputer equipment and development 3,977 2,974Electronic equipment 230 236Fitouts, Furniture and Fittings 1,319 729Trade Measurement equipment 11 11Vehicles 13 20

Amortisation of premium on investment 17 28

(d) Grants and subsidiesCredit Counselling services 958 1,186Co-Operative Development Fund 263 175Tenancy Advice and Advocacy Program 1,398 1,592Building Education Grants 223 335Real Estate Education Grants 412 651Other 289 374

(e) Other ExpensesLegal Assistance 484 330Motor Dealers' Compensation Fund Payments 464 753Compensation Claims 638 416Written DownValue of Assets Written Off 1,148 742Other Expenses 91 109

(a) Sale of goods comprise :Sale of Publications 125 123Other 61 114

2000 1999$'000 $'000

73,812 73,868

32,485 33,332

5,550 3,970

5,567 3,998

3,543 4,313

2,825 2,350

186 237

2. EXPENSES

3. REVENUES


Sale of services comprise :Fees charged by REVS for the provision of servicesand registering of encumbrances over vehicles 8,205 7,817Fees charged for the lodgement of a claim before the:-

Consumer Claims Tribunal - 79Commercial Tribunal - 25Building Disputes Tribunal - 51Fair Trading Tribunal 319 90Residential Tribunal 775 729

Fees charged for search of Business Names database 1,433 1,275Fees charged for establishment and renewal of Associations 241 230Electrical Appliance Testing 753 698Other 213 166

(b) Investment IncomeInterest - Investments 1,765 1,374

- Bank Accounts 400 428

(c) Retained fees and finesMotor Dealers Compensation Fees 916 1,241Real Estate License Fees 814 1,729Real Estate Compensation Fund 1,171 64Statutory Interest 18,870 15,231Owner Builder Permit Fees 636 497Other 164 5

(d) Grants and Contributions

Rental Bond Board Assets - 172Contribution from Rental Bond Board (i) 5,865 7,493Contributions from Fair TradingAdministration Corporation (ii) - 12,102Grants from Department of Industry,Science and Resources (iii) 168 50Employment Grants - NSW Department ofTraining and Education Co-ordination (iv) 43 145Assets transferred from Department of Public Works and Services (v) 363 -

(i) The cost of running the Residential Tribunal is split 50/50 by the Rental Bond Board and the Property ServicesStatutory Interest Fund.This grant reflects the Rental Bond Board's contribution to the cost of administering theResidential Tribunal.

(ii) This income is now accounted for under the category Other Revenue 3(e).

(iii) A Grant of $168,000 (1998/99 $50,000) was received from the Commonwealth Department of Industry, Science andTourism as their contribution towards the Joint Initiative Project “Redevelopment of BLIS Software”.

(iv) A grant of $43,414 was provided by the Department of Training and Education Co-ordination under the Elsa DixonAboriginal Employment Program.

(v) Fitout costs at Governor Macquarie Tower were transferred at no cost from the Department of Public Works andServices.

11,939 11,160

12,125 11,397

2,165 1,802

22,571 18,767

6,439 19,962

2000 1999$'000 $'000


(e) Other Revenue

Administrative Assistance (Refer Note 1(a) ) 24,213 16,672Telstra Rebate 213 340Legal Costs Recovered 299 730Other 58 245

Gain/(loss) on disposal of plantand equipment

Proceeds from sale 66 108Written down value of assets sold 85 95

Net gain/(loss) on disposal of plant and equipment (

Total Recurrent drawdowns from Treasury(per Summary of Compliance) 46,988 44,702

Less transferred to Treasury (10) -Recurrent Appropriation

(per Operating Statement)

Total Capital drawdowns from Treasury(per Summary of Compliance) 2,603 660

Less transferred to Treasury - -Capital Appropriation

(per Operating Statement)

The following liabilities and/or expenses have been assumed by theCrown Entity:

Superannuation 2,661 2,431Long Service Leave 1,089 1,317Payroll Tax on Superannuation 170 167

This program includes the Departmental Division, Policy and the Community Education Branch of the Managementand Marketing Services Division.

To develop and promote value and fairness in the New South Wales marketplace.

24,783 17,987

19) 13

46,978 44,702

2,603 660

3,920 3,915

44.1.1

Objectives:

Fair Trading Strategy

4. GAIN/(LOSS) ON SALE OF NON-CURRENT ASSETS

5. APPROPRIATIONS

6. ACCEPTANCE BY THE CROWN ENTITY OF EMPLOYEEENTITLEMENTS AND OTHER LIABILITIES

7. PROGRAMS/ACTIVITIES OF THE DEPARTMENT

2000 1999$'000 $'000


This program includes the Departmental Division, Compliance, Legal and Safety (excluding Trade Measurement Branch)and the Building Investigation Unit from Home Building and Property Services Division.

To detect, remedy and deter unfair trading practices.

This program includes the Departmental Division, Licensing and Registration Services, the Building Licensing Unitfrom Home Building and Property Services Division and the Registry of Co-operatives.

To maintain confidence in the marketplace through the provisions of registration and licensing services.

This program includes the Departmental Divisions, Home Building and Property Services Division (excluding theBuilding Licensing Unit and the Building Investigation Unit),Trade Measurement Branch from Compliance, Legal andSafety Division, REVS and the Customer Services Division.

To foster fairness and ethical trading in the marketplace.

This program includes the Fair Trading Tribunal , Strata Schemes Office and the Residential Tribunal.

To ensure impartial forums for the resolution of marketplace disputes.

Cash comprises cash on hand, Hourglass Cash and Cash Plus facilities and bank balances within the Treasury BankingSystem. Interest is earned on daily bank balances at the monthly average New South Wales Treasury Corporation(TCorp) 11am unofficial cash rate adjusted for a management fee toTreasury.The applicable rate at 30 June 2000 for theTreasury Banking System was 5% (3.86% 1998/99) and TCorp interest for Hour-Glass Cash and Cash Plus was 5.52%(4.74% 1998/99) and 5.53% (4.32% 1998/99) respectively.

Cash Facility 1,573 3,563Cash Plus Facility 5,635 1,602Cash at Bank 5,048 9,030Cash on Hand 46 43

The Department has investments in TCorp's Hour-Glass facilities. The Department's investment is represented by anumber of units of a managed investment pool, with each particular pool having different investment horizons and beingcomprised of a mix of asset classes appropriate to that investment horizon. TCorp appoints and monitors fund managersand establishes and monitors the application of appropriate investment guidelines.These investments are generally able tobe redeemed with seven days notice (dependent upon the facility). The value of the investments held can decrease aswell as increase depending upon market conditions. The value that best represents the maximum credit risk exposure isthe net fair value. The value of the above investments represents the Department's share of the value of the underlyingassets of the facility and those assets are stated at net fair value as advised by the New South Wales Treasury Corporationas at 30 June 2000, with an effective interest rate of 6.01% (3.69% 1998/99).

The Department's investments are:TCorp Hour-Glass Fixed Interest Facility 20,486 19,326

44.1.2

Objectives:

44.1.3

Objectives:

44.1.4

Objectives:

44.1.5

Objectives:

2000 1999

$'000 $'000

12,302 14,238

20,486 19,326

Marketplace Performance

Fair Trading Standards and Registers

Consumer and Trader Services

Tribunals

8. CURRENT ASSETS - CASH

9. CURRENT ASSETS - INVESTMENTS


10. CURRENT ASSETS - RECEIVABLES

11. NON CURRENT ASSETS - PLANT AND EQUIPMENT

All trade debtors are recognised as amounts receivable at balance date. Collectability of trade debtors is reviewed on anongoing basis. Debts, which are known to be uncollectable, are written off. A provision for doubtful debts is raisedwhen some doubt as to collection exists. The credit risk is the carrying amount (net of any provision for doubtful debts).No interest is earned on trade debtors. The carrying amount approximates net fair value. Sales are made on 30 dayterms.

Receivables currently comprise:Motor Dealers Compensation Fund fees 1,799 1,496Real Estate Services Compensation Fund 4,742 3,551 *Trade Measurement Fees 16 14Unallocated Income - Remitting Account 36 14Interest for Operating Accounts 211 190REVS fees 872 743Administrative Assistance due 729 664Inter-agency Transfers - Fair Trading Admin Corp 6 5Monies owing from Ministry of Energy and Utilities - 11Amounts owed due to Prosecutions 541 437GST Input Taxes 54 -Other 893 269

Provision for doubtful debts- Motor Dealers' Compensation Fund 1,335 930- Real Estate Services Compensation Fund 3,425 2,840 *

Prepayments 1,375 980

Loans - Abrasiflex Workers' Co-operative - 13Port Hacking and Sutherland Co-operative Housing Society 10 42

* Comparison year amounts have been adjusted to reflect the Real Estate CompensationFund debtors and associated doubtful debts not previously recorded.

Motor Dealers' Compensation Fund 30 340Other 15 -

At Cost - 23,871AtValuation 13,155 -

Accumulated Depreciation at Cost - 13,132

At Cost - 1,600AtValuation 666 -

Accumulated Depreciation at Cost - 887

2000 1999

$'000 $'000

9,899 7,394

4,760 3,770

6,524 4,659

45 340

Computer Equipment and Development

13,155 23,871

- 13,132

13,155 10,739Electronic Equipment

666 1,600

- 887

666 713

Less:

Receivables amount due written off during the year were:


At Cost - 15,343AtValuation 12,993 -


At Cost - 2,199AtValuation 866 102


At Cost - 375AtValuation 231 -

Accumulated Depreciation at Cost - 348

Plant and Equipment

Mortgaged Backed Investment 5,033 5,050

Abrasiflex Workers' Co-operative - Loan - 14

The liabilities are recognised for amounts due to be paid in the future for goods and services received, whether or notinvoiced. Amounts owing to suppliers (which are unsecured) are settled in accordance with the policy set out inTreasurer's Direction 219.01. If trade terms are not specified, payment is made no later than the end of the monthfollowing the month in which an invoice or a statement is received. Treasurer's Direction 219.01 allows the Minister toaward interest for late payment. There were no claims for late payment interest during the reporting periods.

