HSE CHARGING REGIME CONSULTATION EARLY FINDINGS

Construction industry hears of concerns over CDM 2007 ”fee for intervention”

On 16th November 2011 the Construction Industry Advisory Committee (CONIAC) received an update from Gordon MacDonald HSE Director of Special Projects on progress with the Fee for Intervention proposals and the next steps.

Mr McDonald reported to CONIAC on ”themes coming out of the consultation”. The concerns included:

  • Receipt Maximisation: the system may incentivise HSE to maximise receipts from the system rather than taking action appropriate to the real risk or seriousness of breach;
  • Relationships: current relations are based upon a clear understanding of roles and with no direct financial connection between the act of regulation and charges. Introduction of fees for specific interventions may harm the HSE/business relationship;
  • Uncertainty: the charging system is based on inspector ‘opinion’ of what is a material breach. There is therefore a lack of clarity and certainty as to when charges will be imposed;
  • Trigger Level: the threshold of at which charges start is where an inspector communicates to the company by letter or email. Consultees feel this is “too low”;
  • Financial hardship: the charges imposed could have damaging impact on SMEs; and
  • Appeals: some have questioned the level of independence in the proposed disputes process

The new arrangements are contained in the Consultation Document which sought views on the proposed systems. The consultation period ended on 14th October 2011 and it is anticipated the Regulations will come into force on 6th april 2012,

This article was posted on 27th November 2011 in ALL LATEST NEWS, REGULATION.
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