BOROUGH OF POOLE
ENVIRONMENT OVERVIEW AND SCRUTINY COMMITTEE
23rd July 2009
BUY WITH CONFIDENCE APPROVED TRADER SCHEME
1.0PURPOSE OF REPORT
1.1To assess the feasibility of adopting Buy With Confidence (BWC) as an approved trader scheme for Poole based businesses.
2.0DECISION REQUIRED
2.1Members recommend that Cabinet adopt the Buy With Confidence approved trader scheme, as outlined in this Report.
2.2Members recommend that Cabinet approve the fee structure set out in paragraph 6.5
3.0BACKGROUND
3.1This report follows an earlier report to Members at Environment Overview and Scrutiny Committee (23/10/08) at which a decision to explore further the potential for introducing BWC within Poole was agreed. The aims and objectives of the Scheme were outlined in that report. BWC is being rolled out across the South West and South East regions, and in parts across other English regions.
3.2BWC differs from similar schemes in that a criminal records bureau (CRB) disclosure is required for every employee or unsupervised subcontractor, where they wish to work in or around domestic premises. Furthermore BWC also includes provision for the arbitration of disputes with member traders in the unlikely event that this is required. E&CPS intelligence relating to customer complaints that may relate to a particular trader wishing to join the Scheme will be used as part of the application process.
3.3In the current economic climate BWC can provide particularly valuable support to Poole based businesses in a number of ways:
- independent recognition afforded by being part of the Scheme, and the increased consumer confidence from this attracts new and repeat business;
- fostering a relationship with ECPS based on cooperation rather than enforcement, including priority on updates on relevant law and relevant initiatives;
- reducing complaints made to both ECPS and the trader;
- raising the general standard of compliance within the trade sector, and helping to marginalise the more rogue elements operating within it;
- meeting the aims of the “Regulatory Reform” agenda, through adopting alternative ways of securing compliance with legislative requirements.
3.4The introduction of the scheme will also support Poole consumers:
- Improved assurance that the business trades fairly and provides quality work at reasonable prices;
- Protection offered by an conciliation and arbitration scheme if there is a dispute;
- Increased confidence that traders visiting them or the person they may be a carer for have been previously vetted.
4.0CURRENT SITUATION & JOINT WORKING ARRANGEMENTS
4.1Dorset CC currently administer BWC and are able to offer membership to Dorset based businesses, many of whom are likely to be working within the conurbation and competing with Poole based traders currently without access to the scheme.
4.2Bournemouth and Poole based traders, in certain sectors, are eligible for membership of a smaller scheme currently operated by Help & Care, which assists older people or their carers. A total of 33 Poole traders are currently members of that scheme.
4.3Officers have been exploring opportunities for partnership working with Dorset CC and Bournemouth BC trading standards services. Bournemouth BC is unlikely to be launching BWC in the short term, and partnership working with Dorset CC is limited to sharing some of the administrative costs.
5.0PERSONALISATION AGENDA & ENVIRONMENTAL FACTORS
5.1Since the launch of the ministerial concordat “Putting People First” (Dec 07) a major shift in the approach to personal care is underway. Every person who receives support will be assisted in establishing choice and control over the shape of that support, with a view to leading an independant life.
5.2The introduction Direct Payments may mean that payment for care services (including building work) previously managed by Social Services will be in the hands of the end user. This raises concerns that rogue traders and doorstep criminals may increasingly target vulnerable adults, who have readily accessible funds.
5.3BWC is already being adapted elsewhere in the UK to signpost Social Services clients to reputable traders. Adult social care services are also showing interest in utilising BWC to include those who directly provide care services e.g. carers, home helps, day centres, nursing homes, etc.
5.4Another area for consideration is the trade in renewable energy and CO2 reduction technologies. This is a particular area of trade that generates complaints locally, and the use of BWC to approve the better traders is seen as a useful tool in marginalising the more rogue element, and making a positive contribution to reducing Poole’s carbon footprint.
5.5It is envisaged that the Scheme would be subject to a programmed initial roll out to address particular problem or high risk sectors that generate complaints and concerns e.g. property maintenance, car dealers, building services, etc.
6.0FINANCIAL/RESOURCE IMPLICATIONS
6.1It is intended that the costs of launching the scheme would be met through some internal restructuring of Regulatory Services budgets, together with income from charges.
6.2Through the redirection of resources and reallocation of business interventions to BWC focussed inspections, there will be no requirement to employ additional staff. This will enable ECPS to continue to meet NPI’s, corporate objectives, etc, in particular around inspection targets. Adoption of BWC is viewed as part of a strategic aim of raising compliance levels, whilst supporting local businesses and protecting the community from rogue traders.
6.3In administering the scheme a number of existing regulatory functions would be discharged through audits/inspections of Scheme members.
