interface summer 2014

OCH AYE DUNNOO?A BRAVE NEW CALEDONIA, OR A THISTLE WITH A STING?

David Kuczora clears (some) of the cloudy rhetoric

surrounding the vote for Scotti sh independence.

Front Cover.indd 1 17/06/2014 12:26

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p02_intsum14.indd 1 11/06/2014 13:09:04

FEATURE//FEATURE////

A View From On HighMD Graham updates on the latest at HAE EHA

In parti cular, I would like to highlight the on-going reform of the HAE Board and would very much

encourage all members to study closely the eff ect of the changes and more importantly register an interest in working as, at the very least, a Product Group volunteer. This role won’t take up too much of your ti me but will provide a valuable insight into the Associati on and a platf orm for you to develop an Associati on volunteer career.

NEW APPOINTMENT It’s vitally important that we have a launch pad from which to improve member engagement and communicati on, and whilst the Board changes are at the heart of this push, equally important is the appointment of a new Marketi ng Manager for the Associati on. Updates on progress with this exciti ng role in due course.

As part of building industry relati ons we are working more closely with other Trade bodies, especially around politi cal and lobbying acti viti es where there are defi nable synergies, and therefore it makes real sense to “Work Together”,

and therefore be “Stronger Together”, as a single ‘voice of the industry’ on certain issues in the future.

There seems to be no let-up in the steady recovery

of the UK economy and increasingly constructi on and

infrastructure projects are being released to the benefi t of our sector. Let’s hope the housing bubble doesn’t return and that sensible on-going management of the economy by the Bank of England helps to maintain this encouraging growth.

IT’S NO GOOD WAITING Returning to growth highlights, the recruitment needs of our sector and reports seem to indicate it’s increasingly diffi cult to recruit the right people. We have to accept that our industry tends to be made up of “experienced and mature” people, but to ensure conti nuity and management development it will be imperati ve we att ract younger people into our industry. It’s no good waiti ng unti l we are really busy, we need to set aside ti me and investment now if we’re to take full advantage of the opportuniti es that will arise as business improves. Bett er use and marketi ng of apprenti ceships will help, and we at HAE are upping our game. We are now running even more apprenti ceships and have developed a full career HAE PATH (Progression And Training in Hire) which provides all the training anyone could require.

We’ve even pioneered an apprenti ce recruitment scheme working in partnership with the Army (MOD), Department of Work & Pensions (DWP) and our

members called ‘LifeMAPS’, a pilot scheme which was the fi rst of its kind in our industry. It was a great success, encouraging young people to undertake a 2-week recruitment/training course, under the management of the Army, that could lead to an apprenti ceship with one of our members. It was so eff ecti ve that we’re currently planning a follow-up for later this year which we feel will give members a great opportunity to give young, unemployed people a step up on the job ladder (see page 9).

In additi on, in September, we’re hosti ng our 3rd Golf Society Day at Menzies Welcombe Hotel, Stratf ord on Avon (see page 48) so why not book your place now for a great day of sport, fun and networking!

Hope to see you there!

Graham ArundellManaging Director

As the excitement of a brilliant 2014 awards evening subsides our focus now very much returns to important future developments.

of the UK economy and increasingly constructi on and

Summer 2014 // Interface // 03

03 A View From On High.indd 3 12/06/2014 12:15

04 // Interface // Summer 2014

Head Offi ce2450 Regents Court, The Crescent, Birmingham Business Park, Solihull B37 7YE

Managing DirectorGraham [email protected] 0121 380 4600

MembershipGill [email protected] 0121 380 4619

DirectJohn [email protected] 0121 380 4620

EventsStuart [email protected] 0121 380 4622

Training Richard Whiti ngrichard.whiti [email protected] 380 4623

Interface Adverti sing Katrina [email protected] 01778 395022

Interface Publishing Juliet Travisjuliett @warnersgroup.co.uk 01778 391067

Interface DesignDean [email protected]

PRINTED BY WARNERS 01778 395111

Interface is not responsible for the content of adverti sements and does not endorse or promote any of their products unless stated. We accept no legibly for companies or products featured

Interface is committ ed to using sustainable sources. We are proud to say that our magazine is printed on paper approved by the Forest Stewardship Council by Warners Midlands.

07 Don’t miss out, take note of the events board

08 Inspiring collaborati ons, LifeMAPS working in partnership

12 Look out below!!! A new safety campaign launched by PASMA

16 Och Aye Dunnoo? It is a marriage which has lasted 307 years, but it is a union which could be on the rocks

24 Industry recognising the best in the their fi elds – Hire Awards of Excellence

30 Victi ms, Phoenix fraud can leave you thousands of pounds out of pocket

34New payment opti ons in hire shops – Bitcoin?

