Consumer Scotland body should support new devolved powers: report

A new independent "Consumer Scotland" body should be set up to advance consumer interests in the wake of further powers to be devolved to the Scottish Parliament, according to a report commissioned by the Scottish Government.

The Working Group on Consumer and Competition Policy for Scotland was set up by ministers in June in light of the Smith Commission recommendation, reflected in the Scotland Bill, that consumer advice and advocacy powers be devolved to the Scottish Parliament, as well as the ability for Scottish ministers to act with the Secretary of State to request the Competition Markets Authority to carry out a second stage market investigation.

Tackling the "poverty premium" faced by some consumers, the report states, requires a multi-utility, multi-agency approach across a range of regulators along with local and central government. Consumer Scotland should have the powers to undertake research, analysis and representation on a wide range of issues in markets and public services that affect both current and future consumers, some of which will require in-depth knowledge and technical expertise. It should also be able to respond as required to events that have immediate consumer impacts.

As a "statutory, unified public body", Consumer Scotland should be free from undue political or commercial influence, the report states. "Consumer Scotland will need governance and oversight arrangements that demonstrate that it is independent and seen to be independent. To ensure the correct use of public funding and demonstrate the best value for money, Consumer Scotland must be accountable directly to the Scottish Parliament."

It adds that Consumer Scotland should also work with businesses by contributing on consumers' behalf in formal price control review processes, and working informally with regulated and unregulated firms to improve service standards.

"Underpinning all of this, Consumer Scotland should ensure competitive markets for Scotland and encourage better access, quality and prices for consumers. Consumer Scotland should develop effective interfaces with existing competition regimes throughout the UK for the benefit of Scottish consumers. Finally, Consumer Scotland should work for a fairer deal for Scottish consumers, making sure their voices are heard across regulated and unregulated markets."

Click here to view the report.