New team at OFT bids for CTSA role

190/05 12 October 2005

The Consumer and Trading Standards Agency (CTSA) should be placed within the OFT, say the new OFT Chairman and Chief Executive.

Philip Collins and John Fingleton call for the CTSA to be part of a restructured OFT taking overall responsibility for competition and consumer policy to make markets work better. The response comes in a letter to Gerry Sutcliffe, DTI Consumer Affairs Minister following consultation on the Hampton report.

Download the OFT response to the DTI Hampton Review (pdf 337 kb).

Mr Collins said: 'We believe that the CTSA, as envisaged in the Hampton report, is a natural extension of and complement to the work of the OFT as it has developed over recent years. We are confident that the OFT can deliver on the Hampton objectives, without damaging our existing competition and consumer work, and provide what both business wants and consumers need.'

The response sets out the OFT's vision for CTSA and explains why placing it in the OFT offers the best chance of providing a reformed trading standards environment most efficiently and more quickly. It argues that a process of change within the OFT has been under way for some time and is now beginning to produce results (see notes 1 and 2). With the creation of a new markets and policy initiatives branch in 2001, the OFT has already moved towards a more integrated approach to competition and consumer work. The new OFT leadership is committed to driving the process forward.

The response warns that competition and consumer policy in the UK could be weakened if separated – consumers can identify more closely with and support more strongly an organisation that does both.

Mr Collins adds: 'Under our leadership, the OFT is committed to continue and push forward vigorously the programme of change already started within the OFT, which we believe is in the best interests of both business and consumers as well as to the benefit of the UK economy.'

The OFT's vision for the CTSA is as a modern, stream-lined business and consumer based platform for:

helping compliant business across the UK
empowering and protecting consumers
supporting the growth of productivity and consumer welfare through competitive markets.

NOTES

1. Following the Enterprise Act 2002, the OFT embarked on a major programme of change in its consumer work. This has already begun to bear fruit with closer and more effective working relationships with trading standards partners and has delivered positive results for both businesses and consumers.

2. These positive results include work on the Consumer Credit Reform Bill, the recently launched Consumer Code Approval Scheme, the Consumer Education Alliance, Enterprise Act training and support for the trading standards community and a consistent record of recommending deregulation. All of these, the OFT argues, show that it is prepared to deliver the results required for the CTSA.

3. The DTI's consultation document proposed that the CTSA would bring together the consumer enforcement functions of the OFT, as well as the functions of the British Hallmarking Council, the National Weights and Measures Laboratory and the Hearing Aid Council. The CTSA will lead local authority trading standards, coordinating all trading standards work not covered by the Food Standards Agency, the Health and Safety Executive or the proposed Animal Health Agency.

4. The consultation document suggests that the CTSA could be formed either as part of the OFT, perhaps as an executive agency within the OFT, or as a wholly new body.

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