Questions on Notice by Councillor Ken Liu:

Kangaroo Island Council March Meeting of 14/3/2012

Re: ZEN Home Energy Systems Promotional Brochure

[Notes from the webmaster:

See also
Council and ZEN Home Energy Systems – Cr Liu’s QoN 2012.04.11
and 2011.06.08 QoNs by Councillor Liu about Council promoting a private venture, and Council’s answers.

The CEO states in his answer: “I am unaware of where the Mayor has endorsed ZEN Home Energy as the preferred solar installation provider” while providing the following letter: ZEN_Promotional_Letter_by_Council_012-02-08 .
If this letter to home owners is not recognised by Council as an “endorsement”, it is quite likely that most islanders would have considered this free advertisement for a private body, ipso facto and de facto, to be one — and a very effective endorsement at that considering the success to date of the Zen installations on the island, compared to the competition…

For a price comparison between the Council-supported offers and one of the competition, see:
Solar panels costs – comparing the competition to the council-supported supplier — 2011.11.10]

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Home owners and residents of Kangaroo Island have recently found a ZEN Home Energy Systems promotional brochure with Council’s official endorsement letter in their letter boxes.  Given my concern which I previously expressed with regard to the legality of Council’s involvement in the promotion of ZEN’s services, I seek response to the following questions:

Question 1

When did this Council formally pass a resolution to endorse ZEN Home Energy Systems’ promotional brochure recently mailed out to all KI home owners?

Council’s Answer 1

Council have not formally passed a resolution to endorse ZEN Home Energy Systems’ promotional brochure.

Council have participated in the Solar Council Communities Program as a member of the LGA.

Question 2

Should there be no formal resolution per ‘question 1’ above, who authorised the Mayor to endorse ZEN’s product as Council’s preferred solar installation provider?

Council’s Answer 2

Please see attached letter (ZEN_Promotional_Letter_by_Council_012-02-08) of support for the Solar Council Communities Program. I am unaware of where the Mayor has endorsed ZEN Home Energy as the preferred solar installation provider.

The attached letter clearly indicates that “Kangaroo Island Council recognise that there are many installers of solar systems in the market, as with all significant purchases, we would urge that you would complete suitable due diligence before entering into any arrangements with a provider, this will ensure that all your personal needs are considered”

Question 3

As Council’s endorsement on ZEN’s promotional brochure could be considered as a breach of the fair trading provision of the ‘Competition and Consumer Act 2010’ and/or (SA) Fair Trading Act 1987, has Council ever received independent legal advice (other than the advice from LGA) on Council’s endorsement of ZEN’s services before making this decision?   If so, what was the advice, when was the advice (if any) reported to the Council and will this advice be available to the public?

Council’s Answer 3

Kangaroo Island Council have not provided endorsement of ZEN Home Energy Systems.

Whilst it has been intimated in the past that Council may be considered to have breached the Competition and Consumer Act 2010 and/or the Fair Trading Act 1987, information substantiating this claim has never been formally provided.

Council have never sought or received legal advice on endorsement of ZEN’s services as endorsement has never occurred. Council have simply provided for information the details of a LGA program.

As Elected Members would be aware, Mayor Jayne Bates did raise the issue of the Solar Council Communities Program at the February Council Meeting under Urgent Business, seeking the feeling of the Elected Members. Whilst some discussion did take place there were no motions or resolutions, for or against, regarding this program.

[Webmaster note: the following part of question 3 by Cr Liu does not seem to have been answered by the Kangaroo Island Council administration:]

Do you know that at present there are at least 50 solar energy providers listed in Adelaide’s yellow page services directory (15 pages of advertisements from page 1384) competing for work? Is it a fair trading competition under this circumstance? Should KI Council market and promote ZEN’s services and products? What is for our ratepayers and will KI home owners get a better deal from ZEN?

Cr Ken Liu
Kangaroo Island Council
P O Box 80, KINGSCOTE SA 5223
Ph: (08) 8553 2823 Mobile: 0428 322 005
Email: kenDOTliuATbigpondDOTcom