1. Health and Safety Executive Health and Safety Executive Extending Cost Recovery at HSE Gordon MacDonald Director of Special Projects

2. Todays Session Share our plans to extend cost recovery Discuss any comments and questions you may have Agree future engagement on the issue

3. Context Reform H&S landscape and culture Shift in focus from low risk to high risk Reduction in number of inspections Simplify regulation and legislation Ease the burden on businesses Maintenance of high enforcement profile And … Extending cost recovery

4. Cost Recovery – 4 Key Areas Fee for Intervention High Hazard Industries Statutory Consultee Non Statutory Advice to Businesses

5. Fee for Intervention Recovery of costs for material non-compliance Charge full and follow-up costs to point of compliance Prosecution costs sought through the courts Disputes and queries process will be established Effective from April 2012 Dry run trials planned from October 2011 Excludes sites covered by permissioning regimes Resolve micro-businesses and start-ups exemption Resolve position of local authorities

6. Consultation Formal and public consultation - July to October Process will seek views on how the scheme will be implemented Consultation document will contain specific questions to focus stakeholder views Pre-consultation discussions underway with key stakeholders

7. Example Consultation Questions Do you understand to whom the fee for intervention proposals would apply and how they may operate? Other than the continued application of HSEs Enforcement Management Model and Enforcement Policy Statement, what measures do you suggest that HSE could put in place to offer further assurances that cost recovery will not be used to drive intervention approaches? Can you foresee any specific problems that might arise for employers, workers, enforcing authorities or any other groups if the proposal for health and safety regulators to cost recover from dutyholders in material breach of health and safety law is adopted? What are your views on how a queries and disputes process should work to ensure it is practical, fair and transparent?

8. Key Milestones MilestoneWhenOutput Minister announced decision to extend cost recovery for H&S 21 March 2011Confirmation of decision and project team established Public and formal consultation July – OctFormal consultation of how cost recovery will work Dry run of processes and procedures Oct 11- Dec 12Ways of working tested with small groups / team Shadow Running of processes and procedures Feb 12 – Mar 12Ways of working tested across all teams Formal launchApril 2012Cost recovery is operational

9. Questions, Ideas, Comments Questions Comments Ideas Questions and Answers