Annual Report 2000-2001 - NSW Fair Trading | NSW Fair Trading...Ł Mock Auctions Act 1973 No. 17. Ł Motor Dealers Act 1974 No. 52. ... Stock and Business Agents Act 1941 No. 28. Ł

NSW Department of Fair Trading Annual Report 2000-2001

Contents

Legislation we administer� Associations Incorporation Act 1984 No. 143.� Business Names Act 1962 No. 11.� Community Land Management Act 1989 No. 202.� Consumer Claims Act 1998 No. 162.� Consumer Credit Administration Act 1995 No. 69.� Consumer Credit (New South Wales) Act 1995 No. 7.� Contracts Review Act 1980 No. 16.� Conveyancers Licensing Act 1995 No. 57.� Co-operatives Act 1992 No. 18.� Co-operative Housing and Starr-Bowkett Societies Act 1998� Credit Act 1984 No. 94.� Credit (Finance Brokers) Act 1984 No. 96.� Credit (Home Finance Contracts) Act 1984 No. 97.� Door-to-Door Sales Act 1967 No. 36.� Electricity Safety Act 1945 No 13. Part 4C (remainder, Minister for

Energy)� Employment Agents Act 1996 No. 18.� Fair Trading Act 1987 No. 68.� Fair Trading Tribunal Act 1998 No. 161.� Fitness Services (Pre-paid Fees) Act 2000� Funeral Funds Act 1979 No. 106.� Gas Supply Act 1996 (Section 83A)� Hire-Purchase (Repeal) Act 1981 No. 127.� Home Building Act 1989 No. 147.� HomeFund Commissioner Act 1993 No. 9.

What we do 2

Planning Framework 3

Director-General's Report 4

Our Structure 6

Program allocations 6

Highlights of 2000-2001 7

Objective One 8

Appropriate safeguards for consumerswith minimal restrictions on business/traders

Objective Two 14

Maximum compliance with regulatory requirements

Objective Three 26

Accountable use of public resources

Financial Statements* 32

Appendices 54

Index 73

* Volume 2 of this Annual Report (which is available onrequest or through our Web site) contains the financialstatements of the following non-operational accountingentities:

� Rental Bond Board

� Fair Trading Administration Corporation.

1SSN 1327 - 9890New South Wales

Department of Fair TradingParramatta NSW

October 2001.

� HomeFund Restructuring Act 1993 No. 112, ss 14, 15, 16 andSchedule 2 (remainder Minister for Housing).

� Landlord and Tenant Act 1899 No. 18.� Landlord and Tenant (Amendment) Act 1948 No. 25.� Landlord & Tenant Amendment (Distress Abolition)

Act 1930 No. 49� Landlord and Tenant (Rental Bonds) Act 1977 No. 44.� Letona Co-operative (Financial Assistance) Act 1993 No. 85.� Mock Auctions Act 1973 No. 17.� Motor Dealers Act 1974 No. 52.� Motor Vehicle Repairs Act 1980 No. 71.� Pawnbrokers & Secondhand Dealers� Act 1996 No. 13.� Prices Regulation Act 1948 No. 26.� Property, Stock and Business Agents Act 1941 No. 28.� Registration of Interests in Goods Act 1986 No. 37.� Residential Parks Act 1998 No. 142.� Residential Tenancies Act 1987 No. 26.� Residential Tribunal Act 1998 No. 168.� Retirement Villages Act 1999 No. 81.� Strata Schemes Management Act 1996 No. 138.� Trade Measurement Act 1989 No. 233.� Trade Measurement Administration Act 1989 No. 234.� Travel Agents Act 1986 No. 5.� Valuers Registration Act 1975 No. 92.� Warehousemen�s Liens Act 1935 No. 19.

NSW Department of Fair Trading Annual Report 2000-2001 Page 1

From the MinisterThe Hon John Watkins, MPMinister for Fair TradingParliament House Sydney

Dear Mr WatkinsI am pleased to present the AnnualReport of the Department of FairTrading for the year ended 30 June2001.

The Report has been prepared forpresentation to the Parliament of NewSouth Wales in accordance with therequirements of the Annual Reports(Departments) Act 1985 and the AnnualReports (Statutory Bodies) Act 1984.

The Report also fulfils the statutoryreporting requirements of theDirector-General under the:

� Fair Trading Act 1987

� Landlord and Tenant (Rental Bonds)Act 1977

� Residential Tenancies Act 1987

� Strata Schemes Management Act 1996

� Community Land Management Act1989.

D. B. O�ConnorDirector-GeneralDepartment of Fair Trading26 October 2001

Providing funding and establishing thelegislative framework that allows theDepartment of Fair Trading to operate isnot only a Government priority. A fairlyoperating marketplace is clearlymandated by the people. Last year thiswas demonstrated by the Departmentresponding to more than 800,000 fairtrading enquiries � just one part of theagency's operations.

To Fair Trading�s staff and executive I saycongratulations. I am sure that throughtheir continuing dedication andprofessionalism, the coming year willdeliver equally worthwhile results.

John WatkinsMinister for Fair Trading

In May 2001, I was pleased to announcea new record level of funding for theDepartment of Fair Trading. Theincreased budget testifies to the NewSouth Wales Government�s continuingand well founded belief in fair trading �in both the ideal and in the agencycharged with its delivery to the people ofthis State.

The Department once again proved itscapabilities and flexibility not only bycontinuing to deliver high quality andwell-balanced programs but also byseamlessly responding to additionalpressures � whether planned for or not.

Fair Trading�s preparations for theSydney Olympics were comprehensiveand thorough. Local consumers,businesses and visitors were treated tothe best Sydney could offer with littletaint of the greedy and unscrupulous.

A further challenge was the HIHinsurance collapse. The Department�srapid response to assisting homebuilding consumers and licensedcontractors was exemplary and anintegral part of the Government�s rescuepackage.

The Government took steps to provide anumber of new enforcement powers.These place the Department in a betterposition to deal more effectively withday to day breaches and allow for agreater focus on major enforcementissues. Reforms to home buildinglegislation, fitness club membershipsand consumer credit were just some ofthe significant gains for consumers.

Page 2 NSW Department of Fair Trading Annual Report 2000-2001

Where we are

Business & trader servicesTraders and business people can registerbusiness names and obtain the licencesand certificates they need to operate inNew South Wales. Builders andcontractors, people in theaccommodation and property servicesindustries and those engaged in sellinggoods or providing services can receiveinformation on their rights andobligations under fair trading laws.

Associations & Co-operativesWe actively encourage the formation anddevelopment of co-operatives and wehelp community groups establishthemselves as associations.

Fair Trading CentresWe operate Fair Trading Centres at the23 locations shown opposite. TheseCentres provide information andassistance on consumer issues, motorvehicles, home building and renovation,credit, property and tenancy issues, plusco-operatives and business nameregistration.

Office hoursYou can contact our Fair Trading Centresfrom Monday to Fridaybetween 8:30 am and 5:00 pm.

Government Access CentresSelected Fair Trading services are alsoavailable via Government Access Centres(GACs) and other agency locationsthroughout regional New South Wales.Call 13 32 20 for information on theservices available in these towns:

A system of licensing and theinvestigation of residential buildingcomplaints help ensure unqualified orinappropriate people do not work in theNSW home building industry. Thisprovides integrity to the industry andprotection for consumers from faulty orincomplete work.

Consumer helpConsumers of everyday goods andservices can use our Web site or contactour Fair Trading Centres to obtaininformation on their rights andresponsibilities and assistance withresolving disputes. People rentinghomes, buying or selling property orliving in strata scheme property can turnto us for information and assistance.

The Department of Fair Trading servesthe consumers and traders of NewSouth Wales. We safeguard consumerrights and advise business and traders onfair and ethical practice. Our customersinclude people renting homes and thosebuilding or renovating. There are stratascheme owners; people buying cars orlooking for consumer information. Alarge number are builders and peopleworking in a trade or running a business.

But our services go beyond thosedelivered to individuals. The legislativeframework we administer sets the sceneand the rules for fairness in thecountless daily transactions betweenconsumers and traders. Often behindthe scenes, unfair practices areinvestigated and prevented.

Goulburn

Tweed Heads

Lismore

Grafton

Coffs HarbourArmidale

Tamworth

Dubbo

Orange

Broken Hill

Wagga Wagga

Albury

Queanbeyan

Wollongong

Gosford

Newcastle

Port Macquarie

Sydney BlacktownHurstvilleLiverpoolParramattaPenrith

Call 13 32 20to reach your nearestFair Trading Centre

What we do

� Bathurst � Bega� Bowral � Cooma� Coonamble � Deniliquin� Dorrigo � Gilgandra� Grenfell � Griffith� Hillston � Kyogle� Maclean � Moree� Nambucca � Oberon� Ulladulla � West Wyalong� Wilcannia


Planning Framework 2001-2005heavy traffic areas. The outcomes aredescribed in the indicator tables on pages8, 14 and 26. While these early initiativesshow encouraging results, the indicatorsare new, and the Department is stillgaining experience in interpreting themand targeting its improvement activitiesaccordingly.

Corporate planDuring the year we again produced adetailed, annual corporate plan. Theplan covers the financial year and statesour key projects for that period. Itcomplements our long-term planningframework, which sets out the objectivesflowing from our functionalresponsibilities. This framework hasrecently been re-confirmed for theperiod 2001-2005.

Our Strategic IntentNew South Wales will be recognised forfairness and value in the marketplace.

Our MissionTo safeguard consumer rights and advisebusiness on fair, ethical practice.

We do this in regard to:

� consumer goods and services

� accommodation and property services

� home building.

Our values� Access and equity for customers

and staff.

� Integrity and professionalismin all we do.

� Safe, equitable, satisfyingwork environment.

� Innovation complementingthe strengths of the past.

� Openness in all our communication.

Performance reporting andqualityThis year�s annual report builds on theimprovements of the last two years toour performance planning, reportingand improvement activities.

The 1998-99 report had a new, simplerstructure based on the objectives in ourlong-term planning framework. In 1999-2000 we published the first results forfour indicators directly linked to theseobjectives. This year, these indicatorsappear again, now with two years� worthof results. Over the medium term, theindicators are being used, instead ofguided self-assessment, as the basis ofclosely targeted quality improvementinitiatives.

The key initiatives taken this year relatedto improving the accuracy of informationprovision, and reducing waiting times in

� Innovation and continuousimprovement of systems focussed oncustomer needs

� Staff development/empowerment;systems and culture oriented tosupporting staff performance

� Economical, efficient and customer-focused operations

Accountable use of publicresources

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ne Appropriate safeguards forconsumers with minimalrestrictions on business andtraders

� Policy framework creates a balancebetween interests of consumers andtraders

� 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/registration process

� Provision of clear, accurateinformation to consumers and traders

� Effective compliance monitoring andenforcement

� Reliable licensing/registration/certification information

Maximum compliance withregulatory requirements

Ob

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Two

Divisional objectives StrategiesCorporate objectivesand outcomes

The Department of Fair Trading�s programs will contribute to social justice outcomes forvulnerable, geographically remote and disadvantaged groups.


Director-General's ReportAlthough punctuated by the OlympicGames and the HIH collapse, our yearwas characterised by continuing effortstowards customer service improvementsand strengthening the legal frameworkneeded to protect consumers from loss.With the enthusiasm and skill of ourdedicated staff we were rewarded inboth endeavours. Many serviceimprovements are underway and morewill follow. All are designed to provideour customers with fair access toinformation and quality services. Thelegal changes not only benefitconsumers and people building orrenovating their home but the integrityof certain industries as well.

The OlympicsFor us, the �best Games ever� were theculmination of several years of planningto minimise the likelihood of unfairtrading and to prepare for an influx ofvisitors, unfamiliar with New SouthWales� fair trading laws. Our work withGames authorities ensured fair tradingwas on the Olympic agenda from theoutset. Before and throughout theGames our inspectors were visiblereminders that New South Wales wouldnot tolerate the unscrupulous. When thevisitors arrived our Traveller ConsumerHelpline was there to provideinformation around the clock, to getinvolved and to provide solutions. Thatthere were relatively few fair tradingproblems may also be seen as anindicator of the generally high ethicalstandards embraced by commerce inNew South Wales. I believe it�ssomething the broader businesscommunity should be proud of.

HIHA major challenge arose with thecollapse of the HIH Group. The Groupwas a significant home warranty insurerin terms of the Home Building Act. Itscollapse in mid March 2001 meant theDepartment quickly became deeplyengaged. We used a hotline to gauge theextent of the impact on consumers andcontractors and early work involvedcooperating with the Department ofCommunity Services to assessapplications for emergency assistance

from people facing the prospect ofhaving nowhere to live. The passing ofthe New South Wales Government�s$600 million rescue package in May2001, included the establishment of theBuilding Insurers Guarantee Fund. TheFund provides home owners who werebeneficiaries under home warrantyinsurance policies issued by the HIHGroup with the same level of indemnity.Besides assisting HIH victims, the Fundis designed to minimise the impact ofsimilar future events.

To be a licensed builder or contractor inNew South Wales, a person needs validhome warranty insurance cover toprotect their clients against faulty orincomplete work. HIH left many ofthese people uninsured and technicallyunable to continue working. It was apriority for us to work with industryassociations and other insurers to ensureinsurance applications were processed asquickly as possible. At the end of thereporting year these efforts werecontinuing.

Customer service improvementsWe began several initiatives anddevelopments that will lead to furtherimprovements to our customer service.We commenced a major overhaul of ourWeb site. Improvements will include asimpler user interface to makenavigation more straight forward,content is being rationalised to improveconsistency and new architecture willensure the site is optimised forelectronic service delivery.

Another project, on 'seamless customerservice,' is still in its very early stages butwill yield benefits for our long-termplanning. So far the project has helpedus get a clearer sense of who ourcustomers are and what they need fromus. In the coming years thisunderstanding will begin to inform ourapproach to our customer contactservices.

We relocated two Fair Trading Centresto provide better access and facilities forcustomers. More Aboriginal people havebeen employed to ensure that services to

the Aboriginal and Torres Strait Islandercommunity are delivered appropriately.Several technical infrastructure projectsare underway. A new local and wide areanetwork, new operating system and newsoftware will provide customers withfaster, more consistent levels of servicearound the state. We introduced a newflexible working hours agreement forstaff. This is providing the Departmentwith a more flexible workforce whilegiving our staff more scope to balancework and personal commitments.

We continued the expansion of ourRegional Access Program to give ruraland remote communities fairer access toour services. This involves staff fromour regional offices making regular visitsto smaller communities whereindividuals or businesses can be assisted.There are now 55 small communities onthe circuit and the number growsannually. In the coming year we expectto extend our reach even further as moreGovernment Access Centres areestablished in regional centres.

Following an independent review, theGovernment has agreed that the FairTrading Tribunal (FTT) and theResidential Tribunal (RT) will bereplaced by the Consumer, Trader andTenancy Tribunal (CTTT) early in 2002.Like its predecessors, the CTTT will beindependent and will deal with all theissues handled by the existing tribunals.In terms of the accommodation andadministrative infrastructure provided tothe tribunals by Fair Trading, there willbe valuable efficiency gains. Moreimportantly, customers will benefit byimproved access, streamlined proceduresand more consistent and high qualitydecision making. Extensive consultationwith stakeholder groups will occurbefore the the new tribunal passes intolaw.

Reducing consumer lossThe year provided significant fair tradingreforms designed to minimise consumerloss. People joining fitness clubs, whopreviously lost anything up to threeyears worth of prepaid fees when a clubbecame insolvent, have a new


complemented by education. Thelaunch of Money Stuff was an importantstep forward in reaching the youthmarket. This specially designed packageprovides high school students and otheryoung people with information on usingcredit, renting and buying a car. Thechallenging, interactive package includesan award winning Web site, video andteachers package. It has been wellreceived. The inaugural ConsumerWeek focused on credit cardovercommittment. A consumer hotlineoperated during the week proved to be avaluable source of community attitudesand behaviour towards credit. Theinformation gathered will contribute tocooperative national efforts to ensurethat credit providers adopt moreresponsible lending practices, with aview to reducing the number ofconsumers who are carryingunacceptable levels of credit card debt.

The coming yearI have already mentioned severalcontinuing projects relating totechnology and customer services thatwill provide benefits in the coming year.However, other developments are alsoon the agenda. People using consumercredit are set for a major gain. With theConsumer Credit Code amended torequire lenders to disclose a comparisoninterest rate, consumers will be able tomake straightforward comparisonsbetween loans offered by differentlenders. This may also have a positiveimpact on credit industry competition.

Regional and rural communities cananticipate an increased focus on thedevelopment of co-operatives in theirareas following the recent reorganisationof the Registry of Co-operatives.

Government licensing is set for anoverhaul. The New South WalesGovernment has commenced a majorproject intended to lead to aconsolidated system for all Governmentlicenses. Fair Trading has an extensivelicensing system covering builders,tradespeople and businesses rangingfrom motor dealers to privateemployment agents. Because of this the

Department is heavily involved in thedevelopment. Already our BusinessLicence Information Service has beenrecognised as a potential entry point forall licences � not just business.

The focus of our compliance activitieswill shift. The new enforcement powersmentioned earlier have given us theincreased flexibility to deal moreeffectively with everyday fair tradingbreaches. With that behind us we will beable to devote more of our resources topursuing the bigger, more critical caseswhere rapid, intensive investigation andfast court action will be the priority.

Contrasted against serviceimprovements, changes to legislationand better enforcement are the inauguralConsumer Protection Awards. Thesewill be presented during ConsumerWeek in November 2001. These awardsapproach fair trading from a vastlydifferent perspective - recognising theefforts of the many individuals andorganisations working to make NSW abetter and fairer marketplace.

The added responsibilities imposed bythe 2000 Olympics put considerablestrain on our staff. Yet, they were able tocope with this as well as deliver anoutstandingly successful year. I amgrateful for their dedication andprofessionalism. I am confident we canbuild on our achievements this year andbe able to report equally successfulresults next year.

David O�ConnorDirector-GeneralDepartment of Fair Trading

protection. Fitness centres may nowonly accept prepayments for a maximumof one year. Legislation has been passedto curb the activities of so-called pay daylenders. These lenders had preyed onthe desperate by advertising short termloans in a way that disguised interestrates ranging from 350% to 1000% perannum. The legislation will bring payday lenders under the Consumer CreditCode and will require them to state thecharge for credit as an annual percentagerate.

Some retailers have been overchargingconsumers by including the packagingwhen weighing goods sold by weight. Itwill be more difficult to continue thisillegal practice due to amendments totrade measurement legislation. Theamendments clarify retailers� obligationsand make it clear that the weight ofpackaging cannot be part of the pricecalculation.

Consumer protection in the homebuilding industry has been significantlyboosted. Stronger licensingrequirements and faster disciplinaryprocesses will help stop incompetent andinappropriate people from working inthe industry. There are increasedpenalties for unlicensed and uninsuredwork. The insurance scheme will bemade fairer and more accountable. Animproved dispute resolution system andscope to order the completion of workare other important features.

The Government introduced twoimportant changes to the Fair Trading Actthat now provide new, everydayenforcement tools. When we see the riskthat a licensee will continue withbehaviour that may result in consumerloss, their licence can now be suspendedfor 60 days or longer until morepermanent court action can be taken.Advertisers who make apparentlyoutrageous claims about their productsor services may be notified to providesubstantiation or face more serioussanctions.

In a balanced fair trading regime,legislation and enforcement is


Our Structure

Fair Trading Standards & Registers11% $15.3M

Tribunals19% $25.8M

Consumer & Trader

Services47% $62.3M

Fair Trading Strategy7% $9.5M

Marketplace Performance16% $20.7M

Fair Trading Standards & Registers15% 189 staff

Tribunals17% 208 staff

Consumer & Trader

Services48% 582 staff

Fair Trading Strategy6% 75 staff

Marketplace Performance14% 165 staff

DirectorCompliance

&Standards

Chris Hanlon

DirectorLegal

Services

David Catt

DirectorCustomerServices

Rod Stowe

� Prosecutions� Civil litigation� Advocacy� Advisings

� Fair trading;Real estate;Buildinginvestigations

� Product safety� Trade

measurement

� Fair TradingCentresaround NSW.

� Information,complainthandling andservices toconsumersand traders onall aspects offair trading

DirectorLicensing &Registration

ServicesJohn Vernon

(acting)

� Businessnames

� Businesslicences(exceptbuilding)

� Associations

DirectorHome

Building

Peter Smith

� Buildinglicensing

� Buildinginsurance

� Disputemanagementservice

DirectorManagement

Services

Michael Silk

� Administration� Finance� Human

resources� Information

technology� Tribunals

administration

DirectorProjects,

Funding &Equity

Susan Dixon

� Strategicprojects

� Research andequity

� Fundingprograms

� Marketing

REVS

Steve NewtonGeneralManager

Registry ofCooperatives

Paul ColesGeneralManager(acting)

� Renting services� Strata schemes &

mediation services

� Strategic policy� Legislation� Planning and reporting� Ministerial and

stakeholder liaison

Program Allocations - Expenses Program Allocations - Average Staff


Highlights2000-2001 The Future

� October 2000 � A new flexible working hours agreementprovides staff with improved capacity to manage workcommitments.

� December 2000 � The Rental Bond Internet Service (RBIS)enables real estate agents to authorise bond refunds 24 hours aday, seven days a week.

� May 2001 � Hurstville Fair Trading Centre co-locates withtribunals to provide improved customer access and services.

� June 2001 � New IT infrastructure approved to provide remoteand rural customers with service access comparable to Sydney.

� June 2001 � Aboriginal Customer Service Officers increase to14 with recruitment of two additional officers.

� June 2001 � Commencement of credit card facilities to purchaseREVS certificates from the Web site.

� Aboriginal and Torres Strait Islander staffrepresentation to be maintained at least at 3%.

� REVS customers order certificates throughlinks from major internet automotive sites.

� DFT licensing systems integrated into NSWGovernment�s connectingBusiness On-LineLicensing Project.

� Reorganisation of the Registry of Co-Operatives sees increased focus ondevelopment of the co-operative sector,particularly in regional and ruralcommunities.

� August 2000 � Money Stuff consumer information package.

� September/October 2000 � DFT�s Olympics complianceprogram and Traveller Consumer Helpline results in negligiblefair trading problems for locals or visitors.

� November 2000 � Inaugural Consumer Week focuses on creditovercommittment.

� November 2000 � DFT now administers safety laws on supplyand installation of gas appliances.

� March 2001 � Trade measurement laws toughened to reducepackaging related overcharging.

� May 2001 � NSW�s REVS customers now access Queensland�sflood damaged vehicles database.

� June 2001 � Approval to recruit 15 additional investigators tofocus on residential home building.

� June 2001 � DFT expands customer services to smaller countrytowns through 7 Government Access Centres (GACs) and 3Business Enterprise Centres.

� Increasing use of more flexible and effectivecompliance strategies to curb unfair trading.

� Continued cooperation with Australian andglobal efforts to detect and stop suspecte-commerce activities.

� Traveller Consumer Helpline to continueassisting local and overseas visitors.

� Redesigned DFT Web site to improvecustomer access to information and services.

� Increasing numbers of remote and ruralcommunities gain faster, easier access to DFTservices.

� Consumer Protection Awards recognisebusiness and community achievements in fairtrading.

� Further expansion of regional customer contactpoints through a number of GovernmentAccess Centres.

� August 2000 � new provision under Fair Trading Act allowsimmediate suspension of licences of unfair traders.

� March 2001 � Potential for consumer loss reduced by limitingfitness centre membership prepayments to a maximum 12months.

� June 2001 � Pay day lenders curbed by Consumer Credit Codeamendment enforcing full interest rate disclosure.

� May 2001 � Home Building Legislation Amendment Bill 2001to boost consumer protection through stronger licensing,enforcement and improved insurance.

� June 2001 � Government agrees to establish the Consumer,Trader and Tenancy Tribunal - to replace the Fair TradingTribunal and the Residential Tribunal.

� Consumers will be able to see the full cost of aloan by the inclusion of a comparison rate inadvertising for all fixed term credit.

� Completion of all National CompetitionPolicy reviews by July 2002.

� Options explored for rural petrol pricereduction through the establishment ofcooperatives to operate bulk fuel purchasingenterprises.

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Appropriate safeguards for consumerswith minimal restrictions on business and traders

This is the first of two core objectives that contribute to our strategic intent of havingNSW recognised for fairness and value in the marketplace. In the fields of consumergoods and services, accommodation and property services and home building weaim to develop and maintain a policy and legislative framework that creates abalance between the interests of consumers and traders.

Performance information

Key outcome/outcome measure Results 98-99 99-00 00-01

Outcome: Appropriate safeguards for consumers withminimal restrictions on business and traders

Measure: Proportion of legislation assessed as meeting netpublic benefit test.

Interpretation/commentIt is extremely hard to devise a methodology for directly measuring the �fairness� of the policy and legislative framework to allsections of the community. The Department uses an indirect measure which shows the proportion of legislation which hasundergone a rigorous process to ensure that it is necessary. As part of the National Competition Policy review program describedlater in this report, a net public benefit test is applied, and this involves examining both social and economic factors. The tableabove reflects the proportion of legislation which, to date, has undergone this test or a similar process. During 2000-2001,substantial progress was made with a significant number of further reviews (work on which is described elsewhere in this report)but which, owing to the need to allow time for substantial public consultation, are not yet complete. The work done this year isthus not yet reflected in the above table, but as the current reviews are completed, the percentage of legislation which has beensubjected to scrutiny by this or an equivalent process will progressively move closer to 100%.

45% 55% 60%

Objective One

Policy developments,reviews and reforms

HIH collapseWhen the major insurer HIH collapsedon 15 March 2001, it created, amongstother things, a range of serious homewarranty insurance difficulties forconsumers, builders and developers inNew South Wales. Consumers withunfinished or faulty building workfound themselves unable to claimagainst what had become worthlesspolicies. Builders, contractors anddevelopers found themselves withoutcurrent home warranty insurance � anessential element of being licensed tooperate in NSW.

A hot line was quickly established toobtain details of the consumers andtraders who were affected. As a short-

term measure to assist some peoplefacing the prospect of having nowhere tolive, we worked with the Department ofCommunity Services in assessingapplications for emergency Governmentassistance. By 12 May 2001, theGovernment announced a $600 Mrescue package. It would assist thosewith home warranty insurance claimsand others with motor vehicle relatedpersonal injury claims who wouldotherwise have claimed against policieswritten by the HIH Group.

The rescue package was enabled by theInsurance (Policyholders Protection)Legislation Amendment Act 2001, passed byParliament on 30 June 2001. Inparticular, the Act establishes theBuilding Insurers Guarantee Fund � tobe administered by the Building InsurersGuarantee Corporation. The Fundprovides indemnity for home owners to

the same extent that would have appliedunder home warranty policies issued bythe HIH Group. However, builders anddevelopers are expressly prevented fromclaiming on the State indemnity.

By 30 June 2001, claims to the value of$1,175,074 had been paid to 15 familiesunder the rescue package.

From the industry perspective, thecollapse created particularly seriousproblems for contractors previouslyinsured with HIH. Licensingrequirements made it imperative thatthese people found alternative cover asquickly as possible. To expedite this weworked closely with other approvedhome warranty insurers to make sureinsurance applications and associatedbacklogs were processed as quickly aspossible. To support this work wesponsored insurance clinics forcontractors in Newcastle and Western


Sydney. In addition all licensedcontractors (over 150,000) received aletter advising them of the steps taken bythe Government and the options nowavailable to them.

More recently, we have produced factsheets for consumers and contractorsthat clarify their positions in terms ofwhat can be claimed and who is coveredby the Government�s rescue package.

Olympics and tenancyWe commissioned the rental marketmonitoring project in the lead-up to the2000 Olympics to identify any unusualincreases in rent movements. Afterbeginning in March 1999, the projectsaw the production of seven quarterlyreports � the final being for theSeptember 2000 quarter.

The Project Summary found thatoverall, the impact of the Olympics onthe rental market was as anticipated bythe 1998 Report: 2000 Olympics and theResidential Tenancy Market. The data didnot provide evidence of across the boardtrends in relation to increases in medianrents for the Sydney Statistical Division.The primary impact of the Olympicsappears to have been some inflationarypressures in sub markets � reflected inaccelerated gentrification in localgovernment areas near the HomebushBay site.

The contribution of the GST to rentalmovements in the latter part of the studyperiod could not be determined but it ispossible the GST could havecompounded inflationary pressures.

We continued our participation in theOlympic Coordination Authority�sSocial Impact Advisory Committee inthe lead up to the Games. TheCommittee, comprising representativesfrom both Government and communityorganisations, took a keen interest in theGames� impact on the housing marketand was regularly updated on the resultsof the Department�s rental marketmonitoring projects.