6.4It is anticipated that, post the launch year, the costs of administering the scheme will be met through membership fees. Costs are reflective of the scope of the scheme and the potential for future development. Membership size has been found to be directly related to promotion and publicity of such schemes.
6.5In order to encourage take up Members are asked to agree that the first year’s membership is to be offered free of charge. This will allow BWC members to appreciate the benefits before fees become chargeable. In year 2 onwards traders would pay an annual fee,dependant on the size and nature of the business. Members are requested to approve the scale of charges as follows:
1-5 employees - £117 inc VAT, per premises
6-15 employees - £176 inc VAT, per premises
16+ employees - £235 inc VAT, per premises
6.6Launch costs for the launch year are estimated at:
- 1 x FTE (existing post) plus £5000 for printing/stationary, £2500 for direct audit costs, £1000 for travel, £600 on training, £3,400 for further promotion/publicity. This is based on a potential membership size of 100.
- estimated first year membership is 50 – 100 traders; assuming take up at the lower prediction and at an average of £150 per year the scheme is likely to produce a net income in the region of £7500 at Year 2 start. This income will be used to offset admin costs only, with staffing requirements met as per paragraph 6.2 .
7.0LEGAL & EQUALITY IMPLICATIONS
7.1The scheme assists vulnerable people, who may not be used to commissioning building work etc, through providing a source of reputable traders. There is evidence nationally that older people tend to be more at risk from the activities of rogue traders, and one of the stated aims of BWC is to seek the demise of rogue traders through the promotion of reputable traders. Hence older people will particularly benefit from this scheme, which promotes independent living and supports the corporate priority of meeting the needs of our ageing population. In addition, with the rollout of individual budgets in adult social care, the incorporation into BWC of providers of care services will specifically benefit people with disabilities.
7.2 In operating the Scheme the authority is promoting the financial well being of its residents and business, which is consistent with the Local Government Act 1972. The scheme is not designed to ‘recommend’ individual traders. It provides residents with access to traders who have been subject to a significant audit and checking process and who the authority has a higher degree of confidence in performing a reasonable service and resolving any problems that should arise.
7.3Legal Services have commented that there is a risk that the scheme might raise expectations among users that the Authority should bear some liability in the event that an approved trader carries out substandard work or by their acts or omissions give rise to the possibility of the user having a claim against them.creates a duty of care for the authority and that there are potential risks. On balance this risk is considered to be low for a number of reasons. The Authority would be most at risk if it could be proved that it had been negligent in excercisingits functions in auditing and approving the Traders concerned. Since this part of the scheme lies entirely within the control of Council staff the risk is considered manageable. The scheme itself makes it clear through disclaimers etc that the Council cannot warrant that the work itself will be free of defects. Whilst the risks are small and considered unlikely to arise, it is probable that the Council’s insurance would not cover any claims and the authority should be prepared to fund them through revenue if they occurin the unlikely event of any claims. To date there have been no such claims made nationally despite 2777 businesse’s being members of Buy with Confidence Schemes.
7.4Initial liaison with Economic Development and Adult Social Services has taken place to ensure membership access can be effectively publicised to businesses operated by members of minority groups and the needs of those residents with learning difficulties are considered.
8.0PARTNERSHIP INVOLVEMENT
8.1The BWC website is maintained by Hampshire CC. Currently costs are minimal to LA’s running BWC for including approved traders on the website.
8.2Whilst there remains a long-term commitment to a jointly administered scheme across Dorset, this is unlikely in the short term. Officers will work with Dorset Trading Standard to make efficiencies around printing costs, joint promotional work, training events, etc until such time as a Dorset-wide scheme is feasible. There is also an ambition to run the Scheme centrally across the whole of the South West and South East. These plans are in their infancy, and will be subject to a further report to members.
8.3Consumer Direct currently handle telephone calls from customers requesting access to approved traders, where they do not have internet access themselves. It is anticipated access to the BWC website will also be made available through Customers First in this case.
9.0Recommendation
9.1Members are asked to support implementation of the BWC in Poole, with a planned launch in November 2009.
9.2The Scheme would be administered by E&CPS, but administrative costs would be shared with Dorset County Council where feasible. The long-term objective would be to enter into a jointly administered scheme across Dorset, or preferably across the South West/South East.
9.3The Scheme would initially target specific trader sectors, according to risk/level of complaint, albeit all businesses will be eligible to join.
9.4The Scheme would be free of charge to all businesses for their first year of membership.
SHAUN ROBSON
HEAD OF ENVIRONMENTAL and CONSUMER PROTECTION SERVICES
Contact OfficerPeter Haikin, Regulatory Services Manager
Tel01202 261736
Date08/05/09
Background Papers:
Minutes of Environment Overview & Scrutiny Committee 23/10/08
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