Trade Creditors 1,958 1,162Other Creditors 232 322

Fitouts, Furniture and Fittings

12,993 15,343

- 2,230

12,993 13,113Trade Measurement Equipment

866 2,301

- 2,001

866 300MotorVehicles

231 375

- 348

231 27

27,911 24,892

5,033 5,050

- 14

2,190 1,484

It is estimated that the majority of assets contained in the Asset Register continue to give economic benefit to the Department.Thevalues stated are considered to be an accurate reflection of the assets' true value. A revaluation of all physical non-current assets tomarket value was completed on 30 June 2000, in accordance with the policy of revaluing each class of physical non-current assetsevery 5 years. An independent valuation of the market value was carried out by Paul Stokes, Licensed Auctioneer andValuer, of JamesR Lawson Pty. Ltd.

Approximately $1.233 million was disposed of during 1999/2000 as a result of theY2K upgrade and continuation of officeaccommodation upgrade.

12. NON-CURRENT ASSETS - INVESTMENTS

13. NON-CURRENT ASSETS - RECEIVABLES

14. CURRENT LIABILITIES - ACCOUNTS PAYABLE

2000 1999$'000 $'000


15. CURRENT/NON CURRENT LIABILITIES- EMPLOYEE ENTITLEMENTS

17. CHANGES IN EQUITY

Current :Recreation leave 4,701 5,159Accrued salaries and wages 2,168 1,597

SES Liabilities 12 16

Non Current :Payroll Tax on Long Services Leave 868 811

Aggregate employee entitlements

Prepaid REVS income from other States - 21Real Estate Licenses - prepaid 644 583Provision for outstanding claims 3,795 4,509

Trowbridge Consulting carried out an Actuarial Review of the Real Estate Compensation Fund as at 30 June 2000. Thepurpose of this review was to ascertain the possible liability of the Compensation Fund.

The outstanding claim provisions recommended by the Actuary in the advice dated 18 July 2000 total $3.5 million (1999- $4.0 million). This figure includes a prudential margin of $0.3 million (1999 - $0.7 million). This margin represents25% of the Actuary's net central estimates for outstanding claims and has been recommended by the Actuary to allow forthe uncertainty in the claims and estimation processes and possible changes in future to the risk profile. A provision of$2.0 million (1999 - $2.2 million) has been made to cover the possibility of one large event occurring during2000/2001.

Accumulated Asset Total Equity

Balance at thebeginning ofthe financial year 53,897 51,583 102 102 53,999 51,685

Purchases from previousfinancial year recognisedas assets after stocktake - 259 - - - 259

Surplus for the year 3,333 1,344 - - 3,333 1,344

Increment on revaluationof plant and equipment - - 546 - 546 -

Adjustment to openingbalances on recognition ofcertain net assets relating tothe Real EstateCompensation Fund - 711 - - - 711

Balance at the end ofthe FinancialYear

6,869 6,756

6,881 6,772

868 811

7,749 7,583

16. CURRENT LIABILITIES - OTHER

4,439 5,113

2000 1999 2000 1999$,000 $,000 $,000 $,000 $,000 $,000

57,230 53,897 648 102 57,878 53,999

The Actuary recommended that the outstanding claims provision for this fund is reviewed every two to three years. Thenext actuarial assessment will be obtained as at 30 June 2002.

Funds Revaluation2000 1999

2000 1999$'000 $'000


18. SPECIAL PURPOSE FUNDS ADMINISTERED BY THE DEPARTMENT

19. COMMITMENTS FOR EXPENDITURE

Balance as at 1/7/1999 1,603 24,761 5,744Adjustment from 1998/99 - 50 -Receipts 503 2,313 19,229Expenditure - Administrative (433) (1,718) (15,875)Expenditure - Capital - (46) (629)

The Motor Dealers Act established the to provide protection to persons whohave suffered a loss in connection with a motor vehicle through their dealings with a motor dealer or a car-marketoperator. Licensing fees paid by full dealers and car-market operators finance the fund. Claims are usually made on thefund when a motor dealer ceases to trade either on a voluntary basis or a forced closure.

The is supported by:(i) investment income earned on the investments of the fund;(ii) contributions or levies paid by licensees; and(iii)other lawful receipts.

Moneys in the Compensation Fund are applied to:-(i) payment of claims, as provided by the Act;(ii) legal expenses in relation to claims, licensing objections and complaints for cancellation, incurred in relation to the

Fund;(iii)the expense involved in the administration of the Fund; and(iv)other lawful expenses.

The is supported, under Sections 36AC and 63D of the Property, Stock and BusinessAgents Act 1941, by interest earned on trust monies held by agents and investments made by the Department.

The Statutory Interest moneys are applied to:(i) Schemes for establishing and conducting courses leading to license qualifications prescribed by the Act and

educational meetings organised by or for the Department for licensees;(ii) trustee status housing programs;(iii)the payment to the Department for expenses of the collection of interest and investment administered under Sections

36D and 36AC of the Act; and(iv)meeting half the costs, charges and expenses of the Tenancy Advice and Advocacy Program and the Residential

Tribunal and the full costs, charges and expenses of the Strata Schemes Office.

Aggregate capital expenditure contracted for at balance date but not provided for:Not later than one year 615 1,219Later than 1 year and not later than 5 years - -Later than 5 years - -

Aggregate other expenditure contracted for at balance date but not provided for:Not later than one year 884 547Later than 1 year and not later than 5 years - -Later than 5 years - -

Commitments in relation to non-cancellable operating leases payable as follows:Not later than 1 year 9,031 8,524Later than 1 year and not later than 5 years 15,198 20,205Later than 5 years - 413

These capital, other expenditure and operating lease commitments are not recognised in the financial statements as liabilities.

Motor Dealers Real Estate Statutory

$,000 $,000 $,000

Balance as at 30/6/2000 1,673 25,360 8,469

Motor Dealers Compensation Fund

Real Estate Services Compensation Fund

Statutory Interest Account

2000 1999$'000 $'000

(a) Capital Commitments

615 1,219

(b) Other Expenditure Commitments

884 547

(c) Operating Lease Commitments

24,229 29,142

Compensation Fund Services InterestCompensation Fund Account


20. CONTINGENT ASSET

21. CONTINGENT LIABILITY

22. BUDGET REVIEW

%

The commitments for expenditure include an amount of $2.339 million for GST input credits that are expected to berecoverable from the Australian Tax Office.

The Department is currently involved in five legal cases where, if lost, costs may be awarded against the Department. It isestimated that these costs may total $3.0 million.

Net Cost of Services 50,168 51,164 (996) (1.95%)

Total Current Assets 39,312 35,905 3,407 9.5%Total Non-Current Assets 32,944 40,255 (7,311) (18.2%)

Total Current Liabilities 13,510 8,025 5,485 68.35%Total Non-Current Liabilities 868 5,200 (4,332) (83.3%)

Cash Inflow/(Outflow) fromOperating Activities 6,119 6,925 (806)Cash Inflow/(Outflow) fromInvesting Activities (8,766) (4,913) (3,853)

The minor reduction in the net cost of services can be primarily attributed to the increase in retained revenue for theStatutory Interest Account.This was due to the continued high number of transactions in real estate agents' trustaccounts and the increase in interest rates by the Reserve Bank.

The level of net assets was less than forecast due to delays in theYear 2000 rectification program that saw significantnumbers of assets written off after being replaced in the beginning of the financial year.This activity was, at the time ofthe budget forecast, anticipated to be completed in the 1998/1999 financial year.

The reduction in Operating Activity cash was negligible.

The reduction in Investing Activities cash relates to the delays in theYear 2000 rectification program that caused plantand equipment purchases to be undertaken in 1999/2000 rather than 1998/1999 as was forecast. It is also due to asignificant reduction in the proceeds of the sale of investments as there were limited sales.

Actual Budget Variance Comment2000 2000 Budget to Actual

$'000 $'000 $'000Operating Statement

(a)

Financial Position

Total Assets 72,256 76,160 (3,904) (5.1%) (b)

Total Liabilities 14,378 13,225 1,153 8.7% (b)

57,878 62,935 (5,057) (8.0%)

Cashflows (c)

(2,647) 2,012 (4,659)

(a) Net Cost of Services

(b) Assets and Liabilities

(c) Cashflows

Net Assets

Net Increase/(Decrease) in Cash


23. CASH AND CASH EQUIVALENTS

24(a). RECONCILIATION OF NET COST OF SERVICES TONET CASH FLOWS FROM OPERATING ACTIVITIES

24(b). NON CASH FINANCING ANDINVESTING ACIVITIES

25. TRUST FUNDS

For the purposes of the Cash Flow Statement, cash includes cash on hand, Hour-Glass Cash and Cash Plus and cash inbank. Cash at the end of the financial year as shown in the Cash Flow Statement is reconciled to the related items in theStatement of Financial Position as follows:

Cash 12,302 14,238Closing Cash and Cash Equivalents

Net cash used on/(provided by) operating activities (6,830) (11,731)Cash Flows from Government 50,648 46,349Valuation gains on TCorp investments (1,160) (825)Department of Public Works and Services transfer of fitout (363) -Rental Bond Board Plant and Equipment - (172)Interest Capitalised on Loans (1) (6)Written DownValue of assets written off 1,148 742Net loss/(gain) on sale of plant and equipment 19 (13)Acceptance by the State of Departmental liabilities 2,853 2,928Depreciation and amortisation 5,567 3,998Increase in Provision for doubtful debts 990 226(Increase)/decrease in prepayments and other assets (2,901) 6,318Increase/(decrease) in Accounts Payable 706 49Increase/(decrease) in Employee Entitlements and Other (508) 70Net cost of services

Office fitout transferred from Department of Public Works and Services 363 -Plant and equipment transferred from Rental Bond Board - 172

The Department holds moneys in a Miscellaneous Trust Fund held at New South Wales Treasury that is used forpayments to Funeral Fund claimants and McFadden Compensation.These monies are excluded from the financialstatements as the Department cannot use them for the achievement of its objectives.The following is a summary of thetransactions in the trust accounts:

Cash balance at the beginning of the financial year 114 115Add : Receipts - -Less : Expenditure 1 1Cash balance at the end of the reporting period

Cash balance at the beginning of the financial year 80 76Add : Receipts 3 4Less : Expenditure - -Cash balance at the end of the reporting period

2000 1999$'000 $'000

12,302 14,238

50,168 47,933

363 172

Funeral Fund

113 114

McFadden Compensation

83 80


Cash balance at the beginning of the financial year 0 13Add : Receipts - -Less : Expenditure 0 13Cash balance at the end of the reporting period

Receivables Note 28 747 411Other 53 65

Other 53 65

Treasury letter dated 29 April 1997, advised of their decision to provide an interest-free advance to the Administrator ofthe AWU and Guardian Co-operative Housing Societies.The payment of $102,000 was to be made by the Departmentof Fair Trading and the repayments made to the Department of Fair Trading and then onforwarded to Treasury.Repayments of $12,007 were received by the Department of Fair Trading during the period 1 July 1999 to 30 June 2000and onforwarded to Treasury. Balance of loan of $53,172 is shown as Other Administered Assets.

