a year in review 2005 - 2006 - nsw fair trading · a year in review 2005 - 2006 fair trading:...

A year in review2005 - 2006

Fai r Trading: serv ing consumers

and traders in New South Wales

www.fair t rading.nsw.gov.au

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A year in review 2005-2006 Fair Trading: serving consumers and traders in NSW

Broken Hill

Wollongong

Wagga Wagga

Lismore

Tweed Heads

Grafton

Coffs Harbour

Port Macquarie

Newcastle

Sydney BlacktownHurstvilleLiverpoolParramattaPenrith

Gosford

Armidale

TamworthDubbo

Orange

Queanbeyan

Albury

Bathurst

Goulburn

ContentsAt a glance 2

Executive Summary 3

Highlights 5

Program Allocation 5

Planning Framework 6

Our Structure 8

Legislation 9

Objective One 10Fair laws governingconsumer/trader dealings

Objective Two 20Community able to accessinformation and consumer help

Objective Three 36Compliance withfair trading laws

Fair Trading Publications 54

Office locations 58

Index 59

ISSN 1448-7209New South WalesOffice of Fair TradingParramatta NSW AustraliaNovember 2006.

Fair Trading CentresWe operate Fair Trading Centres at the 24locations shown opposite. TheseCentres provide information andassistance on consumer issues,motor vehicles, homebuilding and renovation,credit, property and tenancyissues, plusco-operatives andbusiness name registration.

Call 13 32 20to reach your nearestFair Trading CentreMonday to Friday between 8:30 am and 5:00 pm.

Other locationsSelected Fair Trading services are also available via Government AccessCentres (GACs) and other agency arrangements throughout regional NewSouth Wales.

Call 13 32 20 for information on the services available in these towns:Ashford, Balranald, Barham, Bega, Boggabilla, Bombala, Boorowa, Bourke, Brewarrina, Bundarra, Cobar, Condobolin, Cooma,Coonabarabran, Coonamble, Crookwell, Culcairn, Deniliquin, Dorrigo, Dunedoo, Eden, Finley, Forbes, Forster, Gilgandra, Glen Innes,Grenfell, Griffith, Gundagai, Hay, Hillston, Holbrook, Inverell, Ivanhoe (Internet Access Point), Kyogle, Lake Cargelligo, Leeton, LightningRidge, Lockhart, Maclean, Moama, Moree, Moruya, Moulamein, Mt Druitt (urban GAC), Mudgee, Mungindi, Murrurundi, NambuccaHeads, Narooma, Narrabri, Narrandera, Nowra, Nyngan, Oberon, Peak Hill, Quirindi, Rylstone, Scone, Temora, Tenterfield, Tibooburra(Internet Access Point), Tumbarumba, Ulladulla, Walcha, Walgett, Warialda, Warren, Wentworth, West Wyalong, Wilcannia, Woodenbong.

1


The Office of

Fair Trading

The Office of Fair Trading is one of five offices

established within the NSW Department ofCommerce. The Department as a whole producesan annual report to the Minister for Commerce for

tabling in the NSW Parliament. However, the Officeof Fair Trading measurably reaches a significantproportion of the almost 7 million people living in

NSW. For this reason and the significant formal roleof the Commissioner for Fair Trading, this additionalreport focuses exclusively on activities in the New

South Wales fair trading arena.

What we doWe safeguard consumer rights and advisebusiness and traders on fair and ethical practice.Our customers include people renting homes andthose building or renovating. There are stratascheme owners, people buying or repairing cars orlooking for consumer information. A large numberare builders and people working in a trade orrunning a business. But our services go beyondthose delivered to individuals. The legislativeframework we administer sets the scene and therules for fairness in the countless daily transactionsbetween consumers and traders. Often behind thescenes, unfair practices are investigated andprevented. A system of licensing and theinvestigation of complaints help ensure unqualifiedor inappropriate people do not conduct theirbusiness in NSW. Our licensing and investigationscover a range of commercial activities including:business and retail, residential home building,motor trade, real estate, retirement villages andresidential parks, product safety, trademeasurement and co-operatives. This encourages

integrity by business and traders and providesprotection for consumers.

Consumer helpProviding information is core business for FairTrading. Consumers of everyday goods andservices can use our website or contact our FairTrading Centres to obtain information on their rightsand responsibilities or seek assistance withresolving disputes. People renting homes, buyingor selling property or living in strata schemeproperty can turn to us for information andassistance.

Business & trader servicesTraders and business people can register businessnames and obtain the licences and certificates theyneed to operate in New South Wales. Builders andcontractors, people in the accommodation andproperty services industries and those engaged inselling goods or providing services can receiveinformation on their rights and obligations under fairtrading laws.

Co-operatives & AssociationsWe actively encourage the formation anddevelopment of co-operatives and we helpcommunity groups establish themselves asassociations.

...Fair Tradingmeasurably reachesa significantproportion of thealmost 7 millionpeople living in NSW.

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Fair Trading

At a glance

1 Compliance related activities can vary significantly year-to-year depending on the mix between long, complexinvestigations and shorter, less complex ones which reflects emerging marketplace issues

2 Effective Full-time Positions

ServicesPublic customers: • Almost 6 million requests for services each yearGeneral community: • 15,015 compliance-related activities1

• 43 pieces of legislation - proactive reviewEconomic impact: • 503,713 registered business names

• 224,164 licensees

LogisticsPhone: • 1.2 million calls from the general public

handled per yearCounter: • 24 Fair Trading Centres

• 246,549 counter enquiries per yearWebsite: • 2.032 million visitor sessions per year

(information and transactions)Other outputs: • 1,525,700 REVS checks

• 559,300 rental bond transactionsPublications: • Over 200 free titles - 25 titles translated in up

to 28 languagesStaff: • 1,076 including the Consumer, Trader &

Tenancy Tribunal (independent statutorybody serviced by OFT)2

Budget: • $160.2 million

We receive almost6 million requests forservices each year.

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Executive

Summary

We have seen a continuing rise in demand for FairTrading services, with almost 6 million requests forservice from the public being handled throughphone, counter, mail and electronic channels in2005-2006. On more than 31,000 occasions thepublic sought help with marketplace disputes and81% of these were successfully negotiated at aninformal level. To keep pace with communitydemand for a fair marketplace, more than 15,000compliance related activities were conducted -ranging from inspections and field audits toinvestigations and prosecutions, while a legislativeand policy development program ensured NewSouth Wales' 42 pieces of fair trading legislationremain up-to-date and balance the rights ofconsumers and traders.

Policy and legislative developmentsFair Trading continues to ensure there are fair lawsto govern consumer and trader dealings. Each yearwe work through a program to review various lawsto maintain fairness and relevance to thecommunity. We do this by consulting widely andusing a net public benefit test where social andeconomic factors are examined to see if overallcommunity benefits outweigh costs. Once again100% of our legislative reviews went through thisprocess.

A new feature to our review process now ensuresthat for each piece of legislation reviewed the termsof reference include addressing the mostappropriate jurisdiction for its administration. If,through consultation, it is determined a law wouldbe better administered by the Commonwealth, NSWcould benefit through reduced costs across all FairTrading functions - policy development, communityinformation and compliance. Two potential areasare trade measurement and product safetylegislation.

This year we dealt with a wide range of regulatoryissues at a state and national level relating to homebuilding, accommodation, property, product safety,trade measurement, telemarketing and motorvehicle smash repairs.

New laws protect vulnerable consumers frombeing exploited by fringe lenders; smoke alarmsmust now be fitted to all rental properties; buildersand contractors must prove their identity in personand meet educational qualifications to obtain alicence; access to spray paint cans in stores hasbeen restricted to reduce graffiti; and the smashrepair industry has a mandatory code of practice toprovide safe, quality repairs and protectconsumers' rights.

Community information and assistanceThe number of customers accessing Fair Tradinginformation and services electronically through ourwebsite continues to expand. A 28% increase invisitor sessions demonstrates the community'sgrowing demand for electronic information andservices. Tenants, landlords and real estate agentssubmitted 90% of all claims for rental bond refundselectronically. Over the past 12 months we haveundertaken a major upgrade of the internet basedBusiness Licence Information Service (BLIS). Thenew BLIS will enhance this resource and provideup-to-date licensing and regulatory information forpeople establishing or operating a business inNSW.

We conducted a major review of the variouschannels we use to provide services to customers.The review found that although electronic channelsare becoming increasingly popular, a significantproportion of the community continues to favourand demand access to traditional phone andcounter services. During 2006-2007, the reviewoutcomes will be used to fine tune service deliveryand position Fair Trading to respond to customerdemand in the most appropriate, cost effective way.

The Fair Trading Information Centre (FTIC), whichofficially opened in August 2005, has responded toalmost 1 million calls from consumers and traderson issues such as: strata and tenancy; rentalbonds; home building; business registration;business licensing information; REVS checks; andgeneral fair trading matters. Since opening FTIC hasexpanded its services to include: home buildinglicensing, retail bond enquiries and enquiries onbehalf of the Government Information Service.

FTIC has expandedits services toinclude: homebuilding licensing,retail bond enquiriesand enquiries forthe GovernmentInformation Service.

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The one-off Think Smart Tenancy Grants programprovided funding to community-focussedorganisations who can deliver tenancy-relatedinitiatives to a number of specific communitylanguage groups. The grants program is in directresponse to an identified lack of awareness aboutrenting rights and responsibilities amongstculturally and linguistically diverse communities inNSW. This was in addition to our annual grantsprograms for: tenants advice and advocacy,financial counselling, aged care rights, co-operatives development, and development ofimproved training in the home building, real estateand motor vehicle repair industries.

Fair Trading Week is a special promotion to focuscommunity attention on topical consumer issues.We changed the name from Consumer Week to FairTrading Week, to better identify with our full range ofour clients, both consumers and traders. The themefor 2005 was Fair Trading - Open for Business. Thisyear we released research findings that showed avery wide gap between traders' awareness ofobligations and their actual knowledge of lawsrelating to refunds and advertising. We respondedto this by launching a CD Rom that provides awealth of knowledge on the basic issues facingsmall businesses, including customer service,compliance with the law and good businesspractice.

Across the state we conducted over 1,100information programs reaching 45,000 people in thebusiness sector, seniors, youth, culturally andlinguistically diverse communities, indigenouscommunities and the general public.

Compliance and enforcementA major review examined the cost effectiveness ofFair Trading's compliance and law enforcementwork. During 2006-2007 the review findings will beused to deliver a range of resourcing and co-ordination enhancements to our complianceprograms.

To ensure a fair and equitable marketplace in NSW,our inspection activities include: real estate agents,travel agents, motor dealers, auto dismantlers,home builders, second hand dealers andpawnbrokers, weights and scanning equipment atretail outlets, electrical appliances, and petrol flowmeters. Overall our inspectors found a high level ofcompliance with legislative requirements.

Home building investigations targeted three majorissues. Operation HOWIE was the first complianceprogram to focus on home warranty issues,operation Staunch targeted unlicensed residentialbuilding activity, and operation Spoke Shavetargeted contractors who advertised to doresidential building work without holding anappropriate licence.

Fair Trading intensified its fight against false billersby increasing litigation and public awareness of thepeople who deliberately target small businesseswith false claims that advertisements have beenplaced in publications. We have also taken courtaction to prevent businesses from misleadingconsumers with false information about theirproducts and services.

Our peopleWe successfully operated within budget to deliveran increased number of services in 2005-2006. Inthe face of this increased demand, two importantservice delivery indicators rose during the year -levels of customer satisfaction and informationaccuracy. These achievements are directlyattributable to the diligence and dedication of ourstaff - from policy officers helping the Governmentprepare the most appropriate regulation for ourState - through to our front-line staff providinginformation directly to customers or takingenforcement action against people who deliberatelychose to trade unfairly.

The management and staff of the Office of FairTrading wish to thank the Director-General of theDepartment of Commerce, Mr Michael Coutts-Trotter, for his solid support and commitment to FairTrading throughout the year.

We thank the Minister for Fair Trading: the HonDiane Beamer MP for her enthusiasm and energyin the role, and look forward to supporting her aswell as the Hon John Della Bosca MLC, Minister forCommerce, throughout the coming year

On his retirement, our appreciation is also extendedto the former Commissioner for Fair Trading, MrDavid O'Connor for his dedication and long termcommitment to Fair Trading in New South Wales.

Lyn BakerCommissioner for Fair Trading

Overall ourinspectors found

a high level ofcompliance with

legislativerequirements.

5


Program Allocation - expenses 2005-2006 Program Allocation - average staff* 2005-2006

Objective 2 – Community able to access information and consumer help

Objective 3 – Compliance with fair trading laws

HighlightsObjective 1 – Fair laws governing consumer/trader dealings

• Identification of best jurisdiction to administer fairtrading laws now an aspect of all regulatoryreviews

• Vulnerable consumers protected from fringelenders' exorbitant fees and charges

• Fair trading laws assist fight against graffiti byregulating display and sale of spray paint cans

• Tenancy laws revised to ensure fitting of smokealarms in rented properties

• Improved consumer safety for electricalinstallations involving stand-alone generators

• More consistent approach to setting application

fees when restoring an expired licence orcertificate.

The Future• Proposals to require responsible lending by

credit card issuers to be adopted nationwide• Proposals for consistent state and territory

legislation to address unfair terms in consumercontracts

• Legislative reforms in the following areas:- registration of business names- incorporation of associations- trade measurement.

• Three new Fair Trading Information Centreservices - home building licence enquiries, retailtenancies information, Government InformationService

• Website visitor sessions grow by 28% to morethan 2 million

• 90% customer satisfaction rate exceedsAustralian Standard by 10%

• Cost and productivity savings from emailingweekly information reports to REVS businessclients

• Special grants assist tenancy rights awarenessfor recent arrivals

The Future• Improved services and access following major

review of service channels• Faster, simpler access to business licensing

information through upgraded Business LicenceInformation Service - BLIS

• Improved qualification requirements for homebuilding licences

• Cancellation of more than 100 home buildinglicences that had been obtained using falsequalifications

The Future• Finance broker investigation program continues

pending new licensing requirements.• Targeting unlicensed builders, motor dealers,

vehicle repairers, travel agents and propertyagents remains a high priority.

Community able to accessinformation and consumer help40.2% $63.6M

Fair laws governingconsumer/trader dealings4.3% $6.9M

Community able to accessinformation and consumer help49% 528 staff

Fair laws governingconsumer/trader dealings4.5% 48 staff

Compliance withfair trading laws55.5% $87.9M

Compliance withfair trading laws46.5% 500 staff

* Does not includestatutory appointments

• Major review provides blueprint for achieving thebest compliance outcomes through the betteralignment of resources involved in inspection,investigation and enforcement activities

• Small businesses protected from false billersthrough increased litigation, enhanced publicawareness and legislative amendments

• Rogue finance brokers banned for up to 20 years• $500,000 compensation for victims of finance

broking scam

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Objectives to which the Office contributes but whereit does not directly control the outcome. These aremostly the very high-level community impactobjectives – for example “fair marketplace,” wherethe activities of other agencies in NSW and evencounterparts in other states or overseas have animpact.

Planning

Framework

As part of the Department of Commerce, the Officeof Fair Trading takes its key objectives from thecorporate plan for the Department as a whole. Themission and high-level objectives for theDepartment are set out on the opposite page. Withinthis framework, Fair Trading’s work contributes tothe objective “fair marketplace for consumers andtraders.”

The wording of some of the objectives has beensimplified but they are substantially the same asreported last year. The hierarchy of objectiveswhich govern Fair Trading’s operations is set outbelow, along with key measures for each of them.

There are two main types of objective in the framework:

Objectives which relate to how well the Office isdelivering specific services – most of these aremuch more within the Office’s control (though some,like the proportion of prosecutions successful,depend not just on the quality of service but onfactors such as court decisions).

Fair Marketplace for consumers and tradersStrategic priority

Community-levelobjective/result

Community-levelindicator

Service-levelobjective/result

Service-levelmeasure

Fair laws governingconsumer/trader

dealings: Appropriatesafeguards for consumers

with minimal restrictions onbusiness and traders

Communityable to access

information andconsumer help

Compliance with fairtrading laws

•Proportion of legislationassessed as needed and fairto both consumers andtraders (net public benefittest)

•% public who know where to get help•Community take-up rate: average number of services

requested per 1000 people in NSW•ATSI/NESB take-up rate compared to population

representation

•No. of complaints per$Billion of Gross StateProduct

Provision of responsivepolicy development to

community

Provision of effectiveenforcement

•Identified governmentpriorities addressed withinspecified timeframes

•Proportion of prosecutionssuccessful

Provision of accurateinformation to consumers

and traders

•% accuracy of informationprovided

•% of customers satisfiedwith services

Provision of effectiveconsumer help to public

•% of complaintssuccessfully resolved

7


Department of Commerce Mission

We work to support a climate that makes doing business in NSWsimple and fair for all concerned; and to achieve best value for theNSW Government through our services and activities

Department of Commerce Corporate Plan 2005 - 2008

•Fair laws governing consumer/traderdealings

•Community able to access informationand consumer help

•Compliance with fair trading laws

•Fair and responsive regulatory framework•Accessible information and help for

employers and employees•Effective compliance with regulatory

regime

•Value maximised for the government and itsagencies in the procurement of ICT, assets,goods and services

•Costs minimised for government and itsagencies in the procurement andmanagement of ICT, assets, goods andservices

•Agency and government risks effectivelymanaged to achieve agency andgovernment objectives

Fair marketplace for consumersand traders

Fair and productiveworkplaces

Improved NSW GovernmentPerformance

8


Our

Structure

Brian Given

AssistantCommissioner

Operations

AndrewGavrielatos

A/AssistantCommissioner

Customer &Property Services

Steve GriffinA/GeneralManager

Home BuildingService

Rod Stowe

DeputyCommissioner

• Legal ServicesDivision

• Compliance &StandardsDivision

• REVS

• Registry ofCo-operativesandAssociations

• Motor VehicleRepair IndustryAuthority

• CustomerServicesDivision

• Property &LicensingDivision

• Fair TradingInformationCentre

• InsuranceServices

• Operations &Governance

• Licensing &IndustryStandards

• Policy &StrategyDivision

Lyn Baker

Commissioner for Fair Trading

The Hon. Diane Beamer MP

Minister for Fair Trading

Minister Assisting the Minister forCommerce

Minister for Western Sydney

The Hon. John Della Bosca MLCMinister for Commerce

Office of Industrial Relations

Office of GovernmentProcurement

Government ChiefInformation Office

Office of Public Works andServices

Director-GeneralDepartment of Commerce

Michael Silk

Executive Director

• Fair TradingServices

• FundingPrograms

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Fair Trading

Legislation

Our legislative andpolicy developmentprogram ensuredNew South Wales’ 43pieces of fair tradinglegislation remain up-to-date and balancethe rights ofconsumers andtraders.

• Associations Incorporation Act 1984

• Business Names Act 2002

• Community Land Management Act 1989

• Consumer Claims Act 1998

• Consumer Credit Administration Act 1995

• Consumer Credit (New South Wales) Act 1995

• Consumer, Trader and Tenancy Tribunal Act 2001

• Contracts Review Act 1980

• Conveyancers Licensing Act 1995

• Conveyancers Licensing Act 2003 (yet tocommence)

• Co-operative Housing and Starr-BowkettSocieties Act 1998

• Co-operatives Act 1992

• Credit Act 1984

• Credit (Home Finance Contracts) Act 1984

• Electricity (Consumer Safety) Act 2004

• Fair Trading Act 1987

• Fitness Services (Pre-paid Fees) Act 2000

• Funeral Funds Act 1979

• Gas Supply Act 1996 (Section 83A)

• Holiday Parks (Long-term Casual Occupation)Act 2002

• Home Building Act 1989

• HomeFund Commissioner Act 1993

• HomeFund Restructuring Act 1993 ss 14, 15, 16and Schedule 2 (remainder Minister forHousing)

• Landlord and Tenant Act 1899

• Landlord and Tenant (Amendment) Act 1948

• Landlord and Tenant (Rental Bonds) Act 1977

• Motor Dealers Act 1974

• Motor Vehicle Repairs Act 1980

• Pawnbrokers and Second-hand Dealers Act 1996

• Prices Exploitation Code (New South Wales)Act 1999

• Prices Regulation Act 1948

• Property, Stock and Business Agents Act 2002

• Registration of Interests in Goods Act 1986

• Residential Parks Act 1998

• Residential Tenancies Act 1987

• Retirement Villages Act 1999

• Strata Schemes Management Act 1996

• Summary Offences Act 1998, section 10D(remainder the Attorney-General)

• Trade Measurement Act 1989

• Trade Measurement Administration Act 1989

• Travel Agents Act 1986

• Valuers Act 2003

• Warehousemen's Liens Act 1935

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A fair regulatory framework is the first of three high-level, community-impactobjectives which contribute to the strategic priority of a fair marketplace forconsumers and traders. A framework which provides consumer safeguards withoutunduly restricting business is essential to achieving a fair marketplace. Fair Tradingreviews and develops the regulatory framework in NSW in the areas of consumergoods and services, accommodation and property services, and home building, andco-ordinates community consultation, for consideration in government decision-making.

Agency performanceProvision of responsive policy development to the community

With responsibility for 43 pieces of legislation there is always a substantial program of review andamendment occurring, and during a typical year other policy issues, not always requiring a legislativeresponse, may emerge.

Fair Trading’s role in developing the legislative framework is to ensure that statutory/cyclic deadlines forreviewing principal and subordinate legislation are met, and that, in addition, identified government policypriorities are acted on in the timeframe required. The year’s most significant policy development issuesare shown in the comment/interpretation below.

Comment/InterpretationThe Government is entitled to expect very highstandards of service in meeting policy developmentreview deadlines and so the target is set at 100%.

Key projects with deadlines specified by theGovernment for 2005-2006 included: anti-graffitimeasures, options to address scalping,

harmonisation of telemarketing regulation, fringecredit, funeral industry, strata scheme 10 yearsinking fund plans, and motor vehicle insurancerepairs. Timeframes for work required in theseareas were all met.

1 Fair laws governing consumer/trader dealingscommunity level result #1

Service delivery objectives/results 01-02 02-03 03-04 04-05 05-06 Target

Result: Provision of responsive policy developmentMeasure: Percentage of government priorities addressed 100% 100% 100% 100% 100% 100%

within specified timeframe

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Snapshot: service-level statistics 2005-2006Number of pieces of principal legislation in force 43Bills assented to 5Acts amended under Statute Law Revision Program 7Regulations remade under Subordinate Legislation Review Program 3Regulations in preparation to be remade under Subordinate Legislation Review Program 5

Highlights 2005-2006:

• Vulnerable consumers are now protected from fringe lenders' exorbitant feesand charges

• Fair trading laws assist fight against graffiti by regulating the display and saleof spray paint cans

• Tenancy laws have been revised to ensure smoke alarms are fitted in rentedproperties

• More consistent approach to setting application fees when restoring anexpired licence or certificate.

