Companies could haveto pay for investigations after breaches of safety law. Michael Glackin reports
The deadline for the industry to have a say in proposed legislation that will allow the Health & Safety Executive (HSE) to recover investigation costs from those who break safety laws expires today.
Insiders believe the proposals, which could mean firms having to pay tens of thousands of pounds to cover the cost of HSE inspections and investigations, are likely to be approved by government and come into force within six months.
Gordon MacDonald, HSE programme director, said: “The government has agreed that it is right that those who break the law should pay their fair share of the costs to put things right, and not the public purse. Compliant firms will not pay a penny in intervention fees.”
Under the proposals put forward by the HSE, contractors and other firms would have to pay the cost of an HSE inspection or investigation if either revealed a failure to adhere to health and safety law.
HSE will recover costs at current estimates of £133 per hour. Costs of any specialist support needed would also be passed on and firms would have to pay within 30 days of receiving an invoice.
A company served with an enforcement notice could pay up to £1,500 in costs to the HSE, while an investigation into a serious breach of safety could mean firms will have to pay tens of thousands of pounds in addition to the statutory fine.
If the government accepts the proposals for cost recovery in their current form, the changes could be implemented as early as April 2012.
Construction bodies are broadly supportive of the new arrangements, but concerns remain over how they will work in practice.
Brian Berry, director of external affairs for the Federation of Master Builders said: “Our problem is with what happens when a firm wants to contest the H&S inspector’s ruling. What will be in place to deal with that situation?”
Berry wants to avoid the situation where a firm’s only recourse is a legal one.
Mike Smith, managing director of Corniche Builders, and chairman of the Chartered Building Company scheme, also agreed “that the principle of charging for services when a serious breech has occurred seems fair and reasonable”. However, he is concerned that it would only be able to be reinforced with reputable companies, which means that, yet again, these would be penalised.
Smith suggested that a more equitable way of raising cash for the HSE might be to introduce a registration fee when notifying under CDM which would make health and safety more accountable.
The battle against ‘excessive’ health and safety rules
The proposal for inspection cost recovery is one of a series of government reviews of health and safety regulations.
These include the Department for Work and Pensions’ review, chaired by Professor Ragnar Löfstedt, which aims to reduce the burden of health and safety legislation on businesses by combining some regulations and scrapping those that have resulted in what the government believes to be inappropriate litigation and compensation.
The H&S review is part of a wider review of business regulations — the Red Tape Challenge — which aims to cut regulation on businesses and follows Lord Young’s earlier report, which called for an end to “excessive” health and safety rules.
Meanwhile, the HSE and EU are also reviewing the CDM regulations, which could result in changes to the Approved Code of Practice.
Peter Caplehorn, technical director with Scott Brownrigg, said: “There’s been an improvement in health and safety in the industry over the last 10 years or so, but it’s not breathtaking when you consider the effort involved in that period in the shape of reviews and reports.”