Business Name Registration 25 24Trade Measurement 12 1Other - -

License Fees 138 294Business Registrations 534 27Trade Measurement 33 42Miscellaneous 42 48

Current 646 320Between 30 days and 59 days old 8 4Between 60 days and 89 days old 3 6Over 90 days old 90 81

Phone Australia Ltd

0 0

Administered Assets

Total Administered Assets 800 476

Administered Liabilities

Total Administered Liabilities 53 65

37 25

747 411

Aged Analysis of Administered Revenue

747 411

26. ADMINISTERED ASSETS AND LIABILITIES

27. ADMINISTERED REVENUE - DEBTS WRITTEN OFF

28. ADMINISTERED REVENUE- SCHEDULE OF UNCOLLECTED AMOUNTS

END OF AUDITED FINANCIAL STATEMENTS

2000 1999$'000 $'000


1 Prosecutions

2 Penalty notices

Business Names 5 7 8,100.00

Fair Trading 12 12 71,568.00

Home Building 33 126 119,228.00

Motor Dealers 29 222 191,415.00

Pawnbrokers & Second-hand Dealers 5 6 2,870.00

Property, Stock & Business Agents 45 95 26,848.00

Residential Tenancies 3 6 2,560.00

Trade Measurement 19 89 56,397.00

The use of penalty notices is a flexible and cost effective method of dealing with regulatory breaches. Penalty notices do nottake away the person's right to have the matter determined by a court and payment of the penalty does not constitute anadmission of liability or prejudice any civil claim relating to the matter.

Business Names Act 19 22 4,400.00

Fair Trading Act 3 3 950.00

Motor Dealers Act 173 726 37,500.00

Pawnbrokers & Second-hand Dealers Act 32 65 28,500.00

Property, Stock & Business Agents Act 13 13 7,150.00

Trade Measurement Act 46 72 27,200.00

TOTAL 151 563 478,986.00

TOTAL: 286 901 105,700.00

Prosecutions and fine totals from 1 July 1999 to 30 June 2000

Act Defendants Offences Penalties

Penalty notices and fine totals from 1 July 1999 to 30 June 2000

Acts Defendants Offence Total Penalty $

$

Appendices


3 Civil litigationCivil Litigation includes:

injunctive and ancillary relief in the Supreme Courtcomplaints and objections in licensing matters in the Local Court under the Property, Stock & Business Agents Act and appealsto the District Courtproceedings in the Administrative Decisions Tribunal regarding review of decisions under Home Building Act, Motor DealersAct and Pawnbrokers & Second-hand Dealers Actproceedings in the Fair Trading Tribunal under the Credit legislationproceedings in the Fair Trading Tribunal under the Home Building Act relating to building insurance and licence disciplinarymatters.

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The Department's Legal Services Division also acts or instructs in various courts and Tribunals where the Minister or Director-General intervenes in proceedings or action has been taken against the Department, the Director-General or Minister.

Civil litigation from 1 July 1999 to 30 June 2000

Court/Tribunal Act * No. of mattersunder Act

Supreme Court

District Court

Local Court

Administrative Decisions Tribunal

Fair Trading Tribunal

Commercial Tribunal

Residential Tribunal

Strata Schemes Board

Totals

TOTAL 193

CCT C FT HB LPMD PB&SD PS&BA

Legal Assistance (s.12) CCT/BDT Appeals FT Act 4Injunction FT Act 7Ministerial Intervention CCT Act 2Other Credit Act 1

FT Act 3MD Act 2

PS&BA Act 4Insurance HB Act 1Costs LP Act 1

Licence Complaints PS&BA Act 2Objections PS&BA Act 4

Licence Complaints PS&BA Act 22Objections PS&BA Act 15

Licence Appeals HB Act 4PB&SD Act 4

MD Act 3

Insurance Appeals HB Act 96Show Cause HB Act 1

C Act 1MD Act 1

Credit C Act 1Insurance Appeals HB Act 11

Legal Assistance/Intervention 2

Orders Strata Schemes Mgt Act 1

High Court 0Supreme Court 25District Court 6Local Court 37Administrative Decisions Tribunal 11Fair Trading Tribunal 99Commercial Tribunal 12Residential Tribunal 2Strata Schemes Board 1

* - Consumer ClaimsTribunal Act, - Credit Act, - FairTrading Act, - Home Building Act, - Legal Profession Act,- Motor Dealers Act, - Pawnbrokers & Second-hand Dealers Act, - Property, Stock & Business Agents Act


4 LegislationThe following Acts and Regulations areadministered by the Department of FairTrading:

Associations Incorporation Act 1984No. 143.Associations Incorporation Regulation1999Business Licences Act 1990 No. 72.Business Names Act 1962 No. 11.Business Names Regulation 2000Community Land Management Act1989 No. 202.Community Land ManagementRegulation 2000Consumer Claims Act 1998 No. 162.Consumer Claims Regulation 1999Consumer Credit Administration Act1995 No. 69.Consumer Credit AdministrationRegulation 1996Consumer Credit (New South Wales)Act 1995 No. 7.Consumer Credit (NSW) RegulationsConsumer Credit (NSW) SpecialProvisions Regulation 1996Contracts Review Act 1980 No. 16.Conveyancers Licensing Act 1995No. 57.Conveyancers Licensing Regulation1993Co-operatives Act 1992 No. 18.Co-operatives Regulation 1997Co-operative Housing and Starr-Bowkett Societies Act 1998 No.11Co-operative Housing and Starr-Bowkett Societies Regulation 2000Credit Act 1984 No. 94.Credit (Savings and Transitional)Regulation 1984Credit (Finance Brokers) Act 1984No. 96.Credit (Home Finance Contracts) Act1984 No. 97.Credit (Home Finance Contracts)(Savings and Transitional) Reg 1984Door-to-Door Sales Act 1967 No. 36.Electricity Safety Act 1945 No 13. Part4C (remainder, Minister for Energy)Electricity Safety (ElectricalInstallations) Regulation 1998

Electricity Safety (Equipment Safety)Regulation 1999Employment Agents Act 1996 No. 18.Employment Agents Regulation 1996Fair Trading Act 1987 No. 68.Fair Trading (Penalty Notices)Regulation 1998Fair Trading (Product InformationStandards) Regulation 1997Fair Trading (Product Safety Standards)Regulation 2000Fair Trading (Savings and Transitional)Regulation 1997Fair Trading Tribunal Act 1998No. 161.Fair Trading Tribunal Regulation 1999Funeral Funds Act 1979 No. 106.Funeral Funds Regulation 1994Hire-Purchase (Repeal) Act 1981No. 127.Home Building Act 1989 No. 147.Home Building Regulation 1997HomeFund Commissioner Act 1993No. 9.HomeFund Restructuring Act 1993No. 112, ss 14, 15, 16 and Schedule 2(remainder Minister for Housing).Landlord and Tenant Act 1899 No. 18.Landlord and Tenant (Amendment)Act 1948 No. 25.Landlord and Tenant Regulation 1994Landlord & Tenant Amendment(Distress Abolition) Act 1930 No. 49Landlord and Tenant (Rental Bonds)Act 1977 No. 44.Landlord and Tenant (Rental Bonds)Regulation 1993Letona Co-operative (FinancialAssistance) Act 1993 No. 85.Mock Auctions Act 1973 No. 17.Motor Dealers Act 1974 No. 52.Motor Dealers Regulation 1999MotorVehicle Repairs Act 1980No. 71.MotorVehicle Repairs Regulation1999Pawnbrokers & Secondhand Dealers'Act 1996 No. 13.Pawnbrokers & Secondhand DealersRegulation 1997

Prices Regulation Act 1948 No. 26.Property, Stock and Business AgentsAct 1941 No. 28.Property, Stock and Business Agents(General) Regulation 1993Registration of Interests in Goods Act1986 No. 37.Registration of Interests in GoodsRegulation 1999Residential Parks Act 1998 No. 142.Residential Parks Regulation 1999Residential Tenancies Act 1987No. 26.Residential Tenancies (ResidentialPremises) Regulation 1995Residential Tenancies (Savings andTransitional) Regulation 1989Residential Tribunal Act 1998No. 168.Residential Tribunal Regulation 1999RetirementVillages Act 1999 No. 81.RetirementVillages Regulation 2000RetirementVillages TransitionalRegulation 2000Strata Schemes Management Act 1996No. 138.Strata Schemes ManagementRegulation 1997Trade Measurement Act 1989 No. 233.Trade Measurement (MeasuringInstruments) Regulations 1997Trade Measurement (Miscellaneous)Regulations 1997Trade Measurement (Pre-packedArticles) Regulations 1997Trade Measurement (Weighbridges)Regulations 1997Trade Measurement AdministrationAct 1989 No. 234.Trade Measurement AdministrationRegulation 1997Travel Agents Act 1986 No. 5.Travel Agents Regulation 1995Valuers Registration Act 1975 No. 92.Valuers Registration Regulation 1993Warehousemen's Liens Act 1935No. 19.Warehousemen's Liens Regulation1997