Community level indicators

01-02 02-03 03-04 04-05 05-06 Target

Result: Fair Regulatory Framework

% of legislation assessed as needed 100% 100% 100% 100% 100% 100%and fair to both consumers and traders

Comment/InterpretationIt is very hard to devise a method to directlymeasure the ‘fairness’ of the legislative frameworkto all sections of the community. The Office has forsome years used an indirect measure to show theproportion of legislation which has undergone arigorous process to ensure it is necessary, and testcommunity views on its fairness. A net publicbenefit test is applied, which involves examiningboth social and economic factors. The table showsthe proportion of legislation in force which hasundergone this test or a similar process. During2005-2006, reviews of legislation concerningresidential tenancies, the funeral industry,retirement villages, the home building industry,

incorporated associations, consumer credit,finance broking, responsible lending practices,unfair contracts, community schemes and uniformtrade measurement all underwent this process,maintaining this indicator at 100%.

Note: Though legislation obviously has a significantcommunity impact, the results for this indicator aremuch more in the Office’s control than measuresfor other community indicators which appear at thebeginning of the next two chapters, as OFT canensure that broad community consultation occurswhen legislative change is proposed.

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Fair regulatory frameworkDuring the year Fair Trading dealt with a wide rangeof regulatory issues at a state and national levelrelating to home building, accommodation,property, product safety, trade measurement,telemarketing and motor vehicle smash repairs.

Home builders are now required to prove theiridentity in person and meet standard educationalrequirements to obtain a licence. The smash repairindustry has a mandatory code of practice toprovide safe, quality repairs and protectconsumers' rights. People living in a residentialpark now have improved rights. To reduce theamount of graffiti in the community access to spraypaint cans has been restricted.

Laws now protect the most vulnerable consumersfrom being exploited by credit providers. New lawsmandate that smoke alarms must be fitted to allpremises where people sleep. Regulations nowdefine the responsibilities of parties in residentialtenancies, residential parks and retirementvillages.

We also commenced other important reviews oflaws applying to residential tenancies, retirementvillages, home building, business names, strataschemes and community schemes.

New South Wales is a significant participant inCommonwealth/State working parties developingproposals for national regulation on issues such asproduct safety, telemarketing, finance broking,unfair contract terms, tenant databases, trademeasurement and co-operatives model provisions.

Optimum regulatory modelIn 2005-2006 Fair Trading completed a key projectdesigned to determine its Optimal RegulatoryModel. The Office is currently responsible for 43pieces of legislation - down from almost 60 prior tocommencement of the National CompetitionReview Program in 1996. The remaining legislationis reviewed on a cyclic basis to statutorydeadlines. Reviews are conducted under theauspices of a Steering Committee and terms ofreference are produced for each review. What theOptimal Regulatory Model project has done is toensure that the terms of reference for each reviewnow includes addressing the issue of the mostappropriate jurisdiction to administer thelegislation. If consultation with stakeholders(including the Commonwealth Government)determines a law would be better administered bythe Commonwealth, NSW could benefit throughreduced costs across all Fair Trading functions -policy development, community information andcompliance. Two potential areas are trademeasurement and product safety legislation. Theseare under discussion currently in national forums

(Ministerial Council on Consumer Affairs - MCCA -and the Standing Committee of Consumer AffairsOfficials - SCOCA) with a view to determining theappropriate regulatory approach nationally.

Policy development

Smash repairers and insurersAs a result of the tensions between smashrepairers and insurers due to insurers' practicesand changes in the repair industry, there has been ademonstrated need to put rules into place. The aimof the rules is to achieve a balanced solution thatprotects consumers' rights, provides safe, qualityrepairs and maintains a viable smash repairindustry.

On 3 May 2006, the Government announced it willbe developing legislation to support the introductionof a mandatory code in New South Wales withenforceable penalties. The code will provide aframework for fair, reputable business betweeninsurers and repairers. It will protect the bestinterests of consumers. The NSW code will bebased on the voluntary Motor Vehicle Insurance andRepair Industry Code which has been developednationally by insurers and repairers.

The Government will work closely with the MotorTraders Association and insurers in implementingthe NSW Code. The Code will seek to include:• a transparent and independent external dispute

resolution mechanism• the requirement for full disclosure in preferred

smash repairer arrangements• retention of preferred smash repair status upon

the sale of a business• the requirement for full disclosure in quoting for

work and payment• requirements for up front disclosure on whether

insurance policies provide choice of repairer.

Residential tenancy law reformIn July 2005 an Options Paper on ResidentialTenancy Law Reform was released for publiccomment. The options paper was distributed to keyinterest groups and public submissions wereinvited on the range of reform options canvassed inthe paper.

More than 100 submissions were received duringthe period. Many of them focused on reforms aimedat reducing red tape, streamlining procedures,better balancing the rights of landlords and tenants,modernising the law and ways to reduce thevolume of disputes. A report on the review is beingdrafted for submission to the Government andfurther consultation with industry and communitystakeholders will be undertaken before anyamendments are introduced.

Home builders arenow required to

prove theiridentity in person.

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Funeral industry reformsFair Trading conducted a review of consumerprotection for people organising a funeral. Atelephone hotline and internet survey wasconducted to allow consumers the chance to sharetheir experiences when arranging a funeral or usingthe services of a funeral industry professional. Wealso chaired an inter-departmental Committee of allagencies with some involvement in this area. Adiscussion paper was produced by the Committeewhich examined issues of concern and possibleoptions for reform. Fair Trading also co-ordinatedthe Government response to the Legislative CouncilStanding Committee on Social Issues InquiryReport into the NSW funeral industry.

Retirement villagesA statutory review of the Retirement Villages Act1999 has been completed and the required reviewreport was tabled in Parliament in March 2005.Since then there has been ongoing consultationwith village resident and industry groups on therecommendations of the report. Recommendationsrelate to a number of significant areas includingdisclosure of information, resident input intomanagement, capital maintenance and budgets,deficits and other financial issues.

A legislative proposal is expected to be ready forintroduction into Parliament during the latter halfof 2006.

Home building industryIn 2005, the NSW Government announced a Reviewof Licensing in the NSW Home Building Industry.The terms of reference for the review arecomprehensive and cover all aspects of licensingfrom the range of activity covered by the licensingsystem, the types of entities that can be licensed,the fee structure and entry requirements of thelicensing system and the performancemanagement of licence holders.

The former Commissioner of the IndependentCommission Against Corruption, Mrs Irene Moss,was appointed to conduct the review, assisted byMr Kevin Rice.

The review held extensive consultations with 24key stakeholder groups representing the buildingindustry and held four regional public meetings. Thereview called for public submissions on the Termsof Reference. Sixty-six submissions were receivedand their comments were taken into account in thepreparation of an issues paper. The issues paperpresented the key concerns raised with the reviewas well as a number of options developed inrelation to each issue to assist stakeholders informulating their views.

The review has received a further forty-ninesubmission on the issues paper. A final report

detailing the review's findings andrecommendations is due to be finalised in thesecond half of 2006.

Home building qualification requirementsFollowing a recommendation from the IndependentCommission Against Corruption, the entryrequirements for building licences were reviewed.In particular, concerns had been raised about theoperation of the so-called 20 year rule, as it hasallowed applicants to fraudulently manipulate thesystem. The outcomes of this review are reportedin Objective Three under Home Building Licensing.

Continuing professional developmentThe introduction of continuing professionaldevelopment for the home building industry wasdesigned to assist the industry to be morecompetitive, reduce the level of disputes and raisethe standards of the industry in the interest ofbuilders and consumers. In particular it is aimed atensuring builders maintain their skill levels.

The program was codified into Commissioner'sGuidelines which clearly set out the requirements.The guidelines include a new provision whichallows for exemptions in the case of extenuatingcircumstances such as serious illness.

Over the past 12 months, information about afurther 140 courses has been added to theConstruction Industry Training Advisory Boardwebsite following the Commissioner's approval ofthe courses. These courses cover a wide range oftopics and delivery strategies.

Builders and swimming pool builders are no longerrequired to submit a separate annual continuingprofessional development statement. They will berequired to make a declaration on their licencerenewal form regarding the completion of thecontinuing professional development requirements.To verify compliance, from time to time an auditwill be undertaken of these declarations.

Review of Australia's consumerproduct safety systemIn August 2004 the Ministerial Council on ConsumerAffairs (MCCA) released a public discussion papersetting out options for delivering a more proactiveand efficient consumer product safety system.Following the receipt of submissions and furtherconsultations, the Productivity Commission wasengaged in March 2005 to conduct a research studyinto the operation of Australia's current consumerproduct safety system. The Commission deliveredits final report in January 2006.

The Commission found that while Australia'sconsumer product safety system could beimproved it already delivered a reasonable level of

Australia's consumerproduct safetysystem alreadydelivers a reasonablelevel of productsafety.

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product safety. The Commission's central findingwas that a strong case exists for national uniformityin the regulation of consumer product safety andrecommended a single law and regulator model beadopted on a national basis. The single law wouldbe the Trade Practices Act 1974 with the singleregulator the Australian Competition and ConsumerCommission.

The Commission made various recommendationsto improve the proactive nature of the systemincluding: incorporating 'reasonably foreseeableuse' in the definition of safety; requiring suppliers toreport products associated with serious injury ordeath and introducing a broadly-based hazardidentification system. The Commission also foundthat the benefits of a General Safety Provision,which would place an explicit legal obligation onbusinesses to market only safe products, wereunlikely to justify the costs involved.

At the MCCA meeting in May 2006 Ministers’directed officials to further develop the single law,single regulator model along with an alternativeharmonisation proposal which would provide acontinuing role for states and territories in theadministration of product safety laws. Officialswere requested to report to MCCA on the twooptions ahead of the next MCCA meeting inSeptember 2006.

Telemarketing lawsLaws to regulate the practice of selling goods andservices through outbound telephone marketing,known as 'telemarketing', came into operation inNew South Wales and Victoria on 30 August 2004.

Each State had amended its Fair Trading Act inaccordance with recommendations of a legislativereview report. Although the policy frameworkunderpinning the new laws is based on similarprinciples, specific statutory requirements differ. Inorder to assist companies operating across bordersand provide greater protection for consumers, NewSouth Wales and Victoria agreed to work towardsharmonisation of the laws. As part of theharmonisation project, consistent exemptionregulations were developed.

An options paper outlining fur ther opportunities forharmonisation was publicly released in August2005 and a report with recommendations wassubmitted by a joint NSW/Victoria working party inDecember 2005. The work on telemarketing lawshighlighted the public opposition to intrusive,unsolicited telemarketing and in August 2005, theNSW and Victorian Ministers called on theCommonwealth Government to introduce a nationalDo Not Call Register.

The Commonwealth responded by issuing adiscussion paper in October 2005 and introducing

legislation into the Australian Parliament in May2006 to establish a national Do Not Call Register in2007. The legislation, passed in June 2006, alsoprovides for the development, in consultation withthe States and Territories, of a mandatory industrystandard imposing rules on telemarketers about thehours during which calls may be made toconsumers. This will provide an opportunity for theharmonisation project to extend beyond the NSWand Victorian borders and develop agreed uniformrules for telemarketing.

Consumer credit codeThe Post Implementation Review of the ConsumerCredit Code referred a recommendation forsimplification of the pre-contractual disclosureregime of the Code to the National CompetitionPolicy Review of the Code for assessment. It wasconsidered that this recommendation would assistcompetition by making the pre-contractualdisclosure material more accessible to consumers.

New South Wales drafted a background paper forpreliminary consultation, and then a Draft Bill forgeneral comment. The Draft Bill was circulated inDecember 2005. Responses to the Draft Bill madereference to the need to test the utility of the revisedpre-contractual disclosure proposals.

Finance broking regulationFair Trading is chair of a working party which isdeveloping proposals for national regulation of thefinance and mortgage broking industry. Thedevelopment of a regulatory scheme is in responseto a review of broking in Australia conducted by theConsumer Credit Legal Centre on behalf of theAustralian Securities and InvestmentsCommission. The report, which was released in2003, identified a range of unacceptable practicesby brokers which have resulted in significantlosses to consumers.

Proposals to address those practices werecanvassed at a forum attended by all majorindustry representatives and provided the basis fora Consultation Regulatory Impact Statement forpublic comment.

The consultation paper outlining proposals for anational regulatory scheme evoked considerableinterest. Responses from all affected partiesprovided detailed comment, which has beeninstrumental in crafting the final proposals.

Responsible lending practicesFair Trading is developing proposals to requireresponsible lending by credit card issuers to beadopted nationwide. The proposals will reflectcommunity concerns with card issuers'assessment practices which appear to result inconsumers being granted credit far in excess ofwhat they can repay, or what they would choose if

Proposals forresponsible

lending by creditcard issuers are

being developed.

15


given the opportunity to state the credit limitrequired. Offers of credit limit increases without anassessment of the consumer's capacity to repaycan also result in credit limits that have not keptpace with incomes.

NSW is drafting a Discussion Paper for publiccomment. This is being drafted as a ConsultationRegulatory Impact Statement in accordance withguidelines issued by the Council of AustralianGovernments. It is expected to be released in thesecond half of 2006.

Unfair contract terms regulationIt was agreed in 2003 to develop proposals forconsistent state and territory legislation to addressunfair terms in consumer contracts. Followinganalysis of the submissions received during thepublic consultation process in 2004, a WorkingParty has drafted a Regulatory Impact Statement.

The Regulatory Impact Statement considers thenature and incidence of unfair contract terms, andcurrent responses to the issue in Australia andoverseas, including the implementation of theUnfair Terms in Consumer Contracts provisions inthe Victorian Fair Trading Act 1999. It then assessesthe costs and benefits of options with respect to theregulation of unfair contract terms.

Negotiations are currently underway with theCommonwealth Office of Regulation Reviewregarding finalisation of the Regulatory ImpactStatement. Once the Regulatory Impact Statementis approved by the Ministerial Council on ConsumerAffairs, it will be publicly released.

Tenant database regulationTenant databases are operated by privatecompanies who collect information about tenantsand make it available to real estate agents. Agentsuse this information to assess a person's rentalhistory when considering an application to rent aproperty.

In response to the problems caused by tenantdatabases in New South Wales, the Property Stockand Business Agents Regulation was amended in2004 to establish rules of conduct to govern the useof databases by real estate agents.

Fair Trading has also been involved in moves toregulate tenant databases at a national level. Theoffice has been participating in a Working Partywhich has completed a report and a RegulatoryImpact Statement which makes recommendationsfor national regulation of databases.

The Standing Committee of Attorneys General hasagreed to the development of model uniformlegislation and the report and Regulatory ImpactStatement will be submitted to the MinisterialCouncil on Consumer Affairs for approval. Draft

national tenant databases legislation will then beprepared and released for public comment.

Co-operatives model provisionsOn 2 September 2005, the Ministerial Council onConsumer Affairs endorsed the preparation oflegislation to replace the current core consistentprovision scheme with a template or consistentlegislative scheme formalised through a ministerialagreement. The Ministerial Council also consideredthat the ministerial agreement should allow forjurisdictions to be members of the agreement bypassing alternative consistent legislation.

The draft pro-forma Bill on mutual recognitionprovisions and co-operative capital unit fundraisingprovisions was released to the industry forcomment.

On 17 May 2006 the Ministerial Council consideredthe progress that had been made on ensuringconsistency of legislation across jurisdictions. Afurther paper will be submitted to seekendorsement for the revised ministerial agreementand the draft pro-forma Bill for co-operative capitalunits and mutual recognition provisions.

Strata schemesThe main issue under consideration during the yearhas been the extension of the 10-year sinking fundplanning obligations to all strata schemes.Obligations were placed on owners corporations ofnew schemes from February 2005 requiring themto commence specific capital maintenanceplanning for the ensuing 10-year period. The aim isto ensure that owners corporations gradually buildup the necessary funds for predictable majorbuilding and related expenditure into the future.

A regulation was gazetted on 28 April 2006 whichextends the 10-year planning obligations to otherschemes over the next few years so that by 1 July2009 all schemes (other than some 2-lot schemeswhich are not required to have sinking funds) willbe covered. Schemes will be brought under theprovisions according to their strata plan numberwith the oldest numbers (1 - 9,999) the last to becovered.

Community schemesA complete review of the Community LandDevelopment and Community Land ManagementAct as a joint initiative of Fair Trading and theDepartment of Lands is being undertaken todetermine whether refinements could be made toallow the better operation of the legislation. Adiscussion paper was released on 19 June 2006. Ofparticular interest is whether recent changes to thestrata schemes laws have equal relevance tocommunity schemes. Some of the largestresidential developments in Sydney in recent yearshave been community schemes.

Development ofproposals forconsistent state andterritory legislationto address unfaircontract terms.

16


Uniform trade measurementlegislationA review of Uniform Trade MeasurementLegislation by the Trade Measurement AdvisoryCommittee resulted in a number of minoramendments of a technical nature. They willimprove the administration of the uniformlegislation and include: improvements to publicweighbridge licensing arrangements andclarification of arrangements for public weighbridgeor servicing licensees which are structured as apartnership. Subject to the NSW Parliament, theTrade Measurement Act 1989 will be amendedaccordingly.

Average quantity system and net weight of frozenfish amendmentsAmendments to the uniform legislation are beingconsidered to introduce the Average QuantitySystem using sampling and averaging based onstatistical analysis to enable governmentinspectors and industry to identify incorrectmeasure in prepacked articles. Also standardprocedures across Australia for testing whetherfrozen fish and seafood is sold at the correct weightare being considered.

Regulatory Impact Statements for theseamendments were circulated to stakeholders forcomment. Queensland, as the lead jurisdiction, willanalyse the comments received and prepare areport for consideration by various bodies, before afinal report is submitted to MCCA.

National trade measurement administrationFair Trading is participating in an independentreview of trade measurement administration inAustralia. The purpose is to consider ways ofimproving trade measurement administration inAustralia and report back to Council of AustralianGovernments before the end of 2006.

The review will assess current arrangements fortrade measurement administration with regard tothe roles of the States, Territories andCommonwealth and New Zealand; and consideroptions to streamline the present arrangements forcost recovery and the certification of trademeasuring instruments.

Business namesIn administering the business name registrationprocess during the year, Fair Trading identified anumber of minor issues arising from proceduresset out in the Business Names Act 2002.

The Act provides for a three year term ofregistration for business names. An application torenew registration must be lodged with Fair Tradingbefore the term expires. However, sometimes thereare legitimate reasons that prevent a person fromlodging their renewal form on time, but the Act at

present does not provide for late applications. Otheraspects of the Act also require finetuning, forexample, to ensure a business name may betransferred to a person aged 16 years or more.Amendments to the Act were approved by Cabinetin May 2006 and work commenced on developingan amendment Bill for introduction in the secondhalf of 2006.

Smoke alarmsNew smoke alarms laws came into operation inNSW on 1 May 2006. Smoke alarms have to befitted to all premises in which people sleep. Thelaws had an impact on several Fair Trading areasand regulations were gazetted in April 2006 to dealwith the responsibilities of the parties in residentialtenancy relationships, in residential parks and inretirement villages. The main issues dealt withwere the responsibility for installation of alarms,battery fitting and replacement, and notation in theinspection records.

Several Fair Trading laws and regulations wererevised as a result of the new smoke alarm laws,including the Residential Tenancies Act, theResidential Tenancies (Residential Premises)Regulation and the Residential Parks Regulation.

Associations incorporationFollowing a review of the AssociationsIncorporation Act 1984, work commenced on thepreparation of a package of reforms for introductioninto Parliament.

The main purpose of the amendments is tostreamline the administrative and reportingrequirements for incorporated associations to makeit easier for them to manage their affairs and meettheir legal obligations.

Fair Trading will consult with stakeholders beforethe amendments are introduced into Parliament.

Ministerial Council on ConsumerAffairsThe Ministerial Council on Consumer Affairs(MCCA) comprises Commonwealth, State, Territoryand New Zealand Ministers responsible forconsumer affairs and fair trading matters. The roleof the Ministerial Council is to consider consumeraffairs and fair trading matters of strategic nationalsignificance and, where appropriate, develop aconsistent approach within the framework of anagreed Strategic National Consumer AffairsAgenda.

The Ministerial Council collaborates on, and makesdecisions in relation to, the Strategic NationalConsumer Affairs Agenda. Where appropriate, itimplements and monitors the impact of thosedecisions. The Ministerial Council also approves a

The main issuesdealt with were the

responsibility forinstallation of

smoke alarms,battery fitting andreplacement, and

notation in theinspection records.

17


National Work Plan to further the implementation ofthe Strategic National Consumer Affairs Agenda.

The Ministerial Council has examined a range ofissues during the last year including credit, trademeasurement, product safety, premium 1900numbers, financial literacy, consumer policyresearch, national enforcement & complianceoutcomes, real estate regulation, travel licenceexemptions, property investment advice, co-operatives, the ‘do not call’ register and unfaircontract terms.

Advisory councilsThe function of advisory councils is to provideadvice to the Minister for Fair Trading on consumerprotection issues, particularly those issuesrelevant to legislation administered by the Minister.The Council members represent diverse interestsand expertise to ensure that policy advice reflectsthe broader interests of the community and industryalike. The eight advisory councils are:• Fair Trading Advisory Council;• Home Building Advisory Council;• Motor Trade Advisory Council;• Council of the Motor Vehicle Repair Industry

Authority;• Property Services Advisory Council;• Retirement Villages Advisory Council;• Co-operatives Council; and,• Co-operative Housing & Starr-Bowkett Societies

Standards Committee.

Legislative change

Residential parksA major package of changes to the ResidentialParks Act 1998 was passed by Parliament inDecember 2005. This followed a statutory review ofthe legislation. The reforms came into effect inFebruary and April 2006. Significant refinements tothe laws have been made in relation to:• disclosure of information and advertising on park

tenancies• termination of tenancies process when a park is

facing redevelopment• compensation payable to residents who have to

leave because of redevelopment• sale of homes within parks• rights for residents who need to leave for long-

term term medical care• emergency service access• appointment of an administrator to manage a

park when residents' well-being is under threat.

False bidding at auctionsThe Government implemented reforms to promotetransparency and fairness through bidderregistration for auctions in 2003. These reformswere positively received by agents and consumersalike. In February 2006, further refinements to thelegislation were passed by Parliament.

The Property Stock and Business AgentsAmendment Act 2006 contains provisions toexplicitly outlaw dummy bidding in relation toresidential property or rural land, which is a bid byor on behalf of the seller other than the singlevendor bid made by the auctioneer on behalf of theseller.

Prior to the amendment, there was merely arestriction that only one bid could be made by or onbehalf of the seller at an auction of residentialproperty or rural land.

Where a residential property or rural land is passedin at auction it is usual for it to be later marketed forsale. In statements or advertisements made byagents when marketing such properties, the lastbid made at the auction is often stated. If the last bidwas made by the seller, a potential buyer of theproperty could be misled as to the market value ofthe property. The Amendment Act provides that,where the amount of the last bid is stated insubsequent marketing, and that bid was the seller'sbid, that it be identified as such.

Reduced licence restoration feesFees payable for an application to restore anexpired licence or certificate of registration werereduced from 16 January 2006.

Most fair trading licences and registrations aregranted for a fixed term and must be renewedbefore the expiry date. However, because a renewaldate can inadvertently be overlooked, the licensinglaws allow an application to be made within threemonths to have an expired licence or certificate'restored'.