Utilities and ConsumerProtectionThe NSW Government is currentlyintroducing changes to the retail energymarket that are designed to increasecompetition and improve services toconsumers. Throughout the year theDepartment of Fair Trading has beenpreparing for these changes � working

to protect the interests of NSWresidential and small business gas andelectricity consumers. We have activelysupported the Government�s move toensure that competitive arrangementsand regulation in the gas and electricitymarkets converge as much as possible.Common consumer protection issuesinclude: requirements for a marketingcode of conduct; customer supplycontracts; complaints resolution;customer consent for transfer; securityof information; a retailer of last resortscheme and price regulation.

GasSome business customers can alreadychoose their gas retailer and from 1January 2002 this will be extended to allNSW gas consumers.

We participated in the Gas Retail ProjectSteering Committee and the Gas RetailProject Consumer Protection WorkingGroup. (The Gas Retail Project ismanaged by the Ministry of Energy andUtilities). We also attended meetings ofthe Inter-Agency Committee on GasReform and the Energy SteeringCommittee to provide advice onconsumer protection measures for thefully competitive gas market.

As well as participating in the Gas RetailProject we made numerous submissionsto the Ministry of Energy and Utilitieson:

� the review of the Gas Supply(Consumer Protection) Regulation

� development of a Policy Frameworkfor the fully competitive gas market

� development of a Marketing Code ofConduct for gas retailers

� the proposed Gas Supply Amendment(Retail Competition) Bill

� other consumer protection measuresincluding a retailer of last resortscheme for the NSW gas market.

AGL has now joined the Energy andWater Ombudsman (NSW) Scheme(EWON). This means that most NSWgas customers can now take complaintsto the Ombudsman. It is proposed thatafter the introduction of full retailcompetition, all NSW gas retailers willbe required to join EWON or anotherindustry ombudsman scheme approvedby the Minister for Energy. We continueto work closely with EWON to ensuresmall gas customers have access toquick, effective and cheap disputeresolution.

ElectricityFull retail competition in electricity hasbeen introduced in stages. Commercialcustomers have been able to choose theirretailer since 1 January 2001. Residentialcustomers will have this facility from 1January 2002. The Department is amember of several working groups setup by the NSW Treasury to developarrangements for the successfulintroduction of full retail competition.

Reducing graffitiIn December 2000, the Minister for FairTrading launched the AustralianRetailers Association�s VoluntaryIndustry Strategy on Graffiti.

The Strategy enlists the support ofretailers in adopting a range of securitymeasures designed to reduce themisuse of products to create graffiti.For example, it suggests that spray paintcans and felt pens be secured in placeswhere staff can see them, kept behindcounters or removed from self-serviceaccess and produced only uponrequest. The Strategy also encouragesretailers to ask customers how theyintend to use the products and torefuse to sell to them if they havedoubts about their end use.

The Department produced a poster fordisplay in stores, which remindsconsumers of the penalties for misuse ofpaints and pens.

Review of Tenants� Advice andAdvocacy Program (TAAP)This State-wide program funds non-government organisations to providetenancy information, advice andadvocacy services to public and privatetenants through a combination of directcasework and community education.

During the past year, we conducted afundamental review of the program. Thepurpose was twofold. Firstly to ensurethat TAAP provides services to thosemost in need � including people inrural and regional communities.Secondly, that it delivers services in themost efficient and effective manner.

TAAP funding will not be reduced as aresult of the review. However, thereview should ensure more effectiveimplementation of the program�s aimsthat:

� tenants� needs for tenancy advice andadvocacy services are met


� tenants� capacity to solve theirproblems is enhanced

� the level of awareness of tenancyrights in the community and fairnessin the residential tenancy market isincreased.

The services funded by TAAP have beenasked to comment on the final reportfrom the review.

Consumer Credit CodePay day lendersDuring 2000, a new industry emergedwhich purported to service a �niche�market � short term low value loans,marketed as credit to meet the financialneeds of consumers until the next payday � hence �pay day loans�. In reality,these lenders are high interest lenders. Ifannualised, their fees would amount toan annual percentage rate of between350% and 1000%. These lenders alsoengage in other unsavoury practices suchas taking securities over householdgoods for very small loans. As well ascharging massive fees for late payments,they have been repossessing goods if theconsumer was as little as one day late inmaking a payment.

Pay day lenders were able to operate bytaking advantage of an exemption in theConsumer Credit Code which had notbeen intended to exempt such loansfrom the Code. The Ministerial Councilon Consumer Affairs (MCCA) agreed toan amendment to bring pay day lendersunder the Code. Under Australia�sUniform Credit Laws Agreement,Queensland would implement anamendment such as this which wouldthen apply in most other states andterritories, including New South Wales.However, an early election in that statedelayed the legislative process so NewSouth Wales introduced its ownlegislation into Parliament which wasenacted in June 2001.

The New South Wales Amendment willbring pay day lenders under the Codeand will require them to state the chargefor credit as an annual percentage rate.As well, the maximum annualpercentage rate will be defined toinclude fees as well as interest so that thetrue cost of credit cannot be hidden inexorbitant fees.

Credit card overcommitmentIn July 2000 the Minister took a paper tothe Ministerial Council on ConsumerAffairs (MCCA), outlining his concerns

about credit card overcommitment.Following on from this, as part ofConsumer Week in November 2000,consumers were invited to contributeto a credit phone-in to let theDepartment know about their creditcard experiences. In all, 1096 peoplerang to provide information. The vastmajority cited overcommitment as aproblem and 84% said they had beenoffered credit they could not reallyafford. However, almost all acceptedthe credit because they needed themoney.

60% of callers reported theiropposition to receiving unsolicitedmail offering credit cards or raisedlimits � 20% of which werepreapproved. A large number of callerswere angry about being harassed bybank staff to take out more credit whenthey were making a payment.

As a result of the phone-in, theMinister called a round tableconference to discuss the issues and tolook at possible solutions. Major creditcard issuers as well as consumeradvocates and governmentrepresentatives attended theconference. During the conference,some card issuers offered to giveinformation on their assessment andscoring practices to the Department ofFair Trading. The Minister asked theDepartment to conduct research intothese areas and to provide a report onthe findings to MCCA in July 2001.

Mandatory Comparison RateIn mid 2000, the Minister tabled anexposure draft bill in the New SouthWales Parliament on mandatorycomparison rates. A comparison rateidentifies the true cost of credit becauseit factors in not only the interest rate,but also the fees and charges related to aloan. It helps consumers pick thecheapest loan � which may not alwaysbe the one with the lowest interest rate.

The proposal would require that acomparison rate must be stated inadvertisements for fixed term credit thatstate an interest rate. Consumers wouldalso be able to obtain comparison rateinformation from credit providers,finance brokers and linked traders andwould be provided with a comparisonrate schedule before they applied for aloan. Other States and Territories haveagreed to adopt the NSW proposal and afurther draft bill was released for

consultation in March 2001. It isexpected that it will be incorporatedinto the Uniform Consumer CreditCode in late 2001.

BankingThere have been many developmentsin banking during the year and we havetried to seize every opportunity to raiseissues affecting NSW consumers.Branch closures, an emphasis onelectronic banking and increases in feesand charges have continued at the sametime as banks have announced recordprofits.

A major paper on minimum servicestandards for banks was presented byNSW at the annual meeting of state andfederal consumer affairs Ministers. Thisincluded recommendations for basicbank accounts, a branch closure protocoland improved disclosure of fees toconsumers at the time of transaction.These issues were also raised in NSWGovernment submissions to a federalparliamentary inquiry into fees onelectronic and telephone banking andthe review of the code of bankingpractice.

Bank fees cost Australian consumersabout $430 million in 2000. There islittle doubt these fees and charges are afinancial burden on consumers.Accordingly, information about how tominimise these is important. Weproduced a fact sheet on reducingtransaction costs to assist consumersmake choices about basic accounts, feeexemptions and cost-effective bankingpatterns.

Motor Trade ReviewThe legislation which regulates motordealers and repairers (Motor Dealers Actand Motor Vehicle Repairs Act), is beingreviewed as part of the Government�slegislation review commitments underthe National Competition Policy (NCP)Agreement.

In February 2001, the Minister releaseddraft legislation (Motor Trade LegislationAmendment Bill 2001) which containsreforms arising from this review. Thedraft bill proposed a number of reformsincluding a cooling-off period for carsbought on credit, as well as measures toimprove consumer protection, removeunnecessary regulation, clarify andupdate existing legislation and improveadministration.


� Motor Trade Advisory Council(MTAC)

� Home Building Advisory Council(HBAC)

� Retirement Villages AdvisoryCouncil (RVAC).

Council members are either industryor consumer representatives and haveacademic, professional, technical ortrade union experience. In July 2000, 15Members were appointed to each of thefive Advisory Councils, with two-yearterms of office expiring on 18 July 2002.

Besides providing advice, the Ministermay ask the Councils to consider andreport on particular issues. The Councilsare examining the following issues indepth and will make recommendationsto the Minister over the coming year onhow matters might be improved for thecommunity.

Council IssueFTAC � co-operatives

� e-commercePSAC � problems with tenant�s

databases� auction processes� compliance activities

MTAC � Motor Trades Reviewfeedback

� extended warranties� shortage of skilled

tradespeople� access to specialised tools,

equipment and technicalinformation

� cost of genuine partsHBAC � commentary on proposed

reforms to the HomeBuilding Act

� continuing professionaleducation within theindustry

RVAC � implementation of the newretirement villageslegislation, includingrecommendationsconcerning education forindustry participants

Reflecting the Government�scommitment to regional and rural NSW,each Council includes members wholive in country NSW. As well, someCouncil meetings are convenedoutside the Sydney region. During theyear, RVAC met at Tweed Heads,FTAC at Bathurst and PSAC at Dubbo.The two remaining Councils plan toconvene meetings in regional NSWbefore the end of 2001. Regional

Petrol PricesThe price of petrol is a contentiousissue � especially for rural consumerswho often pay an extra 15 cents perlitre or up to $300 a year more thantheir Sydney counterparts.

Although regulating the petrol industryis chiefly the responsibility of theCommonwealth, the NSW Governmenthas continued throughout the year tobuild on its state-based initiatives aimedat promoting a fairer deal for motorists.

Since March 2000, when the NSWGovernment required all petrol stationsto display the price of unleaded petrol,our inspectors have been busy ensuringthat proprietors comply with the newsignage standard. The NSW Governmenthas also been active this year in promotingthe findings of two research studiesfunded through our Co-operativeDevelopment Fund. These studiesconcluded that encouraging independentoil companies to extend into rural andregional areas is the best way to reducepetrol prices. The studies also foundthat co-operatives could play a vitalrole in solving the gap between city andcountry petrol prices by establishing bulkfuel purchasing enterprises.

In November 2000, we conducted thefirst of a series of petrol seminars inregional centres around NSW. Bypromoting the findings of the studies,we aim to encourage interested groupsto explore the co-operative model forestablishing �petrol banks� or petrolbuyer co-operatives. The first seminarheld at Nowra attracted representativesfrom two independent petrol suppliersas well as a number of interested partiesfrom the local community and industry.More seminars are planned for 2001.

Residential park �casuals�The Residential Parks Act 1998 providessignificant protection for residents ofcaravan parks, relocatable home villagesand manufactured home estates �known collectively as �residential parks�.However, the Act only applies topermanent residents � people who livein these parks as their principal place ofresidence.

There is also a large group of parkoccupants known as �casuals�. Thesepeople have a home elsewhere, butthey place their own moveabledwelling on a site in a residential parkfor regular recreational use. Many of

these arrangements have been in placefor several years and annual fees arecustomarily paid to the park owner foroccupation rights.

There are presently no laws in placeapplying to casual park occupation andconcerns have been raised over theuncertainties that may exist over rightsand obligations of the parties, periods ofnotice for fee increases as well astermination of occupation rights anddispute resolution.

In late 2000, we carried out a review oflong-term casual occupancies andrecommended that some basic legislativeprovisions be introduced to remove theuncertainties and to provide basicconsumer protection. Therecommendations are underconsideration by the Government.

Review of Fair Trading andResidential TribunalsThe Fair Trading Tribunal and theResidential Tribunal came into beingwith the commencement of the FairTrading Tribunal Act 1998 and ResidentialTribunal Act 1998 on 1 March 1999. TheFair Trading Tribunal took over theresponsibility for consumer, commercial,motor vehicle and home buildingdisputes previously dealt with byindependent tribunals. The ResidentialTribunal took over the functions of theformer Residential Tenancies Tribunal.

The Tribunals legislation requires thatthe legislation and the operation of theTribunals be reviewed 2 years aftercommencement. An independentconsultant was engaged and the review,which included consultation withinterest groups, was carried out betweenJuly and December 2000.The consultantrecommended that the two Tribunals bemerged. Cabinet has since decided that anew Tribunal, called the Consumer,Trader and Tenancy Tribunal, with thecombined jurisdiction of the existingtribunals, will be established.

Advisory councilsFive Ministerial Advisory Councilsprovide advice to the Minister for FairTrading. The Fair Trading AdvisoryCouncil (FTAC) is a peak body whichprovides an integrated approach to thedevelopment of Fair Trading policy.The four other Councils are industrybased:

� Property Services Advisory Council(PSAC)


meetings generally coincide with apublic forum to assist consultationwith rural consumers and localindustry representatives.

Tenancy DatabasesTenant databases used to compile andsell information on tenants, are a causeof some concern in the community. In1998 the New South Wales Rental BondBoard approved a grant to the Councilof Social Service of New South Wales(NCOSS) to examine the impact oftenant databases as part of a widerproject examining the barriers to entryto private rental accommodation fordisadvantaged consumers.

Tenancy databases are also currentlybeing examined by the Property ServicesAdvisory Council. The Minister for FairTrading will consider the Council�srecommendations, together with thoseof NCOSS.

National CompetitionPolicy reviews

As part of the National CompetitionPolicy (NCP) Agreement, the NSWGovernment is committed to reviewingall legislation which impacts oncompetition. In NSW, 191 acts will bereviewed, of which, 30 fall within ourresponsibility. The NCP Agreementrequires all reviews to be completed andconsequential reforms to be in place byJuly 2002.

The Department has a number ofreviews under way including thefollowing:

� Business Names Act

� Conveyancers Licensing Act

� Employment Agents Act

� Fair Trading Act

� Funeral Funds Act

� Motor trades legislation

� Pawnbrokers and Second Hand Dealers Act

� Property, Stock and Business Agents Act

� Residential Tenancies Act

� Strata Schemes Management Act

� Valuers Registration Act.

The aim of the review process is toensure that Government regulatoryobjectives, such as the protection ofconsumers, are met as efficiently andcost effectively as possible. Theprocess of each review varies according

� Fair Trading Tribunal Act 1998

� Funeral Funds Act 1979

� Property Stock and Business Agents Act1941

� Residential Parks Act 1998

� Residential Tenancies Act 1987

� Residential Tribunal Act 1998

� Strata Schemes Management Act 1996

� Trade Measurement Administration Act1989

� Travel Agents Act 1996.

Other amendmentsA number of regulations were madeunder our regular SubordinateLegislation Review Program as well asfor policy and administrative reasons.These included:

� Associations Incorporation Amendment(Fees) Regulation 2001

� Business Names Amendment (Fees)Regulation 2001

� Community Land ManagementAmendment (Fees) Regulation 2001

� Conveyancers Licensing ManagementAmendment (Fees) Regulation 2001

� Cooperatives Amendment (Fees) Regulation2001

� Employment Agents Amendment (Fees)Regulation 2001

� Fair Trading Tribunal Amendment (Fees)Regulation 2001

� Funeral Funds (Fees) Regulation 2001

� Home Building Amendment (InsuranceExemptions) Regulation 2001

� Landlord and Tenant (Rental Bonds)Amendment (Interest Payable) Regulation2001

� Motor Dealers Amendment (Fees)Regulation 2001

� Motor Vehicle Repairs Amendment (Fees)Regulation 2001

� Pawnbrokers and Secondhand DealersAmendment (Fees) Regulation 2001

� Property, Stock and Business Agents(General) Amendment (Fees andContributions) Regulation 2001

� Residential Tribunal Amendment (Fees)Regulation 2001

� Strata Schemes Management Amendment(Fees) Regulation 2001

� Trade Measurement AdministrationAmendment (Fees) Regulation 2001

� Travel Agents Amendment (Fees)Regulation 2001

� Valuers Registration Amendment (Fees)Regulation 2001

to the impact of the legislation.However, the reviews always involveconsultation with consumers andinterest groups that are affected by thelegislation. Steering committeesformed to oversee the reviews haveincluded interdepartmental, industryand consumers representation.

We also release issues papers. Thesehelp consumers and interest groups toexamine current regulations andconsider options for change. A numberof reviews, such as the review of theStrata Schemes Management Act and thereview of the Fair Trading Act have alsoinvolved consultative forumsthroughout NSW. Where theGovernment has approved final reports,they have also been released for publiccomment.

Legislative changeThe legislation assented to during thefinancial year included:

� Fair Trading Amendment (Enforcementand Compliance Powers) Act 2000

� Home Building Amendment Act 2000

� Fitness Services (Pre-Paid Fees) Act 2000

� Business Licences Repeal and MiscellaneousAmendments Act 2001

� Trade Measurement Amendment Act 2001

� Strata Schemes Legislation Amendment Act2001

� Consumer Credit (NSW) Amendment(Pay Day Lenders) Bill 2001

� Home Building Legislation AmendmentBill 2001

� Insurance (Policyholders Protection)Legislation Amendment Bill 2001.

Statute law revisionIn line with the Government�s programof regular statute law revision a StatuteLaw (Miscellaneous Provisions) Bill wasprepared. This enabled us to makeminor, non-controversial amendmentsto the following Acts:

� Associations Incorporation Act 1984

� Business Names Act 1962

� Cooperative Housing and Starr BowkettSocieties Act 1998

� Community Land Management Act 1989

� Consumer Credit (NSW) Act 1995

� Conveyancers Licensing Act 1995

� Credit Act 1984

� Credit (Finance Brokers) Act 1984

� Credit (Home Finance Contracts) Act1984


� Community Land Management Regulation2000

� Conveyancers Licensing Amendment(Insurance Exemption) Regulation 2000

� Cooperative Housing and Starr-BowkettSocieties Regulation 2000

� Cooperatives Amendment (Accounts andAudit) Regulation 2000

� Cooperatives Amendment (Adoption ofProvisions of Corporations Law)Regulation 2000

� Electricity Safety (Electrical Installations)Amendment (Exemption) Regulation 2000

� Fair Trading (Product Safety Standards)Regulation 2000

� Gas Supply (Gas Meters) Amendment(Administration ) Regulation 2000

� Motor Dealers Amendment (Transitional)Regulation 2000

� Registration of Interests in GoodsAmendment (Registered Information)Regulation 2000

� Residential Tenancies (ResidentialPremises) Amendment (St Patrick�s Estate,Manly) Regulation 2000.

Important reformsAmongst the legislation assented toduring the year were a number ofimportant reforms in the areas of fairtrading, home building and trademeasurement.

The Fair Trading Amendment (Enforcementand Compliance Powers) Act 2000commenced on 1 August 2000. The Actincreases consumer protection byenabling the Director-General toimmediately suspend a trader�s licencefor up to 60 days. The suspension poweris now being used where the Director-General believes there is a reasonablelikelihood of consumers being exposedto further financial loss or harm if thelicensee continues trading. The reformwas necessary given the long delaysinvolved in court action or otherdisciplinary action under licensing Actsbefore a determination can be made. Seepage 15 for more information on itsapplication.

The Fitness Services (Pre-Paid Fees) Act2000 was passed by the NSWParliament to regulate the charging ofpre-paid fees by fitness serviceproviders. The Act commenced on 1March 2001. The Act reduces the riskof consumer loss by limiting fitnesscentre membership pre-payments to amaximum period of 12 months. It

addresses longstanding concerns aboutfitness centres closing abruptly, leavingconsumers who have made significantlong-term membership pre-payments,out-of-pocket. Pre-paid fees must notbe accepted unless the fitness centre isoperating or intends to commenceoperation within 3 months. Pre-paidfees received by a fitness centre that hasnot commenced operations must beplaced in a trust account. The trustaccount provisions are supported bythe Fitness Services (Pre-paid Fees)Regulation 2001 which commenced on 1July 2001.

The Trade Measurement Act 1989 wasamended by the NSW Parliament on 27and 28 March 2001. Known as the�Batch No.1 Amendments", thesecommenced on 1 July 2001. Thelegislation is uniform with most otherAustralian states and territories andapplies to all measurements made fortrade or business purposes and includessupermarket and other shop scales,petrol and LPG pumps, liquordispensers, weighbridges and otherindustrial scales. The amendments weredeveloped following consultation withthe other states and territories. They aimto improve the administration of thelegislation, for example, by clarifyingdefinitions, standards, measuring andlicense requirements, the powers ofinspectors and introducing some newoffences.

The Business Licenses Repeal andMiscellaneous Amendments Act 2001 wasproclaimed by the Governor in June2001. It commenced on 1 July 2001 andwas enacted for two main reasons.

� The former Business Licences Act ceasedto have any real relevance in themarketplace following the HighCourt�s decision in Ngo Ngo Ha vNew South Wales (1997) � ajudgement that rendered the principallicences administered under the Actunconstitutional.

� Progress in technology has renderedpaper-based systems, such as theMaster Licensing Scheme establishedunder the former Act, largelyredundant.

The repeal is consistent with theGovernment�s policy of only keepinglegislation on the statute books where itserves a purpose. In place of the Act, theGovernment is developing innovativeand technologically advanced methods

of minimising the administrativeimpact of government licensingregulation.

The Home Building Legislation AmendmentBill 2001 was introduced on 31 May2001. The reforms contained in the Billare intended to significantly improve thelevel of protection for consumers in theresidential building industry. This willbe achieved by:

� strengthening licensing requirementsby excluding bankrupt traders andpersons with unsatisfied Tribunalclaims against them

� speeding up the disciplinary process toremove incompetent and unfitpersons from the licensing system

� allowing the Director-General to makeorders for completion of work.

� increasing penalties for non-compliance with the Act to crackdown on unlicensed and uninsuredwork and for other offences

� making the insurance scheme fairerand more accountable

� establishing an early interventiondispute resolution system

� raising consumer awareness ofremedies that are available whenthings go wrong.


Objective Two

Monitoring andperformance

The �best Games ever�Our preparations leading up to and ourmonitoring throughout the Sydney 2000Olympic and Paralympic games, resultedin the two biggest events in Australiansporting and tourism history beingrelatively free of fair trading problems.

Our inspectors and investigators playeda key role in the good result. Prior to theGames, we conducted several hundredrandom inspections of traders operating

The inspection program continuedthroughout the Games period. By thetime the Paralympics were over, ourinspectors and investigators had carriedout 577 inspections, 450 trademeasurement tests, issued 31 cautionsand initiated two prosecutions.

Given the size of the events and thenumber of tourists and spectatorsinvolved, the problems detected wererelatively few, minor and quickly dealtwith. One example involved a toy inOlympic Park showbags that waswithdrawn from sale after beingidentified as a possible choking hazard.

in Sydney�s tourist precincts, includingDarling Harbour; Darlinghurst; TheRocks, the Sydney CBD as well asOlympic venues such as StadiumAustralia. The inspection programconcentrated on caterers, licensees,souvenir retailers, duty free stores andpreferred suppliers nominated bySOCOG. We particularly focussed onaccurate liquor measurement in bars,country of origin labelling, productsafety, business names registration, illegal�no refund� signs, price and contentslabelling of Games apparel and souvenirssold at retail outlets.

87% accuracy level 93% accuracy level

96% 97%

Maximum compliance with regulatory requirements

This is the second core objective contributing directly to our strategic intent. Thelegislative framework creates rights and obligations for business, traders andconsumers. Maximising compliance with these requirements ensures fairness in themarketplace. It�s an important part of our role, achieved by providing information andeducation for consumers and traders, compliance monitoring and enforcement,complaint handling and dispute resolution, and providing licensing, registration andcertification information.

Performance information

Key outcome/outcome measure Results 99-00 00-01

1.Outcome: Provision of accurate information to consumersand traders

Measure: Level of accuracy of information provided

2.Outcome: Effective compliance enforcementand monitoring

Measure: Percentage of prosecutions which are successful

Interpretation/comment1. The Department conducted its second structured survey to independently test the accuracy of information provided to

consumers and traders. ACNielsen was engaged to conduct a �shadow shopping� exercise. A sample of 387 calls were made tocustomer contact areas across the Department, and the response to a range of questions was rated for accuracy, based on sampleanswers provided in advance. The contractors found that accurate information was provided in 93% of calls. This resultappears to reflect targeted training which the Department initiated based on last year�s survey. This is a positive outcome.However, given the range and complexity of the legislation the Department deals with, this area will require continued actionto ensure high standards of service are maintained. The usefulness of the survey results will increase year to year as theDepartment gains more experience with monitoring, interpreting and acting on these results.

2. Successful prosecution means prosecutions resulting in conviction as well as prosecutions where the offence is proven but aconviction is not recorded.


Licensee Licence areaWestfield Concrete Co Pty Ltd Home buildingMr Romulo Tomassetti Home buildingMr Rocco Vitalone Home buildingMr Robert Hough Home buildingMr Stephen Browne Home buildingMr Peter Yassa Home buildingMr Robert Gough * Home buildingWashington Gray Pty Ltd * Home buildingMr Malik Drif * Home buildingChas. Lyons Pty Ltd Home buildingMr Graeme Gavin Motor dealingCaja Pty Ltd Motor vehicle repairsMr Graham Ball Real estateEpping Properties Pty Ltd Real estateMr David Hunt Real estateMr John Frederick Josephs Real estateMr Jeffrey Quick Real estateFirst Call Real Estate Pty Ltd Real estateMr Joseph Imbro Real estateMr Vincent Boulus Real estateMr John Sanidas Real estateBranch Enterprises Pt Real estate

* As at 30 June 2001, these matters are the subject of appeal to the AdministrativeDecisions Tribunal.

In another case, overcharging at theOlympic Super Store resulted in a $2000fine. We are confident that the vastmajority of Australian and overseasconsumers experienced very fewdifficulties with goods and services.

Enforcement strengthenedOver the last 12 months, several newlegislative initiatives have broadened theDepartment�s enforcement options.Combined with a May 2001 restructure,which concentrated all our majorcompliance functions into ourCompliance and Standards Division, theDepartment now has the armory andstructure to take faster, more effectiveaction against unscrupulous traders.

Substantiation NoticesThis useful addition to our compliancepowers began in May 2000. It involvedamendments to the Fair Trading Actwhich allow the Director-General toserve notice on a business to substantiateextravagant or highly questionableclaims about their products or services.Traders who fail to respond to a noticeor to substantiate the claims risk toughercompliance action by the Department.Over the year we issued 54 of thesenotices � several of which resulted intraders providing undertakings toimprove their conduct.

The following licensees and certificate holders received suspensions in 2000-2001

Suspension of licencesThe Department administers a widerange of business and occupationallicences. Since 1 August 2000,amendments to the Fair Trading Act allowthe Director-General to order theimmediate suspension of a businesslicence for up to 60 days � includingscope to extend the suspension wherewarranted. A suspension allows theDepartment to prevent the licensee fromcontracting with or continuing to dealwith consumers until more permanentmeasures are completed in either a LocalCourt or the Fair Trading Tribunal.

Extending the penalty notice schemeThe penalty notice scheme has nowbeen extended to cover the homebuilding and real estate industries. Thescheme was implemented gradually ineach industry. During the initial period,offenders received formal cautions, butafter several months the Departmentcommenced issuing penalty notices. SeeAppendix 4 for more information.

Fair trading investigationsIn one form or another, scams,exaggerated claims, trickery andbarefaced fraud have been anunfortunate dimension of humansociety ever since our ancestors firststarted trading. Some of the cases we

investigate each year involve traderswho may have lost sight of acceptablebusiness standards. In other cases, thepersons involved are not traders at all,but individuals who set out to profit bydeception alone. During 2000-2001, weacted against a number of major scamsand achieved some excellent results inthe name of fair trading.

Boss Communications Corp, AnthonyCarr, Valerie Taylor, United EquityThis scam involved consumers sendingcheques, money orders and credit cardauthorisations, for psychic reports andtarot card readings, to a post office box atMascot operated on behalf of BossCommunications Corp. Individualpayments ranged from $15 to $30.Estimates indicate that as many as83,000 letters containing up to $2.4million were sent to Boss during 2000-2001.

