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HSE to charge contractors for improvement notices
Rank: Forum user
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What do Members think of this? (from www.constructionenquirer.com)
"Health and Safety leaders are considering plans to charge contractors for issuing them with improvement notices following site visits.
The move is part of a revenue-raising and cost-cutting drive at the Health and Safety Executive in the wake of Lord Young’s report into the future of the body."
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Rank: Forum user
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Good idea in my view - might get some companies to discharge their health and safety responsibilities.
And before someone mentions this as being a license to print money - if you don't think you should have the improvement notice you can always challenge it.
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Rank: Super forum user
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This was mentioned in the SE branch meeting where a presentation was given by an HSE Principal Inspector.
This is just one suggestion in a range of ideas to raise money.
Like the Young report I think the answer is wait and see what actually happens and then get on with ensuring compliance, which companies should be doing anyway so it should only become a problem to those who are ignoring their responsibilities.
Take Care
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Rank: Super forum user
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Flawed in my opinion - turning safety compliance into a revenue stream - come on?
It should be correctly funded in the first place.
If this initiative is passed on to local authorities and the councils cotton on to a nice earner in these current times!
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Rank: Forum user
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Seems like a good idea to me.
If you are compliant you have no worries if you aint you get hit in the pocket, and you can always appeal the notice.
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Rank: Forum user
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35% cut in budget; 700 + jobs to go . . the remaining staff will have to issue some notices to get any significant funds back!
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Rank: Forum user
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Thumbs down from me.
They probably wont implement it correctly and it will end up with a new breed of clampers.
The problem I see is:
Issue as many notices as possible
HSE to receive funds from notices
HSE to make it to difficult to appeal costing more than the original charge made.
In summary if your innocent you pay, if your guilty you pay.
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Rank: Super forum user
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Another bizarre outcome (or rumour ?) following the Lord Young "fait accompli".
Why would an employer choose to pay for a formal Notice? I don't think I would!
As with most bureacratic charging systems, the cost of administering this would far outweigh any revenue gained.
A far more honest approach would be to charge for impartial advice - but then the HSE aren't in any position to do that, are they?
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Rank: Super forum user
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Why not go the whole way and pay inspectors out of the fines they can make stick in court? Everybody wins: HSE/EHOs get a significant payrise, rogue employers get hit more frequently with fines, keeps lawyers in fat fees, generates additional income for consultants who will be called in to fix the mess.
Nearly Friday...
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Rank: Super forum user
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You can read the full transcript of Judith Hackitts speech here.
http://www.hse.gov.uk/ab...cripts/hackitt071210.htm
The idea of HSE charging for services is not new (licensing work for example) and the need to look for other opportunities to charge is obviously very topical. I am not against the principle of HSE charging for services where they are undertaking their key objective of preventing injury and/or harm and thus avoiding both those losses and any need to take expensive enforcement actions.
However, I do not think it is acceptable to suggest that the HSE should charge for enforcement actions. Formal cautions, improvement notices, prohibition notices are all enforcement action taken as a result of a breach.
So if charges are to be applied, and I see no reason why they shouldn't be, then it would have to be through a system of fixed penalties in my opinion. x for an IP, x+50% for a PN and so on. It works for traffic offences so why not for H&S offences?
That would be equitable, transparent and place the costs on the offenders where they should belong.
p48
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Rank: Super forum user
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I agree with Pete, in that a system of fixed penalty fines would be more preferable. It is not a unique notion, indeed it is carried out in other regulatory spheres. The process must be both transparent and fair. Ultimately the law requires the duty holder to comply with certain statutory provisions and one of the main drivers for non-compliance is cost cutting, so fixed penalty fines would be equitable.
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Rank: Super forum user
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Alternatively, they could attend an improvement training day - similar to the driving 'points on licence' alternative, currently in action.
This training could be financed by the non-compliant companies but in pursuit of education / refresher training, rather than a cost benefit to the HSE!
