MYKOLAS ROMERIS UNIVERSITY
FACULTY OF POLITICS AND MANAGEMENT
DEPARTMENT OF PUBLIC ADMINISTRATION
JUSTINA KOVALEVIČIŪTĖ
“ANALYSIS OF GOOD GOVERNANCE PRACTICE IN THE STATE NON FOOD PRODUCTS INSPECTORATE OF LITHUANIA SINCE 2000“
Erasmus IP Summer School Paper
Białystok, 2010
Abstract
This paper was prepared for Erasmus Intensive Program Summer School in Bialystok, Poland 2010. The aim of the paper is to present an analysis of instance of good governance in the State Non Food Products Inspectorate of Lithuania in the period since 2000. The analysis has showed that institution concerned since its inception has demonstrated an exceptional initiative in developing its managerial system for the improvement of its performance. These include: a) partnership and international projects b) quality management c) customer service d) achievements of the Inspectorate performance according to European Union market surveillance policy e) electronic system and public awareness.
Key words: good governance, Lithuania, Inspectorate, market surveillance, quality management.
Introduction
This paper is the part of a project of Erasmus Intensive Program Summer School on Good Governance. The State Non Food Products Inspectorate (later used in the text: Inspectorate or SNFPI) plays a key role in ensuring that the market provides the customer only with quality products. The Inspectorate identities its strategic as “ensurance” of effective market surveillance of non food products in according to European Union law. To evaluate the work of the Inspectorate, there is the parameter of efficiency, which means the percentage of checked products which fulfill the requirements of safety and quality. Today it is at the level of 73%.
However, measuring efficiency cannot be sufficient index for valuating the performance of an institution in terms of good governance.
The main aim of this paper is to evaluate the practice of SNFPI according to the basic criteria of good governance. This paper has the following objectives:
1. Describe the structure, financing and functions of the institution.
2. Identify the main activities of the Inspectorate.
3. Evaluate the Inspectorate according to the basic principles of good governance.
The analysis is organized around the principles of good governance which were a part of the curriculum of the summer school. These principles include: orientation in consensus, participation, following the rule of law, effectiveness and efficiency, equity and inclusion, responsibility, transparency, accountability.
1. State Non Food Products Inspectorate in brief
The State Non Food Products Inspectorate under the Ministry of Economy was established on the 1st of July 2000 by the Resolution of the Government after the reorganization of the Lithuanian State Quality Inspectorate under the State authority of Competition and Consumer rights protection, State Hygiene Inspectorate and State Veterinary Service under the Ministry of Health. [1]
The priorities of the Inspectorate activities in 2010:
1. To communicate and cooperate with business environment, consumers and their associations.
2. To expand active international and inter-institutional cooperation.
3. To strengthen administrative skills and capabilities.[2]
The inspectorate of non food products has major directions of activity: market surveillance of non food products and protection of consumer rights. These directions consist of the 6 main activities:
a) Control of non food products supplied to the market for consumer purposes according to the obligatory safety and marking requirements set in legal acts.
b) Prohibit the supply of dangerous non food products to the market and perform the control of their withdrawal and destruction.
c) Consumer protection and investigation of consumer complaints concerning improper quality of non food products.
d) Provide information for consumers on dangerous products placed to the Lithuanian market.
e) Consult producers, service suppliers, importers and sellers on issues concerning the safety of non food products and services.
f) Dissemination of information on the activities, objectives and goals of the Inspectorate, provide information to national, international or foreign authorities.[3]
1.1 Legal aspects
The Inspectorate is budget office. Most of the projects are funded from the state budget and some from special funds. In 2010 from state budget the Inspectorate received 5 millions 69 thousands Lt (1 473 546 euro), of which 617 thousands Lt ( 179 360 euro) is devoted for investment. In 2010 the financing of Inspectorate has been reduced by 22,8 %. The Inspectorate lost the status of grants manager. Its activities integrated into the Ministry of Economy, the Strategic Action Plan and programs. Financial and performance audit of the Inspectorate is organized by the National Audit office of Lithuania. In 2009 Internal and External Audit Division of Ministry of Economy organized the internal audit of the Inspectorate functions and internal control system evaluation. The Inspectorate is guided by the 174 legal acts, including the laws in the fields of consumer rights and products safety, international treaties, resolutions of Lithuanian Government, regulations of EU Parliament and Council etc. The Inspectorate’s activities are based on the planning documents such as the Strategic plan for 2 years term and Sectoral national market surveillance program for 2010. The inspectorate has juridical person status. The Head of the Inspectorate is under control of the Minister of Economy.[4]
1.2 Remuneration of Civil servants in the Inspectorate
The inspectorate has 118 skilled specialists as it was mentioned before. Most of them are Civil Servants and others workers are employed under the employment contract. The average of wage of civil servants is presented in the table below (table 1).