The use of a NSW post office box wasdesigned to deceive consumers intothinking that it was a local companypromotion. However, the holder of thepost office box was merely a NSWfreight company that redirected the mailto Canada. When the NSW freightcompany received a complaint about thescam, it contacted the Department andin March 2001, it voluntarily gave usmore than 5,500 letters it was holdingfrom two post office boxes associatedwith Boss. This interrupted the flow ofmail to the Canadian promoters � themost effective way for authorities to dealwith scams such as this.

On 26 April 2001 we obtained orders inthe NSW Supreme Court against Bossand its associates. The orders preventBoss from distributing mail anywhere inAustralia under the names of AnthonyCarr, Valerie Taylor and United Equity.The orders also prevent Boss fromdistributing any mail concerningsweepstakes, tarot readings, psychicreports or any similar promotions. TheSupreme Court made final orders on 21May 2001 that permanently prohibitBoss from mailing scam letters to anypart of Australia. The Court also orderedthat the 5,500 letters being held by theDepartment should be returned to thesenders. We estimate that up to $200,000will be returned to consumers.


Aus H20 Pty LtdOn 31 October 2000, the Ministerissued a public warning about the salesmethods of Aus H20. To promote theirwater filtration systems, Aus H20�s door-to-door demonstrators were misleadingpotential clients by conductingelectrolysis tests that gave a dramaticallyfalse impression of the quality of Sydneywater. On 19 December 2000 wecommenced Supreme Courtproceedings to prohibit Aus H2O fromthis conduct. The proceedings resultedin the company giving undertakings tothe Court to curtail the electrolysisdemonstrations. The Court made finalorders confirming the undertakings on 2April 2001.

Fury MaxFury Max, a business owned by SummitInvestments Australia Pty Ltd, had beenpromoting the sale of used motorvehicles through advertisements onSydney television. Their representationsincluded $1,500 cashback offers;purchasing cars for as little as $5 per day;providing gifts and prizes and havingfinance approved virtually on the spotover the phone. We had concerns aboutthe genuineness of the bonus offers andthe style of the advertisements. Thecompany subsequently agreed to makesignificant amendments to its advertisingto ensure that it complied with fairtrading laws.

Smith�s DiamondsRaymond Smith, trading as Smith�sDiamonds was the cause of consumercomplaints about the false value of thedisguised, flawed diamond jewellery hewas selling at alleged discount prices.The diamonds were treated by a processknown as �fracture filling�, where naturalflaws in the stones are concealed byfilling them with a resin � making themappear to be a better quality stone. Theprocess does not improve their qualityand actually makes the stones fragile andlikely to shatter if reset. On 18December 2000 we obtained SupremeCourt orders against Smith whichrestrained him from selling diamondjewellery unless he first obtained avaluation from a recognised andqualified valuer. There were allegedbreaches of these orders and we wereintending further legal action. However,Mr. Smith died suddenly in March2001.

Operama Productions Pty LtdIn March 2001, we became aware ofconcerns that Operama Productions Pty

Ltd, the promoters of special eventperformances of the opera Aida, mightbe unable to stage the events as planned.Tickets had been sold for performancesin Sydney, Canberra and the HunterValley, but in mid-March, GuiseppeRaffa, the main director of Operama,cancelled the performances and returnedto Spain.

Urgent inquiries with the ExecutiveProducer, Lambert Kassing, showed thatbetween $500,000 and $1M wasunaccounted for. We moved quickly andobtained urgent Supreme Court ordersrequiring the production of all booksand financial records and prohibiting theremaining persons associated withOperama from dealing with anycompany assets. Further orders severaldays later resulted in the appointment ofan administrator, who subsequentlyfound that more than $300,000remained missing.

We advised consumers who had paid fortickets by credit card to lodgeapplications with their credit providersfor a charge back so that the ticket costswould be re-credited to their accounts.Operama was put into liquidation inApril 2001 and we will provide a reportfor the Australian Securities andInvestments Commission. One result ofthe case is that the Department is nowconducting a thorough review of theEntertainment Industry Code of FairPractice, with a view to avoiding futureproblems with similar events andpromotions.

Connoisseur CardOn 12 April 2001, the Minister warnedNSW consumers to avoid a food andaccommodation membership schememarketed Australia-wide under thename Connoisseur Card and promotedin NSW by Sydney-based company;Neru Holdings Pty Ltd. The card cost$875.60 and allegedly entitled membersto free meals and other discounts onfood and accommodation atestablishments listed in the AustralianGood Food and Accommodation Guide.The Guide is a glossy, 500 page bookwhich claims that �every city and townhas been combed by our researcherswho inspect, rate and re-inspect eachhotel�. It is produced by Queenslandbased company � Pacific Good Food &Accommodation Guide Pty Ltd.

Careful reading of the membershipconditions revealed that the free mealwas only available if a full paying person

Kevin Trudeau and Shop America(Australasia) LimitedThe action we took against KevinTrudeau and Shop America in July 2000,stemmed from claims made about theMega Memory system and the AtkinsAnswer weight loss program. Theseproducts were included in 'infomercials'televised on the Shop America programon channel 10. Initially, we issuedsubstantiation notices under the newprovisions of the Fair Trading Act. WhenShop America was unable to substantiateits advertising claims, we obtainedenforceable undertakings in October2000 to withdraw the Mega Memoryinfomercials, amend the Atkins Answerinfomercial and to disclose to viewersthat Shop America�s infomercials arepaid advertising. Other infomercialsproduced by Shop America are beingclosely monitored.

Michael Helsby KnightKnight has generated continuousconsumer complaints since first comingto our attention some 10 years ago and isresponsible for a string of failed businessventures which have resulted insubstantial losses for his clients.

On 7 August 2000 Knight was bannedfrom trading in NSW for life followingaction taken by the Department in theNSW Supreme Court. He is nowresident in New Zealand and wasrecently declared bankrupt there. It isunderstood that creditors are alsoattempting to have him bankrupted inAustralia.

In December 2000 we began to receivecomplaints about Maxim EnergySystems Australia P/L (Maxim),regarding its failure to deliver goods ithad advertised � cosmetics and cheaplaptop computers. The company�sdirector, Warren David Lee, is a knownassociate of Knight and is currently thefocus of investigation by the NewZealand Commerce Commission.

We are investigating Knight to link withthe Maxim matter to establish before theSupreme Court that by recent conduct,Knight has breached the orders issuedand is in contempt of the Court. Ourinquiries are continuing with the full co-operation of fair trading authorities inVictoria and New Zealand. We are alsomaintaining close liaison with bankfraud investigators in both countries inattempts to trace the money trails for thevarious businesses.


accompanied the member, and choicewas limited to the cheapest main course.Other complaints we received from cardpurchasers include a diner who hadvisited three Connoisseur Clubrestaurants only to have his card rejectedby all three establishments. Allegationsinclude persons being misled by the salesstaff about the cost of the card and thebenefits that would be available to thecardholder and to being misled abouttheir rights to cancel the contract. TheNeru telemarketers approach consumerspretending to seek nominations for a�Chef of the Year� award and with offersof free meals. The card represents poorvalue for money and consumers shouldavoid being enticed to sign up.

Motor dealingWe have a long standing commitment tocombating unlicensed trading in motorvehicles and to ensuring that licensedmotor dealers comply with the MotorDealers Act. Our ongoing inspectionprogram involves a mix of remedialaction that includes prosecutions,injunctions, and penalty notices. This isbacked up by community education andtargeted publicity. In recent years, wehave adopted a more effective strategy todeal with unlicensed operators.Offenders are not only prosecutedthrough the Local Courts, but wherewarranted, injunctions are also soughtfrom the Supreme Court to preventthem from further dealing in motorvehicles. Offenders who continue tooperate in breach of the orders risk beingin contempt of the Court and may facegaol sentences.

Two significant cases during the yearwere those of John Stephen Rhodin andChris Sharp.

John Rhodin: On 4 June 2001 the NSWSupreme Court made an order underthe Fair Trading Act 1987 whichpermanently restrains John StephenRhodin from carrying on the business ofa motor dealer and from activitiesincluding advertising, buying or sellingmotor vehicles. The Court also placed acondition on any employment of MrRhodin by any licensed motor dealer.

This injunctive action was initiatedfollowing a lengthy and complexinvestigation, which also led to LocalCourt prosecutions against Mr Rhodin(currently adjourned for hearing). MrRhodin is widely known in the motortrade, having previously had control of

a prestige car dealership and involvementin the industry spanning more than 20years. His activities were of particularconcern as they included systematicabuse of the RTA registration transferprocedures and the illegal use ofgenuinely licensed motor dealerparticulars. The investigation alsoresulted in the cancellation of the motordealers licence of a close businessassociate, Roger Solomon Hassin.

Christopher Sharp: Mr Sharp is wellknown to the Department. In 1998 hewas convicted of unlicensed motordealing and the Department alsoobtained Supreme Court orders whichrestrained him from selling vehicleswithout the Department�s consent. MrSharp apparently chose to ignore theseorders, and the Department is againprosecuting him in the Local Court forhis second offence of unlicensed motordealing, as well as other offences underthe Fair Trading Act. After an initialhearing in May 2001, the matter wasadjourned until August 2001. TheDepartment is also taking action againstMr Sharp in the Supreme Court forcontempt of the 1998 Supreme Courtorders. The case was listed for hearing inJuly 2001.

Appendices 4, 5 and 6 provide moreinformation on action taken againstMotor Dealers.

Monitoring e-commerceBecause of difficult jurisdictional issues,Australian agencies have agreed that acoordinated approach is the mosteffective way to detect and crack downon suspect activities. We have nowparticipated in four sweeps ofinternational Web sites in a programcoordinated by the AustralianCompetition and ConsumerCommission (ACCC). We will continueto co-operate with other agencies inglobal efforts to ensure that fair tradingprinciples and laws are applied toe-commerce. A recent initiative has beenthe formation of a national workingparty to address the training needs ofcompliance officers involved incombating fraudulent e-commerce andcomputer based crime.

Home building investigationsOne of our major functions is to assessand investigate complaints aboutresidential home building. In 2000-2001we assessed more than 1,700 complaintsas well as undertaking a compliance

monitoring program. During the yearthe Minister increased the focus on thebuilding industry by approving thecreation of 15 additional investigativepositions. Six of these positions are toform a special investigation team toprovide an immediate response toserious and sensitive building issues.Another three positions are to bedeployed to strengthen our regionalpresence.

As a result of our investigations, wesuccessfully prosecuted 32 defendantsfor 128 breaches of the Home BuildingAct. These included both licensed andunlicensed contractors. Total fines andcosts amounted to $146,107. We alsocommenced disciplinary proceedingsagainst the licences of four contractorsfor engaging in improper conduct. TheFair Trading Tribunal determined threeof these proceedings. In each case, theTribunal imposed varying periods ofdisqualification, ranging from 18months to permanent disqualification.The Minister also warned the publicabout dealing with three contractors:

� Mr Mahmud Ali

� Homemaker Ltd, and

� Chas. Lyons Pty Ltd.

Formal cautions are an effective toolwhen dealing with minor or technicalbreaches of fair trading legislation. Theyprovide an educational function as well.Contractors are advised of theirobligations and a record of their conductis made. They are then informed thatcontinued breaches may result inprosecution � with the formal cautionbeing used as evidence. In 2000-2001,we issued 1,001 formal cautions.

Henley Properties Group (NSW) PtyLtdHenley is a major project home builderin NSW, Victoria and Queensland.Following receipt of a series ofcomplaints from past customers, wewere, through negotiation with thecompany, able to satisfactorily resolvemany of these complaints. Changesduring the year to the company�smanagement structure, constructionpolicies and practices are beginning toreveal encouraging signs for the future.

However, in a small number of pastcases we are continuing to investigatecomplaints of significant structuraldefects and we are waiting for Henley�sresponse to our findings. Henley has


without supplying the contracted kithomes. We estimate that 29 consumershave lost in excess of $600,000 forpayments that are not covered by homewarranty insurance. In February 2001,We successfully applied to the SupremeCourt of NSW for an interim injunctionand obtained orders to effectivelyprevent the company from breaching theHome Building and Fair Trading Acts,from disposing of its assets and fromdisposing of its business records. TheMinister issued a public warning inFebruary 2001. In April 2001, thedirector of the company formallysurrendered the company�s licence.

Real estate investigationsWe routinely inspect real estate agenciesthroughout the year. These randomchecks, which in 2000-2001 involved853 agencies, are designed to ensure thatagents and their staff are properlylicensed and that they can properlyaccount for trust monies. An initiativethis year was the appointment of anAboriginal officer as an investigator withthe Real Estate Investigations Branch.The position was created to focus onand investigate Aboriginal tenancyissues. The officer will be working withthe Department�s Aboriginal networkand looking at potentially innovativeapproaches to Aboriginal tenancy issuesas well as undertaking general tenancyinvestigations.

RD White Strata ManagementWe received complaints about thisagent�s management of strata schemes in1999. We began an investigation whichresulted in various legal proceedingsdesigned to compel the licensee, Mr RoyWhite, who had ceased to operate, toproduce the agency�s trust accountrecords. Despite orders from theLicensing Court, White still failed toproduce the required records and inNovember 2000, we formally appointedan accountant to examine the books.

White again failed to comply with theaccountant�s official order to producerecords, so in February 2001, weobtained an urgent injunction under theFair Trading Act to order him to producethem. White eventually provided theaccountant with a quantity of recordswhich are being examined to see if thereis any trust account deficiency. Fourclaims on the Property ServicesCompensation Fund have been made.When the accountant�s final report isreceived, we will consider disciplinaryaction against the agent.

Kit Home SuppliersComplaints received during the yeardemonstrated the problems thatsometimes face consumers whopurchase kit homes. The industryappears to have a number ofunscrupulous operators whomisrepresent the amount that can bepaid as a deposit. There are instanceswhere companies have obtained the fullpurchase price at the time of signing thecontract rather than the statutory depositlimit of 5% of the purchase price wherethe contract�s value exceeds $20,000.This is a particular problem when thecompany fails to supply the contractedkit home and then becomes insolvent.

Kit homes suppliers are required toprovide home warranty insurance toconsumers to ensure that kits arecomplete and that deposits can berefunded in the event of insolvency.However, insurers will only considerclaims up to the value of the maximumlegal deposit. This is cold comfort toconsumers who have been duped intopaying amounts in the vicinity of$50,000. They are left without the kithome and little chance of recoveringanything but a small portion of theirmoney. Because of these continuingproblems, the kit home industry will bethe target of increased investigationattention in 2001-2002. Two significantcases during 2000-2001 involvedHomemaker Ltd and Chas Lyons PtyLtd.

Homemaker Ltd was actively engaged insupplying kit homes in New SouthWales, South Australia and NewZealand. Complaints from NSWindicated that Homemaker wasobtaining excessive deposits by usinginducements such as beating the GST.Consumers were also experiencing longdelays on delivery. On 3 January 2001,we restricted Homemaker�s licence, toprevent it from entering into any newcontacts or from receiving any newdeposits. The company entered intoliquidation on 25 January 2001. TheMinister subsequently issued a publicwarning in February 2001. We arecompleting our investigations andanticipate that several persons involvedin managing the company will beprosecuted for contravening the HomeBuilding Act.

Chas Lyons Pty Ltd actively soughtexcessive deposits from consumers andsubsequently entered into liquidation

advised that it does not intend tocommence any new residential buildingwork in New Sourt Wales in the shortterm. The company has formallyundertaken to the Supreme Court thatit will advise the Director-General inwriting prior to entering into newcontracts. This will give Henley timeto address issues that had arisen inrelation to some of its earlier work.

Mahmud AliAlthough Mr Ali only held an individualbuilding contractor licence, headvertised that his companyTechnobuild Engineering Pty Ltd waslicensed and could build homes. Hemanaged to obtain home warrantyinsurance and subsequently entered intoten contracts to build houses in theWollongong and Shellharbour areas. Welater became aware of his poor buildingstandards. An investigation resulted inthe Department cancelling hiscontractor licence due tomisrepresentation.

On 19 July 2001 Mr Ali pleaded guilty,on behalf of himself and Technobuild(now known as Prestige DesignerHomes Pty Ltd) to proceedings broughtby the Department for unlicensedresidential building work andmisrepresenting the licence status of hiscompany.

The Local Court at Wollongongconvicted both Mr Ali and Technobuild,imposing a total penalty of $17,880 infines and costs. Former clients ofTechnobuild have been able to lodgeclaims under the home warrantyinsurance that was provided.

Regional enforcementOur 2000-2001 Regional EnforcementProgram resulted in increasedinspections and monitoring in regionalNSW. To boost our capabilities in thisarea, the newly approved regionalinvestigator positions mentioned earlierwill be based at our Fair Trading Centresin Newcastle, Wollongong and Dubbo.

The Program has two objectives: � tohelp consumers and traders understandtheir legal rights and obligations whenentering contracts for residentialbuilding work and to detect and stopregional contractors who contravene theHome Building Act. A number ofinspections were conducted in the Bega,Albury and Wagga Wagga regionsduring the year.


Paul Pace and Rural Media Pty LtdIn February 2000 we found a trustaccount deficiency in the Rural Mediaagency of approximately $104,600. Thelicensee, Mr Paul Pace, admitted tofinancial difficulties in the business. Areceiver was appointed in March 2000.Mr Pace subsequently provided anundertaking to the Licensing Court thathe would not work in the propertyservices industry pending the outcomeof legal proceedings against him and hesurrendered his licence.

In November 2000, the LicensingCourt permanently disqualified MrPace from holding a licence under theProperty Stock & Business Agents Act.However, he subsequently appealedthat decision. That appeal to theDistrict Court, and other proceedingsin the Licensing Court against anotherdirector of the company, Mr MarkAttard, are currently part heard. Fullrestitution has been made to the trustaccount and claims on the PropertyServices Compensation Fundregarding Rural Media are unlikely.

Grevillea Court Retirement Village,YagoonaThe village has 82 strata units. Inquiriesin late 2000 found that its managementand operation were seriously defective.There was no proper operator, theprovision of services to the residents wason an ad hoc basis, many of the unitshad been sold off to speculators and thevalue of individual units had seriouslydeclined. Many of the elderly residentshad little understanding of themanagement issues involved. Wearranged for an administrator to beappointed in November 2000 and we areworking with them on proposals for theongoing management and future of thevillage � including its possible sale toanother village.

Epping Properties, trading asRichardson and Wrench, EppingMacquarie Bank held a charge over thisagency�s rent roll and in November2000 it appointed a receiver. InDecember 2000, the Bank sold theagency�s rent roll to Epping FirstNational. All landlords were notified andit is understood that most have beenpaid for rent collected and owed tothem. Subsequent to this, we suspendedthe corporation�s business licence as wellas the individual licences of Mr DavidHunt, licensee of Epping Properties, andhis business partner, Mr Vincent Boulus.Hunt and Boulus claimed to have no

records relating to the trust accounts andthe receiver�s further inquiries indicated adeficiency of some $162,000. Hunt�slicence expired during the period ofsuspension but he subsequently applied forits restoration. We have lodged anobjection to the restoration and wehave refused to register him as a valuerunder the Valuers Registration Act.Proceedings for the full cancellation ofboth individual licences are continuing.Mr Boulus has reimbursed $60,000 tothe Compensation Fund, and theDepartment has also recovered some$110,000 in trust account moneys fromthe receiver.

Crystal Real Estate (Newtown) PtyLtdIn May 2000 the agency�s bank advisedthe Department that its propertymanagement trust account wasoverdrawn. Our inquiries indicated adeficiency of approximately $324,500 asat 30 May 2000, and in June 2000 wearranged for appointment of a receiver.In December 2000, the receiver reportedthat there were instances ofmisappropriation by a director of thecorporation. Although full restitutionhas been made, investigations arecontinuing with a view to cancellation ofthe corporation�s licence and legal actionagainst the director concerned.

James Lloyd Woodman, trading asJG Lloyds Realty, KirribilliAn investigation in 1997 revealed a trustaccount deficiency of approximately$63,700. Mr Woodman closed hisagency and the Departmentsubsequently paid claims on theCompensation Fund of $64,762. Wereferred the matter to the Director ofPublic Prosecutions for criminal action,and in January 2001 Mr Woodman wassentenced to a term of imprisonmentand ordered to pay $62,231compensation to the Department.

Osterley Park Pty Ltd, trading asHamilton & Co, Lane CoveThis case involved misappropriation ofagency funds by an employee, Ms PetaPorley, who had been responsible for theday to day maintenance and operation ofthe agency�s rental trust account. Ourinquiries found a deficiency of some$736,000 in the account. However, thedirectors made restitution and provideda line of credit sufficient to pay alloutstanding amounts to landlords.

Police subsequently prosecuted MsPorley and she was convicted of larceny

in March 2001. She was subsequentlysentenced to jail for 3 and a half yearswith a 15 months non-parole period. Weare concerned about the apparent lack ofsupervision of an employee and arecontinuing our investigation.

Narrna Pty Ltd and Jeffrey QuickThis agency closed suddenly inSeptember 2000 and its licence wassubsequently cancelled in Novemberthat year. The licensee in charge, JeffreyQuick, failed to produce required trustaccount records to the Department,alleging that many had been stolen fromhis car.

Mr Quick had previously formed a newcompany, Prestige Realty Group Pty Ltd,which then obtained a new corporationlicence with himself as licensee incharge. Although Prestige apparentlytook over much of Narrna�s business,Mr Quick did not close the Narrna trustaccount and many tenants of formerNarrna properties still had their rentpaid into that account rather than thenew account operated by Prestige. Thisresulted in Mr Quick�s licence beingsuspended in January 2001. Thissuspension was extended in March. MrQuick has agreed to enter enforceableundertakings with the Department andthese are being finalised. Mr Quick�sconduct in relation to the Narrna andPrestige trust accounts, including hisfailure to lodge audit returns andproduce documents, is still beinginvestigated.

Andrew Fanos and Nationwide Realty,Newtown.Our investigators discovered adiscrepancy of more than $400,000 inthe agency�s trust account, after beingalerted by a bank that the rental trustaccount was overdrawn. The inquiryshowed that over a 6-month period in1999, the licensee, Andrew Fanos, hadfailed to pay rental money received intothe trust account. Although heperiodically made personal deposits totop up the account, it was clear that hewas using rent money he received forpersonal purposes. In May 2001, theDistrict Court disqualified Mr Fanosfrom holding a licence under the PropertyStock & Business Agents Act for a period of8 years and 6 months.

Vandyke & Vandyke (Management)Pty LtdThe company was a very large propertyand strata management agency in NSW.In March 2000 its accountant reported


laws through prosecutions, penaltynotices and the use of �direction tocease sale� notices for electricalarticles. More than 200 metropolitanand regional stores were visited and3,400 electrical goods were checked.We found that 12% of these electricalgoods did not bear an approval markthat indicated the item had beeninspected for compliance withelectrical safety requirements. Whilethe absence of an approval mark doesnot necessarily mean the article isunsafe, it is a legislative requirementthat provides vital information toconsumers indicating compliance withthe electrical safety requirements.

National Product Recall ProceduresIn July 2000, the Ministerial Council onConsumer Affairs (MCCA) called for areport on the appropriateness, efficiencyand effectiveness of product recallpowers and procedures within fairtrading portfolios in Australia and NewZealand.

The action followed NSW�s concern atthe slow commencement of recall actionby Heron Pharmaceuticals in early 2000.Heron was the subject of an extortionthreat, but the company delayednotifying authorities for three weeks.NSW was designated as the lead agencyand we formed a working party withSouth Australia and the ConsumerAffairs Division of the Federal Treasury.The report, which will be considered byMCCA later in 2001, was completed inMay following consultation with otherjurisdictions in Australia and NewZealand.

Gas appliance safetyBecause of our broader product safetyand residential building responsibilities,the Department of Fair Trading assumedresponsibility for section 83A of the GasSupply Act 1996, on 1 November 2000.This section of the Act, previouslyadministered by the Department ofEnergy and Utilities, governs the safetyand installation of gas appliances andflues connected to a gas supply network.

Currently, there are two publicsafeguards. The Gas Supply Regulationonly permits the connection ofappliances that are certified to complywith appropriate codes and standards,while the Home Building Act 1989 (alsoadministered by the Department) onlyallows installation by properly licensedgasfitters. Bringing this new role to theDepartment is an opportunity we are

that the books needed to be completelyreconstructed and that there was a trustaccount deficiency of approximately$1.3M. An amount to cover alldeficiencies was subsequentlyreimbursed by Mr Tony Anastasi,director. Inquiries indicated evidence ofsubstantial misuse of trust funds bycompany officers. In January 2001, weobtained Supreme Court orders for theappointment of a receiver and inFebruary 2001, we suspended the licenceof John Frederick Josephs, the licenseein charge. In June 2001 Mr Anastasipleaded guilty to one criminal charge,was fined $2,000 and disqualified fromholding a licence for 8 years. Mr Josephshas been permanently disqualified fromholding a licence. Legal proceedingsagainst a third defendant are continuing.

Product safetySafety inspections and complianceUnsafe toys and products can come ontothe market at any time. But theChristmas season and the Easter Showboth draw out a greater than averagenumber of new products � calling forspecial monitoring programs. Our 2000Christmas Product Survey involvedvisits to 133 metropolitan retail outlets.As a result, retailers were required torecall seven dangerous products. Ninesuppliers were also issued with formalcautions.

Historically, showbags have beennotorious for including cheap noveltiesthat sometimes include hiddendangers � especially for children. Wehave been working with the showbag�industry� for some time and the 2001Easter showbag inspection on 5 March2001, provided a pleasing result. Ourinspectors checked the contents of over240 different showbags. Althoughseveral products were tested for safetycompliance, the bags were ultimately allpassed fit for sale. A similar inspectionoccurred for the Newcastle Show on 13February 2001. Some difficulties werediscovered, including one product thathad been banned in 1989. But all wereremedied prior to the bags going on sale.

Inspection programs like those justdescribed are vital product safetyprograms. However, retailers,wholesalers and importers are well awarethat the NSW Government takesproduct safety seriously. Increasingly,there is little or no excuse for safetybreaches. We are now placing moreemphasis on the enforcement of safety

using to develop new options forcontrolling the supply of theseappliances and ensuring public safety.

Flammable furnitureFollowing media interest in the safety offurniture made wholly or partly frompolyurethane or other types of foam, theMinister referred the matter to theProducts Safety Committee � anindependent expert group reportingdirectly to the Minister. A HazardAssessment Report was completed andconsidered by the Committee in April2001. A final report has been preparedand referred for the Minister�sconsideration.

Yachting harnessesFollowing his inquiry into the 1998Sydney Hobart Yacht Race, the NSWCoroner requested assistance in havingcertain harnesses and lanyardswithdrawn from sale. After aninvestigation which included discussionswith manufacturers, ships chandlers,WorkCover and Standards Australia, theMinister published a ban on a numberof harnesses and lanyards on 9 March2001.

In-floor pool cleaning systemsA 12 year-old child became trapped atthe bottom of a residential swimmingpool by the suction from an �in-floor�pool cleaning system. The child almostdrowned. After being called on by theMinister to consider the safety of thesesystems, the Products Safety Committeeheard evidence from interested parties inlate 2000 and determined that the hazardwas caused by a particular style of main-drain cover. Based on the Committee�sinitial findings, the Minister issued aninterim ban from 1 December 2000.Following the Committee�s final report,the Minister published a permanent banon these covers on 18 May 2001.

Two suppliers are currently recallingapproximately 2250 of these covers. Oneagreed to a public recall while the otheris doing so by notifying individualclients. Approximately 150 pools havealready been repaired and the rest will befixed before summer 2001. A review ofthe relevant Australian Standard has alsocommenced.

ScootersIn August 2000, we began investigatingthe safety of portable folding scootersfollowing reports of structural failures insome makes. Standards Australia alsomet in December 2000 to consider


number of bedside lamps designed toappeal to children. A third company wasdirected to cease their sale. The actionfollowed a Queensland ban on the saleof 240V 10W �Dolphin� lamps due to anoverheating hazard and their advice thatthe 12V and 24V 10W versions of theselamps presented the same hazard.

Trade MeasurementIllegal fuel blendingBecause toluene, a solvent normallyused in paints, did not previously attractan excise like other fuel products, webecame aware of claims that certainpetrol stations were blending thisproduct with petrol in order to reducetheir exposure to the CommonwealthGovernment petrol excise. The practicecan cause permanent damage to enginesand fuel sampling by our investigatorssubstantiated the claims, with some testsshowing toluene levels of almost 60%.

Although the Australian TaxationOffice subsequently changed thecustoms tariff applying to toluene toensure an equivalent duty withtransport fuel, the Minister asked theDepartment to conduct a regularsampling program to ensure NSW fuelquality. Each month our inspectorsconduct unannounced and randomsampling of fuel from petrol stations inMetropolitan Sydney and RegionalNSW. An independent laboratory thentests these samples. So far excessivelevels of toluene have not been foundin any of the fuel samples taken.

