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WELS Scheme Independent Review

WELS Scheme Independent Review. Background. WELS scheme commenced in 2005 s76 of WELS Act 2005 requires an independent review after 5 years Dr Chris Guest appointed in Nov 2009 to undertake the review. Terms of Reference. Independent Review terms of reference included consideration of:

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WELS Scheme Independent Review

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  1. WELS Scheme Independent Review

  2. Background • WELS scheme commenced in 2005 • s76 of WELS Act 2005 requires an independent review after 5 years • Dr Chris Guest appointed in Nov 2009 to undertake the review

  3. Terms of Reference • Independent Review terms of reference included consideration of: • Appropriateness, efficiency and effectiveness of scheme to date • Opportunities for improvement • Terms of reference also required stakeholder consultation

  4. Review Process • Commenced in Dec 2009 • Concluded June 2010 • Stakeholder consultation included: • 53 stakeholder meetings Feb & Mar 2009 • Discussion paper and call for written submissions in Apr & May 2009 • 28 submissions received • 4 additional roundtable meetings in Apr 2009

  5. Review Findings • A good public policy • Strong stakeholder support • Scheme’s objectives continue to be appropriate • National scope is appropriate and efficient

  6. Review Findings • Scheme provides considerable benefits to a broad range of stakeholders including consumers, industry, utilities and governments • Scheme used across all states and territories in programs and regulations, and by water utilities in supply plans • A similar initiative to WELS would be needed if the scheme didn’t exist

  7. Review Findings • Four significant issues require attention to improve the delivery of the WELS scheme: • Governance • WELSAC and Ministerial Council • Stakeholder engagement • Compliance • Civil offences/sanctions needed • Offences should be recast • Increase checktesting

  8. Review Findings • Administration • Appropriateness of arrangements with E3 program and WaterMark certification scheme • Level and source of funding • Scheme under resourced • Current model / funding strategy inappropriate • Review makes recommendations across 12 areas

  9. Summary of Recommendations • Governance: • WELSAC develop 3-year strategic plans and budgets for Ministerial Council approval • Decision making within 3-year plans delegated to WELSAC • WELSAC renamed WELS Officials Group and level of representation increased

  10. Summary of Recommendations 1. Governance continued: • Establish WELS Stakeholder Advisory Group: • WELSAG to comment on 3-year strategic plans • WELSAG members invited by Minister

  11. Summary of Recommendations • Objects of Act: • Review recommended no changes be made to the objects of the Act at this time

  12. Summary of Recommendations • WELS Standards: • Retain Standards Australia process • WELS Regulator more actively manage Standards Australia processes • Further grandfathering provisions

  13. Summary of Recommendations • The WELS Regulator: • Merge administration of WELS whitegoods products with E3 scheme administration • Transfer administration of WELS plumbing products to body responsible for WaterMark certification

  14. Summary of Recommendations • Registration: • Limit family of models provision to cosmetic variants • New registration required for re-branded models • Remove gazettal requirement for new registrations • Annual notices to verify registration data and remove 5-year registration renewal requirement • Remove provision for voluntary registration

  15. Summary of Recommendations • Labelling: • Consistent labelling showing: • Brand • Model name and number • WELS registration number • Star rating and water efficiency

  16. Summary of Recommendations • Compliance: • Civil and criminal • New / additional sanctions • Apologies • Corrections • Suspensions and deregistration • Recalling • Compensation

  17. Summary of Recommendations • Compliance continued: • Recasting of offence provisions • Cooperative agreement with ACCC • Increased checktesting • Advertising information not required

  18. Summary of Recommendations • Communications: • Adopt a range of new communication activities including training programs for retail sales staff

  19. Summary of Recommendations • Product expansion and minimum WES: • Undertake CBA on removing ratings and substituting with minimum WES on plumbing products

  20. Summary of Recommendations • Cost Recovery: • Cost recovery limited to costs of registration • Governments contribute funds needed to meet the gap between registration income and scheme costs

  21. Summary of Recommendations • NZ WELS Scheme and TTMRA: • WELSAC monitor the impact on Australian market of the NZ WELS scheme

  22. Summary of Recommendations • Relationship to other schemes: • Single web portal for WELS, WaterMark, and Smart-Approved WaterMark (SAWM) • MOU between WELS and SAWM

  23. Next Steps • Release of independent review report • Release of initial response for consultation • Staged process for developing / implementing a final response • Target – new arrangements in place by 1 July 2012

  24. Initial Response • Not final – dependent on further consideration and consultation • Indicative responses – 3 categories: • Agreement expected (Cat 1) • Agreement likely but issues to finalise (Cat 2) • Noted: open position with further detailed work required (Cat 3)

  25. Overview: Initial Response Categories 1 & 2 • Governance: mostly category 1 • WELS Standards: categories 1 and 2 • Compliance: mostly category 2

  26. Other Category 1 • Other areas of mostly category 1: • Objects of Act • Communications • Product expansion and minimum WES • NZ WELS scheme

  27. Other Category 2 • Other areas of mostly category 2: • Relation to other schemes • Single web portal • MOU with SAWM

  28. Overview: Initial Response Category 3 • WELS Administration (E3, WaterMark) • Registration (family of models, re-branding, voluntary registrations) • Labelling (full information / details) • Cost recovery

  29. Process Ahead: Action Plan • Next 2 – 3 months: • Receive and consider initial feedback • Progress initial category 1 positions • Commence detailed evaluation of contestable positions – especially funding and registration

  30. Process Ahead: Action Plan • 4 - 6 months: • Progress update to partners and stakeholders • Consult on detailed evaluations / options • May 2011 EPHC: Update joint governments’ position, including at least in-principle agreements to contestable positions and commence statutory processes • Establish WELSAG • Advance strategic plan development

  31. Process Ahead: Action Plan • 2011-2012: • Consult on and progress required statutory processes and draft legislation • Nov 2011 EPHC: • Finalise 3-year strategic plan • Finalise outstanding policies • Finalise legislation / legislation instruments.

  32. Questions? Thank You

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