Quality Mark in need of a radical overhaul

Quality Mark - the government's ailing anti-cowboy scheme - needs a lot more members and quickly if it is to stay in the saddle, according to a report leaked to CJ.

The draft business plan, commissioned by the Department of Trade & Industry (DTI) and drawn up by Atkins, proposes an end to the recent series of regional launches. Instead it suggests that a national roll-out of an enhanced scheme with the close co-operation of trade associations would add momentum.

But a reduced rate of VAT on RMI work - a central plank of the original anti-cowboy proposals - is not even mentioned.

Atkins' report paints a grim picture of the QM scheme as it stands. The initiative has only achieved a market penetration of 2% (293 firms are registered) in its pilot regions, despite generous incentives. The critical mass target is 30%, which nationwide would require 45,000 member firms.

Failure to hit membership targets in a nationwide launch could see members' costs rocket to £3,000 per year (£1,500 levy and £1,500 warranty), compared to £1,700 (£200 levy and £1,500 warranty) if targets are met. And taxpayers would also be hit. The government has already invested £6.7m in QM since its inception. A DTI spokesman admitted: "QM was always going to be a long and costly process."

He declined to comment on the report until the scheme's Shadow Ownership Group has responded (it is due to do so by next Friday) other than to say that the DTI is already "talking to trade bodies to develop membership schemes aligned with QM".

The spokesman also suggested the DTI does not view the report in an altogether pessimistic light, adding: "Broadly the report shows the scheme was moving in the right direction."

The government is thought to favour a national roll-out given that, if successful, the scheme could generate cost savings to the public of £10bn over five years.