Packaging of goods in supermarketsNSW�s trade measurement legislationrequires prepacked and loose articles tobe sold on a net weight basis. Thismeans that the weight of packaging andwrapping is deducted from the totalweight. We have formally warned manyretailers and supermarket chains aboutthe consequences of non-compliancewith the law and the Local Court hasimposed numerous fines for breachesover the past several years. In July 2000,the Minister publicly expressed hisconcern about the level of the problemand wrote to the major supermarketsand retail associations. A working partywas subsequently formed between usand the supermarket chains to addressthe issues. Amendments to trademeasurement legislation were passedin March 2001 and commencedoperating on 1 July 2001. They clarifyretailers� obligations in relation to salesby net measurement and make it clear

developing a voluntary standard.Research is continuing and we willcontinue to be involved in thedevelopment of the standard.Understandably, there has beenconsiderable media and public interest inthe inquiry. It is interesting to note thatoverall complaints of structural failurehave reduced since Copperart storesstopped selling Southbeach and Mach 5brand scooters.

Wave-skis and surf-craftWe are continuing to investigate safetydesign aspects of wave-skis following thedeath of a woman in a surfing accidenton the NSW south coast in March 2000.The NSW Coroner has requested advicefrom the Department on possiblewarning action. We have decided towiden our review to include thesharpness of surfboard noses and fins.Publishing an industry guideline on thesafety of all surf-craft was planned forAugust 2001.

Reclining chairsOn 6 February 2001 the Ministerreminded the community of thepotential dangers that reclining chairspose to children. This followed acoronial inquiry in January 2001 into thetragic death of a 21-month-old boy whohad become trapped in a reclining chair.We conducted a market survey to checkthe extent of the danger and found thatpotential entrapment hazards exist acrossall price ranges. Our inquiries arecontinuing, including discussions withexpert witnesses and the Coroner.Guidelines for manufacturers andconsumers based on a US model arelikely to be developed.

Vertical blindsThe Department and the ProductsSafety Committee began assessing safetyhazards associated with vertical blindcords in April 2000. This followed thestrangulation death of a two-year-oldgirl. The Committee has researched asignificant number of deaths and injuriesimplicating blind cords going back to1988. The inquiry continues to gatherinformation and is expected to providerecommendations for safer blindoperation. Consumer safety authoritiesin the USA have expressed interest inthe findings of the inquiry.

Children�s lampsProduct safety authorities aroundAustralia cooperate to ensure publicsafety. During the year, two NSWcompanies were requested to recall a

that the weight of packaging is not tobe included in the price calculation.

Special inspection programsAuction Compliance programFollowing continued complaints aboutthe real estate auction process, weresumed our auction complianceprogram in March and April 2001. Ourofficers attended 15 auctions in auctionhouses where 116 properties wereoffered for sale, as well as 25 on-siteauctions. We issued two penalty noticesand eight formal cautions for breaches ofthe auction notice requirements. Theinspection results will be consideredduring the current review of legislation.

Residential Parks ComplianceInspection ProgramFollowing the introduction of theResidential Parks Act in March 1999, theDepartment conducted an extensiveinformation program to bring therequirements of the new legislation tothe attention of park owners, managersand residents. Despite this, continuingcomplaints to the Department as well asour own inquiries, indicated a lack ofknowledge of the requirements, and aresistance by owners and managers toimplement them.

The month-long operation thatcommenced on 31 July 2000 saw theinspection of 238 parks. It was used as anopportunity to reinforce the informationalready provided and to enhancecompliance with the Act. Vitalintelligence on the parks was gatheredduring the visits and will be used toassist with future compliance programs.

Retirement Villages ComplianceProgramWe developed a compliance program toensure appropriate levels of compliancewith the Retirement Villages Act 1999. Thisincludes identifying compliance risks,key issues and assisting the retirementvillage industry to understand theirobligations. Village operators are beingrequested to provide copies of thedisclosure documents that the Actrequires to be given to residents andpotential residents. Where we encounterfurther non-compliance and complaintswe will follow up with on-site visits.

Pawnbrokers Inspection ProgramThis program involved randominspections of metropolitan and regionalbusinesses and follow-up on formalcomplaints. From 1 September 2000 to


the end of June 2001, we completed 111inspections, resulting in 8 prosecutionsand 4 disciplinary actions againstlicensees, as well as the issue of 53formal cautions and 54 infringementnotices. The program also includes aneducation strategy whereby any newlicensees are automatically visited withinthree months of their being granted alicence. These visits are seen as anopportunity to reinforce the licensingrequirements and to ensure licenseesunderstand they will be subject tomonitoring. For criminal investigationpurposes, joint operations are sometimesconducted with the NSW Police Service.Over the year, 17 joint operations wereconducted in metropolitan and regionalareas including, Wollongong, Dapto andNewcastle.

In a significant case in May 2001, aFairfield pawnbroker, Mr Hung PhuocHuy Tran trading as Fairfield CashLoans was fined a total of $12,076 foroffences against the Pawnbrokers andSecond Hand Dealers Act. The DistrictCourt dismissed an appeal by Mr Tranand upheld the heavy penalties imposedby the Local Court. The offences weredetected during a routine inspection andmostly related to the strict record-keeping requirements of the legislation,which are intended to guard against thefencing of stolen goods.

Licensing, registrationand certification

REVS boost for the NorthernTerritoryWhen buying a vehicle privately, gettinga REVS certificate is the cheapest andsimplest protection against repossessionthat might be triggered by someoneelse�s unpaid debts. REVS beganoperating in NSW in 1986 and we havebeen successfully providing our servicesto the Northern Territory since 1990. InNovember 2000 we entered into a newservice agreement with the NorthernTerritory Government that focussed oncustomer service and the need to widencommunity awareness of REVS in theTerritory.

The new agreement has seen theintroduction of a 1800 telephonenumber for Northern Territorycustomers. This has been a greatimprovement to service access. Toimprove awareness, we conducted anextensive communications campaignthrough the media, government access

REVS - vital statistics 2000-2001Total enquiries processed * 998,849Potential savings to clients** $16.1MFinance industry commitments registered on REVS $6.78 BillionTotal encumbrances held on REVS Over 2.70M

* Total figure includes 173,528 enquiries processed via the Internet.** Based on finance industry estimates that 0.6% of encumbrances result in bad debt.

centres and various stakeholders. Thecampaign included brochures, mediaupdates, advertising and posterspromoting REVS� Northern Territoryservices.

Flood damaged vehiclesFlood damaged cars can present anumber of problems for buyers.Eligibility for insurance cover may beaffected and a range of problems,particularly electrical, may appear sooneror later. Frequently, flood damage is notimmediately apparent to the consumersbuying these vehicles.

Through information on the RTA�sWrecks Register and details supplied byinsurance companies directly to REVS,New South Wales has already been ableto identify many flood-affected vehicles.But until recently, Queensland had notcollected this type of data andconsumers have been unwittinglybuying these vehicles in NSW �particularly in border areas. In May,REVS successfully negotiated to obtainaccess to QLD�s new database of floodaffected vehicles � giving us a morecomplete record that we can use tofurther protect our customers.

Information forconsumers and traders

Traveller Consumer HelplineEarlier, we spoke about our compliancestrategy to minimise the activities ofunfair traders during the 2000 Olympicand Paralympic Games. This was highlysuccessful, but out-of-town consumersalso needed somewhere to turn to if theydid meet a problem or needed consumerinformation.

We established the Traveller ConsumerHelpline, to give international anddomestic visitors a fast response to awide range of potential consumerproblems. During the Games period thisfree service operated 7 days a week, 24hours a day and dealt with 1,171 calls.Most calls concerned transport orOlympic venue matters and these werereferred to ORTA or Sydney 2000.

The fact that the Helpline tookrelatively few calls about consumerissues perhaps validates theDepartment�s strategic intent that�New South Wales will be recognisedfor fairness and value in themarketplace�. Nevertheless, of theconsumer-related calls, which camefrom individuals and groupsrepresenting 29 different countries,accommodation problems were themost common. Besides offeringinformation the Helpline becameactively involved when it was needed.

A party of 35 Finnish visitors werefacing eviction from their $140-a-nightbackpacker-style accommodation due toa booking problem. Our Helpline stafffound superior alternativeaccommodation for $75-a-night, withbreakfast included. Another consumerfound she could not come to Sydney forthe Games. The leading hotel where shehad booked told her she would forfeitthe $1,400 she had pre-paid foraccommodation if she cancelled. OurHelpline staff successfully negotiated afull refund.

Helpline callers were complimentary.They particularly liked the personalisedservice and prompt responses � withoutthe automation and queuingarrangements experienced elsewhere.

Promotion was the key to the Helpline�ssuccess. In June 2000, in the lead-up tothe Games, we produced and distributed200,000 copies of a brochure calledHave a nice stay. Besides offering visitorsa brief picture of NSW�s consumerprotection laws, its main aim was topromote the Helpline. It wasdistributed to travel outlets, inboundtourism operators, airports, hotels andyouth hostels throughout the State, aswell as to visiting Olympic teamsthrough the offices of SOCOG.During the Games it was advertised intourist guides and in an Olympicsupplement produced by the SydneyMorning Herald. The Helpline provedits worth during the Games and wewill continue to operate it fortravellers in New South Wales. It canbe reached on 1300 552 001.


Formal complaint levels have remained consistent.

200,000

400,000

600,000

800,000

1,000,000

0

TelephoneCounter Total

97-98 98-99 99-00 00-01

p q

5,000

10,000

15,000

20,000

25,000

0

BuildingReal Estate Fair Trading

97-98

p

30,000

98-99 00-0199-00

Formal complaints received atFair Trading Centres bycategory for 00-01

Building 6%

Real Estate 3%

Fair Trading 91%

Telephone and Counter Enquiries at Fair Trading Centres

Enquiry levels remain high. The unusual increase in contacts during 1999 - 2000 may beattributable to consumers seeking pre-GST information.

Formal Complaints received at Fair Trading Centres

Consumer Week 2000Our inaugural Consumer Week washeld from 19 to 24 November 2000. Itfocussed on the role of consumerprotection in the marketplace and theservices that the Department provides tothe New South Wales community.

The theme for the Week was credit andthe central message was: �Are you inover your head?� The message waspromoted through a ministerial pressconference, advertising, publicrelations activities and distribution ofeducational material at a number ofpublic forums. A �phone-in�, whichtook almost 1,100 calls, invitedconsumers to share their experiencesand concerns with credit products orcredit providers.

The item headed �credit card over-commitment� on page 10 provides moreinformation on the outcome of thephone-in. Consumer Week is now anannual event and it will run again inNovember 2001.

Web site re-designSince our Web site monitoring movedfrom simply counting �hits� to the morevalid method of counting page views, wecan see that users are opening andviewing the equivalent of more than260,000 A4 printed pages ofinformation each month.

Clearly, www.fairtrading.nsw.gov.au is apopular site. However, since its launch inMay 1998, the Web site has rapidlyevolved to a position where its content

Complaints relating to general fair tradingissues continue to dominate the formalcomplaints we receive.

has overwhelmed its architecture �resulting in less than optimum ease ofaccess for clients. In response, wecommenced a comprehensive Web sitere-design project in October 2000.

The project, which is intended todeliver improved customer-focussedonline services at a lower cost to theDepartment, will be finalised in the2001-2002 financial year. It includes aninformation audit, profiling of web siteusers, information re-design, visual re-design, web site prototyping and amethodology to ensure a consistentwriting style for our Web site authors.

Educating young consumerswith Money StuffYoung people have greater disposableincomes than ever before. They areincreasingly targeted by advertisersoffering a wide range of consumergoods. However, young people oftenhave little experience dealing withsalespeople and may not be fully awareof their rights.

To provide young Australians with abetter grounding in the principles ofconsumer protection, we developed anew educational resource. Money Stuffwas produced with the help of theDepartment of Education. It is aninnovative three-part package that


includes an interactive Web site(www.moneystuff.fairtrading.nsw.gov.au),a video and three teachers� guides filledwith lesson activities linked to theEnglish, Maths and Commerce curriculafor Years 10 and 11. The Minister forFair Trading, John Watkins, launchedMoney Stuff in August 2000. Copies havebeen distributed to all high schools inNSW, where the response from studentsand teachers alike has beenoverwhelmingly positive.

Rental BondsThere were 526,320 rental bonds worthsome $479 million held in trust at 30June 2001, up 2.5% over the previousyear. Annual growth in the number ofbonds held has tapered from the 4-5%experienced in the years prior to the midnineties, to 2-3% over the last few years.

The annual number of bonds lodgedand refunded continues to increase.There were 287,242 new bondlodgements processed in the year ending30 June, 6.1% more than the volume perannum five years ago. The number ofclaims processed during the year was274, 379, an increase of 12.4% over thenumber processed in 1996.

Our main service delivery channel forcustomers seeking rental bond andtenancy information is the specialistservices provided by the RentingServices Branch. For some years theseservices were mainly accessed throughour dedicated local and freecall 1800telephone lines. With the introduction ofthe new Rental Bond Internet Service(RBIS), member property managers canconduct their own searches of the bonddata base, 24 hours a day, seven days aweek. In the year ending 30 June, morethan 20,000 enquiries were made on-line using this high security system.

Aboriginal customersOver the past few years, we have takensteps to help Aboriginal and Torres StraitIslander communities understand andexercise their consumer rights.Previous consultation with Aboriginalcommunities identifies tenancy issues,complex contracts and discriminationas the most frequent problems theyencounter.

To help address these issues, 12designated Customer Service Officerpositions are filled by Aboriginal peoplein Fair Trading Centres across the State.They specialise in Aboriginal tenancy

Over 400,000 telephone callers were assisted by the staff at Renting Services Branch.

Rental bond and tenancy enquiries

Rental Bonds - number processed and held in trust

issues but also provide information andassistance on a range of fair tradingservices. In addition there are twodedicated Aboriginal staff members whorun the Koori Line as a specialist tenancyservice for Aboriginal people.

The recruitment of these officersrecognises that Aboriginal people aremore likely to use our services if otherAboriginal people provide the help. Tobe effective, these officers maintainclose and active links with local LandCouncils, Aboriginal Support Centres,Community Development EmploymentPrograms, and many otherorganisations accessed by Aboriginalpeople in need of information orassistance.

We have been producing publicationsand running consumer awarenessprograms designed specifically for

Aboriginal customers since 1999. InMay 2001, we joined with the RTA tolaunch a Statewide program designedto help Aboriginal consumers avoid pitfalls when buying a car. Kooris & Carsis a hands-on, self-help program aimedat providing �streetwise� information toAboriginal youth before they purchasea motor vehicle. The program alsoaims to increase driver awareness oflicensing requirements, registrationand vehicle safety regulations.

Regional accessOne of the Department�s core values isthat our clients are entitled to fairaccess to our services � irrespective ofwhere they live. We provide ourservices to the people of NSW througha network of 23 Fair TradingCentres � 17 of which are in majorregional centres in NSW.

100,000

200,000

300,000

0

Total enquiries processed

97-98

37

7,6

90

98-99

37

7,7

41

99-00

41

2,6

93

400,000

500,000

00-01

42

6,3

50


Strata Schemes Commissioner & Community SchemesCommissioner information services

We operate a call centre that covers thewhole State and we continue to offermore services over our Web site. Eachyear we look for new opportunities toreach regional clients.

We now have 55 smaller country townsinvolved in our Regional AccessProgram. The program involves officersfrom regional Fair Trading Centresregularly visiting these smaller, moreremote communities to promote theDepartment�s services and to helpindividual consumers, traders, andcommunity and business organisations.

In the southern part of the State we alsouse so-called �mailbox� facilities. Theseare operated by the Murray IrrigationArea Business Enterprise Centres atGriffith and by the South CoastBusiness Enterprise Centre at Bega.Complaints, business registrationapplications and a range of other DFTdocuments received at the �mailbox� areforwarded daily to the nearest FairTrading Centre for processing the nextbusiness day. Another �mailbox� wasplanned to start operating from theDeniliquin Business Enterprise Centrefrom July 2001.

Regional clients can also access ourservices through the Government AccessCentres in Cooma, Coonamble,Dorrigo, Gilgandra, Grenfell, Hillston,Kyogle, Maclean, Moree, NambuccaHeads, Oberon, Ulladulla, WestWyalong and Wilcannia. The NSWGovernment is expanding this programand we anticipate providing our servicesfrom additional locations later this year.

During the year 42,769 people sought information from the Strata Schemes & CommunitySchemes Commissioner on matters relating to strata or community living, a decrease of8.5% on the previous reporting period. A total of 94% of all calls were answered.

Strata Adjudication applications lodged

In the four years leading up to the commencement of the Strata Schemes ManagementAct 1996 on July 1997, applications to the former Strata Titles Commissioner averaged1273 per annum. In the first four years of operation of the Act, the number of applicationsfor orders to the Strata Schemes Adjudicator has dropped to an average of 419 perannum. This is attributed to success in the Department's new role in mediating disputes instrata schemes. The reduction by almost 70% in the number of disputes going through aformal adjudicative process is a saving to the Government and consumers.

97-98 98-99 99-00 00-01

200

400

600

1,200

1,400

0

96-97

1,5

16

36

0

36

9 47

0

47

9

1,600

800

1,000

95-96

1,2

30

94-95

1,2

80


Accountable use of public resources

Our third key objective acknowledges that we are accountable to Parliament, theMinister and the public for the use of community resources. We aim to providecustomer-focused services that align with the Government�s social justice objectivesand which are designed and delivered in the most economical, efficient and cost-effective way.

Performance Information

Key outcomes/measures Results 99-00 00-01

Outcome: Customer-focused operationsMeasure: level of customer satisfaction with DFT�s services:

�overall quality of service�waiting time for a service�staff �s knowledge of subject�politeness of service staff�helpfulness of service staff

Interpretation/commentThe Department conducted its second structured survey to independently test the level of customer satisfaction with the servicesit provides directly to the public. Colmar-Brunton was engaged to conduct the survey. A sample of 410 customers, randomlyselected from those who had recently contacted any of these areas, were telephoned and asked to respond to a questionnaire. Thepercentages above indicate those customers satisfied, or very satisfied, with DFT�s services.

Satisfaction with waiting times has increased. This is supported by other recent metrics which show reduced waiting times insome of the very heavy traffic areas, which may reflect slightly increased resourcing levels (although, there are limits to the extentof the improvements which can be effected to waiting times, which largely reflect demand levels). Other results are again quitehigh, though there is a slight decline in the items: politeness and helpfulness of staff. While this may partially reflect factors suchas whether the Department was able to provide the service requested by the customer (a significant proportion of queries falloutside DFT�s area of responsibility), the Department will use these results to review its operations. The slight change insatisfaction with overall service levels is not a significant difference from last year as such small changes cannot be accuratelydetected within the sample size. The usefulness of the survey results will increase year to year as the Department gains moreexperience with monitoring, interpreting and acting on these results.

91% 89%69% 75%90% 90%98% 94%95% 91%

Objective Three

Access and equity

Our Access and Equity Strategy providesa framework to ensure that our programsmeet the needs of all our customers. Italso covers employment equity for staff.The integration of staff and customeraccess and equity is desirable becausemany projects have overlapping benefits,such as facilitating disability access. Aswell, increased diversity in the workforceassists us in providing better customerservice.

Customer service profileWe conducted our third annual customerprofile survey during the year. It is

designed to tell us the proportion of ourcustomers in equity target groups. Thisyear we limited the survey to our majorcustomer contact areas�the Fair TradingCentres, Renting Services Branch, REVSand the Tribunals�and concentrated ontwo groups:

� Aboriginal and Torres Strait Islanderpeople; and

�People who speak a language otherthan English at home.

The survey highlights groups that maybe having difficulties accessing ourservices. This information is used toidentify areas for action in futureplanning. Preliminary results indicated

that the proportion of customers fromthese target groups is close to, orexceeds, their representation in theNSW population.

Disability Action PlanDuring the year we undertook a majorproject to identify initiatives forimproving services to people with adisability. We consulted widely withdisability organisations, commissionedthe Australian Quadriplegic Associationto conduct a physical access audit andreviewed our communication andservice delivery mechanisms todetermine their appropriateness to theneeds of people with a disability. Our


Divisions and Regions. ASpokeswomen�s Planning Day was heldon 2 May 2001 where a strategic planand target activities for each electoratewere developed. These were based onthe results of a survey of all female staff.

We now have a Women�s InformationIcon on the Department�s computernetwork. This provides access to a databaseof women�s information and services.Resource centres on women�s issues aremaintained, a �Working Women�segment appears in the Department�sstaff newsletter and information forumsfor women were held in two Divisions.We celebrated International Women�sDay on 8 March 2001 by simultaneouslylaunching the Women�s InformationIcon in all divisions and regions and byawarding two scholarships for women toattend a Springboard Women�sDevelopment Program.

We conducted a survey of all staff with adisability to determine if any of thesepeople needed adjustments made to theirworkplace. We provided theseindividuals and their supervisors withinformation to help ensure that anyappropriate adjustments were made.

Mentoring is a recognised method ofhelping staff achieve their goals. Weresearched appropriate materials for staffto develop mentoring relationships andprovided a starter kit to each section ofthe Department in December 2000.

Our goals for 2001-2002 are to:

� Continue building on the progressmade with the AboriginalEmployment Strategy

� Further develop the Spokeswomen�sProgram

� Conduct disability awareness trainingfor staff

� Develop strategies for employingpeople with disabilities

� Consult staff on equity issues throughfocus groups

� Maintain high staff response rate toEEO Survey

� Review staff selection techniques inaccordance with outcomes of MeritReview.

Rental market discriminationagainst Aboriginal peopleWe continued to work with the Anti-Discrimination Board on a projectdesigned to help reduce discrimination

against Aboriginal and Torres StraitIslander people in the private rentalmarket. We have developed educationalmaterial for Aboriginal people abouttheir rights concerning discriminationand about avenues for resolvingcomplaints. During the year, weorganised several regional informationsessions for real estate agents. Theseincluded presentations by the Anti-Discrimination Board.

Aboriginal housing mediationprojectA pilot mediation project has beenestablished to help resolve problemsbetween Aboriginal housingorganisations and their tenants by usinga culturally appropriate service to reach amutual, long-term solution to disputes.During 2000-2001, we revisited thescope of the pilot and rationalised theobjectives and expected outcomes. Adifferent marketing approach wasestablished in that the pilot was takencloser to the users through furtherconsultations with departmental staff,related tenancy groups and Aboriginalcommunities.

The evaluation methodology adoptedinvolves analysis of data on the numberof mediation referrals and the success orotherwise against the type of mattermediated. Our qualitative research willinvolve participants and referral bodiesgiving feedback about the process andthe impact of this mediation on the workof the Residential Tribunal. Animportant aspect of this is how the pilotor any future mainstream mediationservice impacts on the number of ordersmade by the Residential Tribunalinvolving Aboriginal people. An interimevaluation status report was planned forSeptember 2001.

Grants

Industry grants reviewOur Funding Programs Policy supportsperiodic review of all our grantsprograms. In 2000-2001, we reviewedthe Property Services Grants Program aswell as the Home Building GrantsProgram. In both reviews the aim wasnot just to enhance outcomes forconsumers of these two key industriesbut also for the industries themselves. Inboth cases the focus was on updatingprogram aims and objectives, guidelinesand priorities and, if needed, to finetunepolicies and procedures.

next step will be to develop a targetedand staged plan based on identifiedpriorities and available resources. Ourfull Disability Report for 2000-2001appears in Appendix 24.

Aboriginal Action PlanOur Aboriginal Action Plan has nowbeen in place since 1999. This last yearwe recruited a further two AboriginalCustomer Service Officers, bringing thetotal to 14. One of the new officers isbased in Orange to reach the CentralWest, while the other is based inQueanbeyan to be able to reach the farSouth Coast. This group of officers hascontinued to develop innovative projectsto build better links with Aboriginalcommunities and to improve thedelivery of our services. We are currentlyevaluating the Aboriginal Action Plan.Feedback from consultation with asample of Aboriginal communities andorganisations indicates that Aboriginalpeople are increasingly aware of theDepartment and are using our services.

Plain English FormsClear and concise forms that can beeasily understood by the public are veryimportant for any agency. We havestarted a project to review some of themost commonly used forms to ensurethey are in simple language, clearly laidout and the information being collectedis relevant and appropriate. This projectwill also improve the skills andawareness of staff who haveresponsibility for forms. We hope thatonce the revised forms are tested withconsumers, other forms can be revisedalong the same lines.

Employment EquityOur Aboriginal Employment Strategyhas increased the proportion ofAboriginal employees in the Departmentfrom 2.5% to 3%. We aim to maintain itat this level by continuing to targetmainstream positions. We have asuccessful Aboriginal Network operatingin the Department. It meets three timesa year as well as staging an annualAboriginal Staff Conference. TheNetwork and Conference support ourAboriginal staff through a focus on skilldevelopment and career managementplanning. They also serve as aconsultative mechanism to developpolicies to meet the needs of Aboriginalcustomers.

There are ten trained Spokeswomenelected to represent women in all


Both reviews resulted in guidelines andapplication processes being amended tobuild in greater flexibility in theapplication of grant monies � such asproviding occasional ad hoc grants toaddress issues of particular concern tothe Minister or Department. We havenow ranked the priorities of bothprograms and we will examine theserankings each year to ensure theyaddress areas of current concern. Thepriorities allow us to meet the two mainobjectives of the programs: to encouragehigh customer service standards forconsumers of the property services andhome building industries and to fosterprofessional standards in these industriesthrough accredited training and research.

To fulfil these objectives, we are lookingto attract a higher standard of grantapplication. We are now stressing in ourapplication kits that the GrantsCommittee is not only looking forevidence of the applicants� eligibility andability to manage a funded project, but

Electronic servicedelivery

REVS� web widensREVS continues to improve consumerprotection by providing better access tomore information. An online service hasbeen available to business clients since1989 and now over 80% of REVS�business transactions are electronic. Ourinteractive Web site went live in May2000. This was a major achievement inquality service delivery for both thepublic and business customers.

The logical follow on occurred duringthe year � credit card payment facilitiesfor the public over the Internet. Thisnow allows buyers to search the REVSdatabase and purchase a certificate 24hours, 7 days a week � regardless oftheir geographic location. This is the firstsuch service for the Department.

Linking the REVS web site with majorautomotive Internet sites is anotherinitiative now being actively pursued.With REVS being a visible part of the carsearch and identification process,customers will be able to buy a REVScertificate as soon as they find the carthey want.

Wrecks and stolen vehiclesREVS is leading a national drive toimprove consumer access to vehiclestatus information. When buying avehicle privately (especially if it has beentransported interstate) consumers shouldhave access to a range of information.What are the registration details? Arethere any encumbrances? Has it beenwritten-off as a wreck or reportedstolen?

A report commissioned by the NationalMotor Vehicle Theft Reduction Councilidentified Australia�s REVS authorities asthe best consumer access point for thistype of information. REVS is committedto this one-stop-shop approach and hasobtained special funding to commence aproject that will link REVS with thenational vehicle status database (knownas NEVDIS).

On-line RegistryWe live in an environment wherecustomers increasingly expect faster,easier access to services. On-linelicensing transactions offer benefits tobusiness and are a government objectiveunder the connect.nsw Electronic

1. Tenants Advice and Advocacy Program(TAAP) � $3,979,922

2. Other Funded Tenancy Projects �$368,016

3. Credit Counselling Program � $840,0004. Department of Fair Trading

supplementary funding to FCTF �$70,458

5. Financial Counselling Trust Fund �$541,745

6. Home Building Grants Program �$454,150

7. Property Service Grants Program �$348,250

8. Co-operatives Development Fund �$318,495

Of the almost seven million dollarsprovided in grants, 63% is devoted totenancy related services. See Appendix 18for full details.

Total grant allocations

8

2

7

6

5

3

4

1

for more information on the benefits oftheir proposal to consumers, theindustries themselves, or both.

We have provided a stronger focus onthe selection criteria by linking ourapplication questions to the criteria andwe emphasised the need to think aboutdesired outcomes and how they wouldbe achieved and measured. In the case ofthe Home Building Grants Program, webegan to focus applicants� attention onproposed amendments to the HomeBuilding Act 1989, especially to reformsrelating to the introduction of ongoingprofessional education requirements.

Financial counsellingimprovementsThe recommendations from theprevious year�s review of the FinancialCounselling Trust Fund Program wereapproved in early 2000 and we will beginimplementing these in the fundingperiod that begins on 1 October 2001.