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6 DFT Insurance activities

Item Comprehensive &House PurchasersAgreement

Special Insurance TotalSchemes

Claims received 298 39 337

Claims reopened 87 4 91

Claims approved 572 53 625

Value of claims approved $13,047,038.30 $275,095 $13,322,133.30

Value of claims paid $18,197,835 $347,385 $18,545,200

Claims declined 186 43 229

Claims settled 632 78 710

7 Portfolio authoritiesFair Trading TribunalLevel 7, 175 Castlereagh StreetSydney New South Wales 2000Ph 02 9895 2070

Residential TribunalLevel 12, 175 Castlereagh StreetSydney New South Wales 2000Ph 02 9641 6400

Co-operatives Council154 Russell StreetBathurst New South Wales 2795Ph 02 6333 1400

Registry of Co-operatives154 Russell StreetBathurst New South Wales 2795Ph 02 6333 1400

Rental Bond BoardLevel 20, 227 Elizabeth StreetSydney New South Wales 2000Ph 02 9338 8992

Level 20, 227 Elizabeth StreetSydney New South Wales 2000

Fair Trading Advisory CouncilHome Building Advisory Council

Motor Trade Advisory CouncilProperty Services Advisory CouncilRetirementVillages Advisory Council

Level 22, 227 Elizabeth StreetSydney New South Wales 2000

Registrar of Funeral Funds

Level 4 Enterprise House1 Fitzwilliam StreetParramatta New South Wales 2150

New South Wales Products SafetyCommittee

Statutory Bodies at:

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8 Consultants over $30,000:

9 Overseas travel 1 July 1999 to 30 June 2000

Com Tech Technical and project planning

Nexus Management Review of the TAAP

The Department also engaged 3 consultants for values under $30,000 at a total cost of $35,580.00.

Nil return

Communications P/L for the Department's DMZ extension

Consulting triennial funding process

$34,000.00

$32,000.00

TOTAL: $66,000.00

Officer Dates of travel Destination Purpose of trip Total cost to the Department($)

The Motor Dealers Act establishes aMotor Dealers Compensation Fundproviding protection to consumers whosuffer financial loss in connection with amotor vehicle through their dealingswith a motor dealer or a car-marketoperator. Licensing fees paid by fulldealers and car-market operators'finance the Fund. Claims are usually

made on the Fund when a motor dealerceases to trade either on a voluntarybasis or a forced closure.

During the year the Motor DealersCompensation Fund paid out a total of$433,231.94, made up of 65 claimsagainst 22 dealers. These claims werefor consumer losses due to dealers

failing to meet warranty obligations;failing to pass an unencumbered title;failing to account and illegal odometerinterference.

Balance as at 1 July 1999 1,603Receipts 503Expenditure (433)

$'000

5 Motor Dealers Compensation Fund

Balance as at30 June 2000-09-20 1,673


10 Freedom of Information

These statistics are set out in accordance with the format prescribed in the NSW Premier's Department FOI Procedures Manual.

New 56 22 54 117 110 139

Brought forward 2 5 8 7 10 12

Completed 50 22 46 86 96 108

Transferred 0 1 5 2 5 3

Withdrawn 3 2 4 17 7 19

Granted in full 21 9 11 32

Granted in part 21 11 24 45

Refused 8 2 11 9

Deferred 0 0 0 0

Ministerial Certificates issued 0 0Formal consultation Issued: 18 27Formal consultation completed: 15 27Amendment of personal records:Amendment agreed 0 1Amendment - refused 0 0Number of requests for notations 0 0

19 application incomplete, wrongly directed 0 0 0 1

22 deposit not paid 6 1 6 4

25(1) (a1) diversion of resources 0 0 0 1

25(1) (a) exempt 21 10 26 47

25 (1)(b), (c), (d) otherwise available 2 0 1 0

28(1) (b) documents not held 0 2 2 1

24(2) deemed refused 0 0 0 0

31(4) released to Medical Practitioner 0 0 0 0

Assessed cost 24,870 23,946.25

Fees received 7,386.85 7,116.00

Personal Other Total

FOI requests 98-99 99-00 98-99 99-00 98-99 99-00

TOTAL 58 27 62 124 120 151

TOTAL 53 25 55 105 108 130

Unfinished 5 2 7 19 12 21

Results of FOI applications:Personal Other

FOI results 98-99 99-00 98-99 99-00

Completed 50 22 46 86

98-99 99-00

Basis of disallowing access:Personal Other

Section 98-99 99-00 98-99 99-00

TOTAL 29 13 35 54

Costs and Fees:98-99 99-00

Costs/Fees $ $


Discounts allowed:Personal Other

Type of discount 98-99 99-00 98-99 99-00

TOTAL 7 2 0 5

Days to process:Personal Other

Elapsed time 98-99 99-00 98-99 99-00

TOTAL 53 25 55 105

Processing time:Personal Other

Hours 98-99 99-00 98-99 99-00

TOTAL 53 25 55 105

98-99 99-00

Basis of Internal Review:Personal Other

98-99 99-00 98-99 99-00

Public interest 0 0 0 0

Financial hardship pensioner /child 7 2 0 5

Financial hardship non profit group 0 0 0 0

Significant correction of personal records 0 0 0 0

0-21 days 19 14 23 38

22-35 days 14 7 11 19

Over 35 days 20 4 21 48

0-10 50 19 46 85

11-20 3 4 9 19

21-40 0 2 0 1

Over 40 0 0 0 0

Number of internal reviews finalised: 3 3Number of Ombudsman reviews finalised: 0 0Number of Administrative DecisionsTribunal reviews finalised: 0 0

Access refused 0 0 3 upheld 0

Deferred 0 0 0 0

Exempt matter 0 0 0 1 upheld,1 varied

Unreasonable charges 0 0 0 1 upheld

Charge unreasonably incurred 0 0 0

Amendment refused 0 0 0

In comparison to the previous year, there was an increase in the number of applications received and a large number carriedforward for completion. There were, however, no complaints to the Ombudsman nor any review applications to theAdministrative Decisions Tribunal for the 1999-2000 period.

There was also an increase in the number of applications withdrawn. This has been attributed to the pro-active disclosure ofdocuments outside the provisions of the FOI Act in the Home Building and Property Services Division. This Division continuesto receive approximately 50% of all applications.

Although the Freedom of Information procedures had no significant impact on the Department's administration during 1999-2000, there will be continued efforts to improve the level of applications finalised within the statutory period.


11 Customer feedbackThe Department operates a customer feedback system known as “Your Opinion Counts”. This system allows customers tocomment on aspects of service offered by the Department. “Your Opinion Counts” forms are lodged by mail or throughcompletion on the Department's web site.

32 complaints were received through customer feedback during 1999-2000. All were resolved either through ministerialcorrespondence or by conciliation with program managers where possible. No allegations of suspected corrupt conduct orillegal behaviour were received through the customer feedback system.

Total 442 358 250 215 223Compliment 92% 92% 93% 90% 86%Complaint 8% 8% 7% 10% 14%

95-96 96-97 97-98 98-99 99-00

12 Grants

Tenants Advice and Advocacy Program (TAAP) 1999-2000

Funded Organisations Funding $

TOTAL 3,882,435

Other Funded Tenancy Projects


Canterbury-Bankstown Migrants Resource Centre Inc 224,393Central West Community College 203,483Combined Pensioners and Superannuants Association of NSW 119,336Durahrwa Training and Development Aboriginal Corporation 175,435Eastern Area Tenants Service Incorporated 168,294Hunter Community Legal Centre Inc 240,967Illawarra Legal Centre Inc 170,845Northern Rivers Community Legal Centre 147,383Management & Advisory Services Aboriginal Corporation 175,435Marrickville Legal Centre Ltd 196,344Northern Area Tenancy Service Inc 168,294Orange Community Resource Organisation 203,892Port Macquarie Neighbourhood Centre 142,797Redfern Legal Centre Ltd 168,294South Sydney Aboriginal Corporation Resource Centre 113,726South West Sydney Legal Centre Inc 168,294Tenants Union of New South Wales Co-op Ltd 355,903The Uniting Church in Australia Property Trust (NSW) 254,992Thubbo Aboriginal Medical Co-op 175,435Wyong/Gosford Community Legal Centre 142,795Program administration 56,098Special Purpose Fund 110,000

The Aged Care Rights Service Inc 232,564Combined Pensioners and Superannuants Association of NSW 122,700


Credit Counselling Program 1999-2000


TOTAL 840,000

Department of Fair Trading supplementary funding 1999-2000


TOTAL 117,723

Financial Counselling Trust Fund 1999-2000


TOTAL 494,480

Campbelltown Community Legal Centre 22,000Coffs Harbour Neighbourhood Centre 8,000Coffs Harbour Neighbourhood Centre - Grafton & Woolgoolga 13,000Consumer Credit Legal Centre 116,000CreditLine, Newcastle 22,000CreditLine Fairfield 51,500CreditLine Macarthur 15,500CreditLine Sydney 92,500CreditLine Sydney (Credit Helpline) 200,000Eastlakes Family Support Service Inc 16,000Forster Neighbourhood Centre 25,500Illawarra Community Legal Centre 50,000Kempsey Neighbourhood Centre 30,500Lismore & District Financial Counselling Service 35,500Lismore & District F C Service -Mullumbimby & Byron Bay 22,000Murwillumbah Community Support Centre 23,500Pt Macquarie Neighbourhood Centre 31,500Redfern Community Legal Centre 16,000Sydney City Mission GreenValley 24,000Wollongong City Mission - Creditworthy 25,000