16

24

30

Contents.indd 4 12/06/2014 10:34


40To PAT or not to PAT? Clearing up

confusion from the HSE

42DIY – Do it yourself marketi ng

46Dusty prospect, more HSE inspecti ons

48Fore…. Don’t forget to book early!

50Know it all? Not sure? Visit the

training opti ons for HAE members

52Is the bubble close to the pin?

38Looking ahead in Parliament

42 48

52

Summer 2014

Contents.indd 5 12/06/2014 10:36

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p06_int_sum14.indd 1 11/06/2014 13:50:06


TUESDAY 1 JULY

YORK: Ousefi eld House, Offi cers’ Mess, Fulford Road, YO10 4PD.Commencing at 1230 hours with a light lunch.

HireTrain members sign up to join The Army!

For the Annual General Meeti ng, by kind invitati on of Brigadier GK Bibby CBE – BUT VISITORS AND GUESTS WELCOME, TOO!

Colonel Steve Hopper will be our guest speaker, presenti ng on:• The opportuniti es for employees

and employers to access high quality training and skills through Reserve Service (TA) for use in the civilian workplace

• The Army’s work with NEETs (a young person aged between 16 & 24 who is ‘Not in Employment, Educati on or Training’)

SIGN UP for this special event, email [email protected]

N.B. For those att ending, full names and vehicle registrati on numbers are required for security purposes, please.

THURSDAY 3 JULY

EXETER: Exeter Racecourse & Conference Centre, Kennford, EX6 7XSCommencing at 0830 hours with breakfast rolls and coff ee

SafeHire Essenti als WorkshopBack by popular demand, the Associati on is holding a further interacti ve workshop to demonstrate how SafeHire Certi fi cati on can help to improve revenue and reduce insurance costs.

FREE to HireTrain and existi ng SafeHire Certi fi ed members; otherwise registrati on fee of £35 + VAT per person

THURSDAY 17 JULY 2014

DUBLIN: Red Cow Moran Hotel, Naas Road, DUBLIN 22Commencing at 0830 hours with breakfast rolls and coff ee

How high up the list is Safety in your workplace?Join us for a members’ networking event to include valuable learning from H&S best practi ce presentati ons. To include speakers from:• HAS• Offi ce of Government Procurement• HAE’s SafeHire Certi fi cati on Scheme• The Constructi on Industry Federati onPlus more!

Open to non-members and guests.For more informati on on the above, contact Gill Bridger on 0121 380 4619 or email [email protected]

EVENT NOTICEBOARD

Events.indd 7 12/06/2014 11:11

LIFEMAPS INSPIRING COLLABORATION

WORKING IN PARTNERSHIP TO BOOST GROWTH & IMPROVE OUTCOMES


This is a great example of partnership work with Trade Associati ons and their employer members.

LifeMaps.indd 8 10/06/2014 14:08


Members oft en tell us: “succession planning and recruiti ng the right person can be ti me consuming and expensive” – we believe we may have the answer!

HAE conti nuously strive to raise the Hire Sector profi le and opportuniti es within it,

parti cularly for young people who are unemployed or not in educati on or training (NEET) and are trying to get their foot on the jobs ladder. When the chance came up to work with Jobcentre Plus (JCP), part of the Department for Work and Pensions (DWP), and Ministry of Defence (MOD) on the LifeMAPS pilot scheme, (aimed at engaging with claimants to provide them with help/guidance to choose the right career path), HAE jumped at it!

Some HAE members then took the opportunity to also become involved in this innovati ve pilot and off ered hire desk operati ve (HDO) and plant fi tt er placements. HAE worked closely with partners to deliver a 2 - week programme combining the best of army life along with an insight into the hire industry!

Through the LifeMAPS multi -agency approach apprenti ces got a taste of discipline, learnt respect for others, leadership and teamwork as part of army life, as well as specifi c hire industry training, including the chance to actually visit and see a Hire Depot in acti on! The pilot was an intense selecti on and recruitment process for apprenti ceship placements available post the initi al MOD course.

Graham Arundell, HAE MD said of the scheme: “My main hope was to take some young people, teach them some respect for others but more importantly themselves, prepare

them for working life and give them the chance to be interviewed for an apprenti ceship positi on in a fantasti c and diverse industry.”