In a major change, we have shifted theTrust Fund Program from a one-year toa three-year funding period � bringingit into line with the Department�striennial Credit Counselling Program.This now enables all our financial grantrecipients to develop service plans in amore secure funding environment.

We have also responded to feedbackfrom financial counselling services interms of the funding year for bothPrograms. From 1 July 2002 we willconvert their funding years to the morecommon July to June financial year. Theprevious funding years ran from 1October to 30 September. This createdadditional work for services in terms ofaccountability reporting.

Previously, the Financial CounsellingTrust Deed only permitted the Trusteesto allocate funds from accrued intereston the Fund�s principal. To ensureflexibility in terms of funding sources,we sought and gained amendments tothe Deed to allow the Trustees to acceptadditional sources of funds, such asconditional gifts, that could be allocatedin their entirety, rather than merelyrelying on the interest earned. Theamendments also give the Trusteesflexibility in the way they respond tounforeseen special needs, because theallocation of monies from conditionalgifts will not be tied to the boundaries ofa funding year, but can be appliedwhenever the need arises.


Service Delivery (ESD) strategy. ThePremier recently announced thatwherever possible, government serviceswill be available on-line through ESDinitiatives.

One such initiative was our On-lineRegistry Project, begun in June 2000.The aim was to develop an on-lineregistry for our licensing and businessname registration functions. A feasibilitystudy was completed. So too weredetailed systems documentation and thepreparation of a business case to obtainTreasury funding for the build phase ofthe project. However, this project hasnow been incorporated into a whole-of-government project, known as theconnectingBusiness Online LicensingProject, being undertaken by theDepartment of Information Technologyand Management.

The aim is to establish on-line registryfunctions for all New South Wales'government licences and theDepartment of Fair Trading will beplaying a lead role. TheconnectingBusiness Online LicensingProject is an initial strategy ofconnectingBusiness, a broader initiativeestablished under the 2000-2001connect.nsw program to take a whole ofgovernment approach to streamlininginterfaces between government andbusiness. The Office of InformationTechnology's timetable proposes that anon-line registry should be established forall DFT licences within three years.

Internet/Intranet ProjectIn July 2000 we commenced a projectthat will provide us with improvedtechnical infrastructure for our on-linecustomer services. Known as theInternet/Intranet Project, this investmentis intended to improve our ability tomeet corporate objectives and support anumber of key result areas. Keyoutcomes include a much improved website, a corporate intranet and newinfrastructure to support secure on-linetransactions and payments for clients.Analysis and design stages have beencompleted. Implementation iscontinuing, with the entire projectscheduled for completion in June 2003.

New network operatingsystemThe Network Operating Systemreplacement project was initiated in 1999as a critical business continuity project.Our current network environment is

In the last 10 years, the number of registered business names has risen 40%.The annual rise remains steady at between 3% and 5%.

99-00 00-01

100,000

200,000

300,000

400,000

500,000

0

47

7,3

44

28

2,9

72

30

5,5

34

33

5,5

00

36

3,2

50

37

7,1

93

39

0,2

41

40

5,3

21

42

3,9

58

45

5,4

14

98-9997-9896-9795-9694-9593-9492-9391-92

BLIS on the InternetBLIS is a convenient one-stop shop forpeople looking for information on all theState and Commonwealth licences,permits and approvals needed to operatea business in New South Wales. BLIShas always been available for the cost of alocal telephone call to its 1800 number.The move to make BLIS availablethrough the Internet in March 2000 hasproved a great success, particularly forpeople living in rural and remote areas ofNew South Wales. Regardless of theirlocation, internet customers can browsethe BLIS database and print applicationsand guide notes. Alternatively, when theyhave finished searching, they can order acomplete package of licence informationand application forms, which is thenforwarded to them by conventional mail,electronic mail or facsimile. Over the2000-2001 financial year, BLIS averagedmore than 2000 visits per monththrough the Web site.

Given the BLIS Web site�s popularity,thought is being given to mandating it asthe on-line business entry point for theconnectingBusiness On-Line LicensingProject discussed earlier.

Rental Bond Internet ServiceIn the first half of the year, we launchedthe Rental Bond Internet Service (RBIS).This business to business e-commerceinitiative lets property managersauthorise rental bond refunds via theInternet as well as access rental bonddata 24 hours a day, seven days a week.

RBIS is a highly secure systemdeveloped with the latest encryptiontechnology and real estate agencies and

Total Business Names Registered

based on the Banyan VINES product.This system is no longer manufacturedor supported � exposing us to potentialbusiness and technology risks. Afterevaluation it was decided to implementWindows 2000 as our new operatingenvironment. The Project commencedin September 2000 and is due forcompletion by the end of 2001.

Local Area Network/Wide AreaNetwork (LAN/WAN)During the year the Office ofInformation Technology endorsed ourproposal to upgrade our ITinfrastructure across NSW. The LAN/WAN project will provide faster internetaccess to our business and consumerinformation, improved operationalefficiency at our Fair Trading Centresand better service delivery for customers.Customers in remote and rural areas ofNSW will benefit by having serviceaccess comparable with the Sydneymetropolitan area.

Business ApplicationInfrastructureThe Office of Information Technologyalso endorsed our proposal to provide astandard, more stable, easily accessibleand maintainable business applicationsIT infrastructure. The newinfrastructure will be introducedprogressively during 2001-2002 andconsolidate the hardware and softwareplatforms of our business systems. Thiswill improve our management andsystems monitoring and result in better,less disrupted services. The project willalso deliver a fully automated backupsolution for the business applicationenvironment across our IT Network.


shadow shopping and customersatisfaction surveys. These are conductedby independent contractors and cover allcustomer contact areas in thedepartment. Details of the surveys andthe results are set out in the performanceinformation shown on pages 14 and 26.These surveys are being used, along withother key indicators, as part of ourtargeted quality improvement initiatives.

In March 2001 a complaint processingproject was commenced to review theflow and distribution of fair tradingcomplaint files throughout ourCustomer Services Division. The reviewwill involve continued monitoring, butalready we have achieved a moreequitable distribution of complaint filesthroughout the Division, resulting in amore consistent level of service deliveryto customers across NSW.

Registry of Co-operativesAn organisational review of the Registryof Co-operatives was completed and itsfindings adopted in May 2001. Amongsta range of structural changes was a moveto place a greater focus on our co-operatives development and formationsprograms by the creation of a newbranch � the Formations andDevelopment Branch. A Special ProjectsManager�s position was also created toco-ordinate our regionally focusseddevelopment program.

Staff

New flexible working hoursWe introduced a new flexible workinghours agreement in October 2000. Itprovides staff with greater flexibility tomanage their work commitments as wellas opportunities to reach a better balancebetween work and family life. Thechanges include a revised and extended

property managers are only able to accessthe rental bond records for their ownagency. The Service is producing results.It is strongly supported by industryorganisations and is already being usedby agents throughout New South Waleswho have acknowledged the ease of useand speed of the system. Tenants havealso benefited. Once their agentauthorises the full bond refund, they canwithdraw the deposited cash from theiraccount the following day.

Our work has also been recognised byGovernment. The Office of InformationTechnology invited the Department toprepare RBIS as a case study to raiseawareness amongst other agencies of thecustomer and business partner benefitsof effectively using information andcommunication technology.

Customer serviceimprovement

Seamless serviceDFT is a complex organisationproviding a wide range of services tovery different groups of customers.During the year we started some workon 'standing in the customer�s shoes' tosee how easy it is to access our servicesfor someone outside the Department,looking in. The aim is to identify waysof providing services more 'seamlessly' sothat all customers receive the same highquality and standard of service, nomatter which part of the Departmentthey contact first. So far this work hasachieved a clearer understanding of whoour customers are, how they interactwith us, and what they need from us.Work on this project, which will assistour long-term planning, is continuing.

Model Licensing ProjectIn August 2000 we completed the ModelLicensing Project. The project wasdesigned to provide more consistency inthe legislative and administrationprocesses used to manage the differentlicence types dealt with by theDepartment, such as motor dealers;builders; tradespeople; travel agents andreal estate agents.

The final report recommended modelprocesses for the administration oflicence applications, renewals andamendments and recommended modelcharacteristics for licensing legislation.The report concluded that our currentIT systems and the legislation may notaccommodate these models and thatchanges would be required as weprogress with our electronic servicedelivery. We anticipate the report willprove a useful resource for theconnectingBusiness Online LicensingProject mentioned earlier.

Fair Trading CentresOur 23 Fair Trading Centres are thefront line when it comes to deliveringfair trading services across New SouthWales. In June 2001, as part of on-goingcustomer service improvements, weconducted a skills audit of our customerservice officers to identify currentcompetencies and learning gaps. Fromthis we will develop a range of trainingprograms, including revised writtenprocedures and additional formaltraining sessions for general fair tradingissues and business support systems.Training continues over the next year.

Two other tools which we use as part ofour ongoing customer serviceimprovement program are the annual

Licensing Activity

Licence New 99-00 New 00-01 CurrentMotor Dealers 487 431 4,152Travel Agents 157 120 1,519Pawnbrokers & Second-hand Dealers 398 354 1,479Private Employment Agents 703 477 2,491Public Weighbridge 5 10 86Trade Measurement Services 10 14 201Property, Stock, & Business Agents Licences 1,602 1,457 23,986Real Estate Certificates 3,881 3,765 10,339Valuers 139 118 4,622*Conveyancers 84 70 298Building 11,436 10,645 155,806

* This figure includes 1,822 non-practising Valuers


bandwidth, new arrangements for theaccrual of flexible working hours �including increased total hours andprovisions to �bank� a number of unusedflex days. The new provisions remainsubject to operational convenience andappropriate service levels beingmaintained by staff. The revisedagreement included an automatic reviewthat commenced in July 2001.

Workforce management planfor Olympics/ParalympicsWe implemented a special flexibleworking hours agreement for theOlympic/Paralympic period. Thisincluded increased flexibility for startingand finishing times to assist with stafftravel arrangements and to help reducetransport congestion during peakOlympic times. We also arranged thereassignment of 30 staff to assist inOlympic related organisations.

Statutory home buildinginsurance wind-downFollowing the closure in May 1997 ofthe Government funded Comprehensiveand Special Insurance Schemes, therehas been a significant drop in thenumber of claims processed. Claims forgeneral defects expired in May 2000 sothe scheme is now only accepting claimsfor major structural defects. Theseexpire in May 2004. Compared withtotal claims of 507 last year, claims thisyear fell to 236. The number of eligibleinsurance claims is expected to continueto decline in the remaining years of thescheme.

We implemented a workforcemanagement planning process last yearin consultation with the Public ServiceAssociation. This has helped us managestaff levels in line with the decliningworkload. A revised workforcemanagement plan for the coming yearwas negotiated with the Public ServiceAssociation. This plan again incorporatestraining and staff consultation for thestaff needed to maintain the schemeuntil its ultimate demise. All the staffinvolved are aware of the Department�scommitment to public sectorredeployment and placement policiesshould there be a need for further staffreductions as the workload reduces.

Accommodation

Fair Trading CentresIn May 2001, we relocated the FairTrading Centre at Hurstville from level 4to level 3, 4 - 8 Woodville Street, as partof a co-location strategy that includes theResidential and Fair Trading Tribunals.This one-stop-shop will result in betteruse of resources, easier access andimproved services for fair trading andtribunal customers.

We also leased new ground flooraccommodation at 33 Moore Street,Liverpool for the Fair Trading Centrethat relocated there from nearby ScottStreet. These shop front premises werescheduled to open in July 2001 toimprove customer access as well asaddressing some occupation health andsafety issues at the former address.

REVS� move to ParramattaAfter 11 years at Liverpool, REVSreturned to Parramatta (where it wasfirst located in 1986) in December 2000.While at Liverpool, REVS sold over700,000 certificates, received more than8.1 million vehicle enquiries and tookmore than 5.6 million telephone calls.With the move into the Department�sHead Office premises at 1 FitzwilliamStreet, Parramatta, REVS' customersnow have the convenience of collectingtheir REVS certificate from either theParramatta or the Liverpool Fair TradingCentre (FTC). Both these FTCs arenow equipped with a printer linkeddirectly to REVS, meaning customerscan get an original REVS certificates in amatter of minutes.

Page 32 Financial Statements NSW Department of Fair Trading Annual Report 2000-2001

NSW Department of Fair Trading Annual Report 2000-2001 Financial Statements Page 33

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 Government SectorAgencies, the applicable Clauses of the Public Finance and Audit Regulation 2000 and the Treasurer�sDirections;

(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.

D B O� ConnorDirector-GeneralDepartment of Fair Trading20 August 2001



Statement of Financial Performance

For the year ended 30 June 2001

Notes Actual Budget Actual2001 2001 2000$�000 $�000 $�000

Expenses

Operating expenses

Employee related 2(a) 74,895 74,813 73,812

Other operating expenses 2(b) 32,575 30,628 32,485

Depreciation and amortisation 2(c) 5,648 3,182 5,567

Grants and subsidies 2(d) 18,349 19,096 3,543

Other expenses 2(e) 2,070 2,699 2,825

Total Expenses 133,537 130,418 118,232

Less:

Retained Revenue

Sale of goods and services 3(a) 36,244 26,858 36,338

Investment income 3(b) 2,414 1,882 2,165

Retained taxes, fees and fines 3(c) 26,316 20,209 22,571

Grants and contributions 3(d) 6,306 13,450 6,439

Other revenue 3(e) 1,025 214 570

Total Retained Revenue 72,305 62,613 68,083

Gain/(loss) on sale of non-current assets 4 597 - (19)

NET COST OF SERVICES 23(a) 60,635 67,805 50,168

Government Contributions

Recurrent appropriation (Net of transfer payments) 5 61,623 62,453 46,978

Capital appropriation 5 2,016 2,447 2,603

Acceptance by the Crown Entity ofemployee entitlements and other liabilities 6 4,479 1,126 3,920

Total Government Contributions 68,118 66,026 53,501

SURPLUS FOR THE YEAR FROM ORDINARYACTIVITIES 7,483 (1,779) 3,333

NON-OWNER TRANSACTION CHANGES INEQUITY

Net increase in asset revaluation reserve 215 - 546

TOTAL REVENUES, EXPENSES ANDVALUATION ADJUSTMENTS RECOGNISEDDIRECTLY IN EQUITY 215 - 546

TOTAL CHANGES IN EQUITY OTHER THANTHOSE RESULTING FROM TRANSACTIONSWITH OWNERS AS OWNERS 16 7,698 (1,779) 3,879

The accompanying notes form part of these statements.



Statement of Financial Position

As at 30 June 2001

Notes Actual Budget Actual2001 2001 2000

ASSETS $�000 $�000 $�000Current Assets

Cash 8 16,175 10,494 12,302

Other financial assets 9 27,464 20,583 20,486

Receivables 10 7,172 6,914 6,524

Total Current Assets 50,811 37,991 39,312

Non-Current Assets

Property, Plant and Equipment 11

- Plant and equipment 28,819 31,101 27,911

Other financial assets 12 - 5,059 5,033

Total Non-Current Assets 28,819 36,160 32,944

Total Assets 79,630 74,151 72,256

LIABILITIES

Current Liabilities

Payables 13 1,701 3,122 2,190

Employee entitlements and other Provisions 14 7,106 6,868 6,881

Other 15 4,343 4,439 4,439

Total Current Liabilities 13,150 14,429 13,510

Non-Current Liabilities

Employee entitlements and other Provisions 14 904 784 868

Other - (159) -

Total Non-Current Liabilities 904 625 868

Total Liabilities 14,054 15,054 14,378

Net Assets 65,576 59,097 57,878

EQUITY

Reserves 16 863 648 648

Accumulated funds 16 64,713 58,449 57,230

Total Equity 65,576 59,097 57,878




Statement of Cash Flows

For The Year Ended 30 June 2001

Notes Actual Budget Actual2001 2001 2000$�000 $�000 $�000

CASH FLOWS FROM OPERATING ACTIVITIES

Payments

Employee related (71,500) (71,413) (70,817)

Grants and subsidies (18,908) (19,096) (3,401)

Other (36,940) (34,371) (33,937)

Total Payments (127,348) (124,880) (108,155)

Receipts

Sale of goods and services 35,477 26,853 11,268

Retained taxes, fees and fines 29,334 (975) 21,352

Interest received 1,101 - 982

Other 6,683 36,633 30,735

Total Receipts 72,595 62,511 64,337

Cash Flows from Government

Recurrent appropriation 61,623 62,453 46,988

Capital appropriation 2,016 2,447 2,603

Cash reimbursements from Crown Entity 1,344 1,126 1,067

Cash Transfers to the Consolidated Fund - - (10)

Net Cash Flows From Government 64,983 66,026 50,648

NET CASH FLOWS FROMOPERATING ACTIVITIES 23(a) 10,230 3,657 6,830

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of Plant and Equipment - - 66

Proceeds from sale of investments 5,614 2,500 -

Advance repayments received 10 2 61

Purchases of Plant and Equipment (6,366) (6,372) (8,893)

Purchases of investments (5,615) (1,595) -

NET CASH FLOWS FROMINVESTING ACTIVITIES (6,357) (5,465) (8,766)

NET INCREASE/(DECREASE) IN CASH 3,873 (1,808) (1,936)

Opening cash and cash equivalents 12,302 10,530 14,238

CLOSING CASH AND CASH EQUIVALENTS 22 16,175 8,722 12,302


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Program Statement - Expenses and Revenues for the Year Ended 30 June 2001 Supplementary Financial Statement

Fair Trading Marketplace Fair Trading Consumer Tribunals* Not TotalStrategy* Performance* Standards & & Trader Services* Attributable

Registers*

AGENCY�S EXPENSES 2001 2000 2001 2000 2001 2000 2001 2000 2001 2000 2001 2000 2001 2000 AND REVENUES $�000 $�000 $�000 $�000 $�000 $�000 $�000 $�000 $�000 $�000 $�000 $�000 $�000 $�000

ExpensesOperating expenses Employee related 5,369 5,175 12,873 10,257 8,255 11,089 32,807 33,491 15,591 13,800 - - 74,895 73,812 Other operating Expenses 2,604 2,684 4,452 4,077 3,278 5,085 15,134 13,895 7,107 6,744 - - 32,575 32,485Depreciation andamortisation 352 269 767 523 909 1,067 2,803 2,761 817 947 - - 5,648 5,567Grants and subsidies 1,097 215 2,051 13 2,539 273 10,491 3,034 2,171 8 - - 18,349 3,543Other expenses 52 44 538 1,231 274 255 1,079 1,170 127 125 - - 2,070 2,825

Total Expenses 9,474 8,387 20,681 16,101 15,255 17,769 62,314 54,351 25,813 21,624 - - 133,537 118,232

Retained RevenueSale of goods and services 1,667 1,858 4,323 4,308 6,344 6,250 18,810 19,317 5,100 4,605 - - 36,244 36,338Investment income 144 125 314 256 372 326 1,249 1,205 335 253 - - 2,414 2,165Retained fees and fines 1,596 1,203 3,485 3,796 4,812 4,589 12,716 10,545 3,707 2,438 - - 26,316 22,571Grants and contributions 438 23 844 47 1,079 228 3,054 229 891 5,912 - - 6,306 6,439Other revenue 41 13 337 322 110 40 425 169 112 26 - - 1,025 570

Total Retained Revenue 3,886 3,222 9,303 8,729 12,717 11,433 36,254 31,465 10,145 13,234 - - 72,305 68,083

Gain/(loss) on sale of non-current assets 37 1 81 1 96 5 297 (26) 86 - - - 597 (19)

NET COST OFSERVICES 5,551 5,164 11,297 7,371 2,442 6,331 25,763 22,912 15,582 8,390 - - 60,635 50,168

Governmentcontributions** - - - - - - - - - - 68,118 53,501 68,118 53,501

NET EXPENDITURE/(REVENUE) FOR THEYEAR 5,551 5,164 11,297 7,371 2,442 6,331 25,763 22,912 15,582 8,390 (68,118) (53,501) (7,483) (3,333)

Page 38

Financial Statem

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Program Statement - Expenses and Revenues (cont.)

Fair Trading Marketplace Fair Trading Consumer Tribunals* Not TotalStrategy* Performance* Standards & & Trader Services* Attributable

Registers*

ADMINISTEREDEXPENSES AND 2001 2000 2001 2000 2001 2000 2001 2000 2001 2000 2001 2000 2001 2000REVENUES $�000 $�000 $�000 $�000 $�000 $�000 $�000 $�000 $�000 $�000 $�000 $�000 $�000 $�000

Administered ExpensesTransfer payments - - - - (11) (12) - - - - - - (11) (12)Other - (98) - (200) (1) (256) (2) (784) (1) (198) - - (4) (1,536)

Total AdministeredExpenses - (98) - (200) (12) (268) (2) (784) (1) (198) - - (15) (1,548)

Administered RevenuesTransfer receipts - - - - 11 12 - - - - - 11 12Conslidated Fund - Taxes, fees and fines - - - - 44,054 44,014 1,517 1,483 - - - 45,571 45,497 - Other 256 524 5,186 669 - 2,052 520 - - 5,186 4,021

Total AdministeredRevenues 256 524 49,251 44,695 1,517 3,535 520 - - 50,768 49,530Administered Revenuesless Expenses - 158 - 324 49,239 44,427 1,515 2,751 (1) 322 - - 50,753 47,982

* Name and purpose of each program is summarised in Note 7.** Appropriations are made on an agency basis and not to individual programs.

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Summary of Compliance with Financial Directives

2001 2000Recurrent Expenditure/ Capital Expenditure/ Recurrent Expenditure Capital Expenditure

Net Claim on Net Claim onConsolidated Consolidated

Fund FundAppropriation Appropriation Appropriation Appropriation

$�000 $�000 $�000 $�000 $�000 $�000 $�000 $�000ORIGINAL BUDGETAPPROPRIATION/EXPENDITURE� Appropriation Act 62,453 61,553 2,447 2,016 46,353 46,179 2,689 2,603

62,453 61,553 2,447 2,016 46,353 46,179 2,689 2,603OTHERAPPROPRIATIONS/EXPENDITURE� Treasurer�s Advance 20 - - - 21 21 - -� Section 22 - expenditure

for certain works andservices - - - - 1,803 788 - -

� Transfers from anotheragency (s26 of theAppropriation Act) 70 70 - - - - - -

90 70 - - 1,824 809 - -Total Appropriations/Expenditure/Net Claim onConsolidated Fund (includestransfer payments) 62,543 61,623 2,447 2,016 48,177 46,988 2,689 2,603Amount drawn down againstAppropriation 61,623 2,016 46,988 2,603Liability to Consolidated Fund - - - -

The Summary of Compliance is based on the assumption that Consolidated Fund moneys are spent first (except where otherwise identified or prescribed).


1. Summary of Significant Accounting Policies(a) Reporting Entity

The Department of Fair Trading as a Reporting Entitycomprises all the activities under its control, including itsself-funding commercial branch, the Register ofEncumbered Vehicles (REVS). The Departmentperforms administrative functions for the Rental BondBoard and the Fair Trading Administration Corporation.Costs associated with these functions are recouped fromthese entities on an operational basis in relation toactivities performed.

The Departmental Reporting Entity also encompassesfunds which, while containing assets which are restrictedfor specified uses by the Department are neverthelesscontrolled by the Department (ie the Motor DealersCompensation Fund, Real Estate Services CompensationFund and Statutory Interest Account). In the process ofpreparing the financial statements for the economic entityconsisting of the controlling and the controlled entities,all inter entity transactions and balances have beeneliminated.

The reporting entity is consolidated as part of the NSWTotal State Sector and as part of the NSW PublicAccounts.

(b) Basis of Accounting

The Department of Fair Trading’s financial statements area general purpose financial report which has beenprepared on an accrual basis and in accordance with:• applicable Australian Accounting Standards;

• other authoritative pronouncements of the AustralianAccounting Standards Board (AASB);

• Urgent Issues Group (UIG) Consensus Views;

• the requirements of the Public Finance and Audit Actand Regulations; and

• the Financial Reporting Directions published in theFinancial Reporting Code for Budget DependentGeneral Government Sector Agencies or issued by theTreasurer under section 9(2)(n) of the Act.

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

In the absence of a specific Accounting Standard, otherauthoritative pronouncements of the AASB or UIGConsensus View, the hierarchy of other pronouncementsas outlined in AAS6 “Accounting Policies” is considered.

Except for certain investments and plant and equipment,which are recorded at valuation, the financial statementsare prepared in accordance with the historical costconvention. All amounts are rounded to the nearest onethousand dollars and are expressed in Australian currency.

(c) Administered Activity

The Department of Fair Trading administers, but does notcontrol, certain activities on behalf of the Crown Entity.It is accountable for the transactions relating to thoseadministered activities but does not have the discretion,for example, to deploy the resources for the achievementof the Department’s own objectives.

Transactions and balances relating to the administeredactivities are not recognised as the Department’srevenues, expenses, assets and liabilities, but are disclosedin the accompanying schedules as “Administered

Revenues”, “Administered Expenses”, “AdministeredAssets” and “Administered Liabilities”.

The accrual basis of accounting and all applicableaccounting standards have been adopted for the reportingof the administered activities.

(d)Revenue Recognition

Revenue is recognised when the Department of FairTrading has control of the good or right to receiveconsideration, it is probable that the economic benefitwill flow to the Department and the amount of revenuecan be measured reliably. Additional commentsregarding the accounting policies for the recognition ofrevenue are discussed below.

(i) Parliamentary Appropriations and Contributionsfrom Other Bodies

Parliamentary appropriations and contributions fromother bodies (including grants and donations) aregenerally recognised as revenues when theDepartment obtains control over the assetscomprising the appropriations/contributions.Control over appropriations and contributions isnormally obtained upon receipt of cash.

An exception to the above is when appropriations areunspent at year-end. In this case, the authority tospend the money lapses and generally the unspentamount must be repaid to the Consolidated Fund inthe following financial year. As a result, unspentappropriations are accounted for as liabilities ratherthan revenue.

(ii) Sale of Goods and Services

Revenue from the sale of goods and servicescomprises revenue from the provision of products orservices ie user charges. User charges are recognisedas revenue when the agency obtains control of theassets that result from them.

(iii) Investment Income

Interest revenue is recognised as it accrues.

(e) Employee Entitlements

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

Liabilities for wages and salaries and annual leave arerecognised and measured as the amount unpaid at thereporting date at current pay rates in respect ofemployees’ services up to that date.

Unused non-vesting sick leave does not give rise to aliability as it is not considered probable that sick leavetaken in the future will be greater than theentitlements accrued in the future.

The outstanding amounts of payroll tax, workers’compensation insurance premiums and fringebenefits tax, which are consequential to employment,are recognised as liabilities and expenses where theemployee entitlements to which they relate have beenrecognised.

(ii) Long Service Leave and Superannuation

The Department’s liabilities for long service leaveand superannuation are assumed by the Crown Entity.The Department accounts for the liability as havingbeen extinguished resulting in the amount assumed


being shown as part of the non-monetary revenueitem described as “Acceptance by the Crown Entity ofEmployee Entitlements and Other Liabilities”.

Long service leave is measured on a nominal basis.The nominal method is based on the remunerationrates at year-end for all employees with five or moreyears of service. It is considered that thismeasurement technique produces results notmaterially different from the estimate determined byusing the present value basis of measurement.

The superannuation expense for the financial year isdetermined by using the formulae specified in theTreasurer’s Directions. The expense for certainsuperannuation schemes (ie Basic Benefit and FirstState Super) is calculated as a percentage of theemployees’ salary. For other superannuation schemes(ie State Superannuation Scheme and StateAuthorities Superannuation Scheme), the expense iscalculated as a multiple of the employees’superannuation contributions.

(f) Insurance

The insurance activities of the Department of FairTrading are conducted through the NSW TreasuryManaged Fund Scheme of self insurance for Governmentagencies. The expense (premium) is determined by theFund Manager based on past experience.

(g)Accounting for the Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of theamount of GST, except:

• the amount of GST incurred by the agency as apurchaser that is not recoverable from the AustralianTaxation Office is recognised as part of the cost ofacquisition of an asset or as part of an item of expense.

• receivables and payables are stated with the amount ofGST included.

(h)Acquisition of assets

The cost method of accounting is used for the initialrecording of all acquisitions of assets controlled by theDepartment. Cost is determined as the fair value of theassets given as consideration plus the costs incidental tothe acquisition.

Assets acquired at no cost, or for nominal consideration,are initially recognised as assets and revenues at their fairvalue at the date of acquisition.

Fair value means the amount for which an asset could beexchanged between a knowledgeable, willing buyer and aknowledgeable, willing seller in an arm’s lengthtransaction.

Where settlement of any part of cash consideration isdeferred, the amounts payable in the future arediscounted to their present value at the acquisition date.The discount rate used is the incremental borrowing rate,being the rate at which a similar borrowing could be obtained.