Creditline Nowra 3,673Central Coast Financial Counselling Service 63,050Wagga Wagga Financial Counselling Service 35,500Credit Line Westlake Macquarie 15,500

Anglicare Financial Counselling Service 8,000Bankstown Family Support Service 17,160Queanbeyan Financial Counselling Service 30,900Ryde/Eastwood Financial Counselling Service-West Ryde 35,150Ryde/Eastwood Financial Counselling Service-Auburn/Lidcombe 20,500Ryde/Eastwood Financial Counselling Service-Granville 13,600Eurobodalla Financial Counselling Service 30,500Gosford Community Centre Ltd 16,000HunterValley Financial Counselling Project 33,000Credit Line Central West Financial Counselling Service 39,000Creditline Nowra 27,412Sydney City Mission Community Centre 24,000San Remo Neighbourhood Centre Incorporated 16,000Moneycare - Lethbridge Park 24,960Moneycare - Parramatta 24,000Moneycare - Campsie 16,000Moneycare - Training 12,548StVincent De Paul Society Broken Bay Financial Counselling Service 8,000Credit Line Financial Counselling Service - Penrith 41,750Credit Line Penrith - Outreach Quakers Hills/Blacktown 16,000Credit Line Penrith - Outreach Hawkesbury 16,000St David's Care Credit Line Albury 24,000


Home Building Grants Program 1999-2000

Funded Project Applicants Funding $

TOTAL 513,901

Property Service Grants Program 1999-2000

unded Organisations Funding $

TOTAL 443,352

Illawarra Institute of Technology 24,600Housing Industry Association Limited 59,700Housing Industry Association Limited 10,650Housing Industry Association Limited 5,400Building Apprentices Training Limited 250,000Australian Centre for Construction Innovation, University of NSW 59,990University of Sydney, Dept of Architecture, Planning and Allied Arts 26,686Masters Builders Association of NSW Pty Ltd 25,000Sydney Institute of Technology 21,875Housing Industry Association Limited 30,000

FAustralian Property Institute Incorporated 70,000Institute of Strata Title Management 47,500Stock and Station Agents' Association NSW Incorporated 150,000University of Western Sydney 95,352Real Estate Institute of NSW 80,500

(the Act) stemmed from the 1977 Prices Commission inquiry into the operation of the funeralindustry. The inquiry found that in the unregulated market, many businesses failed to operate in the best interests of theircustomers, with funds often failing to meet the full cost of funeral services as promised or not providing cash benefits if serviceswere provided by another funeral business.

The Act provides for the registration or exemption of pre-arranged or contributory funeral funds operating in New South Wales.The purpose of the legislation is to primarily safeguard consumer's prepayments for funeral services.

Through the registration process the Act seeks to:ensure the provision of agreed funeral services when required.achieve accountability for money paid by a buyer of funeral services which have an indefinite delivery date, andproperly manage money paid for funeral services in the long term to provide agreed benefits to the buyer and the anticipatedpayment to the supplier of funeral services.

Funeral contribution funds have members make small, regular contributions for as long as they remain in the fund. These fundscontribute towards a funeral service or provide a cash benefit towards the cost of a service. The funeral service is carried out by afuneral director associated with the fund.

With pre-arranged funeral funds, instead of making ongoing small, regular payments, consumers choose to pre-pay for a funeralby making one lump sum payment or several large instalments over a period of time. In such cases, consumers enter into acontract with a trustee for the provision of a specified service by a service provider. The provider of the service is thenreimbursed from the fund where the consumer's money has been held, at no additional cost to the consumer.

The Director-General of the Department of Fair Trading is the Registrar of Funeral Funds. The appointment is by virtue of thePublic Sector Management Administrative Changes (Fair Trading) Order, 1995 published in New South Wales Gazette No.128.The Registrar of Funeral Funds is responsible for monitoring the continuing operation of existing funds for the benefit ofexisting members and to facilitate the registration of new funds which meet the requirements of the legislation.

The funeral fund register lists 15 registered and 48 exempted (pre-1979) pre-arranged funds as at 30 June 2000.

The Department also continues to maintain a trust fund for contributors to the Russell Kinsela group of companies, which wentinto liquidation in the early 1980's. Funds retrieved from one company in the group have been retained in trust by theDepartment to partially settle claims from previously unidentifiable contributors to the schemes run by the Russell Kinselagroup. In the twelve months leading up to 30 June 2000, the Department made four payments to such contributors, amountingto $948.68. The amount held in trust at 30 June 2000 is $112,428.77.

A review of the Act was conducted in accordance with the requirements of the National Competition Policy review agenda.The review embraced both industry and the community in its consultation process. A report with recommendations, anticipatedto improve regulation of the sector, is expected to be handed down in late 2000.

13 Report of Registrar of Funeral FundsThe Funeral Funds Act 1979

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Below is the complete list ofpublications available as at 30 June 2000.Unless marked with an asterisk all thepublications listed are either new orrevised for 1999-2000.They are allavailable on the Department's Web site.

Our ServicesOur Services - Bosnian*Our Services - Chinese*Our Services - Thai*Our Services - Turkish*Our Services -Vietnamese*Annual Report 1998-1999Volume 1&Volume 2We can help youGuarantee of Service

The Renting GuideThe Renting Guide PosterRetirementVillage LivingResidential Park LivingStrata LivingThe Renting Guide - ArabicThe Renting Guide - ChineseThe Renting Guide - CroatianThe Renting Guide - FarsiThe Renting Guide - GreekThe Renting Guide - ItalianThe Renting Guide - JapaneseThe Renting Guide - KhmerThe Renting Guide - KoreanThe Renting Guide - MacedonianThe Renting Guide - PolishThe Renting Guide - PortugueseThe Renting Guide - RussianThe Renting Guide - SerbianThe Renting Guide - SpanishThe Renting Guide - TurkishThe Renting Guide -VietnameseA new deal for retirement villageresidentsStrata DisputesStrata MediationResidential Park Liaison CommitteesNew water charges for residential parkresidentsTenancy and The Olympics - BusinessTenancy and The Olympics- ConsumerBuying a HomeDiscrimination and RentingStarting a tenancyEnding a tenancy

Building Inspections - a home buyer'sguideBuilders and Tradespeople- a short guideHome Building and Renovating- a short guideBecoming an Owner-builderProtectYour Home from Termites*Home Building ChecklistApproved Home Warranty InsurersMinor Works Building ContractPad of 10 (Cost $10)*Renovations Contract Pad of 10(Cost $10)*Home Building ContractPacket of 2 (Cost $10)*Swimming Pool ContractPacket of 2 (Cost $20)*Home Building and RenovatingBuilders and TradespeopleBuilding and renovating your homeInformation for builders andtradespeopleGetting a Contractor LicenceRenewingYour Contractor Licence

Little Black Book of ScamsREVS - Cars*REVS - Boats*The Shoppers' GuideThe Seniors' GuideConsumer Help for the busy travellerConsumer Help for the busy traveller- JapaneseLove and LoansIn good hands - baby products andyouToy safety checklistA Student's guide to Consumer RightsLay-Bys Information for ConsumersSome things to consider before youborrow moneySome things to consider before youborrow money - ArabicSome things to consider before youborrow money - ChineseSome things to consider before youborrow money -VietnameseBorrowing moneyBorrowing Money - ArabicBorrowing Money - ChineseBorrowing Money -VietnameseCredit Cards, & 'Interest Free' dealsCredit Cards, & 'Interest Free' deals- ArabicCredit Cards, & 'Interest Free' deals- Chinese

Credit Cards, & 'Interest Free' deals-VietnameseBuying a used carYour consumer rights a seniors' guideRelationship DebtRelationship Debt - ArabicRelationship Debt - ChineseRelationship Debt -VietnamesePyramid Schemes

Laser Pointers - Safety Laws*Disposable Cigarette Lighters - SafetyLaws*Trade Measurement - a better BalanceInflatable Pools - Guidelines forSuppliers*Customer Service GuidelinesThe Good Business Matters Kit(Cost $145)*BLIS BrochureModel Rules for IncorporatedAssociationsBusiness NamesRunning an Incorporated Association

Fair GoDiscrimination and RentingKnowYour Rights PosterFair Go PosterWallet Information CardsAboriginal Housing ProviderToy Safety ChecklistFridge MagnetYour rights on renting your homeWhat REVS can do for youProblems Leasing your HomeBuying a carShopping refunds and lay-bysKeeping your kids safeStarting a businessRenting information for Aboriginalhousing providersRenting a home

Petrol Price Signs fact sheet

RetirementVillage Green Issue 1 2000Keynotes October 1999

Consumer Power $19*Home Delivery - Mediation $10*

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Property and Tenancy Publications:

Building Publications:

Consumer Publications:

Business Publications:

Aboriginal Publications:

Other Titles:

Newsletters:

Videos:

Corporate Publications:

14 Publications


15 Rental Bond BoardThe Rental Bond Board was established in 1977 under the to act as an impartialcustodian of rental bonds paid for residential tenancies in New South Wales.

The Board is a statutory body representing the Crown, and is subject to the control and direction of the Minister for Fair Trading.

The Board is comprised of the Director-General, Department of Fair Trading as Chairperson, representatives of the Department ofHousing and the Treasury and two persons with experience in real estate or tenancy matters who are appointed by the Minister.

The legislation gives the Board responsibility for the management and investment of bond monies and interest earned oninvestments and for the making of grants or loans, with the approval of the Minister, for rental advisory services and other projectswhich benefit the residential tenancy sector.

Interest earned on the investment of bond monies is used to pay interest on bond refunds and to partially fund the ResidentialTribunal. The Board also provides funds for a number of advisory services, including the Tenants Advice and Advocacy Program.

