An independent Fees for Intervention Review panel has concluded that the controversial system for shifting the cost of workplace health and safety regulation onto businesses has proven effective and should stay.
The report also found no evidence to suggest that enforcement policy decisions under the FFI initiative – launched in October 2012 – had been influenced in any way by its introduction.
The independent panel was chaired by Alan Harding, professor of public policy at Liverpool University, and was made up of Dan Shears, national health and safety officer of the GMB trade union, Ken Moon of the Federation of Small Businesses, and Fiona Walsh of the Department for Work and Pensions.
The panel did not carry out any independent research, but drew on the HSE’s research and information on the behaviours of inspectors and dutyholders before and after FFI, and also carried out new analysis on this data.
The terms of reference of its work were laid down in the Triennial Review of the HSE, published earlier this year, which raised serious questions about the system.
But althought thee panel acknowledges that FFI has not been popular with some inspectors and duty-holders, it says it has been embedded effectively and applied consistently, and concludes that there is no viable alternative that can achieve the same aims.
It also concludes the report that FFI has not been used by the HSE as a “cash cow” to generate revenue, but that the HSE should take care that this does not become the case in the future, or is perceived to be.
The report reveals that between October 2012 and January 2014, the HSE invoiced businesses a total of £10,680,443 under FFI, with construction accounting for £2,831,390 and manufacturing responsible for £4,189,794. Caclulated per 1,000 workers, construction’s FFI bill worked out at £,1377 compared to £1,492 in the manufacturing sector.
The panel’s recommendations include support for the idea of extending FFI to other areas of the economy not currently covered by FFI, and also for the publication simpler of FFI guidance, including case studies.
Judith Hackitt, chair of HSE, said: “Both HSE and the government believe it is right that those who fail to meet their legal health and safety obligations should pay our costs, and acceptance of this principle is growing. This review gives us confidence that FFI is working effectively and should be retained. We will continue to monitor the performance of Fee for Intervention to ensure it remains consistent and fair.”
