Looking back on 2015 – has the much promised reduction in regulatory
burden had an effect on the events industry?
The short answer is no. The 2011 Löfstedt report recommended a range of changes to reduce the
health and safety regulatory burden on business. Few in our industry appreciate that CDM 2015
was one of those changes and it has reduced the burden on the construction
industry but it was also newly applied to events as is commented on below and
extensively in previous updates. For
events it has had the exact opposite effect of that intended. In addition, we are facing a considerable
increase in potential fines on all businesses and a greater risk of custodial
sentences for individuals. Companies
could be fined 100% of their pre-tax profits which could be in excess of £100
million for very large companies.
Anecdotally the introduction of FFI appears to have encouraged the HSE
to issue more enforcement notices in the events industry. The removal of liabilities under HASAWA for
the self-employed does not apply to event construction activities and could
actually encourage unsafe working which may prove to be a headache especially
for less well managed events. It could
be argued that boards of directors of event companies are actually facing a
perfect storm of increased liabilities in 2016.
CDM Update
The HSE guidance for the events
industry was due out by the end of 2015 and is likely to be web based. The HSE have scheduled 40 proactive
inspections of events for 2016 which are likely to be the largest most complex
events. There was some enforcement action
in 2015 with Prohibition Notices issued to participants for work at height
violations and similar. The HSE have
prosecuted a principal contractor working in the construction industry for
their failure to provide adequate welfare under CDM 2015. Whilst generally the provision of welfare
facilities is considered one of the less challenging requirements of the CDM
Regulations for the events industry, this case serves as a reminder not to
overlook it. The AEO CDM Resource pack
is currently being reviewed and updated in line with recent consultation with
event industry health and safety professionals.
Received wisdom is that provided
we take a sensible and practical approach, the HSE are very unlikely to take
enforcement action based on compliance with CDM per se. They will take (and have taken) enforcement
action for obvious breaches of key legislation such as Work at Height Regs. With the focus on the Client, CDM might
increase the focus on senior management of organising companies. What is less obvious is whether large complex
stands will now have to be more directly accountable in law for their actions
rather than the organiser which was more or less the default before CDM. Time will tell.
Increase in Penalties for Health and Safety Offences could reach £100
million
New tougher sentencing guidelines1
outlined in the previous update, have been challenged in the courts. Thames Water appealed a £250,000 fine on the
grounds that it was too severe but the appeal was rejected. The ruling stated that sanctions ‘needed to bring home the appropriate message
to the directors and shareholders of the company’. The ruling acknowledged that fines could well
equal up to 100% of the company’s pre-taxed net profits for the year even if
that amounted to fines in excess of £100 million. The case follows appeals by Sellafield and
Network Rail last year which were also rejected clearly indicating that the
judiciary are taking a tougher line with corporate offenders.
Self-Employed Exempt from Health and Safety Law from 1 October 2015
From 1st October a new
law2 means that health and safety law no longer applies to 1.7
million self-employed people in the UK and, potentially, some of those working
in the events and exhibitions industry.
This has caused a great deal of concern in the health and safety
industry generally and some confusion with regard to self-employed service
suppliers at events including self-employed workers sub contracted to larger
companies.
There is a caveat that the new
provision does not apply to those working in a situation which gives rise to
duties under CDM which means any event construction activity. In any case professional event organisers and
venues require all service suppliers, self-employed or otherwise, to comply
with the rules of the site as a condition of entry. Whilst the new provision does mean that, for
example, a self-employed contractor working from home no longer has to comply
with health and safety law in that environment, for all practical purposes this
new law does not alter the status of self-employed staff and contractors when
working on site at events.
ISO 45001 to Replace BS OHSAS 18001
ISO 45001 is due to replace BS
OHSAS 18001 with a planned publication date of October 2016. Companies reviewing their professional
accreditations should follow the progress of this new health and safety
standard. X-Venture will advise clients
on any policy amendments necessary to reflect best practice and IOSH courses
will reflect the new standard when it is published.
£500 million loss following Alton Towers accident
Investors like certainty. When they perceive risk they pull out and so
it has transpired following the tragic events in Alton Towers in June when a
rollercoaster crashed causing 16 causalities including two who suffered
amputations. Alton Towers could lose as
much as £47 million in 2015 and as a result the share price of its parent
company Merlin Entertainments has lost £500 million in shareholder value. These losses are before the inevitable law
suits for compensation and possible prosecution by the HSE. Some might argue that no sanction can make up
for a life changing injury but this case serves to illustrate that in the
events and entertainments industry financial and reputational losses following
an accident can be out of all proportion to the actual offence comparable with
other industries. This is due to a
combination of higher profile and higher public expectations of the exercise of
duty of care to visitors to any venue.
