Archived decisions

Contact: Rodney Goldup Ext: 6220 e-mail: [email protected]

1. Summary

1.1 The purpose of this report is to seek approval to make changes in the delivery of the County Council's Consumer Advice Service to meet the requirements of Consumer Direct. The proposal involves strengthening the Advice Service to answer an expected increase in complex legal enquiries from Hampshire consumers and businesses and the re-routing of simpler enquiries to the new Consumer Direct National Service.

1.2 The report also seeks approval to the County Council taking a minority interest in Trading Standards South East Ltd and a senior manager in Regulatory Services being appointed as a Director.

2. Background

2.1 Confident informed consumers are central to the Government's vision for a productive and dynamic economy, promoting competition, innovation and growth (Modern Markets: Confident Consumers - 1999 White Paper). Reflecting this vision, Consumer Direct is an initiative to establish a single, widely publicised, national 0845 help-line number, providing consumers with a uniform level of high quality and easily accessible advice nationally. There are a number of similarities with NHS Direct. There will also be a Web based system.

2.2 The Treasury has approved funding for this project which, when fully operational, will have a national annual running cost of around £16m. In the Trading Standards environment this is a large sum of money, but the project is potentially far more significant as it will change the way in which the public and businesses in Hampshire will access Trading Standards advice.

2.3 Research by the Government, including three small pilots to test the feasibility of the project, has shown that unmet demand for consumer advice is currently running at around 0.4m to 1.5m enquiries nationally, compared to the 1m enquiries currently handled through Trading Standards Advice services.

2.4 The Government concluded that to meet this demand and to achieve economies of scale for this national help-line number, a devolved regional approach be implemented. However, there was a strongly held view within Government, supported by the professional bodies that the service should be built, operated and managed by local authorities working together across areas. This approach has been adopted and contact centres based on the 9 English Government regions plus Scotland and Wales are being established and so far all are managed and run by local authorities within the broad parameters of a regional approach.

2.5 It is envisaged that each contact centre will be capable of dealing with and closing around 80% of consumer enquiries, with the remaining 20% more complex cases being passed to local authority Trading Standards Advice Services to handle.

Any referral back to the local authority will be on the basis that:

· a more specialist approach is required;

· personal consultation with the consumer is appropriate;

· and /or examination of documents is required;

· the consumer is perceived as vulnerable;

· interface with the trader is appropriate; and

· there is the possibility of a criminal offence.

2.6 Research to date indicates that 80% of calls are of a straight forward nature but the remaining 20% more complex calls (to be transferred to the local authority) take up 80% of the time. Under the new arrangements with Consumer Direct, Hampshire's role would change, dealing only with the more difficult, complex and demanding complaints in the 20% transferred from Consumer Direct. In addition the 20% referred would be from a significantly larger overall number of contacts due to the longer opening hours and the increased publicity/profile of Consumer Direct.

2.7 The Dti require a legal entity with whom to contract. Legal advice has been obtained to the effect that a company limited by guarantee would be the most appropriate vehicle for this purpose. Such a structure would create a participative and collaborative forum for the participating authorities as well as providing the legal entity to contract with the Dti but at the same time limiting each local authority's liability to a nominal amount usually £1/£10.

3. The Benefits in Hampshire

3.1 With the new money available for advice services, consumers will have easy access to a consistent level of high quality advice across Great Britain and for longer hours than currently available. Whilst the Hampshire service is one of the best in the country, there is some unmet demand. If government predictions are accurate, and following the extensive publicity of the new Consumer Direct service, the level of consumer advice work from Hampshire consumers is set to increase.

3.2 This is a complex project but it could, potentially, deliver significant benefits to consumers and businesses in Hampshire and across the South East. The Heads of the Trading Standards services are confident that a regional call centre is feasible, and in the best interests of consumers, Local Government and Trading Standards services. It is acknowledged that some specialist services may be better delivered on a wider base than existing local government boundaries but that local government is able to work together to deliver such services in a cost effective manner. It is highly likely that if local authorities do not respond and bid to run Consumer Direct, then it will be provided by other means, perhaps by a private contractor.

