Warning over proposed HSE, HSC merger

London - Government proposals to merge the Health & Safety Commission and Health & Safety Executive must aim to improve the governance and scrutiny of legislation and regulators, warns the Forum of Private Business (FPB), a lobby group that represents around 25,000 UK-based businesses.

The merger has been proposed to create a single and more efficient regulatory body and is also intended to improve partnerships between local authorities and key stakeholders, said the FPB. However, it added, that there has been no explanation as to how the merger will enable smaller businesses to challenge the new body’s rulings more effectively.

"Both of these bodies have conveyed the impression over recent years that they have little understanding of the way businesses have to operate in order to compete effectively," said FPB national chairman, Len Collinson. "We are happy that this amalgamation offers opportunities for decreasing red tape, however, we are concerned that regulators are not properly scrutinised or supervised to make sure that British industry remains competitive and flexible."

According to the FPB, its members often cite health & safety regulations as among the most disproportionate areas of red tape that they have to deal with, being ranked second only to tax issues as the most burdensome area for small businesses. The HSE tends to introduce regulation to cover any perceived risk, even if the cost of compliance vastly outweighs the supposed risk that is prevented, it also stated.

The FPB wants to see a legal requirement that the new Executive specifies the precise terms by which it will delegate powers to inspectors and officials. This, it said, should ensure that they adhere to the Hampton principles, which govern better regulation, and that the regulators’ compliance code is met.

"The amount of regulations that small businesses have to adhere to has made it virtually impossible to keep up to date with the many changes that are being made," Phil Allison, managing director of Enkev a furniture specialist based in Silloth, Cumbria and an FPB member company. "More importantly, because of all the regulations, small businesses are going to fall foul of them sooner rather than later."