In the past, the various fair trading licences wereadministered by several separate governmentagencies. For this reason, there is significantvariation between the fee structures for the differentlicences. The regulatory amendments made inJanuary 2006 introduced a consistent approach tosetting application fees when restoring an expiredlicence or certificate.

As a result, restoration fees were reduced forbuilders, kit home suppliers, specialisttradespersons, building consultants, motor dealers,pawnbrokers and second-hand dealers, propertyagents, travel agents and valuers.

Home warranty insuranceDuring 2005 the home building laws were amendedto establish a new governance structure for homewarranty insurance providers and implementassociated insurance reforms. Those provisions ofthe Home Building Amendment Act 2004 relating tohome warranty insurance commenced on 1September 2005. Further details are provided inObjective 3 under Home Warranty Insurance.

Licensing laws allowan application to bemade within threemonths to have anexpired licence orcertificate 'restored'.

18


The Home Building Amendment (Insurance Claims)Regulation 2005 provides that where a consumermakes an insurance claim, if the insurer has notdetermined liability within 90 days then, unless theinsurer obtains an extension of time (from theinsured or the Consumer, Trader and TenancyTribunal) the claim is deemed to be accepted. The90 days star ts from the time the consumerprovides the insurer with the prescribed claiminformation, as defined by the Claims HandlingGuidelines which came into effect on 1 September2005. The amendment provides a greater incentivefor insurers to make a decision on a claim.

Electricity consumer safetyThe Electricity (Consumer Safety) Act 2004 andElectricity (Consumer Safety) Regulation 2006commenced on 3 February 2006, replacing theElectricity Safety Act 1945 and its regulations.

The significant changes from the previouslegislation are:• the extension of safety provisions to electrical

installations which are not connected to anetwork, that is, are supplied by a stand-aloneelectricity generator

• maximum penalties for the most serious offencesunder the Act have been increased to $55,000 inthe case of a corporation and $27,500 for anindividual

• the existing requirement to advise Fair Tradingabout a serious electrical accident will besupported by a prescribed notification procedurein the Regulation

• appeals against administrative decisions will bemade to the Administrative Decisions Tribunaland not the Minister.

Controlling graffitiIn May 2006 the Government introduced intoParliament the Summary Offences Amendment(Display of Spray Paint Cans) Act 2006. The Actrequires retailers who sell spray paint cans torestrict access to those cans by keeping themeither in a locked cabinet or behind a counter insuch a way that members of the public cannot gainaccess to the cans without assistance.

The Act aims to reduce the amount of graffiti in thecommunity by reducing the theft of spray paint cansand forms part of the Government's comprehensiveanti-graffiti strategy.

Before drafting the Act, the Office of Fair Tradingconsulted widely with retailers and spray paintsuppliers. As a result, retailers were given theoption of keeping spray paints in a locked cabinetor behind a counter. Retailers expressed support forbuilding as much flexibility as possible into the Act,so that different stores can choose the option whichbest suits their circumstances. Consequently, theAct also contains a power to make regulations to

allow for further options for displaying spray paints,if these are considered appropriate in the future.

The Government has also agreed that, prior to thecommencement of the Act, we will conduct acomprehensive education campaign whichprovides information not just about the newprovisions, but also about the full range ofmeasures being used to combat graffiti. This willensure that retailers and consumers understandthat restricting access to spray cans is animportant part of an overall anti-graffiti strategy.

Maximum annual percentage rateThe Consumer Credit (New South Wales)Amendment (Maximum Annual Percentage Rate)Act 2005 commenced on 1 March 2006. Theamendment extends the protections of an interestrate cap, inclusive of fees and charges to all loanproducts regulated by the Consumer Credit Code,with the exception of certain products by authoriseddeposit taking institutions.

The amendment addresses the issue of fringelenders who had been avoiding the interest rate capof 48% by charging excessive fees and charges ontop of a high rate of interest. From 1 March 2006,interest plus all ascertainable fees and chargesmust be included in the calculation of the maximumannual percentage rate.

This amendment will protect the most vulnerableconsumers from being exploited and ensure thatcredit providers can not impose exorbitant costswhich lead to consumers being caught in anunmanageable debt cycle.

Public housing tenancy amendmentsThe Residential Tenancies Amendment (SocialHousing) Act 2005 commenced on 28 November2005. The Act gave effect to the NSW Government'sPlan for Reshaping Public Housing, released inApril 2005. The Department of Housing isresponsible for the policy development,consultation and implementation. The Office of FairTrading cooperated with the Department of Housingin drafting the amendments to the ResidentialTenancies Act.

The Department of Housing, as landlord, now has astructured and fair process whereby the eligibilityto continue in public housing can be assessed atthe end of a lease and allows for termination whereit is determined the tenant is no longer eligible. Itmakes several amendments to the ResidentialTenancies Act to ensure that tenants are treatedconsistently and the Department has appropriateoperational flexibility following the introduction offixed term leases.

Retailers who sellspray paint cans

must restrictaccess to thosecans by keepingthem either in a

locked cabinet orbehind a counter.

19


The Act allows the Department of Housing tocharge tenants for water usage costs and adds anumber of tenant protection clauses in relation tothe revision of market rents.

These changes also apply to the Aboriginal HousingOffice and could potentially apply to CommunityHousing following consultation with that sector. TheAct also amends the objects of the Housing Act andthe Aboriginal Housing Act to ensure they areconsistent with the reforms.

Conveyancers licensingThe Conveyancers Licensing Amendment Act 2006was passed by Parliament on 24 May 2006. Theamendments ensured that a legal practitioner,solicitor corporation or incorporated legal practiceare disqualified under the Act and thereforeineligible to hold a conveyancer's licence.

The amendments also removed the controlledmoney accounting provisions of the Act, so that allmoney received in trust by a conveyancer will berequired to be placed in a trust account. Otheramendments adopted changes made earlier in2006 to the disqualification provisions of theProperty, Stock and Business Agents Act 2002.Adopting these amendments into the ConveyancersLicensing Act ensured continued consistencybetween the two licensing schemes.

Following the passage of the amendments, workcontinued on a number of implementation projects.These included finalising draft regulations toprovide the administrative detail needed to supportthe operation of the Act. Licensing policies andcompliance guidelines were also developed andinformation materials for conveyancers andconsumers were prepared for the Fair Trading website.

It is intended that the Conveyancers Licensing Act2003 will come into effect during the second halfof 2006.

Valuers fee refundsOn 17 February 2006, a regulatory amendment wasmade to enable a valuer to be given a pro-rata feerefund if they surrender their registration early in itsterm.

Under the Valuers Act 2003, valuers are onlyrequired to renew their registration with Fair Tradingevery three years instead of annually, saving themtime and money and reducing paperwork. Valuerswho wish to leave the industry after havingrenewed their registration for three years, forexample, retirees or those taking extended leavesuch as maternity leave, are now able to claim apartial refund.

A valuer is eligible for a refund if they surrendertheir registration during the first or second year ofthe three year term. Similar refunds may be madewhere a valuer dies within the first or second yearof their registration period. The valuer'srepresentative would need to write to the Office ofFair Trading to request the refund.

Bills assented to• Residential Tenancies Amendment (Social

Housing) Act 2005 - assented to 26 October 2005• Consumer Credit (New South Wales)

Amendment (Maximum Annual Percentage Rate)Act 2005 - assented to 17 November 2005

• Property, Stock and Business Agents AmendmentAct 2006 - assented to 17 March 2006

• Summary Offences Amendment (Display of SprayPaint Cans) Act 2006 - assented to 31 May 2006.

• Conveyancers Licensing Amendment Act 2006 -assented to 31 May 2006

Statute law revisionUnder the Statute Law Revision program, a Bill isintroduced in each Session of Parliament to dealwith a range of minor and uncontroversiallegislative amendments. A number of amendmentswere made to fair trading legislation under thisprogram during 2005-2006.

The Statute Law (Miscellaneous Provisions) Act2005 amended the:• Home Building Act 1989 (Section 45)• Valuers Act 2003

The Statute Law (Miscellaneous Provisions) Act2006 amended the:• Home Building Act 1989 (Sections 61a, 90, 103a)• Holiday Parks (Long-Term Casual Occupation)

Act 2002• Residential Parks Act 1998• Residential Tenancies Act 1987• Co-operatives Act 1992

Subordinate legislation reviewOn 1 September 2005, the following regulationswere remade under the staged repeal provisions ofthe Subordinate Legislation Act 1989:• Co-operative Housing and Starr-Bowkett

Societies Regulation 2005• Co-operatives Regulation 2005• Strata Schemes Management Regulation 2005

The following regulations were in preparation to beremade on 1 September 2006:• Fitness (Pre-paid Fees) Regulation 2006• Funeral Funds Regulation 2006• Residential Parks Regulation 2006• Residential Tenancies Regulation 2006• Travel Agents Regulation 2006

Interest plus allascertainable feesand charges must beincluded in thecalculation of themaximum annualpercentage rate.

20


Community able toaccess information andconsumer helpcommunity level result #2

This is the second of three high-level, community impact objectives which contribute to thestrategic priority of a fair marketplace for consumers and traders. Once a fair regulatoryframework is in place, it is essential for the community – consumers and traders – to beable to access information on their rights and obligations under that framework, and forconsumers who are having difficulty acting on their rights to be able to get help.

Agency performanceProvision of: accurate information to consumers and traders; effective consumer help topublic

Fair Trading supports this high-level objective through two service-level objectives: provision of accurateinformation, and effective consumer help. The Office provides information by phone, at 24 Fair TradingCentre counters, online, and through publications, community liaison and outreach services. Help isprovided through informal complaint-handling services where individual consumers who believe they havebeen unfairly treated by a trader can get ready access to assistance, without going through a formalprocess such as a Tribunal hearing.

2

Service delivery objectives/results 01-02 02-03 03-04 04-05 05-06 Target

Result: Provision of accurate information to publicMeasures: • Percentage accuracy of information provided 99% 87% 99% 83% 93% ≥≥≥≥≥90%

• Level of customer satisfaction with:- overall quality of services 95% 94% 89% 87% 90% ≥≥≥≥≥90%- waiting time for a service 80% 78% 76% 74% 77% ≥≥≥≥≥80%- staff’s knowledge of subject 91% 91% 88% 86% 88% ≥≥≥≥≥90%- politeness of service staff 97% 94% 95% 94% 95% ≥≥≥≥≥90%- helpfulness of service staff 96% 94% 91% 90% 91% ≥≥≥≥≥90%

Result: Provision of effective consumer help to publicMeasure: • Percentage of complaints successfully resolved 72% 72% 67% 74% 81% ≥≥≥≥≥70%

Comment/InterpretationWe help consumers and traders get a fair go in themarketplace by providing information on their rightsunder 42 pieces of legislation. Individualconsumers can also contact us with a complaint,and we will approach the trader to help the partiesreach agreement – offering a speedy result for the

consumer and helping cut government costs byreducing the load on the Consumer, Trader andTenancy Tribunal. This service is of value only if itachieves agreement in a high proportion of cases,and the table shows resolution rates are quite high,so the service is working.

21


Snapshot: service-level statistics 2005-2006Customer enquiries 3,567,400REVS checks 1,525,000Rental bond transactions 559,000


01-02 02-03 03-04 04-05 05-06 Target

Outcome: Community able to accessinformation and consumer help

Indicators: Percentage of public who know whereto go to get help 58% 68% 73% 73% 70% 65-70%• Community take-up rate: average

number of services requested per1,000 people in NSW 400 502 509 557 653 Estimate: 600

• ATSI/NESB take-up ratematches (M) or exceeds (E)population representation * E E E E E Target ≥ ≥ ≥ ≥ ≥ M

*Measured by Community Profile Survey.

We also closely monitor the accuracy ofinformation we provide to customers, as well ascustomer satisfaction with our service. Accuracy ismeasured by an annual shadow shopping surveywhere contractors use question/answer scenariosto rate the responses. The level of accuracy ofinformation provided by front-line areas tomembers of the public in 2005-2006 was above thetarget of ≥≥≥≥≥90%. The result is a statisticallysignificant improvement on the previous year.However, given the confidence level inherent in thesample size it is important not to interpret this as a10% increase. However, it does suggest a return tomore typical accuracy levels, given that theprevious survey had been conducted during thesettling period of the Office’s new call centre.

Satisfaction is measured by having contractorsapproach a random sample of recent customers,who are invited to respond to a questionnaire. Thisyear, overall customer satisfaction with quality ofservice increased to match the target level of≥≥≥≥≥90%. This is a pleasing result but it may not be

Comment/InterpretationAt the community objective level, we monitorseveral items which are important but not entirelyin our control. It is not necessary – or possible – forevery member of the community to know all theirrights and obligations in every area, but it isimportant for people to know where to go forinformation when they need it, and for allcustomers, including Aboriginal and Torres StraitIslander customers, and customers from non-English-speaking backgrounds, to find the serviceseasy to access, with no systemic barriers in theway. Fair Trading seeks to service existing demandnot create “market share”. The high communitytake-up rate indicates strong ongoing demand forour services. Increasing numbers of customers areturning to the Office’s website. During the year

website visitor sessions rose approximately 28% tomore than 2 million and this is particularly reflectedin the increase in average number of services per1000 persons in New South Wales. The proportionof ATSI and NESB people contacting Fair Tradingexceeds their representation in the population,indicating these customers need the services anddo not experience barriers to using them. Thepercentage of people who know where to go for fairtrading help remains at the high end of out target.On the one hand it signifies that our informationcampaigns are working. But perhaps moreimportantly, it demonstrates that access to theseservices continues to be a priority of communityconsciousness.

statistically significant considering sample sizeimplications. Waiting time satisfaction remains at alower plateau but is not substantially below theequally lower target of ≥≥≥≥≥80% which acknowledgesthe reality that demand levels, over which we havelittle control, constantly affect how long customersmay wait for service.

Highlights 2005-2006

• Expanded Fair Trading Contact Centre services now includeshome building licence enquiries, retail bond enquiries andenquiries on behalf of the Government Information Service

• Over 2 million visitor sessions to our website - an increaseof 28%

• Customer satisfaction with our service rates at 90% - measuredby independent contractors and exceeds the Australian Standardby 10%

• Over 1,100 information programs were conducted throughoutNSW and attended by 45,000 people

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Provision of accurateinformation to the publicThe Fair Trading Information Centre (FTIC) wasofficially opened in August 2005. The Centreincorporates a number of areas of Fair Trading'stelephone enquiry services that were formerlyseparate, thus providing a single point of contact forFair Trading.

The number of customers accessing Fair Tradinginformation via our website continues to expand.This year the number of visitor sessions increasedby more than 28%. Over the past 12 months wehave undertaken a major upgrade of the internetbased Business Licence Information Service(BLIS). The new BLIS will enhance resource andprovide up-to-date licensing and regulatoryinformation for the establishing or operating of abusiness in NSW.

Our annual week of events was renamed FairTrading Week to include the full range of ourclientele, both consumers and traders. Each yearwe raise the awareness of consumer protectionacross the state on topical issues through themedia and by our staff reaching out to thousands ofpeople at open days, seminars and streetpromotions at shopping centres and metropolitanrailway stations.

Think Smart is our education program for culturallyand linguistically diverse (CALD) communities. Itdelivers information and education direct to CALDcommunities via formal community and mediapartners. This year Fair Trading developed ThinkSmart Tenancy Grants as a one-off program toprovide funding to community-focussedorganisations who could deliver tenancy-relatedinitiatives to a number of specific communitylanguage groups.

Information sessions on Fair Trading are providedto the business sector, ethnic communities,seniors, youth, the indigenous community and thegeneral community. This year we conducted over1,100 information programs throughout NSW whichwere attended by over 45,000 people.

Service channel reviewThe Information Service Channel Project examinedhow customers access our services. Currently thisincludes services delivered face to face, over thecounter, by telephone, through the internet, by postand fax. Fair Trading also provides contact throughits outreach services across NSW.

Both the public and the Office Fair Trading willbenefit from this review as it is looking to improveaccess to our services taking into account thepublic's preferred way of contacting us.Specifically, the review looked at:• current usage of existing channels and demand

for extending these channels• the observations and experiences of staff

regarding customer demands, current systemsand procedures and opportunities forimprovement

• the needs of a broad range of customers thataccess Fair Trading's services.

Consumer and trader enquiries

Fair Trading Information CentreWhen opened, FTIC handled customer enquiries forthe following services offered by Fair Trading:• Strata• Tenancy• Rental Bonds• Home Building• Business Registration• Business Licence Information Service (BLIS)• Register of Encumbered Vehicles (REVS)• General Fair Trading matters

Fair Trading Information Centre enquiries

This year thenumber of visitor

sessions to ourwebsite increased

by more than 28%.

22%

36%

17%

11%

13%

2% Rental bonds, strataand tenancy

BLIS and businessregistration

General Fair Trading

Home Building

REVS

Retail Bonds andGovernment InformationService (since January2006)

23


Fair trading enquiries

Website visitor sessions

The increase in website visitor sessions reflects a growing community take-up rate of ourexpanding electronic information services. These services are supplementing and extendingthe traditional services provided - not only in the area of general fair trading information - butin accommodation, property and home building matters as well.

Although there is some shifting from traditional channels such as phone and counter towebsite, the over 600,000 general fair trading enquiries received in 2005-2006demonstrate that demand through these traditional channels remains extremely high.

In January 2006, FTIC took on two new businessstreams - the Home Building Licence enquiry lineand Retail Bond enquiries. FTIC now also handlesenquiries on behalf of the Government InformationService.

FTIC is an internet protocol telephony call centre,utilising multi-media contact centre technology forskill based routing and reporting, voice recordingcapabilities and workforce managementcapabilities.

The technology employed by FTIC provides greaterflexibility and allows Fair Trading to respond swiftlyto issues that arise in the marketplace. Hotlinescan be set up quickly to allow for a single entrypoint for enquiries on hot topics. Calls can be routedfrom FTIC to other centres or to FTIC from thesecentres as the need arises.

During the year FTIC responded to 974,797 callsfrom consumers and traders.

Website servicesare supplementingand extending thetraditional servicesprovided.

Number of visitor sessions

*Website statistical softwareintroduced mid January 2002

200,000

400,000

600,000

800,000

1,000,000

0

02-03*

808,0

00

1,200,000

1,400,0001,400,000

1,800,000

03-04

1,3

00,0

00

04-05 05-061,5

68,0

00

2,0

31,5

65

1,600,000

2,000,000

2,200,000

200,000

400,000

600,000

800,000

1,000,000

0

Telephone*Counter Total

05-06

621,2

99

209,8

04

04-05

67

1,3

53

249,1

60

422,1

93

411,4

95

03-04

705,7

93

248,1

66

457,6

27

01-02

868,0

00

558,7

00

309,3

00

02-03

747,5

47

476,1

21

280,4

26

* Includes enquiries received electronically

24


BLIS upgradeOver the past 12 months we have undertaken amajor upgrade of the Business Licence InformationService (BLIS).

BLIS is an internet-based service which providesthe business community and the public withdetailed information on all NSW Governmentlicences, permits and associated regulations. Inaddition, the service gives customers a wide rangeof information regarding the general requirementsfor establishment or ongoing operation of abusiness in NSW.

The new BLIS improves on the previous system byproviding a friendly and easy to use web-basedservice which contains more information than everbefore. The internet user is able to search for, andobtain information about a broad range of NSW andFederal Government regulations relevant to theirbusiness, including taxation, employee relationsand OH&S requirements. The customer can thenselect the documents, forms and informationsheets they need, and either download them orhave them sent out by post, email or fax.

The new BLIS will also provide a valuable resourcefor Fair Trading employees, assisting staff toprovide up-to-date licensing and regulatoryinformation to the public over the telephone orthrough our Fair Trading Centres located throughoutNSW.

Information campaignsand initiatives

Fair Trading WeekEach November we run a special week-longpromotion to focus attention on topical consumerissues and to engage the community through a mixof promotional, educational and media events.Previously known as Consumer Week, the namewas changed in 2005 to Fair Trading Week to betteridentify our involvement and to include the fullrange of our clientele - consumers and traders.

The theme for the Week was Fair Trading - Open forBusiness, which also reflected our aim to beinclusive in our activities. For the second year in arow a wide-ranging theme was chosen, whichallowed multiple activities to be mounted to raisefair trading awareness. This proved to besuccessful in the regional centres of NSW whereemphasis was placed on local issues whichsupported the theme.

The centrepiece of the Week was the release of thefindings of a research project we conducted in

October 2005. The survey on retail traderawareness of key obligations in dealings with theircustomers showed a very wide gap betweentraders' self-assessment of how well they knowtheir obligations and their actual knowledge. Thelowest awareness of obligations related to refundsfor goods developing a fault after sale and spellingout of advertising terms, conditions and statementof full price.

As part of Fair Trading Week, a number of newfactsheets were developed to address key issuesfor businesses: Trading in NSW, Selling safeproducts, and Fair Trading for business. Each factsheet was also translated into four languages -Arabic, Chinese, Korean and Vietnamese.

A CD Rom was also produced to provide a wealthof knowledge on the basic issues facing smallbusinesses, including customer service,compliance with the law and good businesspractice. The Fair Trading Open for Business CDincludes copies of Fair Trading information bookletsand fact sheets including the Good BusinessMatters kit.

Fair Trading Centres across the State held opendays and other activities during the Week, providingconsumers and businesses with the opportunity tomeet local staff and receive information.

Fair Trading information was distributed at shoppingcentres throughout the State and at railway stationsin the Sydney Central Business District. Wedelivered a variety of information sessions andseminars, including Savvy Seniors, Scam Smart,REVVED UP, and business seminars.

Fair Trading Awards ProgramOne of the highlights of Fair Trading Week is thepresentation of Fair Trading Awards to communityorganisations, business or industry associations,the media and individuals in recognition of theirwork in advancing the understanding or applicationof consumer protection principles.

The Program also recognised the work of youngpeople who participate in the Consumer YouthAward. Using the Money Stuff! website studentsrespond to a challenge to provide information on aspecific consumer topic in a creative way thatappeals to and has an impact on their peer group.

For the first time this year the Program alsorecognised the important role played by teachers ineducating young people about consumer andfinancial issues by presenting the inauguralConsumer Youth Educator Award.

The new BLISprovides a friendly

and easy to useweb-based service

which containsmore informationthan ever before.

25


Multicultural Media and CommunityLeaders ConferenceEach year during Fair Trading Week a MulticulturalMedia and Community Leaders Conference is heldand is hosted by the Minister for Fair Trading. TheConference is an annual event in our Think Smartprogram for culturally and linguistically diversecommunities and has been held since 2001.

The Conference highlights and promotes consumerprotection messages and activities undertaken byFair Trading during the year and highlights futureinitiatives for the NSW multicultural community.Think Smart partners who play a vital role inachieving the aims of the Think Smart program arealso acknowledged at this conference.

During the 2005 Conference the Minister announceda one-off Tenancy Grants Program for culturally andlinguistically diverse communities with funding tocommence from July 2006. The Minister alsolaunched three new translated fact sheets - Tradingin NSW, Selling safe products and Fair Trading forbusiness that were translated into four languages -Arabic, Chinese, Korean and Vietnamese.

Four new Think Smart partners were signed up -the Australian Assyrian Association, AfricanCommunities Council, Liverpool Migrant ResourceCentre and the Migrant Services Network (NorthernSydney).