(i) Plant and Equipment

Single items of plant and equipment costing $5,000 andabove are capitalised. Computer Equipment costing inexcess of $4,000 and those items costing in excess of$1,500 attached to one of the Department’s ComputerNetworks are also capitalised.

(j) Revaluation of Physical Non-Current Assets

Plant and equipment are valued based on the estimatedmarket value having regard to the purchase of similarplant and equipment in the market place.

Each class of physical non-current assets is revalued every5 years. The last such revaluation was completed on 30June 2000 and was based on an independent assessment.

Physical non-current assets have been revalued to marketvalue, and not by reference to current prices for assetsnewer than those being revalued. As a result, any balancesof accumulated depreciation existing at the revaluationdate in respect of those assets has been credited to theasset accounts to which they relate. The net assetaccounts have been increased or decreased by therevaluation increments or decrements.

The recoverable amount test has not been applied as theDepartment is a not-for-profit entity whose servicepotential is not related to the ability to generate net cashflows.

Revaluation increments are credited directly to the assetrevaluation reserve, except that, to the extent that anincrement reverses a revaluation decrement in respect ofthat class of asset previously recognised as an expense inthe surplus/deficit, the increment is recognisedimmediately as revenue in the surplus/deficit.

Revaluation decrements are recognised immediately asexpenses in the surplus/deficit, except that, to the extentthat a credit balance exists in the asset revaluation reservein the respect of the same class of assets, they are debiteddirectly to the asset revaluation reserve.

Revaluation increments and decrements are offset againstone another within a class of non-current assets, but nototherwise.

(k) Depreciation of Non-Current Physical Assets

Depreciation is provided for on a straight line basis for alldepreciable assets so as to write off the depreciableamount of each asset as it is consumed over its useful lifeto the entity. The applicable rates of depreciation are:Motor Vehicles - Trade Measurement 20%Motor Vehicles - Other 8%Fitouts, Furniture and Fittings 10%Electronic Equipment 20%Computer Equipment and Development 33%Trade Measurement Equipment 4%

(l) Leased Assets

A distinction is made between finance leases whicheffectively transfer from the lessor to the lesseesubstantially all the risks and benefits incidental toownership of the leased assets, and operating assets leasesunder which the lessor effectively retains all such risksand benefits.

Where a non-current asset is acquired by means of afinance lease, the asset is recognised at its fair value at theinception of the lease. The corresponding liability isestablished at the same amount. Lease payments areallocated between the principal component and theinterest expense.

Operating lease payments are charged to the Statement ofFinancial Performance in the periods in which they areincurred.


(m) Receivables

Receivables are recognised and carried at the originalinvoice amount less a provision for uncollectable debts.An estimate for doubtful debts is made when collection ofthe full amount is no longer probable. Bad debts arewritten off as incurred.

(n)Investments

Marketable securities and deposits are valued at marketvaluation or cost. Non marketable securities are broughtto account at cost.

(o)Trust Funds

The Department receives monies in a trustee capacity forvarious 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 theachievement of the Department’s own objectives, they arenot brought to account in the financial statements.

(p)Payables

These amounts represent liabilities for goods andservices provided to the agency and other amounts,included interest. Interest is accrued over the period itbecomes due.

(q)Budgeted Amounts

The budgeted amounts are drawn from the budgets areformulated at the beginning of the financial year and withany adjustments for the effects of additionalappropriations, s 21A, s 24 and/or s 26 of the PublicFinance and Audit Act 1983.

The budgeted amounts in the Statement of FinancialPerformance and the Statement of Cash Flows aregenerally based on the amounts disclosed in the NSWBudget Papers (as adjusted above). However, in theStatement of Financial Position, the amounts vary fromthe Budget Papers, as the opening balances of thebudgeted amounts are based on carried forward actualamounts ie per the audited financial statements (ratherthan carried forward estimates).

2. Expenses 2001 2000 $’000 $’000

(a) Employee related expenses comprise the following specific items:Salaries and wages (including Recreation Leave) 61,656 61,061Superannuation 5,673 5,171Long service leave 2,640 2,111Workers’ compensation insurance 283 547Payroll Tax and Fringe Benefit Tax 4,418 4,398Redundancies 225 524

74,895 73,812(b) Other operating expenses

Auditor’s remuneration- audit of financial reports 108 107Bad and Doubtful Debts 954 1,035Rental expense relating to operating leases 10,127 10,031Insurance 254 234Telephones/Postage 4,626 5,074Fees 5,429 4,829Stores 1,651 1,721Motor Vehicle Expenses 957 1,109Travel 1,342 1,340Advertising 1,190 1,392Fitout of Premises 258 360Books, periodicals, newspapers and subscriptions 421 333Gas/Electricity 272 306Minor Equipment 3,688 3,467Maintenance contracts 379 362Other Expenses 919 785

32,575 32,485

(c) Depreciation and amortisation expenseComputer equipment and development 4,093 3,977Electronic equipment 159 230Fitouts, Furniture and Fittings 1,309 1,319Trade Measurement equipment 25 11Vehicles 46 13

5,632 5,550Amortisation of premium on investment 16 17

5,648 5,567


2001 2000 $’000 $’000

(d) Grants and subsidiesCredit Counselling services 898 958Co-Operative Development Fund 124 263Tenancy Advice and Advocacy Program 1,482 1,398Building Education Grants 382 223Real Estate Education Grants 291 412Subsidies to Fair Trading Administation Corporation 15,000 -Other 172 289

18,349 3,543(e) Other Expenses

Legal Assistance 298 484Motor Dealers’ Compensation Fund Payments 583 464Property Services Compensation Claims 480 638Written Down Value of Assets Written Off 357 1,148Other Expenses 352 91

2,070 2,825

3. Revenues

(a) Sale of goods and servicesSale of publications 33 125Other goods 41 61Fees charged by REVS for provision of services andregistering of encumbrances over vehicles 7,959 8,205Fees charged for the lodgement of a claim before the:- Fair Trading Tribunal 396 319 Residential Tribunal 1,034 775Fees charged for search of Business Names database 1,744 1,433Fees charged for establishment and renewal of Associations 244 241Electrical Appliance Testing 659 753Administrative Assistance 23,918 24,213Other services 216 213

36,244 36,338

(b) Investment IncomeInterest - Investments 2,050 1,765 - Bank Accounts 364 400

2,414 2,165

(c) Retained taxes, fees and finesMotor Dealers Compensation Fees 1,016 916Real Estate License Fees 826 814Property Services Compensation Fund 625 1,171Statutory Interest 23,155 18,870Owner Builder Permit Fees 688 636Other 6 164

26,316 22,571

(d) Grants and ContributionsContribution from Rental Bond Board (i) 6,154 5,865Grants from Department of Industry,Science and Resources (ii) 89 168Employment Grants - NSW Department ofTraining and Education Co-ordination (iii) 9 43Sponsorships (iv) 54 -Assets transferred from Department ofPublic Works and Services - 363

6,306 6,439

(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) A Grant of $88,849 (1999/2000 $168,000) was received from the Commonwealth Department of Industry, Science andTourism as their contribution towards the Joint Initiative Project “Redevelopment of BLIS Software”.


(iii) A grant of $8,650 was provided by the Department of Training and Education Co-ordination under the Elsa DixonAboriginal Employment Program.

(iv) Sponsorship of $54,545 was received from the Stenmark Corporation as a contribution towards the costs of “TheRenting Guide” publication.

2001 2000 $’000 $’000

(e) Other RevenueTelstra Rebate 249 213Legal Costs Recovered 304 299Other 472 58

1,025 570

4. Gain/(Loss) on Sale of Non-Current Assets

Gain/(loss) on disposal of plant and equipment Proceeds from disposal - 66 Written down value of assets disposed - 85Net gain/(loss) on disposal of plant and equipment - (19)

Gain/(loss) on disposal of investments Proceeds from disposal 5,614 - Written down value of investments disposed 5,017 -Net gain/(loss) on disposal of investments 597 -

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

5. Appropriations

Recurrent appropriations Total Recurrent drawdowns from Treasury (per Summary of Compliance) 61,623 46,988 Less: Liability to Consolidated Fund (per Summary of Compliance) - (10) Comprising: Recurrent appropriation (per Statement of Financial Performance) 61,623 46,978 Total 61,623 46,978

Capital appropriations

Total Capital drawdowns from Treasury (per Summary of Compliance) 2,016 2,603 Less: Liability to Consolidated Fund (per Summary of Compliance) - - Comprising: Capital appropriation (per Statement of Financial Performance) 2,016 2,603 Total 2,016 2,603

6. Acceptance by the crown entity of employee

entitlements and other liabilities

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

Superannuation 2,927 2,661Long Service Leave 1,368 1,089Payroll Tax 184 170

4,479 3,920


7. Programs/Activities of the Department

44.1.1 Fair Trading Strategy

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

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

44.1.2 Marketplace Performance

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

Objectives: To detect, remedy and deter unfair trading practices.

44.1.3 Fair Trading Standards and Registers

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.

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

44.1.4 Consumer and Trader 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, Legaland Safety Division, REVS and the Customer Services Division.

Objectives: To foster fairness and ethical trading in the marketplace.

44.1.5 Tribunals

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

Objectives:To ensure impartial forums for the resolution of marketplace disputes.

8. Current Assets – Cash

Cash comprises cash on hand, Hourglass Cash and Cash Plus facilities and bank balances within the Treasury BankingSystem. Interest is earned on daily bank balances at the monthly average New South Wales Treasury Corporation(TCorp) 11am unofficial cash rate adjusted for a management fee to Treasury. The applicable rate at 30 June 2001 forthe Treasury Banking System was 4% (5% 1999/2000) and TCorp interest for Hour-Glass Cash and Cash Plus was6.01% (5.52% 1999/2000) and 5.93% (5.53% 1999/2000) respectively.

2001 2000$’000 $’000

Cash Facility 4,928 1,573Cash Plus Facility 6,993 5,635Cash at Bank 4,206 5,048Cash on Hand 48 46Closing Cash and Cash Equivalents 16,175 12,302

9. Current Assets – Other Financial Assets

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 andbeing comprised of a mix of asset classes appropriate to that investment horizon. TCorp appoints and monitors fundmanagers and establishes and monitors the application of appropriate investment guidelines. These investments aregenerally able to be redeemed with seven days notice (dependent upon the facility). The value of the investmentsheld can decrease as well as increase depending upon market conditions. The value that best represents themaximum credit risk exposure is the net fair value. The value of the above investments represents the Department’sshare of the value of the underlying assets of the facility. Those assets are stated at net fair value as advised by the NewSouth Wales Treasury Corporation as at 30 June 2001, with an effective interest rate of 6.73% (6.01% 1999/2000).


2001 2000 $’000 $’000

The Department’s investments are:

Tcorp Hour-Glass Bond Market Facility 27,464 20,48627,464 20,486

10. Current Assets – Receivables

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

Receivables currently comprise:Motor Dealers Compensation Fund fees 2,400 1,799Property Services Compensation Fund 5,071 4,742Trade Measurement Fees 70 16Unallocated Income – Remitting Account 62 36Interest for Operating Accounts 160 211REVS fees 938 872Administrative Assistance due 1,191 729Inter-agency Transfers - Fair Trading Admin Corp - 6Amounts owed due to Prosecutions 670 541GST Input Taxes 475 54Other 890 893

11,927 9,899Less: Provision for doubtful debts- Motor Dealers’ Compensation Fund 1,783 1,335- Property Services Compensation Fund 3,922 3,425

5,705 4,760

Prepayments 950 1,375

Port Hacking and Sutherland Co-operative Housing Society - 107,172 6,524

Receivables amount due written off during the year were:Motor Dealers’ Compensation Fund - 30Other 12 15

12 45

11. Non Current Assets – Property, Plant and Equipment

Computer Equipment and DevelopmentAt Cost 4,135 -At Valuation 13,600 13,155

17,735 13,155

Accumulated Depreciation at Cost 181 -Accumulated Depreciation at Valuation 3,886 -

4,067 -13,668 13,155

Electronic EquipmentAt Cost 289 -At Valuation 664 666

953 666

Accumulated Depreciation at Cost 22 -Accumulated Depreciation at Valuation 134 -

156 -797 666


2001 2000 $’000 $’000

Fitouts, Furniture and FittingsAt Cost 1,918 -At Valuation 12,840 12,993

14,758 12,993

Accumulated Depreciation at Cost 11 -Accumulated Depreciation at Valuation 1,282 -

1,293 -13,465 12,993

Trade Measurement EquipmentAt Cost 25 -At Valuation 703 866

728 866

Accumulated Depreciation at Cost - -Accumulated Depreciation at Valuation 24 -

24 -704 866

Motor VehiclesAt Cost - -At Valuation 231 231

231 231

Accumulated Depreciation at Cost - -Accumulated Depreciation at Valuation 46 -

46 -185 231

Total Property, Plant and Equipment at Net Book Value 28,819 27,911

ReconciliationsReconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of thecurrent and previous financial year are set out below.

Land and Plant & Infrastructure Leased TotalBuildings Equipment Systems Assets

$’000 $’000 $’000 $’000 $’0002001Carrying amount at start of year - 27,911 - - 27,911Additions - 6,367 - - 6,367Disposals - (357) - - (357)Net revaluation incrementless revaluation decrements - 215 - - 215Depreciation expense - (5,631) - - (5,631)Other movements - 314 - - 314Carrying amount at end of year - 28,819 - - 28,819

Land and Plant & Infrastructure Leased TotalBuildings Equipment Systems Assets

$’000 $’000 $’000 $’000 $’0002000Carrying amount at start of year - 24,892 - - 24,892Additions - 8,894 - - 8,894Disposals - (1,250) - - (1,250)Net revaluation incrementless revaluation decrements - 546 - - 546Depreciation expense - (5,551) - - (5,551)Other movements - 380 - - 380Carrying amount at end of year - 27,911 - - 27,911

It is estimated that the majority of assets contained in the Asset Register continue to give economic benefit to theDepartment. The values stated are considered to be an accurate reflection of the assets’ true value. A revaluation of allphysical non-current assets to market value was completed on 30 June 2000, in accordance with the policy of revaluingeach class of physical non-current assets every 5 years. An independent valuation of the market value was carried out byPaul Stokes, Licensed Auctioneer and Valuer, of James R Lawson Pty. Ltd.


12. Non-Current Assets – Other Financial Assets2001 2000$’000 $’000

Mortgage Backed Investment - 5,033 - 5,033

ReconciliationsReconciliations of the carrying amounts of each class of non-current other financial assets at the beginning and end ofthe current and previous financial year are set out below.

Tcorp – Other loans Advances Shares Mortgage TotalHour glass and Receivable Backedfacilities deposits Investments

$’000 $’000 $’000 $’000 $’000 $’0002001

Carrying amount at start of year - - - - 5,033 5,033Disposals - - - - (5,017) (5,017)Other movements –Amortisation of premium - - - - (16) (16)

Carrying amount at end of year - - - - - -

The Mortgage Backed Investment was sold on 26 March 2001.

Tcorp – Other loans Advances Shares Mortgage TotalHour glass and Receivable Backedfacilities deposits Investments

$’000 $’000 $’000 $’000 $’000 $’0002000

Carrying amount at start of year - - - - 5,050 5,050Other movements –Amortisation of premium - - - - (17) (17)

Carrying amount at end of year - - - - 5,033 5,033

13. Current Liabilities – Payables

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

2001 2000$’000 $’000

Trade Creditors 1,402 1,958Other Creditors 299 232

1,701 2,190

14. Current/Non Current Liabilities – Employee Entitlements and other Provisions

Employee EntitlementsCurrent :Recreation leave 4,760 4,701Accrued salaries and wages 2,336 2,168

7,096 6,869SES Liabilities 10 12

7,106 6,881Non Current :Payroll Tax on Long Services Leave 904 868

904 868

Aggregate employee entitlements 8,010 7,749


2001 2000$’000 $’000

15. Current Liabilities – Other

Real Estate Licenses – prepaid 548 644Provision for outstanding claims 3,795 3,795

4,343 4,439

Trowbridge Consulting carried out an Actuarial Review of the Property Services Compensation Fund as at 30 June2000. The purpose of this review was to ascertain the possible liability of the Compensation Fund. The Actuaryrecommended that the outstanding claims provision for this fund is reviewed every two to three years. The nextactuarial assessment will be obtained as at 30 June 2002.

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 included a prudential margin of $0.3 million (1999 - $0.7 million). This marginrepresents 25% of the Actuary’s net central estimates for outstanding claims and has been recommended by theActuary to allow for the uncertainty in the claims and estimation processes and possible changes in future to the riskprofile. A provision of $2 million (2000 - $2.0 million) has been made to cover the possibility of one large eventoccurring during 2001/2002.

16. Changes in EquityAccumulated Asset Revaluation Total Equity

Funds Reserve2001 2000 2001 2000 2001 2000$’000 $’000 $’000 $’000 $’000 $’000

Balance at the beginningof the financial year 57,230 53,897 648 102 57,878 53,999Changes in equity –other than transactionswith owners as ownersSurplus for the year 7,483 3,333 - - 7,483 3,333

Increment on revaluationof plant and equipment - - 215 546 215 546

Balance at the end ofthe financial year 64,713 57,230 863 648 65,576 57,878

Asset revaluation reserveThe asset revaluation reserve is used to record increments and decrements on the revaluation of non-current assets.This accords with the Department’s policy on the ‘Revaluation of Physical Non-Current Assets’ and ‘Investments’, asdiscussed in Note 1.

17. Special Purpose Funds Administered by the DepartmentMotor Dealers Property Services Statutory

Compensation Fund Compensation Fund InterestAccount$’000 $’000 $’000

Balance as at 1/7/2000 1,673 25,360 8,469Receipts 478 3,145 23,829Expenditure – Administrative 614 2,262 18,165Expenditure - Capital - - -Balance as at 30/6/2001 1,537 26,243 14,133

The Motor Dealers Act established the Motor Dealers Compensation Fund 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 Property Services Compensation Fund is supported by:i) investment income earned on the investments of the fund;ii) contributions or levies paid by licensees; andiii) 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; andiv) other lawful expenses.

The Statutory Interest Account 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; andiv) 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.

18. Commitments For Expenditure2001 2000$’000 $’000

(a) Capital CommitmentsAggregate capital expenditure for the acquisition of computer &photocopying equipment contracted for at balance date but not provided for:Not later than one year 755 615Later than 1 year and not later than 5 years - -Later than 5 years - -Total (including GST) 755 615

(b) Other Expenditure CommitmentsAggregate other expenditure for the acquisition of officesupplies and services contracted for at balance date but not provided for:Not later than one year 874 884Later than 1 year and not later than 5 years - -Later than 5 years - -Total (including GST) 874 884

(c) Operating Lease CommitmentsFuture non-cancellable operating lease rentals not provided for and payableNot later than 1 year 8,653 9,031Later than 1 year and not later than 5 years 8,635 5,198Later than 5 years 254 -Total (including GST) 17,542 24,229

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

19. Contingent Asset

The commitments for expenditure include an amount of $1.743 million for GST input credits that are expected to berecoverable from the Australian Tax Office.

20. Contingent Liability

The Department is currently involved in five legal cases where, if lost, costs may be awarded against the Department.It is estimated that these costs may total $0.948 million.


21. Budget ReviewActual Budget Variance Comment

2001 2001 Budget to Actual$’000 $’000 $’000 %

Statement of Financial PerformanceNet Cost of Services 60,635 67,805 (7,170) (10.6) (a)

Statement of Financial PositionTotal Current Assets 50,811 37,991 12,820 33.7Total Non-Current Assets 28,819 36,160 (7,341) (20.3)Total Assets 79,630 74,151 5,479 7.4 (b)

Total Current Liabilities 13,150 14,429 (1,279) 8.9Total Non-Current Liabilities 904 625 279 44.6Total Liabilities 14,054 15,054 (1,000) (6.6) (b)

Net Assets 65,576 59,097 6,479 11.0

Statement of Cash Flows (c)

Cash Inflow/(Outflow) fromOperating Activities 10,230 3,657 6,573Cash Inflow/(Outflow) fromInvesting Activities (6,357) (5,465) 892

Net Increase/(Decrease) in Cash 3,873 (1,808) 5,681 314.2

(a) Net Cost of Services

The reduction in the Net Cost of Services, compared to budget, can be attributed to an increase in the recoupment ofcosts from the self funding entities and income from the Retained Taxes, Fines and Fees. This has been offset, in part,by increased operating expenditure relating to the licensing of new computer software.

(b) Assets and Liabilities

Relative to the budget, the increase in the level of net assets during 2000/01 is a result of an increase in revenue,decrease in accrued accounts payable and a decrease in expenditure on capital projects. An increase in receivablesrelating to the recoupment of expenses from self-funding entities and a decrease in payables is reflected in the increasein Net Assets.

(c) Cashflows

The change in cash flow can be attributed to an increase in actual expenditure on salaries and a decrease in Treasuryappropriation as the Department did not fully utilise the special appropriation for the Hertiage Retirement Villagelegal costs and expenditure on some Capital projects was delayed.

22. Cash and Cash Equivalents

For the purposes of the Statement of Cash Flows, cash includes cash on hand, Hour-Glass Cash and Cash Plus andcash in bank. Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the relateditems in the Statement of Financial Position as follows:

2001 2000$’000 $’000

Cash 16,175 12,302Closing Cash and Cash Equivalents 16,175 12,302


23(a). Reconciliation of cash flows from operating activities to net cost of services2001 2000$’000 $’000

Net cash used on/(provided by) operating activities (10,230) (6,830)Cash Flows from Government 64,983 50,648Valuation gains on TCorp investments (1,364) (1,160)Department of Public Works and Services transfer of fitout - (363)Interest Capitalised on Loans - (1)Written Down Value of assets written off 357 1,148Recognition of assets after stocktake (314) -Net loss/(gain) on sale of plant and equipment (597) 19Acceptance by the State of Departmental liabilities 3,135 2,853Depreciation and amortisation 5,648 5,567Increase in Provision for doubtful debts 945 990(Increase)/decrease in prepayments and other assets (1,604) (2,901)Increase/(decrease) in Accounts Payable (489) 706Increase/(decrease) in Employee Entitlements and Other 165 (508)Net cost of services 60,635 50,168

23(b). Non cash financing and investing acivities

Office fitout transferred from Department of PublicWorks and Services - 363

- 363

24. Olympic Games Costs

The Department had a number of staff involved in the 2000 Sydney Olympic Games and Paralympic Games. Detailsare as follows:

Number of staff allocated directly to Games activities 11 3Total costs of staff allocated directly to Games activities 64 93

Number of staff seconded to other agencies on initiativesdirectly related to the Games 23 -Total costs of staff seconded to other agencies on initiativesdirectly related to the Games 193 -

25. Trust Funds

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

Funeral FundCash balance at the beginning of the financial year 113 114Add : Receipts - -Less : Expenditure 1 1Cash balance at the end of the reporting period 112 113

McFadden CompensationCash balance at the beginning of the financial year 83 80Add : Receipts 6 3Less : Expenditure 85 -Cash balance at the end of the reporting period 4 83


2001 2000 $’000 $’000

26. Administered Assets and Liabilities

Administered AssetsReceivables Note 28 175 747Other 42 53Total Administered Assets 217 800

Administered LiabilitiesLiability to Consolidated Fund 42 53Total Administered Liabilities 42 53

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 $11,000 were received by the Department of Fair Trading during the period 1 July 2000 to 30 June 2001and onforwarded to Treasury. Balance of loan of $42,172 is shown as Other Administered Assets.

27. Administered Revenue – Debts Written Off

Business Name Registration 25 25Trade Measurement - 12Other 29 -

54 37

28. Administered Revenue – Schedule Of Uncollected Amounts

License Fees 51 138Business Registrations 33 534Trade Measurement 91 33Miscellaneous - 42

175 747

Aged Analysis of Administered Revenue

Current 158 646Between 30 days and 59 days old 6 8Between 60 days and 89 days old 3 3Over 90 days old 8 90

175 747

End of audited financial statements


Appendices1 Accounts Payable Performance 55

2 Consultancies Over $30,000 55

3 Official Overseas Travel 55

4 Penalty Notices 56

5 Civil Litigation 56

6 Prosecutions 57

7 Director-General�s Report on Funeral Funds 57

8 Rental Bond Board 58

9 Customer Feedback 58

10 Freedom of Information 59

11 Guarantee of Customer Service 60

12 Privacy Management Plan 61

13 Risk Management and Insurance 61

14 Energy Management 62

15 Internal Audit 62

16 Portfolio Authorities 62

17 Membership of Statutory Bodies andInterdepartmental Committees 63

18 Grants 64

19 Senior Executive Service at 30 June 2001 66

20 Occupational Health and Safety 67

21 Staff Classification Profile 67

22 Equal Employment Opportunity Statistics 67

23 Ethnic Affairs Priorities Statement 68

24 Report on Disability Action Plan 69

25 Report on NSW Action Plan for Women 70

26 Publications 70


2 Consultancies Over $30,000

Consultant Project CostRobyn Kennedy & Co P/L Project on 2000 Olympics and rental market monitoring $13,800Robyn Kennedy & Co P/L Review of the Tenants Advice and Advocacy Program $107,340Changedrivers Review of the Fair Trading and Residential Tribunals $88,000Opticon Australia P/L Customer Assistance System (CAS) On-line. Feasibility

study and user requirements definition $90,671Opticon Australia P/L Electronic Service Delivery (ESD) � On-line Registry.

Feasibility study and system specifications $133,927CMG Admiral Electronic Service Delivery (ESD) �

Internet/Intranet architecture project $122,727Total of consultancies over $30,000: $556,465The Department also entered into 11 consultancies for values under $30,000 at a total cost of $87,845.

1 Accounts Payable Performance

Aged analysis at the end of each quarter:Quarter Current Less than 30 30-60 60-90 More than 90

days overdue days overdue days overdue days overdue$ $ $ $ $

September 501,347.95 0.00 0.00 0.00 0.00December 387,682.49 11,962.41 0.00 151,227.27 0.00March 325,311.43 0.00 0.00 0.00 0.00June 1,689,068.29 1,729.52 0.00 0.00 0.00

Accounts paid on time within each quarter:Quarter Total Accounts Paid on Time Total Paid

Target % Actual % $ $September 90.00 89.61 5,310,323.63 5,556,183.20December 90.00 87.84 19,629,265.34 20,938,257.04March 90.00 86.80 20,423,543.49 21,934,515.11June 90.00 87.81 20,415,283.18 21,678,028.17

Note: A detailed transaction analysis was undertaken to determine the major reasons for late payment. Meetings have occurred withrelevant operational units to address these problems. During 2000-2001 there were no instances of interest being paid in respect oflate payments.

3 Official Overseas Travel

Officer Dates of Travel Destination Purpose of tripRod Hawks 29 Aug to 2 Sep 00 Christchurch, New Zealand Attend Electrical Regulatory Authorities Council's

equipment safety working group meeting andStandards Australia technical committee meeting

John Furbank 20 to 24 Nov 00 Wellington & Aukland, Attend Electrical Regulatory AuthoritiesNew Zealand Council meeting and meeting at the Ministry of

Consumer AffairsGraham Alderton 12 to 15 Jun 01 Auckland, New Zealand Investigation of contempt proceedingsChris Hanlon 12 to 17 Jun 01 Auckland, New Zealand Investigation of contempt proceedings


4 Penalty Notices

Penalty notices are used in relation to breaches of prescribed statutory provisions. Penalty notices do not take away the person�sright to have the matter determined by a court and payment of the penalty does not constitute an admission of liability or prejudiceany civil claim relating to the matter.

Penalty notices and fine totals from 1 July 2000 to 30 June 2001Act Defendants Offence Penalties $Business Names 8 23 $ 3,000.00Fair Trading 13 17 $ 4,900.00Home Building 3 3 $ 800.00Landlords & Tenants (Rental Bonds) 2 5 $ 2,750.00Motor Dealers 43 226 $ 11,450.00Pawnbrokers & Second-hand Dealers 45 57 $ 24,300.00Property Stock & Business Agents 41 42 $ 21,710.00Trade Measurement 65 103 $ 32,600.00Total 220 476 $ 101,510.00

5 Civil Litigation

Civil Litigation includes:� injunctive and ancillary relief in the

Supreme Court� complaints in the Local and District

Court� objections in licensing matters under

the Property Stock & Business Agents Act� proceedings in the Administrative

Decisions Tribunal regarding review ofdecisions under Home Building Act,Motor Dealers Act and Pawnbrokers &Second-hand Dealers Act

� proceedings in the Fair TradingTribunal under the Home Building Actrelating to building insurance andlicence disciplinary matters.