The Department provides administrative support to the Board, including:rental bond lodgement, refund and enquiry services,tenancy information and education,accounting, investment, financial and legal services andassessment of applications for funding and preparation and administration of funding agreements.

The Rental Bond Board financial statements for the year ended 30 June 2000 are contained in volume two of this Annual Report.

Board meetings are held at least quarterly Enquiries about the Board and requests for copies of funding guidelines may be directedto the Rental Bond Board Secretary on telephone (02) 9338 8992.

Ms Kim Anson, Executive Director,Housing and Urban Development 1Mr John Collins, Executive Director,Metropolitan Planning 1Mr John Nicolades, Director,Affordable Housing Service. 2

Landlord andTenant (Rental Bonds) Act 1977

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Rental Bond Board Members

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Members Term of appointment Meetings attended

David O'Connor, Director-General,Department of Fair Trading - Chairperson.Alternate, Mr John Schmidt,Assistant Director-General. 1

Director-General, Department of Urban Affairs and Planning.Alternates :

Director-General, Department of Housing.Alternate, Ms Kim Anson, Executive Director, Policy & Strategy. 1

Secretary, NSW Treasury.Alternate, Mr Brian Waddington, Senior Financial Analyst. 4

Ms Lynette Tamsett, Licensee, KG Hurst, Eastwood.Ministerial appointment. To 1 March 2001 4

Ms Sarah Nielsen, Solicitor, Ministerial appointment. To 1 March 2001 5

Ex officio 4

Ex officio to 13 April 2000 -

Ex officio from 14 April 2000 -

Ex officio -


Representation Key:[c] - Chairperson; [m] - Member;[t] - Trustee.

Acceptable Standards of ConstructionCommittee NSWBarry Miller [m]

Australia New Zealand ReciprocityAssociationMichael Carroll [m]

Builders Licensing AustraliaPeter Smith [m]

Central Coast Regional CoordinationManagement GroupSean Lonergan [m]

Committee on Government SelectedApplication System - RecordsManagement SystemDavid Lilley [c]

Construction Industry TrainingAdvisory BoardMichael Carroll [m]

Consumer Products AdvisoryCommitteeJohn Furbank [m]

Electrical Equipment Safety AdvisoryCommitteeAlex Krestovsky [c]

Electrical Regulatory AuthoritiesCouncilJohn Furbank [m]Michael Carroll [m]

Energy Steering CommitteeJohn Schmidt [m]Susan Dixon [m]

Fair Trading Advisory CouncilDavid O'Connor [m]

Fair Trading Operations AdvisoryCommittee (FTOAC)Malcolm Finger [m]

Fitness Centres Code of Practice, CodeAdministration CommitteeLynne Murray [m]

Government & Related EmployeesAppeal Tribunal (GREAT)Ann Keating [m]

Home Building Advisory CouncilDavid O'Connor [m]

Hunter Regional CoordinationManagement GroupRichard Buckley [m]

Illawarra Regional CoordinationManagement GroupChristine Ambs [m]

Illawarra Building ForumNigel Walsh [m]

Ministerial Taskforce on AffordableHousing

Motor Trade Advisory CouncilDavid O'Connor [m]

North Coast Regional CoordinationManagement GroupMarilyn Richmond [m]

Northern Tablelands RegionalCoordination Management GroupMarilyn Richmond [m]

NSW Car Theft Action GroupJohn Devlin [m]

NSW Financial Counselling Trust FundBrian Given [t]

NSW Food Advisory CommitteeMerilyn Betty [m]

NSW Injury Prevention ForumJohn Furbank [m]

Olympic Co-ordination AuthoritySocial Impacts Advisory CommitteeRod Stowe [m]

Partnership Against HomelessnessCommitteeSusan Dixon [m]

Pawnbrokers & Secondhand DealersIndustry Consultative CommitteeTracy Taylor [m]

Pest Control Licensing Committee(WorkCover)Merilyn Betty [m]

Products Safety CommitteeDavid Catt [c]John Furbank [m]

Property Services Advisory CouncilDavid O'Connor [m]

Rental Bond BoardDavid O'Connor [c]

Residential Parks ConsultativeCommitteePeter Berry [c]

Riverina Murray RegionalCoordination Management GroupJan Malone [m]

South coastal Sydney Regional Co-ordination Management GroupAndrew Gavrielatos [m]

Standing Committee of Officials ofConsumer Affairs (SCOCA)David O'Connor [m]

State Records Customer CouncilDavid Lilley [m]

Trade Measurement AdvisoryCommitteeVictor Lawrence [m]

Travel Compensation FundBrian Given [t]

Uniform Consumer Credit CodeManagement CommitteeMargaret Raffan [m]

Western Area Regional CoordinationManagement GroupPaul Coles [m]

Western Sydney Regional CoordinationManagement GroupRod Stowe [m]

Whitegoods Repair Code of Practice,Code Administration CommitteeLynne Murray [c]Sean Lonergan [m]

Whole of Government Call CentreCoordination Working PartyWayne Gardner [m]

David O'Connor [m]

16 Membership of statutory bodies and interdepartmental committees


Internal Audit services were provided bywholly internal and contracted services.Contracted services were specificallyused to cover specialist IT audit tasks.

Approximately 49% of the annual auditplan was achieved. Major variations tothe annual plan arose from:

Internal Audit involvement on steeringcommittees for TAAP Review, RentalBond Internet Service, and SCAMsystem developmentThe management and investigation of11 matters concerned with eitheralleged corrupt conduct, allegedmaladministration, or other allegations.Management and conduct of initialshadow shopping survey coveringDepartmental services delivered bytelephoneRequests from management foraudits/reviewsReview and redraft of DFT Code ofConduct (to be re-issued 2000-2001)

At the time of reporting, the 1999-2000survey of client satisfaction withInternal Audit services was beingperformed. Target indicators are for>80% satisfaction over a range ofattributes (customer satisfaction 1998-99was 95.5%). The executive InternalAudit Committee did not meetregularly during the year due toconflicting priorities. Action will betaken during 2000-2001 to streamlinethe Audit Committee and ensure thatbest practices are maintained. InternalAudit continued to trial review using

the NSW Treasury Risk Managementself assessment methodology - this willcontinue during 2000-2001 for theimplementation of control selfassessment processes across theDepartment.

Education and awareness of staff on theDFT Code of Conduct, ProtectedDisclosure and fraud prevention wasundertaken through staff inductioncourses, presentations to regionalmeetings and Internal Audit Branchnewsletters. At the time of reporting areview of the DFT Code of Conductwas being completed. This review willresult in an update of the Code during1999-2000.

Building InsuranceY2K RemediationPayroll/LeaveBusiness Registration operationsProperty Services LicensingStrata ServicesFair Trading Centre operationsCorporate Credit Card managementFixed AssetsMobile PhonesBuilding Services LicensingWeb/Internet Security (InternetUsage)Business Continuity PlanningPrivacy Act Management Plans

Co-operatives Development FundMotor Dealers Compensation FundProperty Services Compensation Fund

Internet UsageCo-operativesCompliance/MonitoringREV's InternetPenalty Notice SystemElectrical CertificationAssociationsFair Trading InvestigationsFair Trading Centre AdministrationSponsorshipFringe Benefits TaxRental Bond Internet ServiceBuilding Insurance (FTAC Scheme)Building LicensingDFT Debtors AdministrationPurchasing/Accounts PayableBusiness Registration RevenueP&PIP Act ImplementationIntelligence ServicesDFT Public Register IntegrityBuilding Investigations UnitShadow Shopping SurveyCorporate Credit CardsGST ImplementationSAP R/3 FMS

NB.Audit plan may be subject tochange

In accordance with Treasurer'sDirections, the Director-General hascertified to the Minister that credit carduse has been in accordance withestablished government requirements.The certification was qualified to theextent that a very small number oftransactions did not fully meet usagepolicy and procedures.

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Actual Audit Tasks 1999-2000

Planned Audit Tasks 1999-2000

Corporate Credit Cards

17 Internal Audit

18 Statutory Report Co-operation Act 1923, Section 123This report covers the period from 1 July 1999 to 30 June 2000 and is presented in accordance with Section 123 of the Co-operation Act 1923.This Act was repealed on 1 September 2000 but was in force during the reporting year. On 1 September2000 the Co-operative Housing and Starr-Bowkett Societies Act 1998 was proclaimed and replaced the Co-operation Act 1923.

At the close of the period covered by this report the Co-operative Housing Societies and Starr-Bowkett Societies were the onlytypes of societies still covered by the 1923 Co-operation Act. The Registrar of Co-operatives is the regulatory authority for boththese Societies. Regulation of Co-operative Housing Societies transferred from The New South Wales Financial InstitutionsCommission to the Registrar of Co-operatives effective from 1 July 1999.

As at 30 June 2000 there were 28 Starr-Bowkett societies on the Register, 2 societies having been wound up and removed fromthe Register during the year.

As at 30 June 2000 there were 57 Co-operative Housing Societies on the Register, 15 societies having been wound up andremoved from the Register, or having transferred engagements to other societies, during the year.

Starr-Bowkett Societies

Co-operative Housing Societies


19 Ethnic Affairs Priorities Statement, 1999 - 2000 ReportThis Ethnic Affairs Priorities Statement is part of our Access and Equity Strategy. It follows our Corporate Plan format. Someprojects have a specific focus on cultural diversity issues, orders aim to improve outcomes for a range of Access and Equitygroups.

Appropriate safeguards for consumers with minimal restrictions on business/tradersPolicy framework creates a balance between the interests of consumers and traders

Corporate objective:Key Result Area/divisional objective:

Project Desired outcome Report on achievements

Incorporate access and equityconsiderations in legislativereviews and other policywork (eg. issues papers andconsultation) by piloting abest practice approach in twolegislative reviews.

A risk checklist for stakeholders isdeveloped and targeted consultationsare held with equity groups in the FairTrading Act Review & AssociationsAct Review.Access and equity issues are reflected infinal report.