Table 1: Civil Servants (the average monthly salary before tax (Lt))
Job Title / 2008 / 2009 / 2010 I k.Head of the Inspectorate / 9225 / 7145 / 6231
Deputy Head of the Inspectorate / 7918 / 6311 / 5552
Division Head / 4618 / 3744 / 3720
Deputy Head of Division / 3722 / 3019 / 3007
Subsection Head / 3341 / 2612 / 2590
Chief Specialist / 3346 / 2700 / 2496
State Chief Inspector / 3012 / 2585 / 2525
Chief State Inspector / 2598 / 2069 / 2099
State Inspector / 2637 / 2332 / -
Source: http://www.inspekcija.lt/index.php?id=1088
The data which can be seen in the table 1 reveals the fact that the average of wage over last 3 years is reduced approximately 2000Lt (581 euro). This fact can be strongly related with economic downturn. The average of wage (monthly salary before tax) of workers employed under an employment contract is can bee seen below in table 2. As a result, the data shows the difference between the wage of civil servants and workers under the employment contract.
The data shows the difference between the wage of civil servants and workers employed under an employment contract. It can be concluded that Civil Servants is more preferable than workers employed under the contract in the Inspectorate.
Table 2: Workers employed under an employment contract:
Job title / 2008 / 2009 / 2010 I k.Head Division / 3270 / 2643 / 2695
Chief Specialist / 2365 / 1925 / 2014
Chief chemist / 2105 / 1767 / 1743
Source: http://www.inspekcija.lt/index.php?id=1088
1.3 Structure
The Inspectorate consists of Central Office and ten subdivisions situated in counties of Lithuania: Vilnius Division, Alytus Subdivision, Kaunas Division, Marijampolė Subdivision, Klaipėda Division, Tauragė Subdivision, Šiauliai Division, Telšiai Subdivision, Panevėžys Division, Utena Subdivision. Moreover, the Inspectorate has the petroleum testing laboratory in Šiauliai and Product control subdivision AB “Achema”. The Head of the Inspectorate is Ramūnas Lebedys. There are 9 departments (such as Products control department, Law department, Economy department, General affairs department, Services control department, International and public relations department, Risk and quality management department, Finance and economy department, Market surveillance systems management department) which are accountable to the Head of Inspectorate and Deputy Head of Inspectorate (figure 1). The Inspectorate has 118 skilled specialists. [5] The Inspectorate focuses on strengthening the administrative capabilities, including trainings, attending in international projects and conferences. The Inspectorate motivates their workers to gain higher qualification.
2. Main activities of the Inspectorate
The Inspectorate follows the main activities such as a) participation in international projects and cooperation b) implementation of quality management c) development of consumer service d) implementation the requirements according to European Union market surveillance policy e) development of innovative electronic system and public awareness.
2.1 Partnership and International projects
The Inspectorate intensively collaborates with State Tax Inspectorate, State Labor Inspectorate, Chief Police Commissariat bodies, State Energy Inspectorate, Customs Department, State Border protection Service, the State public health service, the organizations and laboratories of products certification etc.
Figure 1 Structural scheme of the State Non Food Products Inspectorate
Source: http://www.inspekcija.lt/index.php?id=213
After the accession to the European Union in 2004, Lithuania has made attempts to consolidate its membership in the EU. The specialists actively attend in the EU institutional working groups “Consumer Safety Network”, Committee of the EC on checks for conformity with rules on product safety in case of products imported from the third countries. The Inspectorate also attends in administrative cooperation working groups on toy safety, machinery, noise, LVD, pressure equipment, cosmetic products and construction products Directives.
The Inspectorate involved in the following international projects of market surveillance:
· "Cross Border Cooperation and Market Surveillance in the Baltic Sea Region Focusing on Cooperation between Customs and Market Surveillance Authorities”.
· PHARE project initiated by European Commission − “Enhancing administrative skills in the non food products risk surveillance”.
· PROSAFE – Product Safety Enforcement Forum of Europe.