The Department�s Legal ServicesDivision also acts or instructs in variouscourts and Tribunals where the Ministeror Director-General intervenes inproceedings or action has been takenagainst the Department, the Director-General or Minister.

Civil litigation from 1 July 2000 to 30 June 2001Court/Tribunal Act No. of mattersSupreme CourtInjunction FT 12Ministerial Intervention CCT 2Other HB 1

FT 3SSM 1RV 1PSBA 2PBSD 1

Total 23District CourtLicence Complaints PSBA 1Objections PSBA 1Insurance HB 1Other PSBA 2Total 5Local CourtLicence Complaints PSBA 22Objections PSBA 17Total 39Administrative Decisions TribunalLicence Appeals HB 8

PBSD 7MD 3

Total 18Fair Trading TribunalInsurance Appeals HB 73Show Cause HB 7Total 80Grand Total 165

FT � Fair Trading Act, HB � Home Building Act, SSM � Strata Schemes ManagementAct, RV � Retirement Villages Act, PSBA � Property, Stock & Business Agents Act,MD � Motor Dealers Act, PBSD � Pawnbrokers & Second-Hand Dealers Act,CCT � Consumer Claims Tribunal Act.


6 Prosecutions

Prosecutions and fine totals from 1 July 2000 to 30 June 2001Act Defendants Offences Penalties $Business Names 2 4 $ 2,051.00Door to Door Sales 1 1 $ 2,906.00Electricity Safety 1 2 $ 362.00Fair Trading 13 26 $35,491.00Home Building 32 128 $146,107.29Motor Dealers 22 131 $ 99,033.50Pawnbrokers & Second-hand Dealers 6 37 $ 39,818.00Property Stock & Business Agents 30 47 $ 92,657.00Trade Measurement 15 114 $ 27,636.50Total 122 490 $ 446,062.29

7 Director-General�s Report on Funeral Funds

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, insteadof making small, regular payments,consumers choose to pre-pay for afuneral by making one lump sumpayment or several large instalmentsover a period of time. In each case,consumers enter into a contract with atrustee for the provision of specifiedservices by a service provider. Theprovider of the service is thenreimbursed from the fund where theconsumer�s money has been held, at noadditional cost to the consumer.

The Director-General of theDepartment of Fair Trading isresponsible for monitoring thecontinuing operation of existing fundsfor the benefit of existing members andto facilitate the registration of new fundswhich meet the requirements of thelegislation.

As at 30 June 2001, the funeral fundregister has 15 registered funds and 30funds exempted under Section 114B(1)of the Act that are currently active.

The exempted funds are primarilycontributory funds. The exemptionswere granted on the basis that the fundsdid not take on new members.

Registered funeral funds are required toprovide the Department with statementson an annual basis, which set outoperational details of the funds asprescribed by legislation. During the

year, we undertook a major initiative toimprove the compliance rate of funeralfunds in lodging annual returns. Thefunds responded positively and furtherimprovements in the compliance ratesare anticipated for 2001-2002.

The Department also continues tomaintain a trust fund for contributors tothe Russell Kinsela group of companies,which went into liquidation in the early1980�s. Funds retrieved from onecompany in the group have beenretained in trust by the Department topartially settle claims made by previouslyunidentifiable contributors to theschemes run by the group. In the twelvemonths leading up to 30 June 2001, theDepartment made two payments to suchcontributors, amounting to $473.60.The amount held in trust at 30 June2001 is $111,955.17.

A review of the Act was conducted inaccordance with the requirements of theNational Competition Policy reviewagenda. The review embraced both theindustry and community in itsconsultation process. A report withrecommendations anticipated to improveregulation of the sector was expected tohave been handed down in the latter partof 2000. An extension of time for thepreparation of National CompetitionPolicy reviews, however, has allowedtime for information obtained during thecompliance program to be incorporatedin the findings of the review.

The Funeral Funds Act 1979 (the Act)stemmed from the 1977 PricesCommission inquiry into the operationof the funeral industry. The inquiryfound that in an unregulated market,many funeral businesses failed to operatein the best interests of their customers,with funds often failing to meet the fullcost of funeral services as promised ornot providing cash benefits if serviceswere provided by another funeralbusiness.

The Act provides for registration orexemption of pre-arranged orcontributory funeral funds operating inNew South Wales. The purpose of thelegislation is primarily to safeguardconsumers� prepayments orcontributions for funeral services.

Through the process of registeringfuneral funds, the Act seeks to:

� ensure the provision of agreed funeralservices when required

� achieve accountability for money paidby a buyer for funeral services whichhave an indefinite delivery date

� ensure money paid for funeral servicesin the long-term is properly managed toprovide agreed benefits to the buyer andthe anticipated payment to the supplierof funeral services.

Funeral contribution funds havemembers make small, regularcontributions for as long as they remainin the fund. These funds contributetowards a funeral service or provide a


The Rental Bond Board was establishedin 1977 under the Landlord and Tenant(Rental Bonds) Act 1977 to act as animpartial custodian of rental bonds paidfor residential tenancies in New SouthWales.

The Board is a statutory bodyrepresenting the Crown and is subject tothe control and direction of the Ministerfor Fair Trading.

The Board is comprised of the Director-General, Department of Fair Trading asChairperson, representatives of theDirector-General of the Department ofHousing and the Secretary of theTreasury and two persons withexperience in real estate or tenancymatters appointed by the Minister.

The legislation gives the Boardresponsibility for the management andinvestment of bond monies and interestearned on investments and for themaking of grants or loans, with theapproval of the Minister, for rentaladvisory services and other projectswhich benefit the residential tenancysector.

Interest earned on the investment ofbond monies is used to pay interest onbond refunds and to partially fund theResidential Tribunal. The Board alsoprovides funds for a number of advisoryservices, including the Tenants Adviceand Advocacy Program.

The Department provides administrativesupport to the Board, including:

� rental bond lodgement, refund andenquiry services,

� tenancy information and education,� accounting, investment, financial and

legal services and� assessment of applications for funding

and preparation and administration offunding agreements.

The Rental Bond Board financialstatements for the year ended 30 June2001 are contained in Volume Two ofthis Annual Report.

Enquiries about the Board and requestsfor copies of funding guidelines may bedirected to the Rental Bond BoardSecretary on telephone (02) 9338 8992.

Members Term of appointment Meetings attendedDavid O�Connor, Director-General, Department of Fair Trading � Chairperson. Ex officio 2Alternates:� Mr John Schmidt, Assistant Director-General 1� Mr Brian Given, Assistant Director-General 1Director-General, Department of Housing. Ex officioDeputy:� Ms Kim Anson, Executive Director, Policy & Strategy. 1� Mr Paul Vevers, Executive Director, Policy & Strategy. 2Secretary, NSW Treasury. Ex officioDeputy: Mr Brian Waddington, Senior Financial Analyst. 4Ms Lynette Tamsett, Licensee, KG Hurst, Eastwood, Ministerial appointment. To 1 April 2002 4Ms Sarah Nielsen, Solicitor, Ministerial appointment. To 1 March 2001 2Ms Michelle Burrell, Solicitor, Ministerial appointment. From 1 April 2001 to 1

1 April 2002

Customer Feedback98-99 99-00 00-01

Total 215 223 179Compliment 90% 86% 81%Complaint 10% 14% 19%

9 Customer Feedback

The Department operates a customerfeedback system known as �YourOpinion Counts�. This system allowscustomers to comment on aspects ofservices offered by the Department.�Your Opinion Counts� forms arelodged by mail or through completionon the Department�s Web site.

35 complaints were received throughcustomer feedback during 2000-2001.All were resolved either throughministerial correspondence or byconciliation with program managerswhere possible. No allegations ofsuspected corrupt conduct or illegalbehaviour were received through thecustomer feedback system.

These 35 complaints related to:� service delays 34%� actions of staff 29%� inability to register/pay online 11%� allocation of Business Name 11%� DFT Website inadequacies 11%� accuracy of information given. 1%

Action is being taken within DFT toaddress a number of these issues throughInteractive Voice Recognition systemsand ESD initiatives to allow online

registration and payments as part ofwhole-of-Government processes.

The apparent increase in the percentageof complaints is due solely to a decreasein the amount of complimentaryfeedback received by the Department (asreflected in the decrease in the totalamount of feedback received throughthe �Your Opinion Counts� process).The average number of complaint�sreceived over the last 4 years is 31 perannum.

8 Rental Bond Board


10 Freedom of Information

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

Personal Other TotalFOI requests 99-00 00-01 99-00 00-01 99-00 00-01New 22 8 117 83 139 91Brought forward 5 2 7 19 12 21Total 27 10 124 102 151 112Completed 22 10 86 85 108 95Transferred 1 0 2 0 3 0Withdrawn 2 0 17 9 19 9Total 25 10 105 94 130 104Unfinished 2 0 19 8 21 8

Results of FOI applicationsPersonal Other

FOI results 99-00 00-01 99-00 00-01Granted in full 9 4 32 30Granted in part 11 5 45 50Refused 2 1 9 5Deferred 0 0 0Completed 22 10 86 85

99-00 00-01Ministerial Certificates issued 0 0Formal consultation issued 27 48Formal consultation completed 27 45Amendment of personal records:Amendment � agreed 1 0Amendment � refused 0 1Number of requests for notations 0 0

Basis of disallowing accessPersonal Other

Section 99-00 00-01 99-00 00-0119 application incomplete, wrongly directed 0 0 1 022 deposit not paid 1 0 4 125(1) (a1) diversion of resources 0 0 1 025(1) (a) exempt 10 6 47 5225 (1)(b), (c), (d) otherwise available 0 0 0 028(1) (b) documents not held 2 0 1 224(2) deemed refused 0 0 0 031(4) released to medical practitioner 0 0 0 0Total 13 6 54 55

Costs and Fees99-00 00-01

Costs/Fees $ $Assessed cost 23,946.25 19,254.25Fees received 7,116.00 6,657.00

Discounts allowedPersonal Other

Type of discount 99-00 00-01 99-00 00-01Public interest 0 0 0 0Financial hardship � pensioner/child 2 0 5 1Financial hardship � non profit group 0 0 0 0Significant correction of personal records 0 0 0 0Total 2 0 5 1


Days to processPersonal Other

Elapsed time 99-00 00-01 99-00 00-010-21 days 14 6 38 3822-35 days 7 2 19 16Over 35 days 4 2 48 40Total 25 10 105 94

Processing timePersonal Other

Hours 99-00 00-01 99-00 00-010-10 19 9 85 7911-20 4 0 19 1521-40 2 1 1 0Over 40 0 0 0 0Total 25 10 105 94

99-00 00-01Number of internal reviews finalised 3 6Number of Ombudsman reviews finalised 0 0Number of Administrative Decisions Tribunal reviews finalised 0 0

Basis of Internal Review:Personal Other

99-00 00-01 99-00 00-01Access refused 0 0 0 0Deferred 0 0 0 0Exempt matter 0 1 varied 1 upheld, 1 varied 2 upheld. 2 variedUnreasonable charges 0 0 1 upheld 0Charge unreasonably incurred 0 0 0 0Amendment refused 0 1 upheld 0 0

There was a 30% reduction in the number of applications received in 2000-2001 in comparison to the previous year. This iscommensurate with the decline in requests for documents held by the Department�s Home Building Insurance Branch.

However, many of the applications dealt with were complex and/or requested access to a substantial number of documents. Thistrend led to an increase in the number of third party consultations required under the Act and applications for internal review. Thevery nature of these requests contributed to the fact that 40% of applications took more than 35 days to finalise.

There was no major impact on the Department�s administration arising from the number of FOI applications received. Further,there were no formal complaints from the Ombudsman�s office or review applications to the Administrative Decisions Tribunal forthe 2000-2001 period.

11 Guarantee of Customer Service

Service delivery standards vary with thenature of the particular services providedin different divisions of the Department,and are set out in detail in the Guaranteeof Service released in March 2000, whichwas unchanged during 2000-2001.

The standards set out in this documentwere met or bettered in many serviceareas during this financial year.However, the Department is aware of a

few cases where on occasion, standardswere not able to be met. These includedvery heavy traffic areas such as somehigh volume call centres, where waitingtimes on occasion again exceeded fiveminutes, and business names andassociations, where processing standardswere affected in the latter part of 2000,mainly by unexpected performancedegradation of the computer system.

Improvements have now been achievedin phone waiting times, with recentmetrics indicating average waiting timesacross the Department which are withinthe guarantee of service standard.Processing times for business names/associations also improved in 2001 as aresult of remedial work on the computersystem.


12 Privacy Management Plan

personal information from publicregisters are in operation.

Individuals can apply under the PPIPAct for access to personal informationheld by the Department. A complaint, orinternal review, can be lodged if a personbelieves the Department has breached aninformation protection principle underthe Act or its Code of Practice.

For the year 2000-2001, the Departmentdid not receive any access applicationsand only one internal review. Althoughthe Department could not identify abreach, Privacy NSW was notified of thecomplaint in accordance with the PPIPAct.

The Privacy and Personal InformationProtection (PPIP) Act 1998 introduced aset of binding privacy standards for theNSW public sector. These standards,known as information protectionprinciples, regulate the way public sectoragencies deal with personal informationin relation to its collection, storage, useand disclosure.

The Act required each agency to preparea Privacy Management Plan which setsout the policies and practices adopted toensure compliance with the legislativeprovisions, as well as establishingprocedures to deal with complaintsabout its conduct and the disclosure ofpersonal information held on publicregisters.

In addition to the above, the Departmentof Fair Trading developed a Code ofPractice which modifies the provisions

of the PPIP Act in their application tothe Department. The Code of Practiceauthorises non compliance with theinformation protection principles wherethey prevent the Department fromcarrying out its functions.

The Department is also covered by theprovisions of the Investigation Code ofPractice, the Code of Practice for Inter-agency Transfers of Information and thePrivacy Code of Practice for the NSWPublic Sector Workforce Profile.

The Privacy Management Plan has beengiven to the Privacy Commissioner andthe Code of Practice has been approvedby the Attorney General. Copies of bothdocuments are available to members ofthe public upon request. A factsheet, forthe information of staff and customers, isalso available. The procedures forcomplaint handling and the release of

13 Risk Management and Insurance

We have been completing a businesscontinuity plan to help ensure ourongoing operations in the event of amajor disruption to essential services. Asa matter of course, we store electronicdata off site. We have a staff code ofconduct and have developed planscovering a range of essential functionssuch as information technology,telecommunications andaccommodation. Our tenancies haveemergency exit procedures in place andevacuations are practiced regularly.

Our records management system helpsus to meet all of our responsibilitiesunder the State Records Act and we haveprocedures in place across the agency tosupport this.

We are part of the NSW TreasuryManaged Fund, the State Government'sself-insurance scheme that isadministered by GIO Australia. Thescheme covers us for workers'compensation, comprehensive motorvehicle, property loss and public liabilityas well as miscellaneous cover for ouroperations, worldwide. We achieved agood 'hindsight' result for the 1997/98claims year with the refund of $160,469in workers' compensation premiums.

Our two major risk areas have beenworkers' compensation and motorvehicles. We have developed strategies tohelp ensure our exposure to risk isminimised. Policies are in place on the

use and maintenance of motor vehiclesand occupational health and safety. Wehave an active OH&S WorkingCommittee as well as workplacecommittees operating at locationsthroughout the agency. The WorkingCommittee identifies agency-wideOH&S issues and makesrecommendations to the Executive onpolicy development. The committee alsopromotes our OH&S policy statementand actively pursues its implementation.

14 Energy Management

Accountability and responsibility forenergy management has been establishedby the appointment of an EnergyManager and an Energy Coordinator.

We have an Energy Management Plan.Where cost effective we areendeavouring to reduce energyconsumption in all of our tenancies.

We are committed to achieving savingsin energy usage and to sustained energymanagement principles. We have twosites that purchase electricity on thecontestable market including 5% fromrenewable resources. This has helpedlower our costs and also assisted inachieving a reduction of greenhouse gasemissions.


� Fleet Management� Investments� Rental Bond System operations� Trade Measurement LSO operations� Trade Measurement Laboratory

operations� Property Services Licensing� Real Estate Investigations

Note: The audit plan may be subject tochange

Corporate Credit CardsIn accordance with the Treasurer�sDirections, the Director-General hascertified to the Minister that credit carduse over 2000-2001 has been inaccordance with established governmentrequirements. The certification wasqualified to the extent that a very smallnumber of transactions included minordepartures from the DFT's usage policyand procedures.

DFT Code of ConductThe DFT Code of Conduct has beenreviewed over 2000-2001 and will be re-issued during 2001-2002. Improvementswill include: expanded examples for staffguidance; inclusion of specific referenceto the Ombudsman Amendment (ChildProtection & Community Services) Act;inclusion of DFT policy regarding DFTstaff holding/applying for DFT regulatedlicences and certificates.

Australian Standard (AS/NZS 4360) asopposed to the Treasury model.

Actual Audit Tasks 2000-2001� Building Insurance (FTAC Schemes)� Motor Dealers Compensation Fund� Internet usage� Electrical Certifications� Property Compensation Fund� Associations� Fair Trading Centre operations� Corporate Credit Card management� Rental Bond Internet Service� Building Services Licensing� DFT Debtors Administration� Purchasing/Accounts Payable� Public Register Integrity� Shadow Shopping Survey� SAP R/3 FMS

Planned Audit Tasks 2001-2002� Co-operatives Development Fund� Internet Usage� REV�s Internet� Fair Trading Centre Administration� Sponsorship� Fringe Benefits Tax� Rental Bond Internet Service� Shadow Shopping Survey� Corporate Credit Cards� GST Processes� Fixed Asset Management� Business Registration operations� RBIS� Penalty Notice System� REVs IT operations� Payroll/Leave

15 Internal Audit

Internal Audit services were provided byDFT employed staff assisted bycontracted services specifically in thearea of specialist IT audit tasks.

Approximately 60% of the annual auditplan was achieved. Major variations tothe annual plan arose from:� Internal Audit involvement on steering

committees for TAAP Review,seamless service; sponsorship riskmanagement; and BRS improvement

� the management and investigation of15 matters concerned with eitheralleged corrupt conduct, or otherallegations.

� certification for RTA on use ofDRIVES by units within DFT

� review and redraft of DFT Code ofConduct (to be re-issued 2001-2002)

At the time of reporting, the 2000-2001survey of client satisfaction with InternalAudit services was being performed.Target indicators are for >80%satisfaction over a range of attributes(customer satisfaction 1999-2000 was91%). The Executive Internal AuditCommittee was streamlined andreconstituted during the year to ensurethat best practices are maintained.Internal Audit continued to review theNSW Treasury Risk Management selfassessment methodology. It has beendecided that action will commence in2001-2002 to implement riskmanagement within DFT in line with

16 Portfolio Authorities

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 Safety

Committee

Fair 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

Statutory Bodies at:Level 20, 227 Elizabeth StreetSydney New South Wales 2000� Home Building Advisory Council� Property Services Advisory Council� Fair Trading Advisory Council� Motor Trade Advisory Council� Retirement Villages Advisory Council


17 Membership of Statutory Bodies and Interdepartmental Committees

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

Acceptable Standards of ConstructionCommittee NSWBarry Miller [m] (until February 2001)

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] (until November 2000)

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]

Jewellery and Timepieces IndustryCode Administration CommitteeMalcolm Finger [m]

Ministerial Taskforce on AffordableHousingDavid O�Connor [m]

National Inter-DepartmentalCommittee on Migrant SettlementLyn Baker [m]

Motor Trade Advisory CouncilDavid O�Connor [m]

North Coast Regional CoordinationManagement GroupMarilyn Richmond [m]

North Coastal and Sydney RegionCo-ordination Management GroupAndrew Gavrielatos [m]

Northern Tablelands RegionalCoordination Management GroupMarilyn Richmond [m]

NSW Car Theft Action GroupJohn Vernon [m]

NSW Financial Counselling Trust FundBrian Given [t]

NSW Food Advisory CommitteeMerilyn Betty [m] (until August 2000 �Committee not yet reconstituted)

NSW Injury Prevention ForumJohn Furbank [m]

NSW Treasury Managed Fund ServiceLevel Working GroupDarrel Cummings [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]

Residential Tribunal OperationsCommitteeJoy Brookes [m]

Riverina Murray RegionalCoordination Management GroupJan Malone [m]

SCOCA Car Rental Working PartyLes Wrigley [m]

South Coastal Sydney Regional Co-ordinationManagement GroupAndrew Gavrielatos [m]

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

State Records Customer CouncilDavid Lilley [m] (until November 2000)

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]


18 Grants

Figures shown do not include 10% GST allowance paid on all grants. This allowance is ultimately recouped from the AustralianTaxation Office as the Department is not classified as an end user.

Program area: Consumer and Trader ServicesProgram: Tenants Advice and Advocacy Program (TAAP) 2000-2001

Funded organisations Purpose Funding $Canterbury-Bankstown Migrants Resource Centre Inc. Southern Sydney TAAP service 230,250Central West Community College Ltd South Western NSW TAAP service 208,794Combined Pensioners and Superannuants Residential Parks TAAP serviceAssociation of NSW Inc 122,451Dtarawarra Pty Ltd Aboriginal Resource TAAP service 58,347Durahrwa Training and Development Aboriginal Corporation Northern NSW Aboriginal TAAP service 180,014Eastern Area Tenants Service Inc Eastern Sydney TAAP service 172,687Hunter Community Legal Centre Inc Hunter TAAP service 247,257Illawarra Legal Centre Inc South Coast TAAP service 175,304Management & Advisory Services Aboriginal Corporation South Western Aboriginal TAAP service 180,014Marrickville Legal Centre Ltd Inner Western Sydney TAAP service 201,469Northern Area Tenancy Service Inc Northern Sydney TAAP service 172,687Northern Rivers Community Legal Centre Inc Far North Coast TAAP service 151,230Orange Community Resource Organisation Inc North Western NSW TAAP service 209,214Port Macquarie Neighbourhood Centre Inc Mid North Coast TAAP service 146,524Redfern Legal Centre Ltd Inner Sydney TAAP service 172,687South West Sydney Legal Centre Inc South Western Sydney TAAP service 172,687Tenants Union of New South Wales Co-op Ltd TAAP Co-ordinator service 364,213The Uniting Church in Australia Property Trust (NSW) Western Sydney TAAP service 261,648Thubbo Aboriginal Medical Co-op Western NSW Aboriginal TAAP service 180,014Wirringa Baiya Aboriginal Women�s Legal Centre Inc Greater Sydney Aboriginal TAAP service 58,347Wyong/Gosford Community Legal Service Inc Central Coast TAAP service 146,522Special Purpose Fund Provision for ad-hoc projects and interpreter and

translator costs for services funded under the TAAP. 110,000Program administration Administration of TAAP 57,562Total 3,979,922

Program area: Consumer and Trader ServicesProgram: Credit Counselling Program 2000-2001

Funded organisations Purpose Funding $Macarthur Legal Centre Inc Macarthur Legal Centre Financial Counselling Service 22,000Coffs Harbour Neighbourhood Centre Coffs Harbour Financial Counselling Service �

Grafton & Woolgoolga Outreach 13,000Coffs Harbour Neighbourhood Centre Coffs Harbour Financial Counselling Service 8,000Consumer Credit Legal Centre (NSW) Inc. Consumer Credit Legal Centre 116,000Eastlakes Family Support Service Inc Eastlakes Financial Counselling Service 16,000Forster Neighbourhood Centre Inc. Forster Financial Counselling Service 25,500Illawarra Legal Centre Inc. Illawarra Legal Centre Financial Counselling Service 50,000Kempsey Neighbourhood Centre Inc. Kempsey Financial Counselling Service 30,500Lismore Neighbourhood Centre Inc. Lismore & District Financial Counselling Service �

Mullumbimby & Byron Bay 22,000Lismore Neighbourhood Centre Inc. Lismore & District Financial Counselling Service 35,500Mission Australia Mission Australia Creditworthy Wollongong 25,000Mission Australia Mission Australia Green Valley Financial Counselling Service 24,000Murwillumbah Community Support Centre Inc. Murwillumbah Financial Counselling Service 23,500Port Macquarie Neighbourhood Centre Inc. Port Macquarie Financial Counselling Service 31,500Redfern Community Legal Centre Redfern Legal Centre Financial Counselling Service 16,000The Uniting Church in Australia Property Trust (NSW) Credit Helpline 200,000The Uniting Church in Australia Property Trust (NSW) Creditline Sydney 92,500The Uniting Church in Australia Property Trust (NSW) Creditline Macarthur 15,500The Uniting Church in Australia Property Trust (NSW) Creditline Fairfield 51,500The Uniting Church in Australia Property Trust (NSW) Creditline, Newcastle and Hunter 22,000Total 840,000


Program area: Consumer and Trader ServicesProgram: Other Funded Tenancy Projects

Funded organisations Purpose Funding $The Aged-Care Rights Service Inc. Aged-Care Rights Service 238,634Combined Pensioners and Superannuants Tenancy Housing and Information UnitAssociation of NSW Inc 129,382Total 368,016

Program area: Consumer and Trader ServicesProgram: Department of Fair Trading supplementary funding to the Financial Counselling Trust Fund 2000-2001

Funded organisations Purpose Funding $The Entrance Neighbourhood Centre Inc Central Coast Financial Counselling Service 48,000Woodrising Neighbourhood Centre Inc. Creditline Westlake Macquarie

Financial Counselling Service 22,458Total 70,458

Program area: Consumer and Trader ServicesProgram: Financial Counselling Trust Fund 2000-2001

Funded organisations Purpose Funding $Anglicare � South East Anglicare Financial Counselling Service 16,000Bankstown Community Services Community Co-operative Ltd. Bankstown Family Support Service 18,000Christian Community Aid Service Inc Ryde/Eastwood Financial Counselling Service �

Granville Outreach 13,600Christian Community Aid Service Inc Ryde/Eastwood Financial Counselling Service �

Auburn/Lidcombe Outreach 20,500Christian Community Aid Service Inc Ryde/Eastwood Financial Counselling Service 35,500Eurobodalla Family Support Service Inc. Eurobodalla Financial Counselling Service 30,500Gosford City Community and Information Service Ltd Gosford City Financial Counselling Service 32,000Hunter Valley Financial Counselling Project Hunter Valley Financial Counselling Project 33,000Lifeline Central West Inc. Creditline Central West Financial Counselling Service 39,000Lifeline Central West Inc. Financial Counselling Training Program 2,500Lismore Neighbourhood Centre Inc. Financial Counselling Training Program 13,403Mission Australia Mission Australia Campbelltown

Financial Counselling Service 32,000San Remo Neighbourhood Centre Incorporated San Remo Financial Counselling Service 16,000The Salvation Army (NSW) Property Trust Moneycare � Campsie 16,000The Salvation Army (NSW) Property Trust Moneycare � Parramatta 24,000The Salvation Army (NSW) Property Trust Moneycare � Lethbridge Park 24,700The Trustee of the Society of St. Vincent de Paul (NSW) St.Vincent De Paul Society Broken Bay

Financial Counselling Service 8,000The Uniting Church in Australia Property Trust (NSW) Creditline Penrith � Outreach Richmond 16,000The Uniting Church in Australia Property Trust (NSW) Creditline Penrith � Outreach Quakers Hill/ Blacktown 16,000The Uniting Church in Australia Property Trust (NSW) Creditline Financial Counselling Service � Penrith 42,000The Uniting Church in Australia Property Trust (NSW) Creditline Nowra 32,000The Uniting Church in Australia Property Trust (Victoria) St David�s Care Credit Line Albury 24,000Wagga Wagga Family Support Service Inc. Wagga Wagga Financial Counselling Service 35,500Woodrising Neighbourhood Centre Inc. Creditline Westlake Macquarie

Financial Counselling Service 1,542Total 541,745

Program area: Consumer and Trader ServicesProgram: Home Building Grants Program 2000-2001

Funded organisations Purpose Funding $Building Apprentices Training Limited Sydney Illawarra Apprentice Training Program 250,000City of Port Macquarie Chamber of Commerce Provide a training program in business skills to

builders and trade contractors on Mid North Coast 43,820Illawarra Institute of Technology Educational Program for Owner Builders:

Part A: Owner Builder�s Course 30,030MBA Newcastle Group Training Pty Ltd Newcastle MBA Group Training and Personnel 100,000University of New South Wales, Faculty of the Built Environment Training in Service Quality and Complaint

Handling for Home Builders 19,900Swimming Pool and Spa Association of NSW Limited Swimming Pool and Spa Industry

Training Research Project 10,400Total 454,150


19 Senior Executive Service at 30 June 2001

1999 2000 2001No. of SES 10 (10 positions) 8 (8 positions) 7 (7 positions)

Level of positions6 1 1 14 2 2 23 2 1 12 2 2 11 3 2 2No. of positions filled by women 4 2 2

Senior Officers @ 30 June 20012001

No. of Senior Officers 12Level of positions3 12 31 8No. of positions filled by women 4

Performance of Chief ExecutiveMr David O�Connor � Director-General, SES Level 6

The Minister for Fair Trading has expressed his satisfaction with Mr O�Connor�s management of the Department and dedication toservice throughout 2000-2001.