Think Smart strategyWe have operated an education program calledThink Smart for culturally and linguistically diverse(CALD) communities since 2002. The Think Smartprogram allows Fair Trading to deliver informationand education direct to CALD communities, viaformal community and media partners.

The Think Smart program continued to increaseawareness of Fair Trading and its services amongstidentified language groups through the use of acommunications strategy using a variety of ethnicmedia (advertising and articles), public relationsactivities, grass roots community activities and atenancy grants program.

The program responds to the need to raise generalawareness about consumer rights and the role ofFair Trading and addresses the issue of tenancy,identified as the most significant consumer issueaffecting CALD communities.

Target languages for the strategy this year wereidentified on a needs basis criteria rather than onsize of population only. Their need for specialattention was defined by a range of criteria whichmakes the target audiences more likely to beunaware of their rights, such as being recentarrivals to New South Wales.

The strategy had a consumer and a tenancy focusreflecting the importance of tenancy as the singlebiggest consumer issue for people from CALDbackgrounds. The consumer focus targeted peoplefrom Arabic, Korean, Chinese, Vietnamese,Macedonian and Spanish speaking backgrounds.The tenancy focus targeted people from Arabic,Korean, Chinese, Vietnamese, Indonesian, Italian,Greek, Macedonian, Croatian, Samoan, Tongan,Farsi, Assyrian, Pashto, Dari, Dinka speakingbackgrounds.

Money Stuff!Our award-winning educational resource, MoneyStuff!™, which helps provide young people withindependent living skills, was made even morerelevant with the addition of a new series ofresources aimed at helping young people preparefor employment. The Money Stuff! Work Smarteducation initiative was launched by the Ministerfor Commerce on 4 August 2005.

We worked together with the Office of IndustrialRelations and the Department of Education andTraining to produce Money Stuff! Work Smart.

One part of the resource added a new interactivechallenge to the Money Stuff! website, providingyoung people with information on getting a job,understanding industrial awards, understanding thecalculation of pay etc. The other part included theproduction of the Money Stuff! Work Smart teacherworkbook, which was distributed to all highschools in NSW.

We also updated the design and navigationalaspects of the Money Stuff! website to improve itsaccessibility and to ensure that it keeps pace withcurrent approaches to learning design.

Soccer CD-ROMA new product safety standard for the production ofmoveable soccer goal posts came into effect inMarch 2005 in response to a key recommendationfrom a coronial enquiry into the death of a younggirl in 2003. In response, Fair Trading developed aCD-ROM to promote the standard, demonstrate thedangers of existing goalposts, and provideinformation on appropriate safety steps for NSWsoccer clubs, schools and local councils.

Fair Trading worked closely with a number ofsoccer associations including the national body,Football of Australia (FAA), to gain their support forthe project and to enlist their help in encouraginguse of the CD-ROM amongst their members.

The campaign won a Gold Award in the OutstandingEducation and Promotion category at the annualNSW Sports Safety Awards, hosted by the SportingInjuries Committee.

The Ministerannounced a one-offTenancy GrantsProgram for culturallyand linguisticallydiversecommunities...

26


Consumer Fraud CampaignWe are part of a taskforce composed ofCommonwealth, State and New Zealand regulatoryagencies with responsibility for consumerprotection in relation to frauds and scams. TheTaskforce ran a consumer campaign from 13February to 15 March 2006 which involvedagencies and the private sector. The campaignfocussed on advance fee fraud, phishing, lotteries,and cold calling scams and promoted theScamwatch website and to a lesser extent theScamwatch hotline.

Fair Trading participated in a number of waysthrough the Fair Trading Information Centre, FairTrading Centres, website, publications, mediacoverage and promotion of ar ticles throughout themonth long campaign. A key feature was theintroduction of a new online feature to report ascam on the Fair Trading website and updating ofscam information.

Information about legislative change

Smoke alarmsIn support of the new smoke alarm laws FairTrading produced a fact sheet summarising thechanges. The factsheet, Smoke alarms andresidential premises, is available from all FairTrading Centres and the Fair Trading web site.

In consultation with the NSW Fire Brigade andPlanning NSW, a poster and a flier announcing thecommencement of the 1 May reforms wereproduced. Fair Trading distributed these itemsthrough a range of networks including the TenantsUnion and community based Tenancy Advice andAdvocacy Centres; Think Smart Partners; FairTrading Centres, Aboriginal Customer ServiceOfficers and Community Liaison Coordinators.

The Real Estate Institute and the Institute of StrataTitle Management were provided with ar ticleswhich were published in their industry journals.

Residential parksThere are more than 30,000 long term residentsliving in over 900 residential parks in NSW. Toinform park residents and operators of the changesmade to the Residential Parks Act a program of 23seminars was conducted across NSW in April andMay to inform them of the reforms that commencedin April 2006. Seminar attendees had theopportunity of hearing first hand the changes to thelegislation which could potentially have a majorpositive affect upon their lifestyles.

Strata sinking fundsFrom 28 April 2006 new laws require most NSWstrata schemes to commence 10-year sinking fundplanning over the next few years. To ensure stratascheme owners are aware of the new laws a newfactsheet Strata scheme sinking funds - obligationsfor 10 year plans was produced and madeavailable.

Home building proof of identityProof of Identity was introduced as a mandatoryrequirement when applying for an individual homebuilding licence or certificate. This should actagainst fraudulent conduct within the industrywhich will benefit home building tradespeople andconsumers alike.

New forms to accommodate the proof of identityrequirement have been available via our website,and Fair Trading and Government Access Centresacross the state since February 2006. Applicationsmust be made in person, and can no longer beaccepted by mail, fax or electronic means.

Information programsFair trading delivers its information programs aspart of the Regional Access Program and theAboriginal Access Program. Information on FairTrading is delivered to the business sector, ethniccommunities, seniors, youth, the indigenouscommunity and the general community.

During 2005-2006 our staff conducted over 1,100information programs throughout NSW which wereattended by over 45,000 people.

Home showsFair Trading participated in the Sydney, Wollongongand Newcastle home building expos in 2005 and2006. Information and assistance to consumerslooking to build or renovate their homes wasprovided by a team of home building experts. Acomprehensive menu of home building publicationswas available. Computers with Internet accesswere available for visitors to conduct on-linelicence checks. Fair Trading home buildingcontracts were available for sale.

Aboriginal Action PlanDuring Fair Trading Week, the Dubbo Fair TradingCentre hosts a family fun day for Indigenous andnon-Indigenous community members. It involvesother government agencies and community basedorganisations that provide information stalls andactivities. The 2005 event was opened by theMinister for Fair Trading and over 400 peopleattended. This event won the Department ofCommerce 2005 Regional Award.

Our staff conductedover 1,100informationprogramsthroughout NSWwhich wereattended by over45,000 people.

27


Fair Trading's Aboriginal Customer Service Officersattend "Do it Right" Forums held across the State.The forums, run with the Anti-Discrimination Boardand the Office of Industrial Relations, are forservice providers to develop partnerships withother agencies. A workshop is run to shareinformation on how to provide better services toAboriginal communities and focus on Indigenoustenancy matters.

Good Services Forums provide information to theIndigenous communities on all Fair Trading matterswith a major focus on tenancy issues. Forums havebeen held in the Hunter and West Regions inconjunction with the Anti-Discrimination Board,Energy and Water Ombudsman (EWON), ASIC andLegal Aid.

The National Indigenous Consumer Strategy is anational project which the Office of Fair Trading isimplementing. It has eight priorities which relate toIndigenous consumers including employment ofIndigenous staff, housing, advocacy, financialmanagement and banking, motor vehicles andboats, trading practices, the arts industry andmanaging Indigenous community organisations.Fair Trading has already achieved many milestonesin these priority areas and is continuing toimplement strategies to meet the needs ofIndigenous communities.

NAIDOC activitiesIn the first week of July each year Fair Tradingparticipates in NAIDOC week activities. NAIDOCWeek is a celebration of the Aboriginal and TorresStrait Islander culture within the community. Theweek is celebrated through family days, sportingdays, youth events, information stalls andentertainment.

Fair Trading Aboriginal and non aboriginal staffactively participate in flag raising ceremonies andcommunity organised events during NationalAboriginal and Indigenous Day of Celebration. FairTrading sets up information stalls at these events.

Harmony DayHarmony Day is a celebration of the many diversecultures in NSW. Staff from the Newcastle FairTrading Centre attended this event held atNewcastle TAFE. This year the event was attendedby many new African refugees who have recentlysettled in the Hunter area.

Revved upBuying a car can be a very emotional andexpensive experience especially if you are youngand inexperienced. In order to assist young peopleto purchase a car using their head and not theirheart, Fair Trading initiated a special youth programcalled 'Revved Up'.

The program provides practical information on whatto look for when purchasing a car including buyingone that suits their needs and budget, associatedcosts like registration, transfer fees, insurance andmaintenance and running costs in addition toinforming them of their consumer rights andresponsibilities.

Revved up programs were conducted in schoolsand youth groups throughout NSW.

Orientation Day activities atuniversities and TAFEsLeaving school and commencing tertiary studies isa significant change of lifestyle for many youngpeople. It can also be quite daunting and can makethem vulnerable to scams and rip off merchants.

To encourage students to obtain information andlearn skills to make informed purchase decisionsand establish good consumer habits, Fair Tradingparticipated in various university and TAFEorientation days. Information stalls were staffed andour brochures were included in student show bags.Students were able to obtain important informationon relevant issues such as tenancy, mobile phones,buying a car and credit cards.

Seniors educationIn 2006, Fair Trading implemented a strategy topromote the availability of the popular publicationfor seniors, the Seniors' guide, together withreminders for seniors that the Office of Fair Tradingis the agency to contact for consumer informationand assistance. The strategy was implemented tocoincide with Seniors Week, 2 - 9 April 2006.

Fair Trading produced and distributed 30,000 copiesof a Seniors Pack comprising an envelope with anorder form for the Seniors' guide, together with aFair Trading for Seniors fridge magnet and a handyTips for seniors notice designed to alert seniors tothe fraudulent tactics of itinerant workers and door-to-door/telemarketers. The packs were distributedby letter box in metropolitan Sydney in suburbsidentified as having a high concentration of olderresidents and regional events held during SeniorsWeek.

During the year we presented information focussingon consumer rights and scam awareness atretirement villages, senior's organisations, andcommunity centres.

Small BusinessWorking in conjunction with Business AdvisoryCentres, Business Enterprise Centres andChambers of Commerce throughout the state wepresented seminars to existing small businessesand people thinking of taking the step of starting outin business themselves.

Students wereencouraged toobtain informationand learn skills tomake informedpurchasedecisions andestablish goodconsumer habits...

28


Information on their rights and responsibilities astraders was presented as well as providing ourGood Business Matters information kit in seminarsacross NSW.

We also attended business forums and expos,business and lifestyle expos and rural shows.

Real Estate and Landlord SeminarsA comprehensive program of seminars to realestate agents and self managing landlords withtopics including tenancy information such as yourrights and responsibilities when moving in, duringthe tenancy and moving out, tenancy databases,anti-discrimination, and a Consumer, Tenancy andTrader Tribunal presentation.

Corrective Services Credit and Debt ProgramA Pilot program involving Fair Trading providingtraining to Corrective Services Welfare staff fromacross NSW was developed. It will enable them toprovide information on fair trading issues with aparticular focus on financial literacy and tenancy toinmates through their pre-release programs.Training of Corrective Services staff will commencein August.

Regional mediaFair Trading continues to ensure that our messageis reaching all residents of NSW. Regular segmentsare held on radio stations across the State givingregional and rural communities access to the mostrelevant information to help them make informedconsumer decisions .

Outreach in remote areas

Government Access CentresWe continue to support the 49 Government AccessCentres (GACs) throughout NSW. GACs providerural and remote communities with increasedaccess to our services and written material. Theyallow us to establish partnerships with otheragencies to provide a more comprehensive serviceto rural NSW.

Regional Access ProgramsFair Trading's Regional Access Program bringsservices to consumers and traders in outlyingregional and rural areas. Programs include suchactivities as information stalls in shopping centresand main streets, visits to retailers, seminars tosmall business people, incorporated associationsand landlords, school talks and the distribution ofour brochures. These are some of the ways inwhich we assist people in regional areas tounderstand their rights and responsibilities.

During the year we visited over 70 towns acrossNSW including the outer Sydney region.

Motor vehicle repairsThe Motor Vehicle Repair Industry Authoritycontinued its presence at rural field days during theyear and had information stands at Henty,Gunnedah, Paterson and Casino to provideinformation about the Authority's services in ruraland regional areas.

Register of EncumberedVehicles (REVS)

National REVSWe are pursuing the possibility of establishing anational register of encumbered vehicles. On behalfof the Standing Committee of Officials of ConsumerAffairs (SCOCA), we entered a contract in April2005 with a firm of consultants to examine thelogistics of establishing a national system. Thereport was completed in December 2005 andsubmitted to SCOCA in March 2006 for theirconsideration of the report's recommendations.

In 2005 the Standing Committee of AttorneysGeneral (SCAG) commenced a project to examinethe wider issue of national personal propertysecurities law reform, and this has the potential toinclude a national REVS scheme. Fair Trading iscommitted to the concept of a national register ofencumbered vehicles, and is working with the NSWAttorney General's Department on the SCAG projectas well as pursuing national REVS through MCCAand SCOCA.

Improvements to service deliveryREVS has continued to improve its service deliveryto clients, concentrating on internet facilities. InMay 2006, REVS commenced providing clientswith weekly information reports via email. Thisservice has been well received by many clientsand has resulted in major cost and productivitysavings for REVS.

The establishment of the Fair Trading InformationCentre (FTIC) has required the transfer of somefunctions back to REVS Operations, requiringprocess and procedural review. REVS hasintroduced a facility for FTIC to email certificates toclients who made REVS telephone inquiries.Previously, certificates were only mailed or faxedto inquirers.

Two other service enhancements have been underdevelopment and are planned for implementationlater in 2006:

• An internet facility to enable over-the-countersearch certificates for vehicles and boats to beprovided through Fair Trading Centres and otherlocations, such as Government Access Centres.

Through ourRegional Access

Programs wevisited over 70

towns across NSW.

29


Fair Trading Centre locationsAlbury Dubbo Liverpool QueanbeyanArmidale Gosford Newcastle SydneyBathurst Grafton Orange TamworthBlacktown Goulburn Parramatta Tweed HeadsBroken hill Hurstville Penrith Wagga WaggaCoffs Harbour Lismore Port Macquarie Wollongong

Government Access Centres (GAC) and Outreach SitesFair Trading’s services can be accessed through 49 Government Access Centres (GAC), 17 OutreachCentres and 6 Business Enterprise Centre’s across New South Wales.

Government Access CentresBalranald Forbes Moree TenterfieldBoggabilla Forster Moruya TumbarumbaBombala Gilgandra Mt Druitt (urban GAC) UlladullaBourke Glen Innes Nambucca Heads WalgettBrewarrina Grenfell Narooma WarrenCobar Gundagai Narrabri WentworthCondobolin Hay Narrandera West WyalongCooma Hillston Nyngan WilcanniaCoonabarabran Inverell Oberon Ivanhoe(Internet Access Point)Coonamble Kyogle Peak Hill Tibooburra (Internet Access Point)Dorrigo Lightning Ridge QuirindiEden Maclean SconeFinley Moama Temora

Outreach CentresAshford Culcairn Moulamein WarialdaBarham Dunedoo Mungindi WoodenbongBoorowa Holbrook MurrurundiBundarra Lake Cargelligo RylstoneCrookwell Lockhart Walcha

Business Enterprise CentresBega Griffith MudgeeDeniliquin Leeton Nowra

• The extension of registration and search facilitiesfor boats via the REVS website. This service willbe piloted in mid 2006 to account customersbefore being extended to the public.

REVS information enhancementWe are also reviewing the design of the REVSwebsite, focusing on providing a more user friendlysite with expanded information to enhancecustomers' access to and understanding of REVS'services.

Progress on the link between the REVS databaseand the National Exchange of Vehicle and DriverInformation System (NEVDIS) continued. Theinterstate agreement governing NEVDIS wasamended in late 2005 to enable third parties suchas REVS to access NEVDIS information.Considerable progress was made this year onextending the REVS NEVDIS link to enable searcheson all REVS enquiries to be checked against

national vehicle registration information maintainedby NEVDIS, including stolen and written off vehicledata. It is anticipated that NEVDIS access will beimplemented early in 2007.

REVS marketing activitiesIn February-March 2006, we participated in theOpen Week activities at the University's of NSW,Sydney, Macquarie and Western Sydney. Thisactivity was conducted with the Office of FairTrading's Community Liaison Unit (CLU) and stallswere staffed by officers from REVS, CLU andvarious Fair Trading Centres.

This successful partnership continued further withthe South West Youth Festival targeting similar agegroups, outlining the importance of REVS as aconsumer agency that can provide 'peace of mind'to young consumers when purchasing a privatevehicle.

REVS hascontinued toimprove its servicedelivery to clients,concentrating oninternet facilities.

30


REVS vital statistics 04-05 05-06REVS checks 1,480,895 1,525,748Finance industry commitments registered on REVS $8.05B $8.18BREVS total encumbrances held 3.14M 3.3M

REVS has made a number of significantpartnerships through its web-links program withrelevant websites as part of its continuingcommitment to education and equitable service forthe NSW, ACT and NT customers. These include afeatured service in the NSW government websitewww.nsw.gov.au, and a web banner with the UNSWstudent association www.source.unsw.edu.au

Motor vehicle repairs enquiriesFollowing the move of the Motor Vehicle RepairIndustry Authority (MVRIA) into Fair Trading inMarch 2005 service delivery has continued toimprove. Face-to-face access to information andservices through our extensive Fair Trading Centrenetwork is a great benefit to consumers. Jointcompliance operations and a more consistentapproach to policy, licence administration andlegislative enforcement has resulted. MVRIA'stechnical advisory service has continued to be indemand and has answered 14,200 inquiries aboutthe cost of quality of repairs to motor vehiclesduring the year.

Residential rental bondsThe number of residential rental bonds heldincreased by 2.8% to 614,833 over the last financialyear. The amount held in trust at the end of the yearwas $647.8 million. Lodgements of new bondstotalled 288,072, a marginal decrease of 0.9% from

the previous year. Refunds of rental bondsremained relatively steady with 271,247 bondsrefunded through 389,991 individual payments.

The use of electronic services by customers forrefund transactions, in preference to traditional mailand face to face services, continues to increase.Tenants, landlords and real estate agents submitted90% of claims for refund electronically. Similarly,the proportion of customers requesting their refundbe paid directly into their bank account was 50.9%,an increase of 9.5% over last year.

The popularity of the Rental Bond Internet Service(RBIS) also continues to rise. This service allowsNSW property managers to conduct their rentalbond business online, 24 hours a day, seven days aweek. The number of property managersconnecting to RBIS has increased by 20.4% in thelast year and the number of claim transactions hasincreased 24.1% over last year.

Retail tenancy bondsDuring 2005-2006 new legislation was introducedby the NSW Government requiring all security cashbonds for retail tenancies be lodged with theDirector-General of the Department of State andRegional Development. Under the scheme, newretail security bonds were captured by thelegislation from 1 January 2006, whilst existingbonds were required to be lodged by 1 April 2006.

Residential rental bonds - number processed and held in trust

Rather than re-inventing the wheel,

State and RegionalDevelopment

outsourced theadministration of retailbonds to Fair Trading.

100,000

200,000

300,000

400,000

500,000

0

Bonds RefundedBonds Lodged Bonds Held in trust

05-06

614,8

33

04-05

598,0

08

269,7

92

290,7

77

288,0

72

271,2

47

01-02

532,3

93

286,2

26

292,2

99

03-04

577,0

23

271,4

03

296,6

49

02-03

551,7

77

275,9

65

295,3

49

600,000

800,000

31


Rather than re-inventing the wheel, the Departmentof State and Regional Development took advantageof the existing residential rental bond custodialservice provided by Fair Trading, and outsourcedthe administration of the lodgement and refund ofthe retail bonds to Fair Trading's Renting ServicesBranch.

The two agencies were given a lead time of lessthan six months to adapt the Renting Servicessystems to accommodate the retail tenancy bonds,and the success of this collaborative effort isreflected in the completion of the project on timeand within budget.

Although the lodgement of retail security bonds wasslow to gain momentum, with only 155 bondslodged in January 2006, the total number of retailbonds held by 30 June 2006 was 9,600. Asanticipated at this early stage, the number ofrefunds remains low at 271 over the first sixmonths of operation.

Registry of Cooperativesand Associations

Professional support and educational programsFair Trading has an important role in fostering thedevelopment of the co-operative sector in NSW andrecognises that strong professional supportcommitted to servicing co-operatives is essentialfor the sector to grow and remain viable.

A key element of this development is aneducational program aimed at building a betterunderstanding and awareness of co-operativesamong professional groups such as lawyers, banks

and accountants and broadening the awareness ofco-operative philosophy and exploring the benefitsof co-operation and incorporation for groups ofindividuals and communities as a whole.

This has been achieved by conductingpresentations and information sessions forcommunity groups, professional associations andgovernment organisations at federal, state and locallevels. Participation in exhibitions at major eventssuch as the Australian National Field Days inOrange, the Farming Small Areas Field Days in theHawkesbury/Richmond area and the Tocal FieldDays in the Hunter region and generally providinginformation and assistance to interested individualsand groups on co-operatives, co-operative housingsocieties, incorporated associations and funeralfunds has also raised the profile of these entities.

Particular focus on and support to Aboriginalgroups and communities seeking incorporation hasbeen provided as well as practical assistance toexisting Aboriginal co-operatives and associationsin relation to compliance matters through regularcontact and visits.

Grants

Grants are provided to not-for-profit organisationsfor the provision of community education, adviceand advocacy services for tenants, retirementvillage residents and consumers who needassistance with dealing with personal financialdifficulties. In line with the NSW Government'ssocial justice role, these grants promote theprinciples of access, equity and diversity.

Residential rental bond and tenancy enquiries

In line with the NSWGovernment's socialjustice role, thesegrants promote theprinciples of access,equity and diversity.

Total enquiries processed

100,000

200,000

300,000

0

03-04438,4

15

04-05

430,9

42

05-06

443,3

91400,000

500,000

01-02

443,9

52

02-03

433,5

46

32


Our partnership with funded not-for-profit groupsensures complementary service provision, in thatwe provide information, regulation and remedy,while the community sector specialises in theprovision of consumer advice and advocacyservices.

We also have grants programs that target the homebuilding and property services industries, bothlicensed under Fair Trading legislation. Under theseindustry grants programs, we provide funds forone-off projects to undertake research or provideconsumer education or industry training which willenhance the professionalism of those industriesand in turn, enhance outcomes for their consumers.This year we funded five projects under theProperty Services Grants Program relating tocommunity education, training and continuingprofessional development, while the Home BuildingGrants Program provided funding support for therecruitment and management of apprentices in thehome building industry as well as a continuingprofessional development project for the swimmingpool and spa building sector.