Simon
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Rank: Forum user
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Sorry for getting on my soap box on this one but I think some people may have got the wrong end of the stick on this proposal.
The idea is that in the event of a breach of health and safety law, the HSE would be able to recover the full cost of its investigation and/or intervention from the individual/organisation causing the breach (that way tax-payers are not footing the bill for poorly performing organisations). As it stands at the moment, the HSE can only recover its costs in respect of work done on prosecuting organisations/individuals but not the hours put into investigating and supervising the mitigation of the offence. Neither can the HSE recover its costs in investigating and supervising issues that only result in a Notice, or an intervention, although these too result from breaches of health and safety law. The idea is not a new one and it has been around for some time in environmental law under the "Polluter Pays" principle. I understand that the Environment Agency can already claim back its costs in respect of investigation and for "consultancy" services (e.g. Supervising a clean-up following a major incident).
It is only a proposal and we will need to wait to see where it goes but I for one will be happy to see it adopted because the thousands of hours a year spent on HSE interventions following fatalities and serious injuries at work would have to be financed by the culpable organisations/individuals and not the taxpayer.
DJ
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Rank: Forum user
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When it is stated 'Health and Safety leaders are considering plans to charge contractors for issuing them with improvement notices following site visits' - does this mean the plan is only to charge contractors?
Will other organisations be exempt or will anybody subject to HSE authority be included if they are served?
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Rank: Super forum user
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djupnprth is right, what if you refuse to pay would that mean the improvement notice would not be served or possibly a prohibition notice would follow. If a prohibition notice follows then why not issue one in the first place? They cannot go from an improvement notice to a prohibition notice on such a malicious basis. If an improvement notice is issued and it costs more money for the HSE to close it out, then why not make the business pay for it provided it is for a breach which would have to be proven by the HSe before costs can be claimed. It is very dodgy ground to say make them pay and needs much more work before this could actually become a regular practice. Just an aside would this mean more improvement notices being issued so HSE can recover some of its costs, and would this not reduce the effectiveness of an improvement notice as will be seen as simply getting money to cover the cost of an inspection visit? Dangerous ground in my view.
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Rank: Forum user
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Like you, I will have to wait and see what (if any) changes appear. However, any change will require a change in the law to allow the HSE to recover costs beyond those it can already recover.
If the proposal comes to fruition, it is likely the HSE will be given the power to invoice organisations for a range of "consultancy" and/or enforcement services and non-payment could be recovered through the courts. It is unlikely that the scheme will become a 'licence to print money' or a way for the HSE to increas its revenue generally, as any invoice could only be levied once the organisation has pleaded, or been found guilty of an offence and invoices could be challenged (through an agreed mechanism or in the courts).
Again if the proposals are accepted, HSE inspectors are likely to still continue to do pro-active visits and provide general health and safety advice, but they may be able to charge for e.g. input into industry guidance, or for providing specialist advice, as well as recovering the cost of them undertaking investigations (e.g. following fatalities and serious incidents). I cannot see the HSE issuing Notices in situations where it does not currently do so and they will not be legally able to.
It is of course a personal view but if adopted, I think these proposals will be a change for the good. Apart from anything else, the risk of an organisation receiving an invoice for the full cost of a HSE investigation, together with any penalty awarded (be it a prosecution or otherwise) is likely to require more employers to give due consideration to health and safety and in particular, make them seek appropriate, competent advice, or face the costs.
DJ
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Rank: Super forum user
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DJ - thanks for some clarification on this matter. However, my concerns remain at LA level………….
