HSE proposal for extending cost recovery - consultation

We have just been alerted to a consultation issued by the Health and Safety Executive which if it goes through may have a significant impact on enforcement costs extending costs recovery to where there has been a material breach of the law but no formal court proceedings are taken.

The consultation sets out the HSE proposal to replace the Health and Safety (Fees) Regulations 2010 to reinstate existing fees but also 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 duty holders are found to be in material breach of health and safety law.  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’.  Costs following the institution of court proceedings would continue to be claimed through those proceedings.

The underlying policy of recovering such costs for HSE’s interventions is taken as a ‘given’ and apparently has Government approval. The consultation document is intended to elicit views on how HSE would recover the costs of the work it undertakes. The consultation began on 22 July 2011 and will end on 14 October 2011

The consultation document can be found here "HSE proposal for extending cost recovery".

Example indicative costs are given and an extract follows:

• 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.

An indicative hourly recovery cost rate of £133 is suggested.  Further detail and information as to how to respond  can be found in the consultation document itself.