THE GOAL …To achieve one of the following outcomes for each young person:• An apprenti ceship and joining

the Army Reserves • An apprenti ceship • Joining the Army Reserves • A real example of work experience

to promote on a CV/at interview

GUARANTEEING STAKEHOLDER BENEFITS …HAE worked with partners and claimants to raise the profi le of the hire sector and the scheme also fully supported HAE’s CSR statement. Giving something back, and helping young people consider an alternati ve career, allowed HAE to enhance their support given to employer members, by fi nding

alternati ve, simple and cost eff ecti ve recruitment routes for them.

This innovati ve pilot gave JCP staff and claimants access to a unique part of the constructi on sector and the opportunity to engage and collaborate with new employers and strengthen their sector links. As placements were only open to JCP claimants, it gave those struggling to fi nd work, an opportunity to develop their skills, build confi dence and the chance to really shine!

Marti n Brown, Work Services Director for Employers, DWP said: “this is a great example of partnership work with Trade Associati ons and their employer members. HAE told us how they’ve galvanised members to add value to young people’s lives by off ering this experience and the apprenti ceships that followed. I’m delighted the youngsters have had the opportunity to compete for jobs in this competi ti ve and interesti ng part of the constructi on industry.”

Graham Arundell, MD, HAE assists young recruits with their training exercise

LifeMaps.indd 9 10/06/2014 14:08


The army gained access to young people to highlight the opportuniti es available within the army reserves, as well as the chance to collaborate with “reservist friendly” employers. The MOD can also provide employers with additi onal assistance around job specifi c training if needed, such as free of charge courses on FLT and HGV driving and H&S amongst others.

Employers benefi ted from low cost recruitment and a selecti on of candidates who demonstrated solid life skills/achievements. They also had the fi nal decision over those recruited based on best fi t for the company. More importantly though they could clearly see the advantages of collaborati ve partnerships.

Note: NEW incenti ve payments for Reservists – if you join now you can get extra payments on top of your tax-free bounty (paid on meeti ng annual minimum commitment) and Army Reserve salary: www.army.mod.uk/join (reserves, fi nancial incenti ves).

BUT MOST OF ALL…The pilot gave young people the chance to grow, prove themselves, demonstrate competencies and on successful completi on guaranteed them an interview. For many parti cipants they gained real work experience for the fi rst ti me and training they could include on their CV, and talk about at interview!

Esther McVey Minister for Employment said about the scheme: “this is a great initi ati ve that benefi ts everyone involved but most importantly develops the life skills of young people so that they can more acti vely compete in the labour market.”

Scott Johnson HAE LifeMAPS completer/apprenti ce said:

“having been out of work since May 2013, I felt att ending the course would be a great opportunity to help me kick-start a career. Learning about Army Reserve life on the LifeMAPS course opened my eyes to opportuniti es there, and I got to understand more about hire and what it off ers, which has led me to securing an apprenti ceship at GAP Group.”

LIFEMAPS, PARTNERING BUT NOT AS YOU KNOW IT …Week 1Young people arrived at Catt erick Garrison and were greeted by Warrant Offi cer Mark Hill, Army Youth Engagement Offi cer and allocated their equipment.

...this is a great initi ati ve that benefi ts

everyone involved...

Makita trainer, Marti n Dunn with apprenti ces Declan Scott er, Reece Thompson, Ciaran Fletcher & Scott Johnson (far right) at Makita, Milton Keynes

LifeMaps.indd 10 12/06/2014 11:02


Acti viti es undertaken during the week were around teamwork, leadership and problem solving e.g. an assault course, which allowed them to explore their potenti al and gain core life skills.

Week 2 Industry focused with an overview of HAE, the hire sector and a tool and equipment appreciati on. Those att ending even produced a daisy chain of electrical sockets!

Hire Stati on depot visit and a chance to reach ‘new heights’ on powered access platf orms – which proved very popular!

Multi -agency partner talks from Police, NHS, Prison Service, Fire Department and Bomb Disposal.

Armed Forces career advice/presentati ons, including the Army, Navy, RAF and Army Reserve Units.

The week culminated in a ‘fantasti c’ passing out parade led by WO2

Mark Hill, where Anne Pavey and David Middleton (DWP) and Graham Arundell (HAE) were on hand to witness Brigadier Sir Greville Bibby CBE presented completers certi fi cates of achievement to each completer.

Brigadier GK Bibby CBE, Commander, 15 (NE) Brigade commented: “I’m really pleased the Army can make such a positi ve contributi on to our communiti es through the delivery of the LifeMAPS programme. Thanks to the Army’s successful collaborati on with a number of partners we’re able to provide a fantasti c opportunity for young people who deserve a chance in life. I sincerely hope that LifeMAPS will give them a positi ve experience which they can build upon.”