3.3 Advantages could include:

· The public will receive speedy and consistent consumer advice

· The new approach will provide a more efficient process by filtering out the more routine enquiries and allowing Hampshire staff to exercise their greater skill on the more complex matters

· There will be a greater source of consumer information providing an improved basis for our intelligence-led enforcement approach allowing us to better fulfil our statutory obligations.

3.4 This initiative follows on from similar initiatives for regional call centres for the Fire and Rescue Services, and the Centre of Excellence for Procurement (where the County Council is a leading player). Central government seems persuaded by this model no doubt helping consolidate its regional government strategy. The level of control is a worrying trend. On the other hand it is quite likely that these resources would not be distributed to local government.

The balance of the agreement may just favour joining the initiative but requiring from the company satisfactory assurances that the services being provided to the people of Hampshire are at least in line with what is delivered locally.

4. The new arrangements

4.1 A call centre serving the South East will cover 19 local authorities and the largest regional population in the UK at 8.5 million. To win funding from the Government to set up the call centre will require all 19 authorities to agree to set up a legal entity to contract with Government. The most likely vehicle for this is a legally constituted body such as a company limited by guarantee with a small number of directors representing the 19 local authorities. Legal advice on the establishment of the company is currently being sought.

4.2 It is intended that the company will be called Trading Standards South East Ltd, and, subject to the approval of the Executive Member for Policy and Resources, the County Council would take a minority interest. It is also proposed that the Director of Property, Business and Regulatory Services be authorised to nominate a senior manager from Regulatory Services to be appointed as a Director of the new company.

4.3 There will be one national number for Consumer Direct. Consumers who ring the help-line will be forwarded automatically to the appropriate contact centre as call routing technology recognises the origin of the call. When Government has awarded all the contract centre contracts, a small central Consumer Direct team will remain based within Government. This unit will be responsible for the national call routing technology, national publicity for the Service, monitoring overall performance of the 11 contact centres and ongoing maintenance and development of the Consumer Direct website.

4.4 The timetable nationally is being reviewed to achieve a fast roll-out across the UK. The current situation is:

· January 04 - the first four region/nation contracts were awarded to Scotland, South West England, Yorkshire and Humberside, and Wales.

· March / April 2004 - second batch of three regions (3/4/5) made initial preparations for award of contracts (including South East Region)

· First three regions went live consecutively in July, August and September 2004

· September 2004 - Kent County Council selected as Contact Centre provider for the South East

· October 2004 - regions 3/4/5 were awarded contracts.

· March 2005 - regions 3/4/5 go live

· 2007 - roll out across UK completed

5. Proposals for Hampshire's role

5.1 It is therefore proposed that Hampshire plays a major role in establishing Consumer Direct for the South East, working with Kent County Council as the Contact Centre provider. This will require:

· Officer time in working with others to shape the proposed bid and establish operational policies and procedures

· Some financial commitment to support this work and the possible establishment of a limited company, Trading Standards South East Ltd.

· The transfer of Advice calls to the contact centre for initial advice

· The equipping of the current Advice team to deal with the more complex legal issues and the expected increase in workload.

· Hampshire County Council taking a minority interest in Trading Standards South East Ltd.

· A senior manager from Regulatory Services becoming a Director of the company

6. Recommendations

6.1 That approval be given to:

1. The County Council taking a minority interest in Trading Standards South East Ltd.

2. The Director of Property, Business and Regulatory Services being authorised to nominate a senior manager in Regulatory Services to be appointed as a Director of Trading Standards South East Ltd, and to make the necessary changes to the Advice Service to ensure maximum benefit to the public and businesses of Hampshire, whilst embracing the Consumer Direct initiative.

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

1 Published works

2 Documents which disclose exempt or confidential information as defined in the Act

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