Tenants Advice and Advocacy ProgramDuring 2005-2006, the 21 community organisationsfunded under the Tenants Advice and AdvocacyProgram (TAAP) to provide advice and advocacy totenants assisted around 26,000 people. Asignificant number of people living in residentialparks which were facing closure were providedwith advice about their rights and responsibilitiesby TAAP services.

Apart from a large number of parks being closed,an increasing number of residential parks are thesubject of re-development applications. Such re-development may impact on low income earnersfor whom residential parks provide affordableaccommodation. Workers funded under the TAAPhave been supporting these residents to gain abetter understanding of the process and anyrecourse options which may be available to them.

This year, more than 6,000 tenants around the statereceived assistance with either preparing for aConsumer, Trader and Tenancy Tribunal hearing orrepresentation at a hearing.

In 2005-2006 there has been a focus on the needsof tenants who are refugees, particularly those fromAfrican countries, and also newly arrived migrants.The booklet Before Your Rent which had previouslybeen developed in English with a TAAP SpecialPurpose Fund grant, was translated and printed inArabic in 2006. It was launched in May to anappreciative audience which included a group ofSudanese refugees. Many African countries speakArabic or have Arabic as their second language.The booklet explains the different types ofaccommodation available in New South Wales andthe rights and responsibilities of tenants andlandlords.

Financial CounsellingAll financial counsellors funded under the creditcounselling program and the financial counsellingtrust fund must be trained and eligible foraccreditation by the Financial CounsellorsAssociation of NSW. This year, almost 34,000people sought assistance from these dedicatedprofessionals. All services reported an increase inthe complexity of matters facing their clients andgreater difficulties in negotiating with clients'creditors as a result of debt collection beingoutsourced to overseas call centres.

The issues reported by funded services during2005-2006 revealed a sustained increase in thenumber of people seeking advice about bankruptcyand an increase in numbers of people caught out byincreased interest rates and charges imposed bynon-mainstream lenders.

Issues relating to management of personal financesare also discussed at community educationsessions provided by the 44 individual servicesreceiving a funding contribution from the twoprograms overseen by the Office. These sessions

Funding allocated in 2005-20061 Tenants Advice and Advocacy Program* $7,282,1362 Credit Counselling Program $1,172,7633 Financial Counselling Trust Fund $726,4614 Home Building Grants Program $114,1815 Property Services Grants Program $266,4716 The Aged - care Rights Service $342,7587 Co-operatives Development Grants Program $116,4298 Think Smart $207,0009 Motor Vehicle Repair Industry Authority $50,000Total $10,278,199

All figures are excluding GST, which is paid on all grants.

*Includes $37,023 provided from TAAP Special Purpose Funds

Total grant allocations

7

2

6

4

3

1

5 89

This year, almost34,000 people

sought assistancefrom financialcounsellors.

33


are very useful as a preventative strategy, enablingpeople to make more informed decisions about theuse of credit and day-to-day financial managementissues. In 2005-06, 252 sessions were conducted,benefiting 8,893 participants.

Co-operatives Development Grants ProgramThe Co-operatives Development Grants Program(CDGP) is designed to assist the NSW co-operativesector grow and remain a viable sector of oureconomy. A focus on economic development andthe historical contribution of co operatives werecentral to the successful projects this year.

Grants were made to the Macleay Regional Cooperative Limited and the Technology Ski ClubLimited to assist with publication of their histories.Both organisations have played an integral role inthe development of their activities in New SouthWales, providing services to their members and thewider community.

The Hastings Co operative Limited, conducted afeasibility study into acquiring the Comboyne RuralSupply business, thereby addressing economicissues confronting the local community. KaraltaRoad Park Home Owners Incorporatedcommissioned a feasibility study into establishinga not for profit co operative to own and operate amanufactured home park on behalf of residents.The Barraba Community Learning AssociationIncorporated sought funding for the facilitation offorming of a co-operative to administer the needs ofadult education within local communities.

Funding to the Co-operative Federation of NSWLimited contributed to the annual co-operativesconference and an accounting seminar, providingtraining and networking opportunities for cooperative members and the community. The CDGPalso supported the Centre for Australian CommunityOrganisations and Management in producing thenational co operative on-line newsletter Cooperative Connections (CCCeNews).

Motor Vehicle RepairsA general grant of $50,000 was made to theAutomotive Training Board of NSW (ATB). The ATBis the NSW Retail Service and Repair IndustryTraining Advisory Board and works with industry,training providers, schools and government bodiesto ensure the training needs of the motor vehiclerepair industry are being addressed. The grant ismade to assist the ATB with its primary objectivesto develop, improve, encourage, foster andimplement systematic training for employment inthe automotive industry.

Think Smart Tenancy Grants ProgramThe Office of Fair Trading, in conjunction with theRental Bond Board developed a one-off grantsprogram to provide funding to community-focussedorganisations who can deliver tenancy-relatedinitiatives to a number of specific communitylanguage groups. The grants program is in directresponse to an identified lack of awareness aboutrenting rights and responsibilities amongstCulturally and Linguistically Diverse communitiesin NSW.

The language groups targeted under the grantsprogram were: Arabic, Assyrian, BahasaIndonesian, Chinese, Dari, Dinka, Persian (Farsi),Korean, Pashto, Samoan, Tongan and Vietnamese.

The aim of the grants was to fund innovative andcommunity-accessible projects or initiatives thatoffered practical solutions to overcoming languageand literacy difficulties to accessing informationand self-help. Grants of between $5,000 and$20,000 were offered.

Funding for a total of $207,000 was provided to 12community-focussed organisations that:• demonstrated a strong association with one or

more of the listed target language groups• demonstrated innovation in the development and

delivery of renting-focussed initiatives thatovercome the barriers of traditional delivery/communication methods

• generated and/or spread awareness of rentingissues/information amongst the target audiences.

The aim of the grantswas to fundinnovative andcommunity-accessible projectsor initiatives thatoffered practicalsolutions toovercoming languageand literacydifficulties...

34


Provision of effectiveconsumer help to the public

Informal dispute resolution

Fair tradingThrough our 24 Fair Trading Centres and the FairTrading Information Centre (FTIC) we provideinformation to consumers and traders on theirrights and responsibilities to assist them resolvedisputes. Where consumers and traders have notbeen able to resolve a dispute a complaint may belodged with Fair Trading which then attempts toinformally negotiate between the two parties.

When a complaint is received, it is assessed todetermine:• the issues in dispute and options available to

help resolve them• if a breach of law has occurred and whether

enforcement action is appropriate• if the matter should in fact be dealt with by

another organisation.

Fair Trading contacts each party and attempts tonegotiate a resolution that is mutually acceptable tothem. If a resolution is not reached both parties areadvised of other options which are available toassist in resolving the dispute.

Fair Trading aims to resolve general complaintswithin 30 days of receiving the complaint. During2005-2006 we finalised 95% of general complaintswithin 30 days of receipt with 81% of complaintsbeing successfully resolved.

Strata mediationThe use of mediation to settle strata and communityscheme disputes continues to be a success. TheMediation Services Unit has assisted many partiesresolve their dispute without the need for formaladjudication on the matter. The mediation processoften restores relationships and allows many sideissues to be resolved along with the main dispute.

During 2005-2006 we received 1,149 applicationsfor mediation. 1153 matters were finalised, with71% of matters that proceeded to mediation beingsuccessfully resolved.

The Unit continues to provide information aboutstrata legislation to customers during the mediationprocess. This information helps clarify complexlegislative issues during the heat of a mediationsession so that parties can move on to negotiatingan agreement with legislative certainty.

We finalised 95% ofgeneral complaints

within 30 days ofreceipt with 81% of

complaints beingsuccessfully

resolved.

5,000

10,000

15,000

20,000

25,000

0

BuildingReal Estate Fair Trading

30,000

35,000

Total

01-02

26

,00

0

22

,45

0

1,4

50

2,1

00

03-04

29

,75

8

6,2

75

1,4

36

22

,04

7

02-03

24

,45

8

21

,91

8

1,7

32

80

8

05-06

31

,07

7

23,0

05

5,8

91

04-05

30

,30

5

22,2

36

6,3

13

1,7

56

2,1

81

Fair Trading complaints

35


Home buildingThe Home Building Service's dispute resolutionservice was established to provide a quick andcost free way of resolving disputes betweenconsumers, builders and tradespeople. During theyear 5,891 complaints were received through theFair Trading Centre network or directly by the HomeBuilding Service. Of the complaints received:• 1,973 were resolved through intervention by Fair

Trading Centre staff.• 2,166 were referred to the Home Building Service

where 1,609 were resolved through technicalassessment by building inspectors.

• 1,545 were either referred by Fair Trading Centresor Home Building Service to another part of FairTrading; the Consumer Trader and TenancyTribunal; another agency or required no fur theraction.

• 385 matters were still undergoing the resolutionprocess.

• A further 379 matters were withdrawn or handledas disciplinary matters.

Motor vehicle repairsWhen an owner of a motor vehicle lodges a noticeof dispute with MVRIA, a Dispute Mediation Officerwill try and assist the owner and the repairer toreach a mutually agreed settlement. This mayeither be by a face-to-face meeting or by telephonemediation. The process is free of charge andentirely voluntary. If a settlement can be reached,the terms of the settlement are recorded in writingand signed by the owner and repairer as evidenceof their agreement.

During the year 1,238 matters were mediated withapproximately 65% successfully resolved withoutthe need for the matter to proceed to another forumsuch as a Court or the Consumer, Trader andTenancy Tribunal.

A Dispute MediationOfficer will try andassist the vehicleowner and the repairerto reach a mutuallyagreed settlement.

26.2% 1545

27.3% 1609

33.5% 1973Home building disputesresolved at FairTrading Centres

Home building disputesresolved at HomeBuilding Services

Home building disputespassed to CTTT orother agency

Complaints still undergoingresolution process

Complaints withdrawn ordealt with as disciplinarymatters

6.5% 385

6.9% 379

Home building disputes

36


This is the third of three high-level, community-impact objectives which contribute to thestrategic priority of a fair marketplace for consumers and traders. The fair regulatoryframework sets the ground rules for interactions between consumers and traders, and theability to access information services helps consumers and traders know their rights andobligations. However, traders also need to act in accord with the legislation for a fairmarketplace to be achieved. Our ability to enforce compliance depends on many factorsincluding, increasingly these days, cross-agency and cross-jurisdictionalco-operation as many scams originate interstate or overseas but affect NSW consumers.

Agency performance

Provision of effective enforcement

The Office of Fair Trading supports the community-level objective of maximum compliance with fair tradinglaws through a service-level objective of providing effective enforcement activities to the community. Apartfrom the services to individuals we provide under objective two, we also investigate potential seriousbreaches of the legislation, including those where large numbers of consumers may be affected or largeamounts of money may be involved. Potential enforcement options range from issuing penalty notices andcriminal prosecution to licensing disciplinary actions such as suspension or cancellation of a licence orthe imposition of conditions.

Service delivery objective/results 01-02 02-03 03-04 04-05 05-06 Target

Result: Provision of effective enforcement to communityMeasure: Proportion of prosecutions successful 96.5% 86% 91% 94% 86% 90%

Comment/InterpretationGood service level measures for compliance workare quite hard to develop. Currently we monitorsuccessful prosecutions – those that result inconviction, as well as those where the offence isproven but a conviction is not recorded. Thismeasure reports the outcome of enforcementthrough the courts in matters where OFT issatisfied, as a result of investigation, that significantlegislative breaches have occurred. While a targetof 90% is set, results are not completely within OFT

control as outcomes ultimately depend not just oncases prepared by OFT, but on Court discretion inrelation to defendants’ circumstances. Fair Tradingwill continue to test some matters in the Courtswith a view to establishing precedents –recognising that ‘unsuccessful’ prosecutions canstill have a deterrent effect.

3 Compliance withfair trading lawscommunity level result #3

37


Snapshot: service-level statistics 2005-2006Successful prosecutions 319Penalty notices issued 822Business name and licensing transactions 610,000Investigations 2,410Inspections 6,905

Highlights 2005-2006:

• A major review of compliance and enforcement strategies provided ablueprint for achieving the best compliance outcomes through betteralignment of resources involved in inspection, investigation and enforcementactivities

• Small businesses protected from false billers through increased litigation,enhanced public awareness and legislative amendments

• Disadvantaged consumers who have difficulty obtaining credit get increasedprotection from rogue finance brokers

• Proof of identity and improved qualification requirements to obtain homebuilding licences

• more than 100 home building licences that had been obtained using falsequalifications were cancelled


There are immense difficulties, in principle and inpractice, in directly measuring levels ofcompliance with fair trading legislation. It is notpossible – or desirable – to monitor everytransaction which occurs in the marketplace forcompliance. Numbers of complaints or Tribunalapplications are possible indirect measures but bythemselves can be very misleading, (for example,an increase in the number of complaints related tocar purchases may not reflect a problem if thenumber of purchases is itself increasing). To getaround this problem, as an indirect measure, FairTrading has been monitoring the level of complaintsrelative to the amount of activity occurring in themarketplace, measured (for practical reasons) bythe dollar value of Gross State Product. The

indicator is still experimental, but since it wasintroduced it shows that the level of complaints per$Billion of marketplace activity is both quite lowand relatively steady in NSW. Complaint numberscan be expected to vary within a bandwidth, but avery large increase in the ratio of complaints tomarketplace activity would trigger closer scrutinyto see if there are problem areas where Fair Tradingcould be taking action.

Fair Trading can only contribute to the level ofcompliance in the marketplace – it does notdirectly control it – but the Office will continue tomonitor this indicator which must be treated withcaution as it is still experimental.

01-02 02-03 03-04 04-05 05-06 Projection

Outcome: Maximum compliance withregulatory requirements

Indicators: Number of complaints per$Billion of Gross State Product 110 98 104 102 98 90-120

38


Successful prosecutionsAct Defendants Offences PenaltiesBusiness Names Act 1 2 $1,830.00Consumer Credit (NSW) Code 1 2 $750.00Co-operatives Act 2 3 —Crimes Act 1 1 $1,865.00Electricity Safety Act 5 17 $29,270.00Fair Trading Act 14 28 $35,162.00Home Building Act 21 88 $204,460.00Motor Dealers Act 13 94 $213,496.83Motor Vehicle Repairs Act 9 19 $46,920.00Property Stock and Business Agents Act 37 39 $29,765.00Residential Tenancies Act 1 1 $933.00Trade Measurement Act 5 19 $14,185.00Trade Measurement Administration Act 1 3 $1,995.00Travel Agents Act 3 3 $7,245.00Total 114 319 $587,876.83

Compliance withfair trading lawsFair Trading actively investigates breaches of thelegislation we administer. We conductinvestigations and compliance programs to ensurea fair and equitable marketplace in general andtarget specific industries or particular businesses.False and misleading conduct, unsubstantiatedproduct claims, product safety, motor vehiclesales and repairs, accommodation issues, andhome building have all been in the spotlight thisyear. The result was a variety of actions includingthe commencement of prosecutions, disciplinaryproceedings, or injunctive action in the SupremeCourt.

This year Fair Trading has also looked at improvingthe cost effectiveness of our compliance and lawenforcement work and ways in which we can 'fasttrack' action to stop offending conduct quickly.

Cost effective complianceThe project was identified at the Office of FairTrading Planning Meeting in September 2005 andendorsed by the Department of Commerceexecutive as a major project for the Department's2005-2006 Corporate Plan.

One of three Fair Trading projects highlighted in theDepartment's Corporate Plan, it was specified inthe Service Delivery Project as "Reviewcompliance and enforcement strategies to makesure we get cost effective results."

The objective of the review was to improve the costeffectiveness of Fair Trading's compliance and lawenforcement work through identifying opportunitiesfor:• better planning, targeting and prioritising• increasing efficiency in the use of resources• enhancing co-ordination internally and externally• ensuring accountability for timely compliance

outcomes.

The Steering Committee for the Project, which wasassisted by a consultant with experience incompliance and law enforcement strategies,furnished a report to the Commissioner for FairTrading on 30 June 2006.

The outcome of the review provides a blueprint forachieving the best compliance outcomes (a fairermarketplace) through the realignment of existingresources involved in inspection, investigation andenforcement activities.

The Steering Committee's report recommends themodel for future operation include enhanced co-ordination of compliance resources and supportmechanisms, policies and procedures that promotea shared compliance culture, adoption of 'fast track'strategies to stop offending conduct quickly, andimproved information/complaint screening andcase selection process.

Consumer goods and services

Crackdown on False Billers2005-2006 saw Fair Trading intensify its fightagainst false billers through a wide-rangingstrategy of increased litigation, enhanced publicawareness and the development of nationallyconsistent outcomes. Four operators were thetarget of investigations or prosecution.

Moonbeem Pty LtdMoonbeem Pty Ltd which operates from Sydneyand Central Coast premises, sells advertisingspace in a number of journals including, "OurYouth", "RJOTA - Rats of Tobruk Association" and"Teens Today". In recent years small businesses inthe central coast area began reporting that the firmwas demanding money for advertisementsallegedly placed with the firms magazines. Chargeswere laid and in November 2005 the firm pleadedguilty to offences ranging from false and misleading

Fair Trading lookedat improving the

cost effectivenessof our compliance

and lawenforcement

work...

39


representations, harassment, coercion andasserting a right to payment for an unsolicitedservice. Fines totalled almost $7,000.

Husen Pty LtdHusen Pty Ltd and Australasian Trade & IndustryPeriodicals Pty Ltd, which claimed to publish anumber of magazines including Club Guide andLeisure & Recreation Australia, closed down andwere placed into liquidation after being faced withpotential legal action.

Business Search Pty LtdWWW.Business Search Pty Ltd has headquarters inSeven Hills, NSW and sells listings on its WesternSamoan website (www.businesssearch.ws). Thefirm used telemarketers in Kolkata India to recordconversations with businesses and then use thoserecordings to demand money for the listing.Injunction proceedings were filed in the NSWSupreme Court in November 2005 under the NSWFair Trading Act and the Commonwealth TradePractices Act. Result: In May 2006, undertakingswere given to the Court from the Company that itwould cease demanding money from any personwithout a signed contract. The Defendantssubsequently agreed to the Court making orderspermanently banning them from conducting orbeing engaged in any directory, publishing,advertising or debt collecting business. Theconsent orders were issued pursuant to both theFair Trading Act and Trade Practices Act and henceapply Australia wide.

Kent Publishing Pty LtdKent Publishing Pty Ltd demands money forunsolicited advertisements in dubious publicationssuch as The National Travel and Tourism Guide. Apublic warning was issued in May 2006 warningbusiness not to deal with Kent or its director DeanJames King. Further enforcement action mayfollow.

False and Misleading Conduct

Microwave Safe Australia Pty LtdMicrowave Safe Australia Pty Ltd was a privatecompany which for a fee, offered a testing servicefor microwave ovens in workplaces. The companysolicited business primarily by mailing a documentto employers entitled Workplace Safety Bulletin. Itsought business from both the public and privatesectors.

In late 2003 the Office of Fair Trading received anumber of complaints from businesses allegingthey had been misled by the information containedin the bulletins which had the appearance of beingproduced by a government authority. The bulletinsfalsely asserted that occupational health and safetylaws made it mandatory for employers to regularly

test workplace microwave ovens for radiationleakage.

In 2005 the Commissioner for Fair Tradingcommenced injunction proceedings againstMicrowave Safe and its sole director, JasonSotirios Crosson, seeking orders from the NSWSupreme Court to restrain the misleading conduct.Result: On 17 April 2006 the Court declared thatMicrowave Safe engaged in conduct which wasmisleading or deceptive by representing:• that employers, in order to meet their duty of care

towards employees, needed to have microwaveovens in the workplace tested regularly forradiation leakage

• that the Australian Standards relating tomicrowave ovens required that such ovens usedin the workplace be tested regularly forradiation leakage

• that Microwave Safe Australia had an affiliationwith government authorities.

On 12 May 2006, the Court ordered MicrowaveSafe to place a corrective advertisement, in theform and size determined by the Court, in fourmajor newspapers, one day per week for threeconsecutive weeks. The first advertisement was toappear by 25 June 2006. To date, no correctiveadvertisement has been published and thecompany has ceased trading. On 30 June 2006 arepresentative for the Commissioner for FairTrading attended a meeting of the creditors ofMicrowave Safe Australia Pty Ltd and made aformal proof of debt submission ($65,000). On 4July 2006 Mr P Ngan of Ngan & Co was appointedas liquidator of Microwave Safe Australia Pty Ltdthrough a creditors' voluntary winding upnotification to the Australian Securities andInvestments Commission.

Tekcorp Fire Retardant Systems Pty LtdThe Tekcorp group of entities and its principals Ian,Roslyn and Gavin Keech supply fire retardanttreatment processes to a range of materialsincluding plywood flooring sheets. Tekcorp mademisleading, deceptive or false representations inrelation to the testing standards achieved by itstreatment process. Fair Trading commencedproceedings in the Supreme Court to restrain theTekcorp Group and associated individuals fromcarrying on business relating to the treatment of fireor flame retardation of any product. Result: InMarch 2006 the Supreme Court by consentdeclared the Tekcorp group of entities had engagedin conduct that was misleading and deceptive.Undertakings were made preventing them frompromoting or treating any product in connection tocertain claimed test results. The orders included arequirement to place corrective advertising andpayment of $25,000 in relation to Fair Trading'slegal costs.

Fair Tradingintensified its fightagainst false billers...

40


Civil Litigation includes:• injunctive and ancillary relief in the

Supreme Court• complaints in the Local and District Court• objections in licensing matters under the

Property Stock and Business Agents Act• proceedings in the Administrative

Decisions Tribunal regarding review ofdecisions under the ConveyancersLicensing Act, Fair Trading Act, HomeBuilding Act, Motor Dealers Act,Pawnbrokers and Second-hand DealersAct and the Travel Agents Act

• proceedings in the Consumer, Trader andTenancy Tribunal under the Home BuildingAct relating to building insurance andlicence disciplinary matters.

The Office of Fair Trading’s Legal ServicesDivision also acts or instructs in variouscourts and tribunals where the Minister orCommissioner intervenes in proceedings.

Cashback AustraliaCashback Australia promotes a cash redemptionscheme whereby consumers who purchase goodsfrom retail participants are promised "up to 100%"off the purchase price after the expiry of a specifiedperiod. According to promotional material the fundsused to pay claimants are placed in an independenttrust administered by the AustralasianAdministrative Commercial Fund (2005) Pty Ltd.

Concerns have been raised about the Trust'sindependence, the cash redemption rules and thelong term financial viability of the scheme.Ministerial statements have urged consumers to bewary of the scheme and Fair Trading is continuingto closely monitor its operation.

Finance Broker ConductFair Trading is continuing its crackdown of financebrokers who illegally demand upfront fees orcommissions before the loan is approved. Rogueoperators continue to target disadvantagedconsumers who have difficulty obtaining creditfrom mainstream lenders. In some instances itappears that operators have made no attempt tooperate a legitimate business or obtain finance forconsumers as promised. Further enforcementaction is likely to be instituted by Fair Tradingagainst these operators.