The Fair Trading Act Review was deferred.Theissues covered in the Associations Act Review werenot suitable for a pilot.

As an alternative, we developed consultationguidelines that address access and equity issues.

Corporate objective:KRA/divisional objective:

Appropriate safeguards for consumers with minimal restrictions on business/tradersInformed, educated consumers and traders

ProjectRevise and improve DFTforms found to not be inplain English or poorly laidout.

Conduct specific educationcampaigns targeting equitytarget groups, as appropriate.

Desired outcomeImproved accuracy of informationreceived.Reduce time spent by customers fillingin forms. Reduce requests forassistance with forms.

Increased use of our services or moreinformed consumers and traders fromnon-English speaking backgrounds.

Report on achievements30 high use forms have been identified andprioritised.Development of plain English criteria andcommencement of form improvement has beendeferred pending appointment of aconsultant.�

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The Renting Guide was updated in 17 languages.These are now available on our Web site and willbe distributed to real estate agents, ethno-specificand multicultural organisations.

credit fact sheets produced in 3community languages.

guide to our services produced in20 languages.Stickers for community workers produced in 20languages

produced in 4 languages.brochure developed for inbound

tourists during the Olympic period. Includes textin 5 languages.REVS campaign included press and radioadvertisements in 5 community languages.

Love and Loans

We can help you

Home Building Checklist

Have a Nice Stay

Corporate objective:Key Result Area/divisional objective:

Accountable use of public resourcesEconomical efficient and customer focused operations

ProjectConduct cultural diversitytraining of DFT staff ineffective customer service.

Market the Access and EquityStrategy and resource manualto DFT staff and others, asappropriate.

Desired outcomeCustomer service staff are morecompetent in assisting our culturallydiverse customers.

Increased confidence and awarenessamongst staff of how to deliver serviceto customers from equity targetgroups.

Report on achievementsCultural diversity training has been integrated intocustomer service training.

The Manual is in its final draft stage. The manualwas piloted with DFT staff.

Details of Co-operative Activity

Type of Society New Societies registered duringthe year ended 30 June

1999 2000 1999 2000

Starr-Bowkett Societies 1 0 30 28Co-operative Housing Societies 0 0 72 57

Societies on the Register at 30 June


Ensure DFT language servicesmeet the needs of customersthrough greater use ofinterpreters, CommunityLanguage Allowance Scheme(CLAS) recipients andbilingual front line staff.

Undertake regular liaisonwith peak, regional and localgroups regarding DFTservices, policy and newinitiatives.

Conduct annual customersatisfaction surveys.

Delivery of language assistance tocustomers is reviewed and areas forimprovement identified.

CLAS is promoted amongst our staff.

People with required language skills areattracted to front line vacancies.

We improve our understanding ofparticular issues affecting consumersand traders from various cultural andlinguistic groups.

We improve our understanding of howto best market our services and provideinformation.

Identify whether equity target groupsexperience similar levels of satisfactionwith our service to other customers.

A language services review was completed and itsrecommendations are now being implemented. Forexample:

front line customer service staff are prioritised forreceipt of CLAS,we identify languages required through ourcustomer profile survey and ABS census statistics,staff are being provided with badges identifyinglanguages spoken.

Additional bilingual staff sat CLAS exams. Thenumber of languages provided through CLAS hasincreased. CLAS has been promoted through thedepartment.

Advertisements for customer service vacancies listrequired languages as desirable in the selectioncriteria.

Community Liaison Coordinators visited ethniccommunity organisations.

The Ethnic Communities Council was consulted aspart of the Review of the Business Names Act.

The contract for the survey was let and is due forcompletion in August 2000.

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20 Ethnic Affairs Priorities Statement 2000 - 2001 ReportThis Ethnic Affairs Priorities Statement is part of our 2000 - 2001 Access and Equity Strategy. It follows our Corporate Planformat. Some projects have a specific focus on cultural diversity issues; others aim to improve outcomes for a range of Access andEquity groups.

ProjectEnsure forms are in plainEnglish and appropriatefor diverse groups.

Ensure DFT languageservices meet the needsof customers.

Guidelines on fundedservices.

Promote the Access andEquity Strategy.

MilestonesRevise and improve DFT forms found tonot be in plain English or poorly laid out:�

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Engage consultant and modify first batch offorms.Develop forms template/s and guidelines.

Promote use of CLAS within the DFT.Co-ordinate the implementation of theLanguage Services Reviewrecommendations.

Revise guidelines to meet Ethnic AffairsCommission standards where appropriate.

Launch and distribute access and equitymanual.A&E resources available on intranet.Workshops on A&E manual for staff.Evaluation of A&E manual.

Accountability

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Policy

Policy

PolicyPolicy

ManagementServices

Policy

PolicyPolicyPolicy

Timeframe

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October 2000

December 2000

QuarterlyJune 2001

December 2000

December 2000

December 2000April 2001December 2001


Annual Targets

Indicator

Effectiveness (end outcome)

Effectiveness (lower-level outcomes/external requirements)

Efficiency

Customer satisfaction

Staffing profile

Proportion of NESB customers accessing main DFT services compared torepresentation in relevant population (from Customer Profile Survey andABS benchmarks), ie

Percentage of advertising budget spent on ethnic media

Extent to which access and equity external reporting deadlines are met

Level of satisfaction with DFT services for significant equity target groupseg:

Language first spoken as a child was not English

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Fair Trading CentresTenancy Information Phone Service tenantsREVSLevel of consumer confidence in fair operation of marketplace forNESB compared to others.

NESB compared to others

Target 2000/2001

Confidence level for NESB equal to rest ofcommunity.

100%

Confidence level for equity groups equal to restof community.

19%

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Meet or exceed ABS benchmark level.60-70% of ABS benchmarkMeet or exceed benchmark

7.5% for print advertising3% for electronic advertising

Measuring performance against these targets involves undertaking several data collection exercises. These include the following:

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Customer Profile SurveyCustomer Satisfaction surveys(ensure A&E dimensions are included where practical)Consumer and trader confidence surveys(ensure A&E dimensions are included where practical)EEO data collection.

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AnnualAnnual

Annual

ongoing(as staff join DFT)

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PolicyPolicy

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Policy

21 Accounts payable performance

1 Schedule of accounts payable as at 30 June 2000:

Total accounts payable $1,771,634.17

2 Accounts paid during 1999/2000:

Total dollar amount of accounts paid $79,803,973.33

Current $1,771,634.17Less Than 30 DaysBetween 30 & 60 Days

Percentage of accounts paid on time(23,093 vouchers processed on time out of 25,732) 89.74%Total dollar amount of accounts paid on time $75,541,660.15


22 Access and Equity Strategy: Disability Report, July 1999 - June 2000This reporting period covers the Department's former Disability Plan (DP) (July 1999 - December 1999) and the new DisabilityAction Plan under the NSW Disability Policy Framework (DAP) (January 2000 - June 2000). The following report gives thegoals for each plan, and what has been achieved.

ObjectiveIncorporate access and equityconsiderations in legislative reviewsand other policy work (eg. issuespapers and consultation) by piloting abest practice approach in twolegislative reviews. (DP)

Revise and improve DFT forms foundto not be in plain English or poorlylaid out. (DP)

Market the Access and Equity Strategyand resource manual to DFT staff andothers, as appropriate. (DP)Provide disability awarenessinformation for all staff through thedissemination of the Access & EquityManual. (DAP)

Identify initiatives for improvingservices to people with a disability.(DP)

Undertake regular liaison with peak,regional and local groups regardingDFT services, policy and newinitiatives. (DP)Conduct consultation with peakorganisations, customers and staff onthe needs of people with a disabilityregarding DFT services. (DAP)

Develop and disseminate policies onemployment of people with adisability. (DAP)

Survey staff who have not completedEEO survey to determine those with adisability who require adjustments.(DAP)

Result�

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We have developed consultation guidelines which include considerations for equitytarget groups.

Most-used forms have been identified.Approval has been granted to engage a consultant for the project.

Access and Equity strategies are included in Division Plans.Manual is at final draft stage. It will be disseminated via an e-mail/memo to all staff,on the computer network, and at inductions.

We have developed a Disability Action Plan in accordance with the NSWGovernment Disability Policy Framework.We have commenced liaison and consultation to identify needs and areas of concernand to obtain feedback on the Disability Action Plan.We have developed a project plan to engage a consultant to conduct a physicalaccess audit of premises and to train staff to assist in conducting audits byDecember 2000.TTYs (Telephone Typewriters) for people who are deaf or have a speech or hearingimpairment are available in four locations: Penrith Call Centre (fair tradinginquiries); Renting Services (tenancy and bond information); REVS (Register ofEncumberedVehicles) and the Residential Tribunal. The numbers are included in:DFT publications, various telephone,TTY, government, community and businessdirectories and on the DFT Web site.The Department's Web site is currently being assessed for accessibility. Changes havebeen made to ensure that the hyperlinks are accessible by Web site readers for peoplewho have vision impairment.RetirementVillage Living brochures were produced in large print for older people.

We have consulted with organisations representing people with a range ofdisabilities. (including: physical, visual, hearing, intellectual)We have consulted the Department's Disability Support Network (staff with adisability and staff with an interest in disability issues).Fair Trading Centre (FTC) staff attend local Disability Council Network meetingsin the Hunter region.Stickers on FTC services were distributed to community workers, disability andHACC organisations.DFT provides information on its services for the newsletters of some disabilityorganisations.Information sessions were conducted with Special Education Unit high schoolstudents in the Gosford area.

We have disseminated policies on Recruiting People with a Disability; RecruitingPeople with a Disability in Special Cases; and Making Adjustments for Staff with aDisability; and Community Employment Services for People with a Disability.

EEO Survey completed.95% response rate.Data is currently being collated.


Staff requested to update informationon their EEO survey at regularintervals.

