From 1 October this year companies that are found by the Health and Safety Executive (HSE) to be in ‘material breach’ of health and safety regulations will be asked to pay a recovery cost, under proposals currently being scrutinised by a House of Lords Committee.
As the proposals currently stand the Fee for Intervention (FFI) will be based on the amount of time taken for HSE inspectors to identify a breach of legislation and to conclude any necessary regulatory action. In the official Guidance on the Application of the FFI, published on the HSE website, the fee is set out at an hourly rate of £124.
Under the proposals a material breach is described as "contravention of health and safety law that requires an HSE inspector to issue notice in writing of that opinion to the dutyholder". The document lists a number of illustrations of what would constitute a breach but states that not all scenarios are covered.
Following an initial consultation on the proposals last year and a consequent delay to the original implementation date of 3 April 2012, the FPB has submitted a list of concerns to the scrutiny committee calling for a review.
Chief executive Phil Orford said: "The current proposals are inflexible and unclear. At the very least these fees should be scaled depending on factors such as the size of the business in question and perhaps the seriousness of the breach, the definition of which must be made clearer."
Orford said the proposals could have serious impact on small businesses, such as printers, and that if implemented they risked damaging the balance of trust between business owners and regulators.
"There is a difference between encouraging firms and forcing them to comply using the threat of financial penalties. It is disappointing that, yet again, the stick approach is being used rather than the carrot," he said.
Orford said the proposals appeared to be part of a "cost recovery drive" by the HSE that could lead to a postcode lottery for businesses concerning health and safety compliance and enforcement.
"We look forward to hearing the committee’s recommendations," he added.
FPB blasts new health and safety inspection fee proposals
The Forum of Private Business (FPB) has labelled new government proposals to force businesses to pay for health and safety inspections as inflexible and unclear.