Civil litigationCourt/Tribunal Act No. of mattersHigh Court

TA Act 2Supreme CourtInjunction FT Act 4

HB Act 2Other Other 8Contempt SC Rules 1District Court

BN Act 1Local Court

HBAct 7SSM Act 9Other 2

Administrative Decisions TribunalBN Act 4CL Act 5HB Act 40MD Act 3PSBA 9V Act 1Other 9

Consumer Trader and Tenancy TribunalInsurance Appeals HB Act 25

Other 3TotalHigh Court 2Supreme Court 15District Court 1Local Court 18Administrative Decisions Tribunal 74Consumer Trader and Tenancy Tribunal 28Total 138

LegendBN Act – Business Names Act, CL Act – Conveyancers Licensing Act, FT Act – FairTrading Act, HB Act – Home Building Act, MD Act – Motor Dealers Act, MVRA Act –Motor Vehicle Repairs Act, PSBA – Property, Stock and Business Agents Act, SSMAct – Strata Schemes Management Act, SC Rules – Supreme Court Rules, TA Act –Travel Agents Act, V Act – Valuers Act.

41


Penalty noticesAct/Regulation Defendants Offences PenaltiesBusiness Names Act 2 2 $800Business Names Regulation 22 24 $8,600Fair Trading Act 38 39 $21,450Home Building Act 228 332 $157,350Home Building Regulation 9 9 $2,150Motor Dealers Act 126 275 $178,640Motor Dealers Regulation 12 18 $5,940Pawnbrokers and Second-hand Dealers Act 10 20 $9,400Pawnbrokers and Second-hand Dealers Regulation 1 1 $300Property Stock and Business Agents Act 40 42 $41,800Property Stock and Business Agents (General Regulation) 6 9 $6,050Trade Measurement Act 30 51 $16,940Total 524 822 $449,420

Stephen and Jordan LarkinStephen Larkin, his son Jordan Larkin andassociates conducted a finance broking businesswhich over several years operated under a numberof different names including Michaels AccountingServices, Prestige Accounting, Fortune Finance,and Asset Accounting (NSW). Consumers allegedthat they paid hundreds of dollars in upfront fees forpersonal finance, after being guaranteed that theirloans would be approved. Consumers did notreceive loans or refunds of the upfront fees. Result:On 13 February 2006, the NSW Supreme Courtordered by consent that Stephen and Jordan Larkinbe restrained from operating as finance brokers andengaging in misleading or deceptive conduct for 20years and 10 years respectively. Orders includestrict periodic payments over 6 months totalling$12,690 as compensation for 20 consumers.

Credit Accounting Consultancy (CAC)In June 2004, the Supreme Court ordered theestablishment of a trust fund to reimburseconsumers who suffered a loss as a result of theirdealings with CAC, who had operated a financebroking scam. Three of the defendants wereordered to pay $200,000 each, in addition to$700,000 consented to by the remaining defendant.The term of the trust fund concluded in December2005. Fair Trading has paid 130 consumers a totalof $505,578 in claims from the trust fund, averaging$3,889 per claim.

Unsubstantiated product claimsWe regularly review claims and representationsmade by traders to promote their products andservices. A particular focus is applied to traderswhose claims appear to be too good to be true suchas various "get rich quick" schemes which promisefantastic returns or investments or alternate healthpractitioners who claim that they can cure variousterminal illnesses such as cancer.

In some cases, Fair Trading has issued Noticesunder section 23A of the Fair Trading Act which in

effect require a trader to substantiate the factualbasis for their representations. Where necessary,Fair Trading has taken direct action such as the useof search warrants to gather evidence againsttraders who are prepared to say anything to selltheir products.

Motor vehicles

Motor dealersNSW law requires people who carry on thebusiness of buying, selling or exchanging motorvehicles to be licensed. Penalties of up to $110,000and loss of proceeds can be imposed for a firstoffence and imprisonment of up to 12 months for asecond offence. The Office of Fair trading hasadopted an effective strategy to identify and dealwith unlicensed motor dealers. Offenders are notonly prosecuted, but where warranted, injunctionsare sought from the Supreme Court to prevent themfrom dealing in motor vehicles.

Fair Trading uses a special team of investigators tomonitor the industry, to follow up consumercomplaints and to target specific operators whocome to notice through intelligence gathering.During 2005-2006, Fair Trading dealt with a numberof significant cases.

Tony MicevskiMr Micevski was found guilty in Liverpool LocalCourt on 2 March 2006 for unlicensed motordealing and making a false representationconcerning the sale of a motor vehicle. A total of$25,000 in fines, compensation, forfeiture ofproceeds and costs were imposed by the court.

Horacio Luis VodopivecMr Vodopivec was found guilty in Downing CentreLocal Court on 29 August 2005 for unlicensed motordealing and making a false representationsconcerning the sale of a motor vehicle. Almost$32,000 in fines, compensation, forfeiture ofproceeds and costs were imposed by the court.

Offenders are notonly prosecuted,but prevented fromdealing in motorvehicles.

42


Motor vehicle repairsThe Motor Vehicle Repair Industry Authorityprosecuted 8 people for a total of 18 offencesagainst the Motor Vehicle Repairs Act. Convictionswere recorded against all 8 defendants and a totalof $43,015 was awarded in fines and costs. Theoffences related to carrying on or advertising amotor vehicle repair business without a licence, theemployment of uncertificated tradespeople andfailure to produce records to the Authority'sinspectors.

Product safety

Product recallsThe Office of Fair Trading is empowered under theFair Trading Act and the Electricity Safety Act and,since 3 February 2006, the Electricity (ConsumerSafety) Act to direct suppliers to recall dangerousor defective goods. In practice, most recalls areachieved through by negotiation without having toinvoke these powers or are instigated by supplierson a voluntary basis. During the year, 46 productswere publicly recalled following intervention orafter consultation with the Office of Fair Trading.

Safety and standardsFair Trading in administering parts of the ElectricitySafety Act, the Gas Supply Act and all of the FairTrading (General) Regulations 2002 certifieselectrical and natural gas appliances for sale andconducts investigations into the safety of electrical,natural gas appliances and certain generalconsumer products. Examples of products includechildren's toys, textile products, sunglasses,helmets, elastic luggage straps, babywalkers,portable soccer goals and cigarette lighters. Thereare 19 mandatory product safety standards underthe Fair Trading (General) Regulations and 56declared electrical ar ticles under the ElectricitySafety Act 1945. The Electricity (Consumer Safety)Act 2004 replaced the Electricity Safety Act 1945 on3 February 2006.

In 2005 - 2006, eight traders were prosecuted, onetrader entered into an enforceable undertaking withthe Commissioner under the Fair Trading Act, 33infringement notices were issued, over 388 unsafeproducts were withdrawn from sale and 208suppliers were formally cautioned for breachingtheir fair trading obligations.

Sydney Royal Easter ShowAt this year's inspection on 9 March 2006, thecontents of 293 showbags supplied by 11 exhibitorswere inspected for compliance with safety andinformation standards under the Fair Trading Act.Fair Trading directed the removal of a noncompliant pop n' catch projectile toy and bikiniswimwear that did not contain the appropriatetextile information labels. In addition there were six

plush toys that suppliers were directed not tosupply until they produced a report showing thetoys comply to the Australian Standards as it is acompliance strategy not to allow children's toys tobe offered at the Royal Easter Show unless thesereports are available.

Fair Trading's safety investigators also attended theCastle Hill Show on 24 March 2006. This show istraditionally a lead up event to the Royal EasterShow. Six non compliant projectile toys wereremoved from sale from two stallholders. Thesenon-compliant toys were not being made availableby showbag suppliers. The stallholders selling theprojectile toys did not attend the Royal Easter Show.

Safe products surveyEach year Fair Trading undertakes marketplacesurveys to detect unsafe, non compliant productsand takes action to have them removed from sale.During this year, 1,783 inspections were conductedat retail stores, markets and field days in over 227towns across NSW.

Number of certifications and fees paidThe Electricity (Consumer Safety) Act 2004replaced the Electricity Safety Act 1945 on3 February 2006. The Office of Fair Tradingadministers the Electricity (Consumer Safety) Act2004 and the Electricity (Consumer Safety)Regulation 2006. Under these laws, NSW requires56 classes of household electrical articles such astelevisions, refrigerators and room heaters to beapproved and comply with safety standards beforebeing offered for sale. All other articles are requiredto be safe. The Office of Fair Trading is the approvaland compliance enforcement authority for NSW. Inaddition the Office is represented on variousAustralian electrical safety standard committees.

This year, 2,617 new, modified or renewed articleswere approved which generated revenue ofapproximately one million dollars.

Products Safety Committee InquiryThe NSW Products Safety Committee met on 12October 2005 to consider the safety of rubber hotwater bottles. The Committee found that hot waterbottles have been used in Australia for generations.The volume of sales indicates the communityperceives benefits in hot water bottles and there isno other product which is a direct substitute.Rubber hot water bottles have dangerouscharacteristics resulting from filling with hot orboiling water. Hot water bottles can leak or burstwhilst filled and cause injury. A consumer cannotdetermine by visual inspection whether a rubberhot water bottle, upon purchase, is of safeconstruction.

There is a relatively low incidence of injury relativeto the extensive distribution of rubber hot water

During the year,46 products werepublicly recalled...

43


bottles. It is unlikely that most importers andretailers would comply with any voluntary safetyguideline based on the British Standard BS1970:2001 that is promoted by Fair Trading.

The Committee recommended that a mandatorysafety standard be made for rubber hot waterbottles based on the physical properties, closureand performance requirements of the BritishStandard BS 1970:2001 "Hot water bottlesmanufactured from rubber and PVC - Specification"as amended on 2 March 2004. The committee alsorecommended a consumer awareness campaign inconjunction with implementation of the mandatorystandard. The Minister for Fair Trading accepted therecommendations of the Committee.

Fair Trading is now developing a product safetystandard under the Fair Trading Act which will drawon the British Standard. Fair Trading is also workingwith its interstate and New Zealand counterparts toensure that any mandatory safety standardintroduced is uniform across Australia.

Accommodation andproperty services

Banora Point Caravan ParkFollowing a long history of instability in the park,litigation by residents and unsatisfactorymanagement practices of the park owner, FairTrading used new amendments to the ResidentialParks Act, to seek the appointment, through theSupreme Court, of an administrator to safeguard thewell-being of the residents of the park. Fair Tradingsought an expedited hearing before the SupremeCourt due to the deteriorating situation in the park.

After the matter was sent down for hearing, the parkowner served termination notices on all residentsof the park. The owner then commenceddowngrading services. A number of residentsapplied to the Consumer, Trader and TenancyTribunal challenging the validity of the terminationnotices, to maintain services and facilities in thepark and to keep the park open. The Ministerintervened in the matters before the Tribunal toassist the residents.

Woolcott Court Retirement VillageThis village located at Wahroonga consists of 31strata titled units. During September 2001 theCommissioner for Fair Trading became aware ofthe impact of the financial circumstances of theoperator upon the residents. An investigationestablished the wellbeing and financial security ofthe residents was at risk. On 5 October 2001, onapplication by the Commissioner, the SupremeCourt appointed an administrator under section84(1) of the Act. During the administration of the

Village, the directors of the operating companyWoolcott Village Pty Ltd also appointed anadministrator under the Corporations Act 2001 andsubsequently this person was appointed liquidator.

Attempts to sell the Village as a going concernwere unsuccessful. The final creditors meeting ofWoolcott Village Pty Ltd was held on 19 August2005. The company was deregistered by theAustralian Securities and Investments Commissionon 19 November 2005.

The Office of Fair Trading had received legal advicethat once the operating company is de-registered,the administrator appointed under the RetirementVillages Act could no longer effectively continue. Asa result of this on 13 June 2006, an application wasmade to the Supreme Court for the termination ofthe administrator appointed under the Act. On 13July 2006, the appointment of the administrator wasrevoked. Fair Trading continues to assist theremaining residents at this time, subsidisingpayment for the provision of services and assistingresidents wherever possible in determining theirplace of residence.

Real estateThe Property, Stock and Business Agents Actallows the Commissioner for Fair Trading to appointa manager to a real estate agency if it is necessaryto protect the interests of other persons. During2005-2006, the Commissioner appointed sixmanagers to licensees' businesses. In other casesthe Commissioner can take disciplinary actionagainst licensees for a range of other offences.During the year, 103 licensees were asked to showcause why disciplinary action should not be takenagainst them. Another 27 persons had theirlicences or certificates of registration cancelled orhave been permanently disqualified from theindustry.

Real estate audit lodgement programTo protect client's money, agents must establishand maintain trust accounts, bank trust moneypromptly and have their trust accounts auditedannually by a suitably qualified professional.Reports of these audits must be submitted to theCommissioner by 30 September in each year.During the year, a total of 245 formal cautions wereissued. A number of licensees are facing furtherdisciplinary action for repeated failure to lodgereturns.

Pitaree Pty Ltd trading as Elders Real EstateForster/TuncurryAn inspection at Pitaree Pty Limited revealed a trustaccount deficiency of $125,167.42. The inspectionalso revealed the licensee Helen Torey allowedanother person unauthorised access to trust funds

To protect client'smoney, real estateagents mustestablish trustaccounts and havethem auditedannually...

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for his own business. Result: The Commissionerappointed a manager on 24 February 2004 who soldthe business to recoup funds to the PropertyServices Compensation Fund. As a result ofdisciplinary action taken by the Commissioner, on5 July 2005, Pitaree Pty Ltd was permanentlydisqualified from holding a licence and Ms Toreywas disqualified from being involved in thedirection, management or conduct of the businessof a licensee for a period of ten years.

Michael Anthony KearneyAn inspection of Michael Kearney Real Estate atBallina on 12 October 2004, revealed a trustaccount deficiency of $70,744. The resultinginvestigation found trust money had beenunlawfully used to pay the licensee's householdand medical expenses. Result: On 4 October 2005,Mr Kearney's licence was cancelled and he wasdisqualified from being involved in the direction,management or conduct of the business of alicensee for a period of ten years.

Wayne John KellyAs a result of a complaint received on 21 October2003, Fair Trading investigated Mr Kelly, acertificate of registration holder and director ofDebway Pty Ltd which traded as L J HookerShellharbour. The complaint related to his failure topromptly inform a principal of an offer made topurchase a property, which was a breach of rulesof conduct which agents must observe. Result: On29 September 2005, as a result of disciplinaryaction taken against him, Mr Kelly wasreprimanded for his conduct. A condition was alsoplaced on him that he not act as a licensee incharge for 12 months.

Robert Bart Doff and Jetoten Pty Limited tradingas Laing & Simmons Double BayOn 11 February 2005, Mr Doff, the licensee incharge and director of the licensed corporation,was convicted of the offence of "Insider Trading" atthe NSW Supreme Court. Following the dismissalof appeals, Fair Trading issued a show cause noticeto Mr Doff and the corporation. Section 16 of theProperty, Stock and Business Agents Actdisqualifies a person if they have been convictedfor an offence of dishonesty within the past tenyears. Result: On 7 February 2006, Mr Doff'slicence was cancelled and he was disqualifiedfrom holding a licence for a period of five years.The disqualification did not prevent Mr Doff fromholding a certificate of registration which wouldallow him to work in the real estate industry. A stayof this determination, with conditions imposed wasgranted in the Administrative Decisions Tribunal on3 March 2006 pending a review of thedetermination. The effect of the stay was that MrDoff would continue to hold his original real estateagent's licence until the matter has beendetermined by the Tribunal. On 8 June 2006, Mr Doff

withdrew his application for a review of the originaldecision.

Paul Grant Bertolissio and GlenhavenReal Estate Pty LtdAn inspection in April 2004 of the agency whichoperated in Baulkham Hills, revealed a trustaccount deficiency of $98,365. The subsequentinvestigation determined Mr Bertolissio had usedtrust monies for his own business purposes.Result: On 4 May 2006, as a result of disciplinaryaction, Mr Bertolissio's licence was cancelled andhe was permanently disqualified from beinginvolved in the direction, management or conduct ofthe business of a licensee. The licence of thecorporation was cancelled.

Home building

This year 341 penalty notices were issued valuedat $159,500 to those found breaching the HomeBuilding Act. A further 21 people were prosecutedresulting in $204,460 in fines and costs beingissued by the courts. A total of 32 disciplinaryactions were undertaken, resulting in $53,750 infines being issued, with two contractors beingpermanently disqualified from holding a licence.

Inspections

Operation StaunchThe Home Building Service undertook an operationto target unlicensed residential building activity inthe Port Macquarie to Tweed Heads region. Knownas Operation Staunch, the operation was conductedbetween 26-30 September 2005. A team of eightinvestigators visited 150 sites and conducted 240interviews. The operation revealed a high level ofcompliance within the region, with only sevenpeople being issued with penalty notices for doingunlicensed residential building work. The highcompliance level may be attributable to previouscompliance programs conducted in the region in2004. Increases in the residential building workthreshold from $200 to $1000, and the slowing ofbuilding work generally, may also have contributedto the compliance rate.

Operation HOWIEOperation HOWIE (Home Owners WarrantyInsurance Enforcement) was the first complianceprogram to focus on home warranty issues andwas held in the Sydney metropolitan andWollongong regions between 20-30 March 2006.Investigations targeted contractors who had ahistory of complaints relating to a failure to complywith the home warranty insurance provisions of theHome Building Act 1989. Fourteen investigatorsvisited 207 sites and issued 19 penalty notices forinfringements which included non provision ofhome warranty insurance, not having the correct

Operation Staunchrevealed a high level

of compliance inresidential building

activity.

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form of contract, as well as for seeking, contractingand/or doing residential building work whileunlicensed. In addition to undertakinginvestigations, investigators also randomly visitedretail outlets and factory premises to remindbuilding contractors of their responsibilities inrelation to the provision of home warrantyinsurance.

Operation Spoke ShaveA 'spoke shave' is a tool used to shape timber, andthis operation sought to 'shape up' contractors whowere engaging in unlicensed residential buildingwork on the Central Coast. From 22 May to 2 June2006 14 of our investigators reviewed newspaperadvertising and conducted site visits.• 226 advertisements were reviewed with 14

penalty notices issued to contractors whoadvertised to do residential building work withoutbeing the holder of an appropriate licence.

• 198 sites were visited, with 500 contractorsbeing spoken to. The overall compliance ratewas 84%, with the painting trade returning thelowest rate of 65%.

• 48 penalty notices were issued for doingunlicensed residential building work. A further 16matters are still under investigation and mayresult in further penalty notices being issued.

Investigations

Licence scam - 105 builders bannedOn 21 December 2005, the IndependentCommission Against Corruption tabled its OperationAmbrosia report into the investigation of schemesto fraudulently obtain building licences issued.During the course of the inquiry, Fair Trading tookimmediate steps to cancel the licences of thoseindividuals identified as having supplied falsequalifications in support of their application. Result:A total of 76 individual licences and 29 associatedcompany licences have now been cancelled. Thecancelled licences were obtained with fraudulentqualifications and a list of these names is availableon Fair Trading's website.

Michael Anthony Partridge - A to Z Property andInspection Service and Sentimon Pty LtdMr Partridge was an unlicensed building consultantwho conducted pre-purchase home inspections.Complaints indicated that Mr Partridge failed toidentify significant defects during the course of hisinspections, to his client's disadvantage. MrPartridge advertised his services in the YellowPages and on the internet under the namesInspector Homes of Sydney, A to Z Property andPest Inspection Services, and Sentimon Pty Ltd.

We investigated his conduct and executed a searchwarrant on his St Ives residence. Covertsurveillance provided video evidence of MrPartridge conducting a pre-purchase inspection

while he was unlicensed. Result: A Supreme Courtof NSW order restrained Mr Partridge fromcontinuing to breach the Act. On 10 February 2006,the court ordered that Mr Partridge be permanentlyrestrained from doing building consultancy work,establishing or conducting any web siterepresenting that he is prepared to do that work,and inducing a person to enter into a contract to dothat work while he is not the holder of a licence.

Mr Partridge was brought back before the court forbreaching those restraining orders. On 31 May2006 he was sentenced to 150 hours of communityservice for breaching the interim orders of the courtthat he refrain from contracting to do buildingconsultancy work whilst unlicensed, and was givena 12 month good behaviour bond for breachinginterim orders that he close his consultancy website.

Prosecutions

Rebecca Payne - unlicensed swimming poolinstallationOn the far north coast of NSW, Rebecca Payne wascontracting to build swimming pools withoutholding a contractor licence. The contract prices ofthe swimming pools ranged from $16,000 to almost$19,000. Result: She faced the Tweed Heads LocalCourt on 8 August 2005 in relation to 4 counts ofunlicensed contracting. She was convicted on eachoffence and was ordered to pay fines and coststotalling $5,022.

Pobjie Agencies Pty Ltd trading as Prouds HomeImprovementsThe company would undertake major marketingcampaigns signing up numerous consumers andtaking deposits, failing to supply home warrantyinsurance and often failing to commence work.Result: The Home Building Service tookdisciplinary action against Thomas and MichaelPobjie on numerous counts of improper conduct.Disciplinary action was taken against MichaelPobjie in his capacity as the general manager and,at certain relevant times, a director of PobjieAgencies Pty Ltd, for numerous offences againstthe Home Building Act 1989, and Thomas Pobjieas managing director. In July 2005, Thomas Pobjiewas disqualified for a period of 10 years frombeing the holder of an authority issued under theAct for his involvement in Pobjie Agencies PtyLtd’s breaches of the Home Building Act regardingfailure to provide home warranty insurance,breaches of statutory warranties and failure tocomply with an order of the Consumer, Trader andTenancy Tribunal. In December 2005, following aninternal review, Michael Pobjie was alsodisqualified for a period of 10 years from being theholder of an authority under the Act for hisinvolvement in Pobjie Agencies Pty Ltd’s breachesof the Home Building Act.

Fair Trading tookimmediate steps tocancel the licencesof those individualsidentified as havingsupplied falsequalifications...

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Ahmad Diab - house painter banned for 5 yearsOperating under various names, including ImageDesign and Painting Services, Mr Ahmad Diab wasa serial offender who defrauded 64 victims acrossSydney. He specifically targeted elderlyconsumers. Mr Diab placed advertisements,usually in residential newspapers, offering to paintresidential premises and promising 'reasonablerates' and 'pensioner discounts'. After Mr Diab wascalled to provide a quotation, he convinced theowner to pay a deposit of up to $4,600. He took themoney but did not return to complete the work. It isestimated that Mr Diab has defrauded a total of$118,176.50 from consumers across Sydney.