Conduct meetings of the DisabilitySupport Network. (Staff with adisability and staff with an interest indisability issues) (DAP)

Promote DAP within DFT and to thecommunity. (DAP)

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EEO Survey information updated

Two meetings held in 1999/2000.

Letters outlining major initiatives in the DAP were sent to non-governmentdisability organisations.Presentation to DFT Executive scheduled for 25 July 2000Memo to all staff to be circulated in July 2000Information to be available on DFT Intranet in July 2000

23 Property Services Compensation Fund

Claims brought forward - 1 July 1999 41 509,282.79

Claims received 363 1,928,593.93

Claims completed 376 2,142,920.91

Claims paid * 273 958,857.81

Claims part paid 53 396,162.07

Claims rejected 50 630,619.44

Claims on hand 30 June 2000 28 294,955.81

* For amount claimed or in excess of amount claimed.

No. $ Amount

24 Senior Executive Service at 30 June 2000

6 1 1 14 1 2 23 3 2 12 2 2 21 3 3 2No. of positions filled by women 4 4 2

8(8 positions)

3 12 11 5No. of positions filled by women 2

The Minister for Fair Trading has expressed his satisfaction with Mr O'Connor's management of the Department and dedicationto service throughout 1999-2000.

Mr O'Connor has successfully addressed the priority projects and outcomes of his performance agreement by leading theimplementation of a number of significant strategies.

29 August 2000

1998 1999 2000No. of SES 10

(10 positions) (10 positions) (8 positions)

Level of positions

Senior Officers @ 30 June 2000

No. of Senior Officers

Level of positions

Performance of Chief Executive - Mr David O'Connor, Director-General, SES Level 6

The Hon J A Watkins, MPMinister for Fair Trading

10 8


Remuneration details of Level 5 and above Senior Executive Service officers

Position title Name Total remuneration Dollar value of Performance

Director-General David O'Connor $194,324 Not Applicable Normal SES PerformanceAgreement arrangements

package excluding performance payment criteriaperformance pay payment for reporting year

25 Guarantee of Customer Service

26 Report on NSW Action Plan for Women

In the context of a major project to improve performance reporting, particularly on service to customers, the Departmentproduced a revised Guarantee of Service in March 2000, which sets out our detailed customer service standards.

As part of this project, the Department has taken significant steps this year to introduce consistent, systematic reporting againstthe revised standards. Most standards are currently being met. However, in some very heavy traffic areas, such as high volumecall centres, waiting times have occasionally exceeded 5 minutes. The introduction of consistent reporting across the Departmenthas also highlighted some areas where system enhancements need to be implemented to capture the data required by this morerigorous approach. Steps are currently being taken to address these issues.

The NSW Government aims to work towards removal of obstacles to women's full participation in society. This meansrecognising that in some areas of social life, women have different experiences and needs from men. It also means recognisingthat age, race, ethnicity, location, and social and economic circumstances all affect women's needs and options. The Government'sapproach to addressing women's issues and concerns involves agencies across the whole of Government and addresses areas suchas paid and unpaid work, health and housing, violence and safety, justice and civil legal equality, childcare, education, decisionmaking and leadership, and access to information.

Government policies in relation to women relevant to the Department of Fair Trading are:supporting familiesprotecting women as consumers and ensuring women's civil legal equalityensuring that women have equal access to informationensuring women's equal access to and full participation in power structures and decision making.

During the past year the Department of Fair Trading has taken action on all these key objectives from the Action Plan.

The Department of Fair Trading has produced a number of publications for consumers, particularly women with children, onproduct standards and finance.

, a comprehensive guide to nursery furniture safety, directly mailed to NSW maternity hospitals.This wasreplaced in 2000 by , a new guide to product safety for children, including inflatable pools, child resistantcigarette lighters and nursery furniture.A toy safety checklist for selecting safe toys for children.An Aboriginal toy safety checklist and an Aboriginal factsheet:

, a guide to all the consumer protection aspects of shopping, with a particular emphasis on credit.A series of fact sheets on borrowing, credit cards, guaranteeing other people's loans, and being a co-borrower.

The Department provides funding to community organisations to provide financial counselling and tenancy advice services tothe community. Approximately 65% of customers of the Tenants' Advice and Advocacy Program are women.

The Department of Fair Trading and the Department for Women undertook a joint initiative to provide information for womenon their rights and obligations as customers of financial institutions. This included publishing a booklet and factsheet to alertwomen to the dangers of becoming a co-borrower with or guarantor for their partner or children. In December 1999 theDepartment of Fair Trading and the Department for Women convened a round table seminar of consumer and industry groupswhich discussed issues faced by women as consumers of financial services, especially relationship debt, and proposed strategies toassist women.

During 1999 and 2000 the Department of Fair Trading and the Department for Women undertook a joint project to addressdiscrimination against women in the motor vehicle industry.The project included a survey of women consumers and developedstrategies to improve the quality of service provided to women by the motor vehicle industry.

will afford better protection to the rights of women residents in retirement villages.TheDepartment has also published a number of guides for older people, primarily women, to inform them of their rights.

The Department of Fair Trading has developed strategies to increase the representation of women on the Department's boardsand committees. Further information on the Department's strategies regarding women is detailed in the Access and EquityStrategy and the EEO Plan.

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Specific achievements under the Action Plan for Women

Keeping Baby SafeIn Good Hands

Keeping your kids safe.The Shoppers' Guide

The RetirementVillages Act 1999


Aboriginal consumers 14, 24Aboriginal employment 27Access and equity 26, 70Accounts payable 69Advisory councils 10Banking 10Benchmarking 25BLIS 25Bonds 15, 26Building licences 23Building contracts 17Business Licence Information Service 25Business names brokers 26Business names 25Business registrations 25, 29Business services 25Car buyers 10, 16Christmas product survey 19Civil litigation 55Community grants 30Community Language Allowance Scheme 26Consultants 57Consumer credit 8, 16Conveyancers 11Cooperatives 10, 11, 29, 30, 66Corporate plan 3Customer feedback 60Customer profile 24Disability Report 70Easter Show 19E-commerce 9, 26E-complaints 14Electricity 9Electrical safety 11, 19, 20Electronic service delivery 26Electronic transactions 9Energy market 8Energy savings 29Enforcement 17, 18, 21Equal employment opportunity 27Ethnic Affairs Priorities Statement 26, 67, 68Fair Trading Centres 13Fair trading complaints 14Financial statements 31Flexible working hours 29Freedom of Information 58Funeral funds 62Gas 9Gazumping 20Grants 30, 60GST 29Guarantee of customer service 72Highlights 7Home building 10, 16, 21Home warranty insurance 22, 29Industry grants 30Insurance 23, 57Internet scams 18, 19Interdepartmental committees 65Internal audit 66Kitchen industry 21Legislation 56Licensing fees 12Mediation 15, 22Mission 3Motor Dealers Compensation Fund 57

Motor dealers 17, 18National Competition Policy 8National Consumers Day 14Network operating system 29No Interest Loans Scheme 9NSW Action Plan for Women 72Objectives 3Occupational health and safety 30Olympics 15, 30Organisation chart 6Overseas travel 57Pawnbrokers 18Penalty notices 12, 54Performance 3, 8, 13, 24Petrol pricing 9Petrol substitution 18, 23Planning 3Portfolio authorities 57Privacy 8Product recalls 26Product safety 11, 19Program allocations 6Property auctions 20Property contracts 20Property Services Compensation Fund 71Prosecutions 54Publications 17, 63Pyramid schemes 18, 19Quality 24Real estate 20Regional Access Program 13Register of EncumberedVehicles 10, 16Rental Bond Internet Service 26Rental bonds 15, 64Renting Guide 17Residential parks 20Retirement villages 11, 20REVS 10, 16, 26Risk management 30Rural NSW 13Scams 18Secondhand dealers 18Senior Executive Service 71Seniors 14Soccer goals 20Sponsorship 17Staff 27, 28Statute law revision 12Statutory bodies 57, 65Strata schemes 22Strategic Intent 3Structure 6Subordinate legislation 11Supreme Court action 18, 19Tenancy 9, 15, 17Trade measurement 11, 23Translations 27Traveller Consumer Helpline 15UFI Pools 22Unlicensed dealing 18, 20Utilities 9Utility Consumers Advocacy Program 9Web site 17Women 10, 72Y2K 29Youth 16

Index


phone13 32 20

November 2000 Previous Contents

For help on any fair trading issue call your nearest Fair Trading Centre,or call the specialist service listed below which is relevant to your inquiry.

Language assistance

Ring the telephone interpreting service on 13 14 50 and ask for an interpreter in yourlanguage.The interpreter can then contact the Department of Fair Trading.

TTY ............................................................................9338 4943* Telephone service for the hearing impaired.

AlburyArmidaleBlacktownBroken HillCoffs HarbourDubbo

GosfordGoulburnGraftonHurstvilleLismoreLiverpool

NewcastleOrangeParramattaPenrithPort MacquarieQueanbeyan

SydneyTamworthTweed HeadsWagga WaggaWollongong

Fair Trading Centres – call 13 32 20

Department of Fair Trading1 Fitzwilliam Street Parramatta NSW 2150 PO Box 972 Parramatta NSW 2124Tel. 9895 0111

Specialist Services

Rental Bond Inquiries ................................................9377 90001800 422 021

Tenancy Inquiries........................................................9377 91001800 451 3019377 9099 (*TTY)

Strata Schemes and Mediation Services ......................9338 79001800 451 431 (outside Sydney)

REVS ........................................................................9600 00221800 424 988 (outside Sydney)

1300 369 889 (*TTY)

Business Licence Information......................................9619 87221800 463 976 (outside Sydney)

Web site......................................................................www.fairtrading.nsw.gov.au

Final Cover vol 1 22/11/00 11:21 AM Page 2

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Documents

Annual Report 1999-2000 - NSW Fair Trading | NSW Fair Trading