Volume 6
ANNEX A: RESEARCH
Provisions for a trusted trader scheme
Interviews with local authorities and stakeholders as part of the Housing (Scotland) Act 2006 implementation work for the Scheme of Assistance raised a number of issues around the barriers faced by homeowners in accessing reliable traders to enable them to repair, maintain or adapt their homes. As a result, the Scheme of Assistance project team has been conducting research to establish the current position in Scotland with regards to trusted trader schemes.
Interviews have taken place at a national and local level:
National Level
- Construction Licensing Executive ( CLE)
- Local Authority Assured Trader Scheme Network ( LAATSN)
Local Level
- Stirling Council, through Trading Standards
- Angus Council, through Trading Standards
- Perth and Kinross Council, through Trading Standards
- Dundee Council, through Trading Standards
- South Lanarkshire Council, through Trading Standards
First steps
We initially looked at national schemes operating in Scotland. This included examining the background to CLE and who supported it. To do this we set up a meeting with CLE. We also met with Scottish Enterprise Glasgow to examine their involvement with CLE, and with the Office of Fair Trading to discuss its LAATSN scheme.
During this period we also met with a number of Trading Standards officers operating in local authorities as noted above.
A short overview of each of the schemes
CLE
CLE was established in 2002 to try to eliminate the 'rogue traders' element from the construction industry. This is an industry led initiative, with 1,500 registered members, around 700 of these being members of SELECT (electrician trade body). Five trade associations have joined CLE to date (electrical, plumbing, building, painting and decorating, heating and ventilation).
Traders join CLE by becoming a member of their relevant trade association. When a trader applies to become a member of a trade association they are assessed against the CLE criteria. If they meet the criteria, their details are passed by the trade association to CLE who register the company details on its database. A fee of £25 is paid to CLE by the trade association to register the company. CLE does not approve and register individual traders, it approves and monitors the trade associations. CLE monitors and audits the trade associations on a yearly basis. In turn the trade associations audit their members every three years and can be inspected on a random basis. CLE indemnifies against bad advice through the procedures in place provided by the trade associations.
LAATSN
The aim of LAATSN is to develop current local authority trader schemes and to help bring about greater consistency to such schemes. LAATSN is 'owned' by Local Authority Trading Standards Services, and supported by the Trading Standards Institute, LACORS and the OFT.
The application form sets out minimum standards and best practice guidance. It is available on the OFT's website at: http://www.oft.gov.uk/shared_oft/laatsn/laatsnapplicationform.doc
Applicants need to indicate the way in which their local authority scheme meets each standard on the application form. The scheme operator then arranges for a compliance audit to be carried out by an existing member of the network. The completed application and audit form is then subject to ratification by the LAATSN National Standards and Support Committee.
All of the trading standards officers we interviewed have either had their scheme accredited by LAATSN or are in the process of being accredited.
Dundee Trading Standards
The scheme was set up two years ago using the Power to Advance Wellbeing in the Local Government (Scotland) Act with a three pronged approach:
1. To protect citizens and communities from doorstep crime
2. To increase consumer confidence and reduce complaints in targeted sectors
3. To support and promote good local business, and reduce the market for rogue traders in Dundee.
It is the only scheme in Britain to use Referenceline, an online system, which allows customer feedback to be collated and displayed in real time. Potential clients can access the information and read the feedback the traders have received along with a description of the work undertaken and the cost of those works.
The scheme is a full member of LAATSN, which means the scheme needs to abide by a code of practice and LAATSN minimum standards. Traders can join the scheme by means of a clean slate approach, however all applicants are checked for trading and complaint history before joining. Traders complete a probationary period before being moved on to a main approved traders list which is available to the public when feedback on their work is received from customers. The more positive the feedback they receive, the further up the list on Referenceline they are placed.
The Dundee Trusted Trader scheme has also been nominated for a COSLA Excellence Award, and was a semi-finalist in the Trading Standards Institute Brindley Medal for innovation last year.
Stirling Trading Standards
Stirling Council Trading Standards is in the process of setting up their scheme. The purpose of establishing this scheme is to prevent cold calling at owners' homes. In Stirling they have particular problems with bogus workmen and rogue tradesmen. The scheme is being set up along side the doorstep crime initiative, in conjunction with the 'No Cold Calls' Communities Programme.
This model is based on customer feedback. Traders will go through an accreditation process prior to joining. Traders are removed from the list if Trading Standards receive negative feedback or complaints. The accreditation process will involve an interview panel being established to vet potential members and follow up references before they are able to join the scheme. In addition they are in the process of becoming a member of LAATSN.
Angus Trading Standards
Similar to the Stirling scheme, Angus is in the process of establishing a trusted trader scheme as part of a larger door step crime initiative project to discourage cold callers.
The trusted trader aspect is not yet in operation but it is anticipated that there will be no formal approved accreditation scheme which traders will be required to meet, but there will be a code of conduct and the scheme is a full member of LAATSN. As part of the registration process traders wishing to apply will provide Trading Standards with details of their business and agree to full co-operation with the Trading Standards Service. Trading Standards will then visit each business and carry out an audit before they can join the scheme. Following a successful application, businesses which are considered to be high risk will be audited every 12 -18 months and those identified as low risk every 3 - 5 years.
Perth and Kinross Trading Standards
This scheme was established in August 2003 in partnership with Trading Standards and the Police with funding from Scottish Executive Community grant as a result of numerous complaints regarding bogus traders and poor quality workmanship.
There are no formal accreditation criteria and the scheme has a clean slate approach. The scheme is a full member of LAATSN. Potential applicants meet with Trading Standards to discuss the implications of joining the scheme and what is expected of them. Trading Standards would very much like to include some kind of feedback system to there scheme which consumers can access but due to cost implications this is not an option at this time.
Next steps
Following the end of the interview process, the next step proposed is to set up a working group to research this area further in order to agree on, and develop an approach aimed at, implementing a voluntary trusted trader scheme accessible by everyone in Scotland.