Guidance for Drones at Events
The HSE and the Civil Aviation
Authority have accepted new guidance for the use of drones at events to be
included in the NAA A-Guide and considered for the AEV eGuide. A drone is a Small Unmanned Aircraft with an
operating mass of 20 Kg or less. Over 20
Kg they are subject to the same regulation as manned aircraft and an exemption
needs to be sought from the Civil Aviation Authority. This applies to drones flown externally and
the eGuide committee is now considering the wording regarding their use inside
venues.
New
Welfare Guide Published
The Events Industry Forum (EIF) has announced the
publication of a new guide to Welfare at Events, which will be published on the
Purple
Guide website
. This largely applies to outdoor
entertainment events.
Lasers in Exhibitions and
Entertainment
The Revision of The Radiation Safety of Lasers Used for Display
Purposes HS(G)95 has now been completed and the draft guidance document public
consultation phase closed on 11th December 2015. The new document, now simply titled ‘Safety of Display Lasers’ has been produced by PLASA in association
with the HSE and others.
Pyrotechnics and Other (non-laser) Special Effects
The changes in
European and UN legislation on the governance and management of explosives has
led to a significant amount of delay in completing the The
Association of British Theatre Technicians (ABTT) Code of
Practice for Pyrotechnics, consequently the development of appropriate training
has been affected too. There is a
project running to create a safety rules document that will identify the core
of the information required to support the safe installation and use of
pyrotechnics in venues which will be produced by the ABTT.
Fibrous and
Plaster Ceilings
Following the Apollo Theatre ceiling
collapse3, The ABTT
has
developed a scheme for induction, inspection (both structural and hands on by
the plaster specialist) and reporting. All
theatres with fibrous and ornate plaster ceilings are due to have been
inspected fully under the new guidance by August of 2016.
Changes to Chemical Labelling
From June 2015 the law regarding
the packaging and labelling of hazardous chemical substances changed which
brings Europe in line with UN globally harmonised systems. Suppliers are to allowed exhaust existing
stocks until 2017 although many have anticipated the change already. The new system, which also affects safety
data sheets, retains many of the pictograms of the old black and orange labels,
and now uses a red diamond with black pictograms on a white background. The events industry routinely involves the
handling of potentially hazardous substances from cleaning products and glues
to pyrotechnics and other special effects.
Full details of the new pictograms can be found in the European
Commission guide ‘Chemicals at Work’ available at www.lexisurl.com/hsw93534
Company director jailed for manslaughter
The boss of a fruit farm has been
jailed for two and half years for the death of two workers who suffocated
trying to retrieve apples from a nitrogen filled container. The company was fined £75,000. Whilst the context has little to do with an
event environment the case illustrates the increasing propensity of courts to
hand out jail terms to directors whose negligence leads to death or serious
injury.
Prosecution Following the Death of a Trainee Electrician.
Grundfos Pumps has been prosecuted
and fined £415,000 including costs following the death of a trainee
electrician. The 19-year-old trainee was
killed during the electrical testing of a control panel. The company did not have a risk assessment or
safe system of work for the procedure and the victim was not properly
supervised.
In the events industry the
electrical risks are magnified by the requirement for temporary installations
including 3 phase supply, time pressures and multiple contractual
arrangements. The risk is managed by strict
adherence to agreed guidance such as the e-Guide. Notwithstanding this incident illustrates the
need for constant vigilance to ensure that standards are maintained.
Grundfos only avoided more
serious sanctions with an early guilty plea which is not much of a strategy for
risk management.
£45,000 fine for a Blocked Fire Exit
A south Wales recycling firm has
just been fined £45,000 for blocked fire exits and other fire safety breaches
at their depot (£5,000 for each breach) plus £3,207 costs. Fire authorities are increasingly making
proactive visits to inspect premises which includes event venues within their
area. If the standards fall below an
acceptable level when the fire authorities visit they can be expected to use
their powers to prosecute. Under CDM the
main duty holder for a tenanted area would be the organiser.
£90,000 fine for Legionella
Death
A hospital has just been
penalised £90,000 in fines and costs for failing to control Legionella risk in the water systems
which led to a death of a patient. The
risk from Legionella bacteria in a
building’s water systems is a very serious potential risk particularly in a
public building such as an exhibition centre.
The hospital relied on water treatment systems but these were not sufficient
to control the risk. The hospital trust
has since spent £1.7 million on improving the water system to control the risk
at source. Some events involve water
features which can present a risk and employ a contractor to ensure that it is
properly controlled. Further guidance
can be obtained from www.hse.gov.uk/legionnaires.
Notes
1.
Legal Aid,
Sentencing and Punishment of Offenders Act
2.
The Health and
Safety at Work Etc Act 1974 (General Duties of Self-Employed Persons)
(Prescribed Undertaking Regulations) 2015.
3.
Seventy-six
people were injured when part of the roof came down during a performance of The
Curious Incident of The Dog In The Night-Time at the Apollo Theatre London in
December 2013. It was caused by the
deterioration in the hessian wadding embedded in the ceiling originally
installed in 1901.