· “Enhancing Market Surveillance through Best Practice” (EMARS II) initiated by PROSAFE, financed by the European Commission, participants − market surveillance authorities from 20 countries.
· “Joint market Surveillance action on toys“ together with 13 European Union countries. [6]
The Inspectorate took part in the activities under the system for international rapid exchange of information (TRAPEX) about dangerous products. Since the 1st of May, 2004, when Lithuania entered the EU, the State Non Food Products Inspectorate has been participating in RAPEX system. RAPEX is the European Union rapid alert system for all dangerous consumer products, with the exception of food, pharmaceutical and medical devices. Every Friday, the Commission publishes a weekly overview of the dangerous products reported by the national authorities (the RAPEX notifications). This weekly overview gives you all information on the product, the possible danger and the measures that were taken by the reporting country.
Furthermore, the Inspectorate shares their practice of market surveillance and consumer rights protection with Baltic states (collaboration with Latvian Consumer Rights Protection Centre, Consumer Protection Board of Estonia and Technical Inspectorate of Estonia according to the Baltic Cooperation Agreement in the field of consumer protection and market surveillance), Poland Market Surveillance Inspectorate (including the Bialystok Inspectorate). [7]
2.2 The Quality Management Policy
The Inspectorate takes the 3rd place of the market surveillance institutions in European Union (after Netherlands and Great Britain). In 2008, the Inspectorate implemented the system of Quality management, which fulfills the standard of LST EN ISO 9001:2008. It is the one of the few institutions which implemented the advanced international standard of the quality.
ISO 9001:2008 is the standard that provides a set of standardized requirements for a quality management system, regardless of what the user organization does, its size, or whether it is in the private, or public sector.[8] The essence of the Quality Management system is to ensure and optimize the efficiency and quality of government processes. Furthermore, Quality system has to enhance the operative reaction to the internal and external changes and to create conditions for continual development.
The Inspectorate seeks to ensure the highest quality of state market and consumer protection against the dangerous and low quality non food products level. Moreover, inspectorate pays attention to demand for interest groups (state, consumers, business, association, workers).
The office of the inspectorate assumes some obligations:
1. Constantly develop the internal environment of inspectorate and the system of quality management which satisfies a request for LST EN ISO 9001:2008 standard.
2. Use the efficient and appropriate prevention methods to control the non food products market.
3. Develop the legal framework.
4. Inform and consult the interest groups on time and on purpose to reach the concerted goals.
5. Motivate employees to gain the higher qualification for job.
6. Distribute the resources efficiently.[9]
2.3 Customer service
The State Non Food Products Inspectorate customer service declares the “one-stop shop” principle which means that the applications are received and answers are given on the same work place. All necessary information from Inspectorate’s administrative subdivisions or other institutions is received without binding the person who applies. Costumers are available to deliver their application to the Inspectorate’s general division or send it by the internet. General Division is responsible for performing the annual quality evaluation about the “one-stop shop” practice.[10]
2.4 Achievements of the Inspectorate performance according to European Union market surveillance policy
Regulation of European Parliament and Council No.765/2008 defines the essential requirements of accreditation and market surveillance of the products trade to European Union and National market surveillance systems, in connection with the Lisbon Strategy. As a result, this document analysis shows that the Lithuanian food market surveillance system, including the activities of State non food products Inspectorate, in essence has already fulfilled the essential requirements of the Regulation.[11] Furthermore, in 2009 the Inspectorate completed the reconstruction of Šiauliai petroleum products testing laboratory which have to be finished till the 2011.
2.5 Electronic system and public awareness
The Inspectorate is trying to implement a better electronic system to ensure the sufficient market surveillance level. The electronic system enables the Inspectorate react effectively to the increased number of complaints. The inspectorate refreshed the document management system „Avilys” and created the service database TULPĖ, which has made the processes of inspect more centralized and efficient.
One of the most important directions of Inspectorate’s function is a public awareness. All consumers can find the new and relevant information about the dangerous products, projects, legal acts, consumer rights etc. in the Inspectorate’s website www.vnmpi.lt. Over the last year, the Inspectorate has distributed the information in different ways, such as TV and radio broadcasts, publications in press, has published five targeted leaflets to inform and educate consumers and businessmen. The inspectorate together wih European Consumer Centre actively attends to Consumer rights awareness campaigns. Additionaly, the Inspectorate has made available free telephone line where everyone can call and consult about their consumer rights and products safety.