“On May 2, we learned from the voice of the then Minister delegate for Business, Tourism and Consumption, Olivia Grégoire, “that a recovery scenario the National Consumer Institute had finally been chosen”, write the workers’ representatives in a letter addressed to the new government group. This, however, seems “questioned”, they continue.
They ask Prime Minister Michel Barnier, Economy Minister Antoine Armand and Secretary of State for Consumer Affairs Laurence Garnier whether it is possible “to count on the financial contribution of the State in the amount of 3.2 million euros as promised. ”Otherwise, given the state of our finances, it is certain that the INC will not survive 2025,” say representatives of the fifty people who work in the public institution based in Malakoff, Hauts-de-Seine.
According to a CSE member, the INC budget for 2025 is due to be presented to the CSE on Tuesday, November 19, ahead of the board meeting scheduled for the end of the month. But due to the lack of visibility on aid granted by the State, particularly in the context of the public service mission carried out by the INC, its situation can quickly become “extremely dangerous” due to a cash flow “that shrinks as skin.” according to this representative.
Subsidies declining
Already last March, workers’ representatives had launched an appeal to “save” 60 million consumers, a newspaper founded in 1970, which according to them was “in danger” due to insufficient investments. A 2022 parliamentary report mentioned a “progressive decline in the amount of subsidy” to the INC between 2012 and 2020, from €6.3 million to €2.7 million.
Created in 1966, the institution has the task of providing good information to consumers and “promoting responsible consumption”. It brings together a center for comparative testing of products and services, as well as a department of legal and economic studies, as specified on its website.
Time.news Editor (TNE): Good morning and welcome to Time.news! Today, we have the pleasure of speaking with Dr. Clara Lefèvre, an expert in economic policy and consumer rights. Dr. Lefèvre, thank you for joining us.
Dr. Clara Lefèvre (CL): Good morning! It’s a pleasure to be here.
TNE: Let’s dive right into the pressing issue at hand. Recently, former Minister Olivia Grégoire announced a recovery scenario for the National Consumer Institute (INC). The workers’ representatives have raised concerns regarding the sustainability of this institution, specifically about the promised financial support of 3.2 million euros from the state. What’s your take on the situation?
CL: The situation is quite precarious. The INC plays a critical role in consumer advocacy and protection, and without that financial backing, its future is certainly in jeopardy. It’s alarming to hear the representatives expressing that the INC may not survive beyond 2025 without this crucial funding. This implies not only a loss of jobs but also a significant gap in consumer protection.
TNE: Exactly. The representatives have formally reached out to key government members, including Prime Minister Michel Barnier and Economy Minister Antoine Armand. Do you believe that this governmental push is likely to yield positive results, or is it a long shot?
CL: While I understand their concerns, history has shown that budget considerations often take precedence over funding for public institutions. However, it’s essential for the new administration to recognize the importance of the INC’s work. Addressing consumer rights and issues should be a priority, especially in times of economic recovery and rising costs.
TNE: It sounds like a balancing act for the government. What do you think are the broader implications if the INC is unable to secure this funding?
CL: If the INC ceases to exist or is significantly weakened, we could see a decline in consumer trust and protection. Consumers may become vulnerable to fraudulent practices, and essential programs designed to assist families and individuals could be severely impacted. The standards for consumer goods and services may also suffer without effective oversight.
TNE: That’s a concerning perspective. Is there a precedent for similar situations in other countries, and how have they managed to maintain their consumer protection agencies?
CL: Absolutely, many countries have faced challenges in funding consumer protection agencies, particularly during economic downturns. Some have successfully revamped their funding strategies by introducing levy systems where businesses contribute a small percentage of their revenue specifically to consumer protection agencies. This not only ensures financial sustainability but also holds companies accountable.
TNE: That sounds like a feasible solution. In your view, what steps should the INC and its employees take now to safeguard their future?
CL: They need to engage in a proactive dialogue with the government and advocate for their position effectively. Building alliances with consumer advocacy groups, leveraging public support, and demonstrating their value to the public could also help in securing that funding. Additionally, they might consider innovative funding models that would reduce dependence on government support alone.
TNE: These are insightful recommendations, Dr. Lefèvre. As this situation evolves, how can the public best support efforts to protect consumer rights and the INC?
CL: Public awareness is key. Consumers need to understand the vital role the INC plays in their daily lives. Engaging in conversations, signing petitions, and participating in public forums can provide much-needed support to the institution. It’s about empowering consumers to voice their needs and ensuring that the government listens.
TNE: Thank you, Dr. Lefèvre, for sharing your expertise with us today. It’s clear that the future of the National Consumer Institute is at a critical juncture, and public engagement will play a key role in its survival.
CL: Thank you for having me! Let’s hope for a positive resolution that supports both consumers and the INC.
TNE: Absolutely. We will continue to follow this story closely. Stay tuned to Time.news for updates on this developing situation.