Safety Standards submission

Submissions of the New Zealand Retailers Association to the Ministry of Consumer Affairs in respect of  the Consultation Paper relating to the Revision of Product Safety Standards for Cots, Nightwear, Toys and Baby Walkers

November 2004

Introduction

This summary submission is present by the New Zealand Retailers Association.

Background

The Association is the major trade association involved in the retail industry in New Zealand.  Our membership embraces the major supermarket and general merchandise chains, specialised chains, traditional department stores and thousands of owner operators spread throughout the country.  We also act for a number of specialised trade groups of plumbing materials suppliers, metal fastener distributors, pet shops, jewellers, equestrian suppliers and bicycle dealers.

Viewed statistically, retail sales now total in excess of $50b per annum, and the industry employs some 325,000 people (17% of the workforce) in some 49,000 outlets throughout the country.

General Submissions

The Association is generally supportive of the proposals contained in the discussion paper.  Since the first product safety standards were introduced in the early 1990s we have generally favoured regulatory endorsement for various individual merchandise standards through the mechanism of the Fair Trading Act on the basis that the standards are designed to mitigate possible injuries to young children.  However, given that the four current proposals are largely administrative amendments to standards that already exist in the marketplace, we have not received a great deal of feedback from our major members.  Even so, we are aware that one of our members - Farmers Trading Company - has made submissions directly to the Ministry and we believe it is important to support the main points of the company's technical submissions.  We believe the Ministry will find these specific submissions of considerable assistance as Clive Smith, the writer of Farmers submissions, is also a member of the Standards Committee of the Australian Retailers Association.

As a general statement we believe that the four current standards are well understood by members of the retail industry in New Zealand.  There have in recent years been relatively few cases bought against retailers for breaching any particular standard.  Nor have many cases been brought against suppliers to the retail industry.  This would, we suggest tend to confirm our belief that bona fide retailers will continually strive to meet the quality demands of New Zealand consumers and will avoid importing or purchasing merchandise that will put them in possible breach of the requirements of the Fair Trading Act.

As the Ministry knows, the Association in its own right is a member of the Standards Council as well as a member of various New Zealand or Australasian Committees that consider individual standards issues.  We have generally been represented on these committees in our own right or through a retail nominee such as that concerned with children's night clothes.  We regard standards participation as vitally important and will continue to participate, as and when appropriate, on working parties or committees that are associated with developing standards for consumer goods sold by the retail industry in New Zealand.

In the absence of specific industry feedback we do not wish to comment on the technical detail of the standards.  However, we do believe it is important to recognise the need for an adequate lead-time prior to the proposed regulations being enacted.  Retailers generally place orders and pay for merchandise at least six months prior to delivery and in the circumstances we believe such a lead-time is appropriate notwithstanding that the proposed amendments are largely of a technical nature.

We also consider that it is desirable for the Ministry to consider whether a common approach should be adopted to the age coverage of standard/regulations specifically designed for children and also whether the standards should cover new as well as second hand goods.

On the first point we note that:

- the night clothes standard covers children 6 months to 14 years; but that

- the standard for toys covers children up to the age of 36 months.

On the second point we note:

- second hand cots have a reduced set of performance criteria to new costs;

- the night clothes standard does not differentiate between new and second hand merchandise; and

- the toy standard applies to all new toys and second hand toys but private sales of second hand toys are excluded.

We believe it is reasonable that these standards should cover both new and second hand merchandise sold at point of retail sale.  However, we tend to agree with the comment made by Farmers that it would be difficult to police sales made at markets or other than in trade - i.e. clothes passed between family or friends as "hand me downs" .

We also consider it important that the Ministry look to work with the Commerce Commission in ensuring that appropriate educational material is made available to maximise industry awareness of the proposed changes.  The booklets developed by the Commission on each of the existing standards are widely used by members of the retail industry, and we trust these will be updated once the proposed changes are gazetted.

New Zealand Retailers Association

November 2004