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HSE cost recovery proposals consultation

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September 14, 2011


The HSE proposal to replace the Health and Safety (Fees) Regulations
2010 to reinstate existing fees and to extend the range of activities
for which HSE recovers costs. In addition to reinstating existing fees
the proposed Fees Regulations would place a duty on HSE to recover
costs where dutyholders are found to be in material breach of health
and safety law. the regulations will be set to change from the 6th
April 2012.

Costs will be recovered 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.

The underlying policy of recovering costs for HSE’s interventions
through the introduction of fees where there is a material breach of
the law has been agreed by Government and is therefore not in question
in the consultation. Instead this consultation document is intended
to elicit views on how HSE would recover the costs of the work it
undertakes.

The proposal outlined in the consultation document is that fee for
intervention would only apply to the activity undertaken by HSE and
would not apply to the activity undertaken by Local Authority officers.

An hourly fee for intervention rate, currently estimated at £133,
would be used for all HSE staff.In recovering the costs the time will be
split down into 6 minute intervals. The potential averaged costs for
intervention activity are estimated as:
•	Inspection with no action taken No costs will be recovered
•	Inspection which results in a letter Approximately £750
•	Inspection which results in an Enforcement Notice Approximately
        £1500
•	Investigations Ranging from approximately £750 through to
        several thousands of pounds to,in extreme cases, tens of
        thousands of pounds.

The actual intervention costs will depend upon the particular
circumstances.  These costs will be dependent on the complexity of
the investigation that is required to follow all reasonable
lines of enquiry. The costs would cover all HSE work undertaken
including site based activities, administration, office based follow
up work (`e` mails, calls etc).

Clearly if a business adheres to health and safety regulations then
these changes will have little or no impact; however it will prove
to be expensive where any business is found to be in material breach.
It would seem these changes will address the issue of where a business
makes the call not to implement sufficient health and safety systems
because of the costs involved. It would certainly in most instances
be far cheaper to get it right from the start.
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