Counting the costs of safety failings

It’s well recognised that good health and safety is good business. But some firms may seek to gain short-term competitive advantage by cutting corners and putting workers and the public at risk.

From April 2012 this balance will shift, when, for the first time, those who break health and safety laws will pay their fair share of the costs to put things right – and not the public purse. This will provide a further incentive to operate within the law. And it will help level the playing field between those who comply and those who don’t. Law-abiding businesses will be free from fees and not have to pay a penny.

Cost recovery may sound like a radical idea to some, but it is actually a principle already operated by other regulators in Britain. And the principle of ‘fee for intervention’ has already been agreed by the Government. HSE recovers its costs in a range of industries under existing schemes and has considerable experience of making these systems work. But there’s still an opportunity to shape the detail of how the proposals could work in the remaining sectors of the economy. Over the next three months, we’re inviting employers, worker representatives and anyone else with an interest to submit their views to help make the introduction of ‘fee for intervention’ as successful as possible. We’re proposing to recover our costs from the start of the intervention where the material breach was identified up to the point where HSE’s intervention in supporting businesses in putting matters right has concluded. HSE’s fees are currently estimated at £133 per hour.

For example, failure to properly display the health and safety law poster in an otherwise well run firm would normally be dealt with by verbal advice, and costs would not be recovered. However, inadequate guarding of machinery which could result in significant injury to employees and requires HSE to do more than give verbal advice, would attract cost recovery. The underlying issue is one of fairness – those who HSE needs to intervene with to put right their failings should pay the costs. This is not only fair, it’s good business and good for business too.

To take part in the consultation visit: www.hse.gov.uk/consult/condocs/cd235.htm

Gordon MacDonald
Programme Director, HSE