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

The Hon J A Watkins, MPMinister for Fair Trading6 August 2001

Remuneration details of Level 5 and above Senior Executive Service officersPosition title Name Total remuneration package Dollar value of Performance payment

excluding performance pay performance payment criteria for reporting yearDirector-General David O�Connor $ 202,174 $ 0.00 n/a

Program area: Consumer and Trader ServicesProgram: Property Service Grants Program 2000-2001

Funded Organisations Purpose Funding $Stock & Station Agents� Association NSW Inc Professional Development & Education Program 130,100University of Western Sydney (School of Construction, Development and writing of the Bachelor of CommerceProperty and Planning) (Property Economics) External Course � Stage 3 66,000Real Estate Institute of New South Wales Refinement of Institute website as an interactive

medium for property related advice and assistanceto consumers and real estate practitioners 20,000

Real Estate Institute of New South Wales Research the needs of consumers on real estateand property matters and produce factsheets 23,650

Institute of Strata Title Management Ltd. Continuing Professional Development Program 9,000Institute of Strata Title Management Ltd. 2001 A Skills Odyssey 29,500Australian Property Institute Inc. Continuing Professional Development Program

for Valuers and Related Property Professionals 70,000Total 348,250

Program area: Fair Trading Standards & RegistersProgram: Co-operatives Development Fund

Funded Organisations Purpose Funding $University of Technology Sydney Funding for the Australian Centre for Co-operative

Research and Development (ACCoRD) 300,000*Australian Co-operative Foods Limited Business Plan � Electricity Purchasing Project 8,595.46Co-operative Federation of NSW Limited 2001 Co-operatives Conference � "Australian

Co-operatives � Striving for Excellence" 5,000Institute for Sustainable Futures, Issues and Opportunities Forum � �The NewUniversity of Technology Sydney Competitive Energy Market: How Co-operatives

and Regional Australia Can Benefit� 4,900Total 318,495.46

* This figure excludes amounts that should have been accrued for the 1999-2000 financial year. It also includes the full amountpaid in respect of ACCoRD and does not include the offset in salaries.


20 OccupationalHealth and Safety

We have created a permanent position ofRehabilitation Coordinator to assist inmanagement of return to workarrangements for staff who are absentfollowing work related or non-workrelated injuries. This will enable us tobetter meet our legislative requirementsand advance the well being of staffthrough strategic management ofworkers' compensation and general riskmanagement. Our OH&S WorkplaceCommittees have provided valuableassistance in the identification of areas ofpotential risk.

21 Staff Classification Profile

1998-1999 1999-2000 2000-2001SES 10 8 7Senior Officers 4 7 12Clerks 1062 1023 1033Legal Officers 22 26 28Clerical Officers 78 69 72Clerical Assistants 2 2 2Librarian/Library Technicians 6 4 1Technical Officer 0 0 1Total 1184 1140 1156

Staff numbers do not include statutory appointments relating to the operation ofindependent tribunals.

Percent of Total Staff by Level 2000-2001Subgroup as percent of Subgroup as estimated percenttotal staff at each level of total staff at each level

Level Total staff (number) A B C D E F G H

< $26,802 2 100% 50% 50% 50.00% 50%$26,802 - $39,354 370 90% 24% 76% 3% 34% 31% 12% 6%$39,355 - $49,799 251 96% 32% 68% 5.80% 35% 28% 7% 1.30%$49,800 - $64,400 344 94% 52% 48% 1.60% 20% 17% 12% 4.00%> $64,400 (non SES) 158 91% 64% 36% 0.70% 20% 15% 13% 5.60%SES 7 100% 71% 29% 14%Total 1,132 92% 40% 60% 3.00% 28% 24% 11% 4.20%Estimated Subgroup Totals 1,047 454 678 34 318 267 123 47

Note: Above table does not include casual staff.

Percent of Total Staff by Employment BasisSubgroup as % of total Subgroup as estimated percent of totalstaff in each category staff in each employment category

Employment basis Total Staff(number) A B C D E F G H

Permanent Full-time 935 94% 44% 56% 3.40% 29% 24% 12% 4.30%Part-time 125 86% 12% 88% 1.90% 27% 23% 8% 4.60%

Temporary Full-time 52 83% 31% 69% 26% 23% 5% 2.30%Part-time 13 85% 15% 85% 18% 9% 9%

Contract SES 7 100% 71% 29% 14%Non SES

CasualTotal 1,132 92% 40% 60% 3.00% 28% 24% 11% 4.20%Estimated subgroup totals 1,047 454 678 34 318 267 123 47

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

A. Respondents E. People from racial, ethnic, ethno-religious minority groupsB. Men F. People whose language first spoken as a child was not EnglishC. Women G. People with a disabilityD. Aboriginal people & Torres Strait Islanders H. People with a disability requiring work-related adjustment

22 Equal Employment Opportunity Statistics


Plan for 2001-2002This Ethnic Affairs Priorities Statementis part of our 2001-2002 Access andEquity Strategy. It follows our CorporatePlan format. Some projects have aspecific focus on cultural diversity issues;others aim to improve outcomes for arange of equity target groups.

Ongoing programsServices to people from non-Englishspeaking backgrounds will include:� free telephone or in-person interpreter

services, as needed� language assistance from 75 staff

receiving the CLAS allowance,covering 26 languages

� The Renting Guide available in 17community languages in booklet formand on the Web site

� fact sheets translated into otherlanguages, as needed and placed on theWeb site

� We can help you leaflet available in 22community languages on the Web site

� information campaigns will includeethnic papers and radio, as appropriate.

Liaison is routinely arranged with peak,regional and local groups regarding theDepartment�s services and policyinitiatives. This will include ethnic

23 Ethnic Affairs Priorities Statement

Advertisements for 11 customer servicepositions included the ability to speak arelevant community language as adesirable criterion. Three of the officersappointed speak another language.

Change ProjectGuidelines on funded services.

AchievementsGuidelines for the Department�s fundedservices require applicants to undertaketo provide services in line with theprinciples of access and equity. Data iscollected on the major language groupsusing the service and on interpreterusage.

Ongoing programsPart of the Department�s philosophy isthat services for equity target groupsshould be mainstreamed, where possible.In many cases, access and equity issuesare addressed as an on-going part ofDFT business. The followingachievements reflects this.

Language services:� free telephone and in-person

interpreter services were provided asrequired

� publications available in languagesother than English

� nine publications are available incommunity language

� all translated publications are availableon the Web site and can be printed asrequired (full details are in thePublications appendix on Page 70).

Liaison and educational activities:� DFT staffed information stands at

street festivals targeting specificcommunities, migrant informationdays and open days

� presentations and seminars were heldfor migrant community workers,Migrant Resource Centres,community colleges, othergovernment agencies and communitygroups

� DFT maintained regular contact withcommunity workers, conducted mailouts to ethnic community contacts,participated in migrant inter-agencyforums and contributed to communitynewsletters.

Performance indicatorsSome of the Department�s performanceindicators are particularly relevant toethnic affairs.

The proportion of NESB customersaccessing main DFT services exceededABS benchmark levels for relevantpopulations.

There was no significant differencebetween the levels of confidence in thefair operation of the marketplace forNESB and other customers, within thelimits arising from the sample size.

Expenditure on ethnic print advertisingwas $24,197.00 (5.85% of totaladvertising expenditure).

100% of external access and equityreporting requirements were met.

Customer satisfaction: There was nosignificant difference between the levelsof satisfaction with DFT services forNESB and other customers, within thelimits arising from the sample size.

Staffing profile: 19% target of staffwhose language first spoken as a childwas not English was achieved.

Report for 2000-2001Change ProjectEnsure forms are in plain English andappropriate for diverse groups.

AchievementsA consultant was engaged to assist theDepartment revise some of the mostcommonly used forms to ensure theywere in plain English, clearly laid outand easy to understand. Guidelines and achecklist were also developed to assistofficers to revise and improve additionalforms.

Change ProjectPromote the Access and Equity Strategy.

AchievementsAccess and equity have been widelypromoted within the Department. Up todate access and equity information isavailable on the Department�s Intranet,including the EAPS and other ethnicaffairs related documents.

A major resource document � theAccess and Equity Manual � wasdeveloped to assist staff with theplanning, delivery and evaluation ofservices and programs so they areappropriate to consumers from diversebackgrounds. This is the mostcomprehensive, up to date resource toolcovering all equity target groups.Responding to the needs of customersfrom non-English speaking backgroundsis covered in detail.

Change ProjectEnsure DFT language services meet theneeds of customers.

AchievementsThe Community Language AllowanceScheme (CLAS) has been promotedwithin the Department. 75 staff nowreceive an allowance, covering 26languages. A list of officers qualified toprovide language assistance is availableon the internal phone directory andthose employed in the customer servicesarea have been provided with badgesidentifying languages spoken.

A review of language services providedby the Department has led to a numberof improvements. Apart from theimproved use of staff with language skillsand interpreters, telephone queue lineshave on-hold messages promoting theavailability of language assistance.


Review tenancy information provision toNESB people:� review translated versions of

The Renting Guide as part of a broaderreview of ethnic tenancy informationneeds

� revisions approved and implemented� information products evaluated.

Change projectsLanguage Services ReviewImplementation:� distribute and consult divisions on

implementation plan� develop language services policy and

guidelines.

Guidelines on funded services:� review funding guidelines and

agreements having regard toCommunity Relations CommissionStandards.

Plain English Forms Review Project:� develop stage 2 of this project� revise additional forms.

community organisations andcommunity workers.

Publications and educational activitieswill target ethnic communities, asappropriate.

The Equal Employment Opportunityprogram will contain initiatives for non-English speaking background staff,including:� participation in the Migrant Career

Development Program� targeting of positions for the

recruitment of staff with a languageother than English.

24 Report on Disability Action Plan

plan will now be developed to addressthese issues.

Promoting positive communityattitudesDFT publications do not currently haveimages of people. Positive images ofpeople with a disability will be integratedinto relevant future publications.

Provision and promotion of servicesDFT conducted a review of the deliveryof information and services to peoplewith a disability. It looked at currentDFT communication and servicedelivery mechanisms to determine theirappropriateness to the range of needs ofpeople with a disability. Animplementation plan is being developed.

A new TTY (Telephone Typewriter) isnow available for Property, Real Estateand Business Licensing inquiries.

The redesign of the DFT Web site hastaken into account accessibility issues toensure compliance with relevantstandards. Some changes already madeenable software used by people withvision impairment to access informationfrom images and links in an audioformat.

Our regional outreach activities providedinformation via participation ininteragency forums and presentations toproviders of carer services, HACC fieldworkers and Centrelink social workers

Complaints proceduresCustomer feedback is received by mail(either by general correspondence or byour reply paid form �Your OpinionCounts�), by telephone or via our

Website. A review due for completion inDecember 2001 will also considerimproving access issues in this area.

Grievance procedures for staff have beenreviewed and are accessible to all staffwith a disability.

Training of staffThe DFT Executive attended aworkshop on disability issues. Aproposal for training in disability issuesfor staff has been approved. This willoccur after completion of the disabilitytraining package being produced by theDepartment of Ageing, Disability andHome Care, expected later this year.

Disability awareness information isincluded in the recently completedAccess and Equity Manual.

Briefing sessions for supervisors onreasonable adjustment were conductedas required.

Employment in the public sectorDFT�s Southern Region successfullyworked with the CommonwealthRehabilitation Service (CRS) to trial atwo-week work experience placementfor a person with a disability. Afterinspection of the workplace, minortemporary adjustments were made andthe person was able to gain valuablework experience.

The DFT EEO Plan is being reviewed inlight of the Disability Policy Framework.

Staff who had not completed the EEOsurvey were surveyed to determine thosewith a disability who requiredadjustment. Adjustments were provided

ConsultationWe continued a process of consultingwith organisations representing peoplewith a range of disabilities to identifytheir needs in relation to DFT services.(See list below). We have gathereduseful information about providingservices to people with a disability andlearnt a lot about the kinds of issues theyface. This information will now be usedto refine the Disability Action Plan.

The organisations have also providedinformation on contacts, networks andcommunication channels, which havebeen forwarded to relevant officerswithin DFT and used to disseminateinformation to people with a disabilityand to seek input on specific projects.

Organisations:� Paraquad� Australian Quadriplegic Association� Spastic Centre of NSW� Deaf Society of NSW� Physical Disability Council� Ethnic People with Disabilities Project� NSW Council for Intellectual

Disability� Royal Blind Society� Handital (Italian disability group).� Physical Access

The Australian Quadriplegic Associationwas engaged to conduct a disabilityaccess audit of the City and Parramattapremises and to train DFT staff to thenconduct audits of the remainingpremises around the State.

Following the audits of the DFTpremises, a report has been compiledwith recommendations for solutions toidentified problems. An implementation


as required. Staff were requested toupdate information on their EEO survey.

There were two meetings of theDisability Support Network (staff with adisability and staff with an interest indisability issues).

Communication ofDisability Action Plan� A presentation of the Plan was

conducted for the DFT Executive.� A memo from the Director General

was sent to all staff with a summarycopy of the Plan.

� Information was provided to Directorsfor briefings for managers and staff.

� The detailed plan is available on theDFT Intranet.

� A letter and copy of the Plan were sentto disability organisations.

25 Report on NSW Action Plan for Women

them in plain English. This will behelpful to Aboriginal women andwomen from non-English speakingbackgrounds. Four forms have beenreviewed to date.

The Department of Fair Tradingprovides funding to communityorganisations to provide financialcounselling and tenancy advice servicesto the community. Approximately 59%of customers of the Tenants� Advice andAdvocacy Program are women.

The Department of Fair Trading and theDepartment for Women undertook jointwork, as part of a national project, toaddress discrimination against women bythe motor vehicle industry. The projectincluded a survey of consumers, aworkshop with industry and thedevelopment of educational materials toimprove the quality of services providedto women by the motor vehicle industry.

The Department of Fair Trading hasdeveloped strategies to increase therepresentation of women on theDepartment�s boards and committeesand has developed a Spokeswomen�sProgram Strategic Plan to support andassist female staff. Further informationon the Department�s strategies regardingwomen is detailed in the Access andEquity Strategy and the EEO Plan.

The NSW Government aims to worktowards removal of obstacles to women�sfull participation in society. This meansrecognising that in some areas of life,women have different experiences andneeds from men. It also meansrecognising that age, race, ethnicity,location and social and economiccircumstances all affect women�s needsand options. The Government approachto addressing women�s issues andconcerns involves agencies across thewhole of Government and addressesareas such as paid and unpaid work,health and housing, violence and safety,justice and civil legal equality, childcare,education, decision making andleadership, and access to information.

Government policies in relation towomen relevant to the Department ofFair Trading are:� supporting families� protecting women as consumers and

ensuring women�s civil legal equality� ensuring that women have equal

access to information� ensuring women�s equal access to and

full participation in power structuresand decision making

� ensuring equal employmentopportunities for female staff anddeveloping strategies to redress pastdisadvantages.

During the past year the Department ofFair Trading has taken action on all thesekey objectives from the Action Plan.

Specific achievements under theAction Plan for WomenThe Department of Fair Tradingcontinues to produce a number ofpublications for consumers on productstandards and finance that are relevant towomen.

� In Good Hands, a guide to productsafety for children; including inflatablepools, child resistant cigarette lightersand nursery furniture.

� A Toy safety checklist for selecting safetoys for children.

� An Aboriginal Toy safety checklist and anAboriginal factsheet: Keeping your kidssafe.

� The Shoppers� Guide, a guide to all theconsumer protection aspects ofshopping, with a particular emphasison credit.

� Relationship Debt booklet and fact sheeton credit and debt issues for women.The fact sheet is available in English,Arabic, Chinese and Vietnamese.

� The Seniors� Guide, The RetirementVillage Green newsletter and theRetirement Village Living bookletprovide information to older people,primarily women.

� A series of fact sheets on borrowing,credit cards, guaranteeing otherpeople�s loans, and being a co-borrower.

The Department of Fair Trading isrevising Departmental forms to reducetheir level of complexity and to write

26 Publications

Here is the complete list of publicationsavailable as at 30 June 2001. Most areavailable on the Department�s Web site.* latest edition produced prior to

30 June 2000º items only available on DFT Web site

or can be printed on request at FairTrading Centres.

Corporate Publications:� Our Services � English*, Bosnian*,

Chinese*, Thai*, Turkish* andVietnamese*

� Annual Report 1999-2000 Volume 1 &Volume 2

� We can help you � English*, Arabic,Chinese, Croatian, Farsiº, Fijianº,Filipinoº, Greekº, Hindiº, Italianº,

Japaneseº, Khmerº, Korean,Macedonian, Polishº, Portugueseº,Russianº, Serbianº, Spanishº, Turkishºand Vietnamese

� Guarantee of Service*

Property and Tenancy Publications:� The Renting Guide 2001 Edition� The Renting Guide Poster*


� Retirement Village Living*� Residential Park Living� Strata Living� Strata Living � Chinese� The Renting Guide 1999 Edition �

Arabic*, Chinese*, Croatian*, Farsi*,Greek*, Italian *, Japanese*, Khmer*,Korean*, Macedonian*, Polish*,Portuguese*, Russian*, Serbian*,Spanish*, Turkish* and Vietnamese*

� Electrical Safety Guide*� A new deal for retirement village residents*� Strata Disputes� Strata Mediation� Residential Park Liaison Committees� New water charges for residential park

residents*� Tenancy and the Olympics � Business*� Tenancy and the Olympics � Consumer*� Buying a Home*� Discrimination and Renting*� Starting a tenancy*� Ending a tenancy*� Conveyancing*º� Selling your home� Olympic accommodation� Residential Park Owners� Buying or selling at auction� Property Management� Effect of the new Act on existing contracts

(Retirement Villages Act)� Dealing with prospective clients

(Retirement Villages Act)� Residents Committees (Retirement

Villages Act)� Financial accounts (Retirement Villages

Act)� Statements of expenditure (Retirement

Villages Act)� Recurrent charge variations (Retirement

Villages Act)� Strata retirement villages (Retirement

Villages Act)

Building Publications:� Building Inspections � a home buyer�s

guide*� Builders and Tradespeople � a short guide*� Home Building and Renovating � a short

guide*� Becoming an Owner-builder*� Protect Your Home from Termites*� Home Building Checklist � English*,

Arabic, Chinese, Macedonian andVietnamese

� Approved Home Warranty Insurers� Minor Works Building Contract

Pad 10 (Cost $10.85)� Renovations Contract Pad 10 (Cost

$10.85)� Home Building Contract � Packet 2

(Cost $10.85)� Swimming Pool Contract � Packet 2

(Cost $21.50)

� Home Building and Renovating*� Builders and Tradespeople*� Home Building Contracts �simple, smart,

ready to start�� Home Building Contracts � why you

should use one� Building and renovating your home*� Information for builders and tradespeople*� Getting a Contractor Licence� Renewing Your Contractor Licence� Building a pool� Electrical safety for workers

Consumer Publications:� Little Black Book of Scams� REVS � Cars and Boats� REVS poster � one in 5 used cars

repossessed� REVS poster � would you buy a car

or boat� The Shoppers� Guide� The Seniors� Guide� Consumer Help for the busy traveller*� Consumer Help for the busy traveller �

Japanese*� Love and Loans*� In good hands � baby products and you*� Toy safety checklist*� Graffiti� Moneystuff� More tips for travellers� Exercise your rights � new rules for fitness

service providers� A Student�s guide to Consumer Rights� Lay-Bys Information for Consumers*� Some things to consider before you borrow

money � English*, Arabic*, Chinese*and Vietnamese*

� Borrowing money � English*, Arabic*,Chinese* and Vietnamese*

� Credit Cards & �Interest Free� deals �English*, Arabic*, Chinese* andVietnamese*

� Buying a used car*� Safety switches � information for

consumers� Your consumer rights � a seniors� guide*� Relationship Debt � English*, Arabic*,

Chinese* and Vietnamese*� Buying a mobile phone� Pyramid Schemes*� Check the safety of your pool� Vanity publishing� Banking � reducing your transaction costs� Inflatable Pools � consumers� Help with Credit

Business Publications:� Laser Pointers � Safety Laws*� Disposable Cigarette Lighters � Safety

Laws*� Knives Brochure*� Knives Sticker � Point of Sale*� Knives Sticker � Window*� Knives � Full kit*

� Trade Measurement � a better balance*� Inflatable Pools � Guidelines for

Suppliers*� Customer Service Guidelines*� BLIS Brochure*� Model Rules for Incorporated Associations� Balloon payments � a guide for business*� Interest free offers and promotions � a guide

for business*� Soda siphon brochures*� Important information for Dairy Farmers*� Business Names*� Running an Incorporated Association� Dealing with business scams� Setting up an association� Inflatable Pools � suppliers

Aboriginal Publications:� Fair Go*� Discrimination and Renting*� Know Your Rights � poster*� Fair Go � poster*� Wallet Information Cards*� Aboriginal Housing Providers*� Toy Safety Checklist*� Your rights on renting your home*� What REVS can do for you*� Problems Leasing your Home*� Need credit? well, think again� Survival Day poster� Buying a car� Shopping refunds and lay-bys� Keeping your kids safe� Starting a business*� Renting information for Aboriginal housing

providers*� Renting a home� Don�t get caught out with credit� Residential Tribunal

Other Titles:� Residential Tribunal Annual Reportº� Petrol Price Signs fact sheet*

Newsletters:� Retirement Village Green Issue 1 2000*º� Retirement Village Green Issue 2 2001� Keynotes October 1999*º

Videos:� Home Delivery � Mediation $10*


Production InformationVolume 1: print run of 1,000; unit cost: $5.26Volume 2: print run 250; unit cost: $3.05

Fair Trading CentresOur Fair Trading Centres (FTCs) are located at the following addresses. If you arelocated outside the Sydney Metropolitan region you can contact the Fair TradingCentre nearest you on 13 32 20. Calls to this number from within the SydneyMetropolitan region and from all mobile telephones will be received at our PenrithCall Centre.

Office locations

level 2251 Wharf RoadNewcastle 2300

184-186 Lords PlaceOrange 2800

1 Fitzwilliam StreetParramatta 2150

518 High StreetPenrith 2750

30 Clarence StPort Macquarie 2444

110 - 112 Monaro StreetQueanbeyan 2620

Level 21227 Elizabeth StreetSydney 2000

155-157 Marius StreetTamworth 2340

43 Wharf StreetTweed Heads 2485

8 Baylis StreetWagga Wagga 2650

63 Market StreetWollongong 2500

1 Fitzwilliam StreetParramatta NSW 2150

Head OfficeTel: 9598 0111Fax: 9895 0222

REVSTel: 9633 6333or 1800 424 988 (outside Sydney)Fax: 9891 5135

234 Sussex StreetSydney NSW 2000

Rental BondsTel: 9377 9000 or 1800 422 021Fax: 9377 9371

Tenancy ServicesTel: 9377 9100 or 1800 451 301Fax: 9377 9371

Aboriginal Tenancy InformationTel: 9377 9200 or 1800 500 330Fax: 9377 9371

Strata Schemes andMediation ServicesTel: 9338 7900or 1800 451 431 (outside Sydney)Fax: 9338 7999

77 Lakemba streetBelmore NSW 2192

Standards LaboratoryTel: 9750 8188Fax: 9750 7590

154 Russell StreetBathurst NSW 2795

Registry of CooperativesTel: 6333 1400 or 1800 502 042Fax: 6333 1444

490 David StreetAlbury 2640

85 Faulkner StreetArmidale 2350

87 Main StreetBlacktown 2148

32 Sulphide StreetBroken Hill 2880

22 Park AvenueCoffs Harbour 2450

50 Wingewarra StreetDubbo 2830

19-21 Watt StreetGosford 2250

39 Goldsmith StreetGoulburn 2580

50 Victoria StreetGrafton 2460

Level 34-8 Woodville StreetHurstville 2220

29 Molesworth StreetLismore 2480

Shop 1R33 Moore StreetLiverpool 2170

Department of Fair Trading Annual Report 2000-2001 Page 73

IndexAboriginal action plan 27

Aboriginal communities 24

Aboriginal employment 27

Aboriginal housing mediation 27

Access and equity 26

Accommodation 31

Accounts payable performance 55

Action Plan for Women 70

Advisory councils 11

Appendices 54

Auction compliance 21

Banking 10

BLIS 29

Building Insurers Guarantee Fund 8

Business licences 13

Business names 29

Cars - cooling-off period 10

Children’s lamps 21

Civil litigation 56

Co-operatives 30

Co-operatives Development Fund 66

Code of conduct 62

Consultancies 55

Consumer Credit Code 10

Consumer Protection Awards 5

Consumer Week 10, 23

Corporate plan 3

Credit cards 10

Credit comparison rates 10

Credit Counselling Program 28, 64

Credit overcommitment 10, 23

CTTT 11

Customer feedback 58

Customer satisfaction survey 30

Customer service improvements 4, 30

Customer service profile 26

Disability Action Plan 26, 69

E-commerce 17

EEO 67

Electricity retailing 9

Electronic service delivery 28

Employment equity 27

Energy & Water Ombudsman 9

Energy competition 9

Energy management 61

Energy markets 9

Ethnic Affairs Priorities Statement 68

Fair Trading Centres 2, 30, 31, 72

Fair trading investigations 15

Financial counselling 28, 65

Fitness centres 13

Flammable furniture 20

Flexible working hours 30

Flood damaged vehicles 22

Formal complaints 23

Freedom of Information 59

Funeral funds 57

Gas appliance safety 20

Gas retailing 9

Government Access Centres 2, 25

Graffiti 9

Grants 27, 28, 64

Guarantee of service 60

Highlights 7

HIH 4, 8

Home building 17

Home Building Advisory Council 11

Home building grants 27, 65

Home building insurance 31

Home building investigations 17

Home building reforms 13

Illegal fuel blending 21

Interdepartmental committees 63

Internal audit 62

Internet/Intranet 29

IT infrastructure 29

Kit homes 18

LAN/WAN 29

Legislation inside front cover

Legislative change 12, 13

Licence suspensions 13, 15

Licensing 22, 30

Membership of statutory bodies 63

Mission 3

Model Licensing Project 30

Money Stuff 23

Motor dealers 17

Motor Trade Advisory Council 11

Motor Trade Review 10

NCP reviews 12

Network operating system 29

Objectives 3, 7, 8, 14, 26

Occupational health and safety 67

Office hours 2

Office locations 72

Olympics 4, 9, 14, 22, 31

On-line licensing 29

On-line registry 29

Overseas travel 55

Paralympics 14

Pawnbrokers 21

Pay day lenders 10

Penalty notice scheme 15

Penalty notices 56

Performance 3, 8, 14, 26

Petrol buyers' cooperatives 11

Petrol prices 11

Phone & counter enquiries 23

Plain english forms 27

Planning framework 3

Pool cleaning systems 20

Portfolio authorities 62

Privacy Management Plan 61

Product recalls 20

Product safety 20

Program allocations 6

Property service grants 27, 66

Property Services Advisory Council 11

Prosecutions 57

Publications 70

Real estate investigations 18

Reclining chairs 21

Regional access 2, 24

Regional enforcement 18

Rental Bond Board 58

Rental Bond Internet Service 24, 29

Rental bonds 24

Residential parks 11, 21

Retirement villages 21

Retirement Villages Advisory Council 11

REVS 22, 28, 31

Risk management and insurance 61

Scams 15

Scooters 20

Senior Executive Service 66

Shadow shopping survey 30

Showbags 20

Spokeswomen 27

Staff 30

Staff classification profile 67

Statute law revision 12

Strata adjudication 25

Strata schemes 25

Structure 6

Subordinate Legislation Review 12

Substantiation notices 15

Surf craft 21

TAAP Review 9

Tenancy databases 12

Toluene 21

Trade measurement 13, 21

Traveller Consumer Helpline 22

Tribunal reviews 11

Vertical blinds 21

Wave skis 21

Web site 23

Weight of packaging 21

Women 70

Wrecks and stolen vehicles 28

Yachting harnesses 20

Young people 23

Your Opinion Counts 58

Documents

Annual Report 2000-2001 - NSW Fair Trading | NSW Fair Trading...Ł Mock Auctions Act 1973 No. 17. Ł Motor Dealers Act 1974 No. 52. ... Stock and Business Agents Act 1941 No. 28. Ł