The Home Building Service took enforcementaction against Mr Diab in an effort to stop hisactivities. He was taken to court in relation to 18counts of breaching the Home Building Act 1989,and he was convicted on 15 September 2005 andordered to pay fines and costs totalling $8,649.Undeterred, Mr Diab continued with his fraudulentconduct and we instituted proceedings in theSupreme Court of NSW seeking orders restraininghim from breaching the Act. Result: On 1 February2006, the Supreme Court restrained Mr Diab fromadvertising for, or from doing, residential buildingwork for a period of 5 years. Proceedings wereinstituted in the Supreme Court alleging that Mr

Disciplinary Results Home Building Compliance 2005-2006Tader’s Name Licence No. Nature of Allegations Determination FinesArnold, Richard Ronald 41806 Breach of statutory warranty Fine $3,500Bayline Roofing Pty Ltd 98503c Failure to comply with rectification order ReprimandBoyle, David Steven 25330c Failure to comply with CTTT order ReprimandButcher, Craig 102630c Improper conduct ReprimandButcher, Michelle Elizabeth 102630c Improper Conduct ReprimandByrne, John Edwin 16909s Improper conduct. Breach of a statutory warranty. Cancel supervisor

certificateCavalier Homes (Gold Coast) Pty Ltd 143042c Improper conduct No further action -

licence surrenderedChand, Rajnesh 161766c Fraudulent TAFE NSW Diploma in support of

an application for a contractor licence Disqualified for 5 yearsColeiro, Peter Joseph 140744c Improper conduct Fine $2,000Cox, Gary Leonard 11365 Breach of statutory warranty Fine $5,000Damien Development Pty Ltd 132945c Failure to comply with rectification order Found not guilty of improper conductDennis, Craig Christopher 2642c Improper conduct ReprimandDiab, Ahmad 136701c Improper conduct. Failure to comply with

CTTT order & rectification order Disqualified for 5 yearsFence Magic (Southside) Pty Ltd 56360c Failure to comply with a rectification order ReprimandHkeik, Raymond Elias 40686 Failure to comply with rectification order Notice dismissedHunter, Scott Michael 118870c Breach of statutory warranty ReprimandLazzarini, Barry John 36894s Improper conduct ReprimandMacerola, Vincenco Fortunato 137636c Improper conduct. Breach of a statutory warranty Fine $20,000Menniti, Agazio 150073c Fraudulent TAFE NSW Diploma in support of

an application for a contractor licence Disqualified for 5 yearsNaidu, George Karan 121621C Fraudulent TAFE NSW Diploma in support of

an application for a contractor licence Disqualified for 10 yearsO'Reilly, C H & C M 43415c Breach of statutory warranty Fine and reprimand $6,250O'Reilly, Christopher Hugh 39553 Breach of statutory warranty ReprimandOzkote Pty Ltd 137960c Breach of statutory warranty. No home

warranty insurance Licence cancelledPobjie, Thomas Walter QR31740 Improper conduct. Failure to comply

with CTTT order. No HWI Disqualified for 10 yearsRek, Jerzy R99418 Work not done in a proper and workmanlike

manner No further actionRobert Bird Pty Ltd 6956 Failure to comply with CTTT order Fined $2,500Southern Cross Climate 113481c Failed to comply with CTTT order ReprimandSykes, John Robert 152464c Fraudulent references purportedly given in

support of application for a contractor licence Disqualified for 5 yearsThompson, Andrew Edward 75406C Failure to comply with a rectification order ReprimandVrankovic, Miroslav unlicensed Breach of a statutory warranty & failure Fine $2,000Wooden, David James 61322c Improper conduct No further actionYounan, Tony 46949C Improper conduct Fined $12,500Total Fines $53,750

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Prosecution Results Home Building 2005 – 2006Trader’s Name Court Result Fines ($)Callas, Peter Downing Centre Fined and 12 month good behaviour bond $2,865Dennis, Neale Raynor t/as Tarmac Constructions Maitland Fined $1,665Diab, Ahmad Liverpool Fined $13,209Dingwall, Gregory Robert Downing Centre Fined $7,325Droubi, Ali El Burwood Fined $11,415Galdona, Joseph Parramatta Proved but dismissed s10 Crimes (Sentencing

Procedure) Act - costs awarded only $150Gawith, Eric Martin Parramatta Fined $19,000Hobba, Anthony John Parramatta Fined $70,955Hqz Typeset Pty Limited Liverpool Fined $9,080Jones, Mark William Downing Centre Fined $2,490Karam, Carl Burwood Fined $5,915Karapatsakis, Themy Liverpool Fined $23,825McCorriston, William Hans Wyong Fined $1,925Mcgrath, Kenneth Maxwell Parkes Fined $14,045Melissari, Andrew Liverpool Fined $4,540Melissari, Michelle Liverpool Fined $4,540Morgan, Darryl P Belmont Fined $1,065Payne, Rebecca Tweed Heads Fined $5,022Phillips, Peter Parramatta Fined $4,430Tolomeo, Erasmo Parramatta Fined $265Zammit, Anthony Kogarah Dismissed under s.10 Crimes (Sentencing

Procedures) Act - costs awarded only $734Total Fines $204,460

Diab has breached those orders. On 3 July 2006Mr Diab pleaded guilty to 36 charges relating to hisbreaches of these orders. 23 charges weredismissed as the court found that Mr Diab hadalready been punished in relation to that conduct asa consequence of earlier proceedings. As Mr Diabwas serving a custodial sentence in relation tocharges brought by the NSW Police, the NSWSupreme Court sentenced Mr Diab to a 9 monthnon parole period with a 9 month parole period toapply when he is released from jail some time after9 June 2007.

Anthony John Hobba - unlicensed bricklayerAnthony John Hobba was an unlicensed bricklayeroperating mainly in the Sydney metropolitan area.As he worked on residential premises, he wasrequired to hold a licence under the Home BuildingAct 1989. He did not have a licence but continued tocontract for and carry out his work as a bricklayer.We investigated his conduct and institutedproceedings against him in the Parramatta LocalCourt. Result: On 14 October 2005, Mr Hobba wasconvicted of unlicensed contracting for residentialbuilding work (bricklaying), 5 counts of doingresidential building work while unlicensed and

seven counts of misrepresenting that he was theholder of a contractor licence. Mr Hobba wasordered to pay fines and costs totalling $70,955.

Co-operatives and associations

Murawina Mt Druitt Co-operative LimitedThe Registry of Co-operatives & Associationsconducted an inquiry into the financial position ofthe Murawina Mt Druitt Co-operative Ltd as a resultof serious concerns about the co-operative'ssolvency.

The co-operative was a multifunctional child careservice for children of aboriginal descent, for whichthe two main funding agencies were theCommonwealth Department of Family &Community Services (FACS) and the NSWDepartment of Community Services (DOCS).The matter was first before the Supreme Court on 8August 2005 and subsequently before Justice Youngon 30 January 2006. Result: An order was grantedto windup the affairs of the co-operative on thegrounds of insolvency and public interest, and thatPeter Burton be appointed as the liquidator.

Prosecution Results Home Building 2005 – 2006Trader’s Name Court Result Fines ($)Callas, Peter Downing Centre Fined and 12 month good behaviour bond $2,865Dennis, Neale Raynor t/as Tarmac Constructions Maitland Fined $1,665Diab, Ahmad Liverpool Fined $13,209Dingwall, Gregory Robert Downing Centre Fined $7,325Droubi, Ali El Burwood Fined $11,415Galdona, Joseph Parramatta Proved but dismissed s10 Crimes (Sentencing

Procedure) Act - costs awarded only $150Gawith, Eric Martin Parramatta Fined $19,000Hobba, Anthony John Parramatta Fined $70,955Hqz Typeset Pty Limited Liverpool Fined $9,080Jones, Mark William Downing Centre Fined $2,490Karam, Carl Burwood Fined $5,915Karapatsakis, Themy Liverpool Fined $23,825McCorriston, William Hans Wyong Fined $1,925Mcgrath, Kenneth Maxwell Parkes Fined $14,045Melissari, Andrew Liverpool Fined $4,540Melissari, Michelle Liverpool Fined $4,540Morgan, Darryl P Belmont Fined $1,065Payne, Rebecca Tweed Heads Fined $5,022Phillips, Peter Parramatta Fined $4,430Tolomeo, Erasmo Parramatta Fined $265Zammit, Anthony Kogarah Dismissed under s.10 Crimes (Sentencing

Procedures) Act - costs awarded only $734Total Fines $204,460

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Trade measurementFair Trading has an active trade measurementcompliance and enforcement program to ensureweighing and volumetric measuring instrumentsare accurate and that pre-packed articles contain atleast the amount stated on the package. During theyear, 3,468 inspections were conducted and 3,669measuring instruments including petrol & dieseldispensers, LPG dispensers and domestic gasmeters were examined or tested for complianceand accuracy. The instruments not correct at thetime of testing were not allowed to be used for tradeuntil they were corrected. In addition over 13,000packages were inspected for accuracy of weightstatements with over 11, 000 packages correctlylabelled at the time of inspection. Of the non-compliant packages, none were underweight. Butother problems were detected such as omission ofa packer identification, wrong positioning of weightstatements incorrectly situated and the use of nonmetric weight statements. During the year 45licensee audits were also conducted

Fair Trading also conducted a large number ofindustry and staff training seminars that ensureindustry, license holders and their certifiers are upto date with information and test procedures. Theseactivities include:• Seminars in Albury and Tweed Heads for persons

licensed to certify trade measurement measuringinstruments including other state trademeasurement authorities to discuss andrecommend solutions for any cross borderissues in Trade Measurement.

• Training courses in the new uniform testprocedures for the verification/certification of fueldispensers. These courses were conducted inconjunction with the National MeasurementInstitute and were for licensed certifiers and allregional based Fair Trading Inspectors.

• Australian Institute of Petroleum "Safety on FuelDistribution Sites" training courses for allregional based Fair Trading Inspectors.

• Industry support to licensed certifiers at "ToolBox Meetings".

• Provision of specialised test equipment andoperators to all Fair Trading regional areasincluding a Fuel Dispenser Test Unit, High FlowFuel Dispenser Test Unit, LPG Test Unit and theReticulated Gas Meter Test Unit. This includesactively attending Customer Services Divisionorganised Regional Access Programs to providespecialised Trade Measurement knowledge andexper tise.

• Provided ongoing training for all regional basedFair Trading Inspectors in relation to theinspection and verification of all types ofweighing and volumetric measuring instruments.

Fair Trading provided significant assistance to theNational Measurement Institute in the production ofnew uniform test procedures for bulk flowmeters.

We also assessed and authorised three newcompanies to sell, test and stamp domestic gasmeters.

The Office's Measurement and Technical ServicesBranch includes a Standards Laboratory whichprovides highly specialised services whichfacilitates accurate trade measurement. In NSW itis estimated that some $100 billion worth of tradeis conducted by reference to measurement, suchas weight, volume, or length. The StandardsLaboratory is responsible for:• the State Primary Standards of measurement and

their maintenance• maintenance of reference standards of

measurement and providing technical support toregional based Fair Trading Inspectors

• reference standards of measurement to the trademeasurement service and repair industry

• physical and legal traceability of measurementsto industry and the community.

In 2005 - 2006 the Standards Laboratory issued 338Regulation 13 certificates, (a certificate issued fora reference standard of measurement underRegulation 13 of the National MeasurementRegulations 1999) all in less than 10 working days,certifying 3,647 items. Verification fees collectedtotalled $73,047. The branch also administers 197servicing licenses and 96 public weighbridgelicenses. This collected $1.5M in licensing fees.

Inspection programsOur inspection programs ensure that consumersthroughout the state get a fair go. Inspectionprograms aim to ensure traders are appropriatelylicensed and that consumers get what they pay for.During 2005-2006 our inspectors found 97%compliance with legislative requirements.

Our compliance activities during 2005-2006included:• inspection of travel and real estate agents to

ensure they were complying with legislation• inspection and monitoring of motor dealers, auto

dismantlers, second hand dealers and pawnbrokers

• checking of weighing and scanning equipment atsupermarkets and other retail outlets

• inspection of petrol pumps, LPG and high flowaviation fuel units to ensure accuracy andcertification and safety of equipment

• inspection of electrical hand tools at retail stores,markets, agricultural shows and expos to ensurecompliance with Australian safety standards.

• inspection of liquor dispensing units at hotels andlicensed clubs and restaurants.

Motor dealersRegular inspection and monitoring programs forlicensed motor dealers are conducted across NSW.

During 2005-2006our inspectors

found 97%compliance with

legislativerequirements.

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Motor dealers prosecuted under the Motor DealersAct or the Fair Trading Act:• Charles Gauci - unlicensed Motor Dealer-MDA• Valley Motor Auctions - FTA - false

representations• Stephen Jennett - MDA - Odometer Interference• William Ross - MDA - Odometer Interference• Cardiff Select Cars - MDA - Disposal Vehicle off

Licensed Premises• Peter Bujdosa - Binnaway -MDA.

Auto dismantlersThe purpose of the program is to assesscompliance levels within the auto-dismantlerindustry, educate dealers regarding requirementsand, ultimately, improve compliance standards.

In the Hunter Region 45 auto dismantlers wereinspected in Newcastle, Maitland, Port Stephens,Lake Macquarie and Central Coast. Of these 15were satisfactory, 22 were issued with instructionsto correct issues of non-compliance, one will beissued a notice to show cause and 8 auto-dismantlers were issued penalty notices.

South region inspectors commenced a program ofauto-dismantler compliance targeting the SouthEast coast of NSW. The inspections revealed a poorlevel of compliance, particularly in relation tocorrect completion of prescribed records. Alldealers were instructed regarding legislativerequirements and future expectations.

High flow fuel testingOur high flow fuel testing unit tests meters at fueldepots and on tankers delivering bulk fuel and testsmeters dispensing fuel to motorists at servicestations. Each year the test unit is programmed tovisit and conduct inspections in all regions. Thisyear the unit has been in the Queanbeyan district,the Hunter Region on the Central Coast andNewcastle area, and in the West at Dubbo,Gilgandra and Narromine. The North coast has alsobeen visited and of course the Sydney metropolitanarea.

In the Hunter Region 28 high flow truck mountedmeters were inspected. Operators were issuedwith instructions to correct non-compliance issuesto 14 of these meters, (not necessarily for accuracyissues).

Overall compliance in relation to accuracy ofmeasurement is in the 95% – 98% range.

Quality assurance surveyA Quality Assurance Survey was sent to all tradersinspected in West Region during a selected period -200 traders were contacted. The aim of the surveywas to ascertain traders' perceptions about:• how the inspector conducted the inspection

• whether Fair Trading maintains professionalstandards and that the traders' expectations weremet

• whether the trader was satisfied with the level ofservice provided by the Fair Trading inspector

• whether there was any way that inspectors couldimprove the way they conduct inspections.

The response rate of the survey was 53.5% and95.5% of traders were either very satisfied orsatisfied with the level of service received. Theresults of the survey demonstrate the traderssurveyed have a high regard for Fair Tradinginspectors and the professional nature with whichthey conduct their work.

Home Building

LicensingThis year we processed 10,598 new buildinglicences. There were 165,482 certificates andlicences current as at 30 June 2006.

Home building qualification requirementsFrom 1 January 2006, general building contractorlicences and qualified supervisor certificates wereonly being issued to applicants who hold aqualification approved by the Commissioner for FairTrading. The Certificate IV level (Certificate IV inBuilding 3477) is now the minimum standard forthese licence categories. This approach applies astandard educational requirement against whichapplicants can be assessed for licensing purposes.Transitional arrangements were put in place torecognise training commenced under the previousarrangements or undertaken in the past.

Similarly, the qualification requirements for thetrade categories were reviewed. A consultationdocument was released proposing that aqualification from a national training packageshould be adopted as the standard for licensingpurposes. Oral assessments would be substitutedfor a qualification against which applicants could beassessed by a Registered Training Organisation.

Abolition of 20 year rulePreviously, applicants for a building licence whodid not hold an approved qualification but who couldshow 20 years experience in carrying out orsupervising a wide range of building constructionworks were able to qualify for the issue of a licenceor certificate by successfully completing a BuildingLicensing Assessment through TAFE's BuildingIndustry Skills Centre.

The ability to obtain a licence or certificate basedonly on practical experience plus an assessmentwas originally a transitional provision whichaccompanied the introduction of builders' licensingover 30 years ago. However, an Independent

Overall compliancein relation toaccuracy of fuelflow measurementis in the 95% – 98%range.

50


Commission Against Corruption enquiry intoschemes to fraudulently obtain building licencesraised concerns about the so called 20 year rule. Itwas this provision which was largely at the root ofthe problems identified by the ICAC's investigationand led to the fraudulent activity of someunscrupulous people and it was no longerconsidered an adequate check of the qualificationsof an applicant. As a result, the 20 year rule wasabolished on 1 January 2006. This means that allapplicants for building licences will need to beappropriately qualified to obtain a licence.

Proof of identityAs part of the continuous drive to offer betterprotection to consumers, all applicants for buildinglicences and certificates are now required topresent themselves in person at a Fair TradingCentre or Government Access Centre and undergoa proof of identity check. This initiative was the firststep towards introducing photo licences for alllicence and certificate holders in the buildingindustry. A photo of each applicant is now requiredwith applications and each applicant needs toprovide documentation, such as, a driver's licenceand other secondary documents to assistprocessing officers to determine their identity, in thesame way that an applicant for a driver's licence orbank account would do. A transitional period was inplace until 28 April 2006 for acceptance ofapplications supplied on older application formsobtained prior to the introduction of the proof ofidentity check and from 1 May 2006 it became amandatory requirement for applicants. There are 24Fair Trading Centres and 49 Government AccessCentres across the state. Licence applicants inregional and remote areas should not be more thantwo hours drive away from any such centre.

Streamlined renewal formsEach week about 2,000 licence and certificaterenewal applications are processed. In order tosimplify processes for applicants, a new renewalform was developed for contractor, buildingconsultant, supervisor and tradesperson certificateholders. The new forms were put into circulation inJuly 2006.

The new form combines the renewal or restorationof an authority and is a 'first and final' notice, apractice consistent with that adopted by the otherlicences issued by Fair Trading. The method forreporting continuing professional developmentpoints is simpler and authorises us to undertakeprobity checks.

Home Warranty InsuranceDuring 2005-2006 further initiatives wereimplemented as part of the establishment of a newgovernance structure for home warranty insuranceproviders. This work which builds upon actionundertaken during 2004-2005, as part of the

implementation of the recommendations NSWHome Warranty Insurance Inquiry, included:• the establishment of a Home Warranty Insurance

Scheme Board to monitor the insurance scheme• the entering of an industry deed between the

Government and insurers;• authorising and requiring insurers to exchange

relevant information between themselves and theGovernment

• enhancing the capacity of insurers to provideinformation to the Commissioner for Fair Trading

• the introduction of claims handling guidelines aswell as amendments to the market practiceguidelines

• the introduction of guidelines for the publication ofinformation based on data received frominsurers.

Insurance Scheme BoardThe Scheme Board had previously operated in aninterim capacity. The membership of the Board wasapproved by Cabinet on 5 December 2005.

The Scheme Board consists of 6 members beingthe Director-General of the Department ofCommerce (or a nominee) and five personsappointed by the Minister with a knowledge of orexperience in insurance products or commerce.The functions of the Scheme Board are:• to advise the Minister with respect to the

approval of kinds of insurance, and insurers• to advise the Minister on the conditions of

approval of insurers and variations of suchapprovals

• to monitor the operation of the scheme and toprovide advice and to make recommendationswith respect to the scheme

• to provide advice to the Minister with respect toany other matter referred to it by the Minister.

Insurance Industry DeedOn 30 December 2005 the Minister for Commerce,on behalf of the Government, signed an industrydeed with insurers providing home warrantyinsurance in New South Wales.

The industry deed sets out the manner in which theGovernment has agreed to exercise its powers andauthority under the Home Building Act 1989. Thisincludes consultation with insurers on changes tothe scheme, whether it is to the legislation or to theindustry guidelines insurers are required to complywith as part of their conditions of approval.

The deed has been entered into by the seveninsurers approved to provide home warrantyinsurance cover in New South Wales. In turn,insurers have agreed to make a long-termcommitment to the home warranty insurance deedproviding insurers, builders, homeowners and theGovernment with confidence as to the long-termviability of the home warranty insurance market.

The 20 year rulewas abolished andall applicants forbuilding licencesneed to beappropriatelyqualified...

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Exchange of Information Between InsurersProvisions of the Home Building Amendment Act2004 that commenced on 1 September 2005contained amendments to the Act to facilitate theexchange of information relevant to the provision ofhome warranty insurance between insurers.

The amendments enable builders to more easilychange their insurer and for insurers to haveaccess to all relevant information whendetermining the eligibility of a builder for insurancewhere the builder has previously had insurancewith another insurer.

Reporting of Data by InsurersThe home warranty insurance scheme isappropriately monitored to ensure that it operateseffectively for homeowners, builders andgovernment. In order to undertake this roleproperly, information and data is required frominsurers on policies and claims.

The information is needed to:• inform stakeholders and the general public of the

financial progress of the scheme• assess the affordability and viability of the

scheme• assist in advising the Minister for Commerce and

the Government on the scheme• assist in the investigation of policy matters, such

as possible changes to the scheme• estimate the impact on the Government for

reinsurance purposes.

Reporting of data in this manner is common toother statutory insurance schemes, such ascompulsory third party insurance for motorvehicles and workers compensation.

Publication GuidelinesAs a result of the commencement of the receipt ofdata from insurers on the operation of the homewarranty insurance scheme, the Scheme Boardhas recommended the adoption of guidelines for thepublication of information based on that data.

No information was published during the reportingperiod as only limited data had been received frominsurers. It is expected the information to bepublished will evolve over time as the schemematures.

Claims Handling GuidelinesAlso arising from the implementation of therecommendations of the NSW Home WarrantyInsurance Inquiry claims handling guidelines wereintroduced on 1 September 2005. Compliance withthe guidelines is a condition of the approval forinsurers to provide home warranty insurance inNew South Wales.

The claims handling guidelines govern the way inwhich home warranty insurers are required to dealwith claims made by consumers under homewarranty insurance policies. The guidelinesaddress issues such as procedures, servicestandards, publication of information, third partyservice providers and the provision of writtenreasons for decisions. The guidelines weredeveloped in consultation with insurers

The Home Building Regulation was also amendedto provide for the deemed acceptance of a claimwhere it has not been determined after 90 days ofits receipt by an insurer. The amendment applies toall policies issued from 1 September 2005. Where aconsumer makes an insurance claim, if the insurerhas not determined liability within 90 days thenunless the insurer obtains an extension of time fromthe insured or the Consumer, Trader and TenancyTribunal, the claim is deemed to be accepted.

Amendments to MarketPractice GuidelinesThe Market Practice Guidelines address issuessuch as underwriting procedures, premium rates,publication of information, assessment of eligibility,service standards, written reasons for decisions,outsourcing, intermediaries and complainthandling/dispute resolution. The Guidelines aredesigned to bring more transparency andaccountability to the provision of Home WarrantyInsurance.

On 1 January 2006, some minor amendments weremade to the Guidelines. The amendments require:• insurers to provide a summary of past claims

experience to the Director-General when varyingpremium rates

• insurers to provide a detailed summary of theirself-assessment or audit process, and its results,to the Director-General within six weeks after theend of the financial and calendar years

• that where the Director-General intends topublish information based on data obtained frominsurers that a copy of the information proposedto be published is to be provided to insurers forcomment at least 10 business days prior to itsintended publication.

New InsurersPrior to the Government commissioning the NSWHome Warranty Insurance Inquiry, there were onlytwo insurers approved to provide home warrantyinsurance to builders in New South Wales.

The implementation of the Inquiry'srecommendations, along with other changes to theregulatory regime has assisted in creating the

If the insurer has notdetermined liabilitywithin 90 days thenunless the insurerobtains an extensionthe claim is deemedto be accepted.

52


conditions for a viable and stable insurancescheme, resulting in more insurers entering themarket.