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Rank: Super forum user
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Please read the HSE Chair's transcript rather than the secondhand news from the Construction Enquirer.
she has also said that:-
"I emphasise that at the moment these ideas are in their early stages of development. But I do think that it is important that we give some indication of the thinking which is taking place. Given that we do already have a substantial level of cost recovery in HSE it seems both logical and fair to all dutyholders that we look at ways of extending this approach to increase consistency and place any increased burden on those who are found to be at fault"
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Rank: Forum user
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Will push a lot of small businesses underground especially in constrcution as far as i'm concerned. You will end up getting the christmas lights in a loadal bucket even more so. Just consider the number of small businesses who dont buy into any support from the likes of yourselves, but are making an effort on their own back to get Health and Safety right. They are doing something albeit maybe not enough. The HSE should concentrate on persistant offenders, those companies who do nothing and support those making an effort by directing them to suitable advice for improving. Maybe consultants on the IOSH register.
Still not enough details, but agree with Bob at this moment in time.
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Rank: Super forum user
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Pesky system went down just as I was to post a reply, so trying again.
The comment is as follows:
We are working on a proposal to charge those who create risks. A so-called: “fee for fault” principle. The idea being that those who are found not to be compliant with the law during an inspection should be charged for the work that HSE does following the issuing of a notice or other requirement for action to rectify the fault. We believe that this approach is fair and equitable and will be welcomed by the vast majority of businesses who are compliant and who see those who take short cuts as getting away with an unfair competitive advantage. Such an approach should be seen by business as a way of levelling the playing field. We do recognise that there will need to be safeguards built in to the process to ensure that such a scheme is transparent and open to scrutiny.
On the basis of what is said it seems fair that after an improvement notice has been issued any cost to certify it as closed out is chargable to the person who the notice was issued to. However, there could be an increase in the number of notices issued (and a reduction of the point of them because they become a means of getting money in) which is a cause for concern.
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Rank: Super forum user
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A "fee for fault" principle could logically be applied to submission (and subesquent "processing") of a RIDDOR report! A self-financing Incident Contact Centre anyone? (see other thread "does RIDDOR matter for my views on that).
I can see a scale of fees arriving soon for Notification of Construction Projects though......... as if the industry wasn't hard pressed enough!
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Rank: Forum user
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Ron,
Sorry to get on my soap box again but, I think the clue is in the name "fee for fault". The whole purpose of the proposed scheme is that only those who are in breach of health and safety laws will be charged. Therefore there can be no charge for e.g. notification of construction projects, reporting under RIDDOR, etc.
As there is no money in the government pot and costs have to be slashed, the alternative is we abolish the HSE, LA enforcement authorities, EA, etc. altogether, or cut them down so far that they are ineffective. What would happen to the 'elf & safety' industry (which I understand is worth £ billions a year) then?
Unfortunately, we don't live in an ideal world and as such, the 'polluter pays' (or in this case "fee for fault" principal seems a good one to be a good compromise. If you comply with the law you will be fine, if not, well you pay.
As an aside, Judith Hackett's speech was made a couple of weeks ago and you may find things have moved on a pace in relation to this proposal since that time. Watch this space.
Regards.
DJ
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Rank: Super forum user
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The scale of charges applied by the Environment Agency and SEPA have always gone beyond the principle of "polluter pays", and the real principle is that the 'waste generator' pays. The whole ethos of course is intended to ensure that these agencies are self-financing. There is no 'direct' parallel there.
(In truth, the principles applied are less honest than that - as an example a retail petrol filling station having to pay fees etc. for the installation of a stage 2 vapour recovery system, which by design prevents pollution).
Anyone out there tasked with reviewing the efficacy of the HSE would surely contrast and compare the approach to funding of these other agenciers and may consider the application to a principle of "risk creator" pays.
"Fee for fault" is merely the start of a process DJ, and wider initiatives will surely arise for consideration over the coming months and years.
As you say, watch this (and other) spaces.
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Rank: Super forum user
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And to quote Judith Hackett:
"Whilst we already cost recover from businesses which are deemed to be major hazard sites under our permissioning regimes,we are looking at the possibility of extending charging to businesses with comparable regulatory oversight where we currently do not charge."
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HSE to charge contractors for improvement notices
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