In August 2005, QBE Insurance Australia Limitedand Calliden Limited commenced providing homewarranty insurance in New South Wales. There arenow six insurers proving home warranty insurance,as well as a specialist insurer providing cover onlyto owner builders.

Business Licensing

Online renewal of business licencesFair Trading continues to promote the convenienceof internet-based licensing services to itscustomers. The Online Licence Renewal Service(OLRS) allows motor dealers, travel agents,pawnbrokers and second-hand dealers to renew orupdate licences online at any time. This year over30% of renewal transactions by licence holderswere lodged online.

The online service is easy to use and paymentscan be made securely and conveniently by creditcard. Users receive a discount of 10% of theprocessing fee or $5.00, whichever is greater, forlodging renewals online.

Government Licensing SystemOver the past 12 months, a major focus of activityfor Fair Trading has been the migration of NSWValuers Registrations to the Government LicensingSystem (GLS).

The connectingBusiness New South WalesGovernment Licensing Project is the State's largestacross-government computing initiative. TheProject's major objective is the implementation ofthe Government Licensing System (GLS) that willprovide an online entry point to licensing andinformation services for business.

The Project aims to integrate licensing regimesacross 19 agencies currently using more than 40different licensing systems to administer nearly300 licence types held by a total of more than 3.7million licensees.

In November 2005, Valuers Registrations was thefirst licence type to be migrated to the GLS. Buildingupon this success, it is planned to eventuallymigrate all of the business licences administeredby Fair Trading to the GLS.

Business Names Registration

One of the significant changes implemented inOctober 2004 for the registration of business nameswas the abolition of fees for updating the detailsheld on the Register of Business Names. In its first

Licensing ActivityLicence type New 04-05 New 05-06 Currently RegisteredBuilders 13,409 10,598 165,482Conveyancers 125 128 660Motor Dealers 398 339 3,762Pawnbrokers & Second-hand Dealers 214 163 990Property, Stock, & Business Agents 2,593 2,480 26,441Public Weighbridge 6 11 79Real Estate Certificates 4,906 4,867 15,711Trade Measurement Services 18 11 198Travel Agents 111 106 1,471Valuers 109 350 2,870Total 21,889 19,053 217,664

This year over 30%of renewaltransactions bylicence holderswere lodged by thewebsite.

53


Business names register total

full year of operation this initiative has proven to bevery successful. The number of changes notified bythe business community has increasedsignificantly when compared to the previous year.The result is improved integrity of the informationavailable to assist consumers and a saving of$0.8M for business for 2005-2006.

The online renewal service channel for businessnames continues to go from strength to strengthwith 26,763 businesses electing to renew theregistration of their business names during 2005-2006. The online facility has resulted in a saving of$0.4M to the business community since itsintroduction in January 2003 through the availabilityof a discounted fee for users of the service.

The abolition of feesfor updating thedetails resulted inimproved integrity ofthe informationavailable to assistconsumers.

100,000

200,000

300,000

400,000

500,000

600,000

0

99-00 00-01

477,3

44

484,6

65

390,2

41

405,3

21

423,9

58

455,4

14

98-9997-9896-97 03-0401-02

482,7

71

02-03

479,7

25

496,7

89

503,7

13

04-05 05-06

54


Publications

Fair Trading Online Servicesand Publications

Print publicationsPublications play a key role in delivering FairTrading information and education to safeguardconsumer rights and advise business and traderson fair and ethical practice in the marketplace.During the year, 12 new and 50 revised printpublication titles were produced for distribution,bringing the total of Fair Trading print publications atthe end of the year to 216 titles. More than 2.2million printed publications were produced fordistribution to consumers and traders across NSW.Our customers obtained these from our Fair TradingInformation Centre, Fair Trading Centres acrossNSW, by attending community events, fromtargeted mail-outs or intermediaries such as realestate agents and community organisations. Theyincreasingly accessed them electronically from theFair Trading website and the NSW GovernmentOnline Shop.

WebsiteThe Fair Trading website,www.fairtrading.nsw.gov.au, is now a critical tool inproviding access to information and services forour customers. By using the website, customerscan access our information outside business hours,directly from home and from regional areas ofNSW. Our website provides access to:• over 880 web pages of information• 215 publication titles• 25 publication titles in up to 28 languages (130

items).

In 2005-2006 the site was accessed by ourcustomers over 2.0 million times each month, a28% increase from the previous year. The mostpopular publications accessed from the site were:Registering and using your business name factsheet, Tenancy handbook and the Renting guide.The most popular web information pages wereabout registering a business name and access toFair Trading forms.

During the year the website was improved in anumber of ways:

• The scams content on the website was enhancedin February to coincide with the national scamscampaign. This included an online 'report ascam' function, scams alerts on the home pageand easy access to a listing of known scams.

• A print friendly option was provided on websitepages.

• Contact information for Fair Trading wassimplified on the 'contact us' page.

• Fact sheets were created in a more accessibleformat - now as HTML pages rather than PDFs.

• The Problem Solver section was made moreuser-friendly and re-focussed as step by stepassistance for consumer problems with abusiness or trader.

• A revised website linking policy was posted onthe site.

New and revised publicationsPublications available only in electronic format aremarked *

Corporate Publications:• Building Insurers' Guarantee Corporation and Fair

Trading Administration Corporation report 2004/2005*

• Customer service standards: our guarantee ofservice -English*

• Fair Trading: serving consumers and traders inNSW 2004/2005

• Motor Vehicle Repair Industry Authority (MVRIA) -Annual Report 2004/2005*

• Our services - English• Rental Bond Board - Annual Report 2004/2005*• We can help you - English, Assyrian*, Dinka*• Your local Fair Trading Centre*

Property and Tenancy Publications:• Buying a home• Buying into a strata scheme• Living there: information for renters• Moving in: information for renters• Moving out: information for renters• Reforms to residential park laws• Renting guide: metropolitan edition• Renting guide: regional edition• Renting guide - Assyrian, Dinka, Indonesian,

Samoan, Tongan

Our website is nowa critical tool inproviding access toinformation andservices for ourcustomers.

55


• Residential park living• Residential park owners: your main obligations to

residents• Residential park residents' rights: what you

should do if you hear that the park may close• Residents committees - Retirement Villages Act

1999• Retirement village living• Self managing your rental property• Smoke alarms and residential premises• Strata and community disputes• Strata and community mediation• Strata living - English• Tenancy handbook• Using an agent to manage your property

Building Publications:• Becoming an owner-builder• Builder's guide to customer service• Building a pool• Building consultant licences• Building disputes and resolution• Building inspections: a home buyer's guide• Buying off the plan - English, Chinese*• Electrical accidents in 2002-2003*• Electrical accidents in 2003-2004*• Electrical safety for plumbers*• Getting and renewing a contractor licence• Home building tips• Home warranty insurance• Owner-builder approved courses• Owner-builder approved equivalent qualifications• Post construction

Consumer Publications:• Alternatives to high cost credit• Buying a mobile phone - English• Car buyers handbook• Child safe blinds and curtains*• Consumer rights facts and fallacies*• Credit and loans*• Nursery furniture and baby products*• Pyramid schemes*• Seniors guide• Seniors guide to consumer rights• Shoppers guide*• Shopping wisely• Student guide: understanding your consumer

rights• Swimming pool safety*• Warranties

Business Publications:• Advertising: guidelines for business• Auto dismantler guidelines - English*• Building customer relationships and handling

complaints• Credit guidelines for business• Customer service guidelines for business• Fair Trading business services*• Fair trading for business - English*, Arabic*,

Chinese*, Korean*, Vietnamese*

• Invoice fraud guidelines for business• Lay-by sales guidelines for business• Market stall holders*• Measuring instruments for traders - English*• Model rules for incorporated associations• Online services for business• Our refund policy poster• Refunds guidelines for business• Registering and using your business name• Safe electrical goods - English*• Sales methods guidelines for business• Selling safe products - English*, Arabic*,

Chinese*, Korean*, Vietnamese*• Sunglassess and fashion spectacles• Trading in NSW - English*, Arabic*, Chinese*,

Korean*, Vietnamese*

Aboriginal Publications:• Fair go

Existing publications

Corporate Publications:• Advertising checklist for the use of media staff*• Annual reports: 1997/1998*, 1998/1999*, 1999/

2000*, 2000/2001*, 2001/2002*• Building Insurers' Guarantee Corporation and Fair

Trading Administration Corporation report 2003/2004*

• Customer service standards: our guarantee ofservice - Arabic*, Chinese*, Greek*, Italian*,Vietnamese*

• Fair Trading and the NSW Privacy Law• Fair Trading: serving consumers and traders in

NSW 2002/2003, 2003/2004• Not happy with the decision?*• Rental Bond Board - Annual Report 2003/2004*• We can help you - Arabic, Bosnian*, Chinese*,

Croatian, Farsi*, Fijian*, Filipino*, Greek*,Hindi*, Indonesian, Italian*, Japanese*,Khmer*, Korean, Macedonian*, Polish*,Portuguese*, Russian*, Serbian*, Spanish*,Tamil, Thai, Turkish*, Vietnamese

Property and Tenancy Publications:• Agency agreements• Bidder's guide• Changes to property agents law*• Changes to strata laws• Conveyancing*• Dealing with prospective clients - Retirement

Villages Act 1999• Discrimination and renting*• Financial accounts - Retirement Villages Act

1999• Holiday lettings*• Living in a community scheme• New auction laws• New laws for holiday vans*• New retirement village laws*• Recurrent charge variations - Retirement Villages

Act 1999

56


• Renting guide - Arabic, Chinese, Croatian, Farsi,Greek, Italian, Japanese, Khmer, Korean,Macedonian, Polish, Portuguese, Russian,Serbian, Spanish, Turkish, Vietnamese

• Renting holiday homes*• Residential park liaison committees• Retirement village repairs• Retirement village residents' rights: what you

should do if you hear that the village may close• Retirement Villages Act: Effect of the new Act on

existing contracts• Retirement Villages Act: Strata retirement

villages• Retirement villages: buying off the plan• Statements of expenditure - Retirement Villages

Act 1999• Strata living - Arabic*, Chinese, Vietnamese*• Tenant databases: information for renters• Using tenant databases: information for agents• Vendor finance• What is a retirement village?

Building Publications:• Buying off the plan - Chinese*• Consumer building guide• Continuing professional development program• Electrical accidents in 1999*• Electrical accidents in 2000*• Electrical safety for electrical workers*• Guide to standards and tolerances• Home building contract: for work over $25,000• Home building contract: for work under $25,000• Home building contracts: why you should use one• NSW HIH rescue package: consumers*• NSW HIH rescue package: builders and

developers*• Protect your home from termites

Consumer Publications:• Bathing your baby• Borrowing money - English, Arabic*, Chinese*,

Vietnamese*• Buying a mobile phone - Arabic*, Chinese*,

Italian*, Vietnamese*• Buying a used car - English, Arabic*, Chinese*,

Italian*, Vietnamese*• Consumer guide to funerals• Consumer help for the busy traveller• Consumer tips for travellers: authenticity of

indigenous art and crafts• Credit cards, and 'interest free' deals - English,

Arabic*, Chinese*, Vietnamese*• Door-to-door sales and telemarketing - English,

Arabic*, Chinese*, Greek*, Italian*, Korean*,Spanish*, Vietnamese*

• Do you have a gas water heater?• Electrical power tools• Electrical safety guide• Electric room heaters*• Fitness industry code of practice*• Funeral arrangements• Hard sell

• Help with credit problems - English, Arabic*,Chinese*, Vietnamese*

• Inflatable products containing polystyrene beads*• Introducing comparison rates• Lay-bys information for consumers• Little black book of scams• Love and loans*• Motor vehicle extended warranties*• Relationship debt - English*, Arabic*, Chinese*,

Vietnamese*• REVS brochure: cars and boats• REVS poster: one in 5 used cars repossessed• REVS poster: would you buy a car or boat• Safety switches: information for consumers• Scams and how to avoid them - English*,

Arabic*, Chinese*, Greek*, Italian*, Korean*,Spanish*, Vietnamese*

• ScamSmart kit• Thinking of buying a plasma TV• Toughened glass• Toy safety checklist• Using a broker to obtain credit - English,

Chinese*• Vanity publishing*• Work from home scams - English, Arabic*,

Chinese*, Italian*, Vietnamese*

Business Publications:• Auto dismantler guidelines - Arabic*• Baby bath support law• Balloon payments: a guide for business• Business Licence Information Service (BLIS)

brochure• Changes to pawnbroking laws: stage 1• Changes to pawnbroking laws: stage 2*• Co-operative directors - a guide to duties and

responsibilities• Co-operative membership• Co-operatives development grants program*• Corded internal window coverings• Customer service guide*• Dealing with business scams - English, Arabic*,

Chinese*, Greek*, Italian*, Korean*,• Spanish*, Vietnamese*• Direct commerce - regulations of door-to-door

sales and telemarketing• Good business matters kit• Guide to co-operatives - English, Arabic*,

Italian*, Spanish*, Vietnamese*• How to form a co-operative• Inflatable pools: suppliers• Interest free offers and promotions: a guide for

business• Knives brochure• Knives kit• Measuring instruments for traders - Arabic*,

Korean*, Vietnamese*• Petrol price signs*• Recliner chairs: safety guidelines• Reforms to the employment agents industry*• Registry of Co-operatives & Associations• Regulation of finance broking in NSW

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• Running an incorporated association• Safe electrical goods - Chinese*, Vietnamese*• Setting up an incorporated association - English,

Arabic*, Italian*, Spanish*, Vietnamese*• Trade measurement*• Trade measurement packaging - English*,

Arabic*• Your statutory warranty poster

Aboriginal Publications:• Aboriginal housing providers• Are you having problems renting or leasing your

home?• Book-up: do you know what you are paying for?• Book-up: what to look for• Buying a car• Discrimination and renting• Don't get caught out with credit• Fair go poster• Keeping your kids safe• Know your rights poster• Mad choices• Need credit? Well, think again!• Not just surviving poster• Renting a home• Renting information for Aboriginal housing

providers• Shopping refunds and lay-bys• Sorting out your tenancy problems• Starting a business• Thinking of starting a cooperative• Toy safety checklist• What REVS can do for you• Your rights on renting your home

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Fair Trading CentresOur Fair Trading Centres are located at the addresses below. Call 13 32 20 for all fairtrading enquiries. If you are located outside the Sydney Metropolitan region you cancontact the Fair Trading Centre nearest you on 13 32 20. Calls to this number from withinthe Sydney Metropolitan region and from all mobile telephones will be received at theFair Trading Information Centre.

Shop 1R33 Moore StreetLiverpool 2170

Level 5400 Hunter StreetNewcastle 2300

184-186 Lords PlaceOrange 2800

1 Fitzwilliam StreetParramatta 2150

518 High StreetPenrith 2750

143 Horton StPort Macquarie 2444

Shop T7, City Link PlazaMorisset StreetQueanbeyan 2620

McKell Building2-24 Rawson PlaceSydney 2000

Cnr Kable Ave & Darling StreetTamworth 2340

43 Wharf StreetTweed Heads 2485

8 Baylis StreetWagga Wagga 2650

63 Market StreetWollongong 2500

1 Fitzwilliam StreetParramatta NSW 2150

Head OfficeTel: 9895 0111Fax: 9895 0222

REVSTel: 13 32 20 (7 days)Fax: 9891 5135

Home Building ServiceTel: 13 32 20

234 Sussex StreetSydney NSW 2000

Renting ServicesRental BondsTel: 9377 9000 or 1800 422 021Fax: 9377 9371

Aboriginal Tenancy InformationTel: 13 32 20 or 1800 500 330

Bradfield RoadLindfield West NSW 2070

Standards LaboratoryTel: 8467 4400Fax: 8467 4444

154 Russell StreetBathurst NSW 2795

Registry of Cooperatives & AssociationsTel: 6333 1400 or 1800 502 042Fax: 6333 1444

227 Elizabeth StreetSydney NSW 2000

Policy and StrategyEducation & Information ServicesHome Building Insurance ServicesTel: 9895 0111Fax: 9895 0222

490 David StreetAlbury 2640

85 Faulkner StreetArmidale 2350

154 Russell StreetBathurst 2795

Level 322 Main StreetBlacktown 2148

32 Sulphide StreetBroken Hill 2880

22 Park AvenueCoffs Harbour 2450

50 Wingewarra StreetDubbo 2830

Level 2, 237 Mann StreetGosford 2250

39 Goldsmith StreetGoulburn 2580

50 Victoria StreetGrafton 2460

Level 34-8 Woodville StreetHurstville 2220

17 Conway StreetLismore 2480

Office Locations

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Index

Aboriginal communities ............................... 27, 31Accurate information ......................................... 20Advisory councils ............................................. 17Agency performance .............................. 10, 20, 36Associations ................................................ 31, 47Associations incorporation ................................ 16

Bills assented to ............................................... 19Budget ................................................................ 2Business Enterprise Centres ............................. 29Business Licence InformationService (BLIS) .......................................... 3, 22, 24Business licensing ............................................ 52Business names ...................................... 2, 16, 21Business names registration ............................. 52Business registration ........................................ 22

Civil litigation .................................................... 40Co-operative Housing & Starr-BowkettSocieties Standards Committee ........................ 17Co-operatives .................................... 15, 31, 33, 47Co-operatives Council ....................................... 17Community level indicators .................... 11, 21, 37Community schemes ........................................ 15Compliance .............................................. 4, 38, 48Consumer credit code .................................. 14, 18Consumer help .................................................. 20Consumer, Trader and Tenancy Tribunal ......... 2, 35Continuing professional development ................ 13Conveyancers licensing .................................... 19Corporate plan .................................................. 6, 7Cost effective compliance ................................. 38Council of the Motor Vehicle RepairIndustry Authority .............................................. 17Credit and Debt Program ................................... 28Customer enquiries ........................................... 21

Department of Commerce ........................ 1, 6, 7, 8Dispute resolution ........................................ 34, 35

Electricity safety .......................................... 18, 42

Fair Trading Advisory Council ............................ 17Fair Trading Awards .......................................... 24Fair Trading Centres ...................... 2, 29, 34, 54, 58Fair trading enquiries ........................................ 23

Fair Trading InformationCentre (FTIC) ........................... 3, 22, 28, 34, 54, 58Fair Trading Week .................................... 4, 22, 24False and misleading conduct ........................... 39False bidding at auctions ................................... 17False billers ...................................................... 38Finance brokers ........................................... 14, 40Financial counselling ........................................ 32Fraud ................................................................ 26Fuel testing ....................................................... 49Funeral industry ................................................ 13

Government Access Centres ........................ 28, 29Government Licensing System (GLS) ............... 52Graffiti ............................................................... 18Grants ............................................... 22, 25, 31, 33

Highlights .......................................... 5, 11, 21, 37Home building .................. 13, 22, 26, 32, 35, 44, 49Home Building Advisory Council ....................... 17Home building qualification requirements .... 13, 49Home warranty insurance ............................ 17, 50

Independent Commission Against Corruption .... 13Information programs ................................... 22, 26Inspection programs .................................... 37, 48Investigations ......................................... 37, 38, 45

Legislation ........................................... 3, 9, 10, 38Legislative change ............................................ 17Legislative framework ................................... 1, 10Licence restoration fees .................................... 17Licensing ..................................................... 49, 52

Maximum annual percentage rate ..................... 18Ministerial Council on Consumer Affairs (MCCA) 16Mission ............................................................... 7Money Stuff! ................................................. 24, 25Motor dealers ............................................... 41, 48Motor Trade Advisory Council ........................... 17Motor Vehicle Insurance and Repair Industry .... 12Motor vehicle repairs .................. 28, 30, 33, 35, 42Multicultural Media and CommunityLeaders Conference .......................................... 25

60


Objectives ....................................... 5, 6, 10, 20, 36Office of Industrial Relations .......................... 8, 25Online Licence Renewal Service (OLRS) .......... 52Optimal Regulatory Model ................................ 12Outreach in remote areas .................................. 28

Penalty notices ...................................... 37, 41, 44Performance information ....................... 10, 20, 36Planning framework ............................................ 6Policy development ....................................... 3, 12Product recalls .................................................. 42Product safety .............................................. 13, 42Program allocation .............................................. 5Proof of identity ................................................. 50Property Services Advisory Council .................. 17Prosecutions ..................................... 37, 38, 45, 47Public housing .................................................. 18Publications ....................................... 2, 24, 26, 54

Real estate ................................................... 28, 43Real estate audit lodgement program ................ 43Regional Access Programs ............................... 28Regional media ................................................. 28Register of EncumberedVehicles (REVS) ................................. 2, 21, 22, 28Regulatory framework ...................................... 12Rental Bond Internet Service (RBIS) .................. 30Rental bonds ...................................... 2, 21, 22, 30Residential parks ................................... 17, 26, 43Residential tenancy .......................................... 12Responsible lending practices .......................... 14Retail tenancy bonds ......................................... 30Retirement villages ................................ 13, 27, 43Retirement Villages Advisory Council ............... 17Revved up .................................................... 24, 27

Scams ......................................................... 26, 27Seniors ............................................................. 27Service channel review..................................... 22Service delivery ..................................... 10, 20, 36Small business ................................................. 27

Smash repairers and insurers ........................... 12Smoke alarms ............................................. 16, 26Soccer goal posts ............................................. 25Staff ................................................................. 2, 5Statute law revision .......................................... 19Strata schemes ........................... 15, 22, 26, 31, 34Structure ............................................................. 8Subordinate legislation review .......................... 19Swimming pool ............................................ 13, 32

Telemarketing ................................................... 14Tenancy ............................................................ 22Tenant databases .............................................. 15Tenants Advice and Advocacy Program ............ 32Think Smart ........................................... 22, 25, 33Think Smart Tenancy Grants .................... 4, 22, 33Trade measurement ............................... 15, 16, 47

Unfair contract terms regulation ........................ 15Unsubstantiated product claims ........................ 41

Valuers .............................................................. 19

Website ..................................... 2, 3, 22, 23, 29, 54Work Smart ...................................................... 25

Youth ............................................................ 24, 27

61


For information and help on fair trading issues call the Office of Fair Trading

General enquiries

13 32 20Language assistance

13 14 50

TTY for hearing impaired

1300 723 404

Aboriginal tenancy

1800 500 330

Consumer, Trader & Tenancy Tribunal

1300 135 399

Motor Vehicle Repair Industry Authority

9712 2200

Registry of Co-operatives & Associations

1800 502 042

Or visit a Fair Trading Centre at:• Albury • Armidale • Bathurst • Blacktown • Broken Hill • Coffs Harbour• Dubbo • Gosford • Goulburn • Grafton • Hurstville • Lismore • Liverpool

• Newcastle • Orange • Parramatta • Penrith • Port Macquarie • Queanbeyan• Sydney • Tamworth • Tweed Heads • Wagga Wagga • Wollongong

Visit our website for detailswww.fairtrading.nsw.gov.au

13 32 20

November 2006 FT286

Office of Fair Trading1 Fitzwilliam St Parramatta NSW 2150PO Box 972 Parramatta NSW 2124

9895 0111

a year in review 2005 - 2006 - nsw fair trading · a year in review 2005 - 2006 fair trading:...

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