THE RESULTS …On 17 March 2014, eight apprenti ces started an HAE HDO apprenti ceship, with fi ve of them having been

unemployed for more than 26 weeks making them eligible for the Wage Incenti ve (WI) scheme. If they remain within employment for a further 26 weeks the actual employer is eligible for £2,275 WI funding. For more informati on access: www.gov.uk/jobcentre-plus-help-for-recruiters.

A TESTIMONY TO LIFEMAPS SUCCESS …Jewson originally off ered one apprenti ceship but were so impressed with the calibre of interviewees they subsequently off ered two further positi ons, certainly a great testament to the pilot scheme!

For more informati on/to take part in the LifeMAPS scheme contact Richard Whiti ng: T. 0121 380 4623 E. richard.whiti [email protected]

COLLABORATIVEPARTNERS

EMPLOYERMEMBERS

COLLABORATIVE PARTNERS EMPLOYER MEMBERS

Passing out parade of LifeMaps

LifeMaps.indd 11 12/06/2014 12:20


At this year’s fi rst ever Health & Safety Event in Birmingham, a new campaign on the dangers of using unsafe towers was launched by PASMA. It aims to show the importance of only using properly assembled towers and those certi fi ed to the

European standard BS EN1004 over oft en cheap and potenti ally dangerous alternati ves – saying that “your life or the lives of others may depend” on using the right tower. >>

At this year’s fi rst ever Health & Safety Event in Birmingham, a new campaign on the dangers of using unsafe towers was launched by PASMA. It aims to show the importance of only using properly assembled towers and those certi fi ed to the

European standard BS EN1004 over oft en cheap and potenti ally dangerous alternati ves – saying that “your life or the lives of others may depend” on using the right tower. >>

PASMA.indd 12 10/06/2014 14:29


This campaign aims to show that this isn’t just about fi nes and fi gures, but about lives.

PASMA.indd 13 10/06/2014 14:29


PASMA’s campaign has been created in an eff ort to combat the use of unsafe tower

equipment, brought into sharp relief by the HSE’s blitz of constructi on sites throughout 2013 with month-long spot checks. During September, over 1,000 sites (almost half of those visited) were failing to meet basic safety standards, including failures related to the work at height equipment used.

Peter Bennett , PASMA’s Managing Director, said: “Dangerous work at height is far more common than it has to be, as using safe equipment can prevent many of the issues that repeatedly come up, such as not fi tti ng proper platf orms and guardrails. Simply using an EN1004

tower can make all the diff erence when it comes to a site’s safety.

“This campaign aims to show that this isn’t just about fi nes and fi gures, but about lives. Falling from height kills more people than anything else in the workplace, which is why it warns people using towers that their lives and the lives of others may depend on only buying or hiring a safe tower.”

BROKEN BACK AND PARALYSEDThere are many examples of people whose falls could have been prevented by using safe towers. Robert Wilkin was paralysed when he broke his back last year aft er falling from a second-hand scaff old tower put up by an untrained builder.

An EN1004 tower could have easily prevented the structure being used in the unsafe way that led to the fall. Safe towers are designed to avoid anyone ever having to stand on an unprotected platf orm.

Mr Wilkin said: “I don’t remember much about what happened aft er I fell. Lots of people were rushing about and it took the ambulance crew about 20 minutes to get me onto a back board because I had fallen in an awkward place between pallets of bricks.

“My life has been ruined because I can no longer do the things I used to do. I can’t go out on my own or drive. I feel my freedom has been taken from me and it’s been really hard on my family.”

Falling from height kills more people than anything else in the

workplace...

PASMA.indd 14 10/06/2014 14:29


PASMA’s website (pasma.co.uk) has set up a new ‘Scaff old Towers’ secti on as part of the campaign. It outlines the facts about how dangerous unsafe work at height is, and gives simple and practi cal advice about how to keep safe, as well as off ering a free Tower Safety Pack fi lled with essenti al informati on on buying and maintaining a tower.

HOW BAD CAN THINGS GET?Using safe equipment when you are three stories up seems like a no-brainer, but it can be shocking how oft en people forget to engage their brains when working at height.

Last year an HSE inspector happened to be passing a Merseyside constructi on site,

where he saw a boy standing on scaff olding with his father, six metres up on a non-EN1004 tower with wide open unprotected spaces he could easily have fallen from.

The tower was not fi tt ed with proper platf orms, built-in access or guardrails. At one point the man had to help his 10 year old son onto a too short portable ladder above him by his ankles.

Children should not even be allowed on safe towers! Work at height is obviously for competent adult workers, not children, never mind one from which it would have been so easy to fall. The HSE inspector ordered the man to come down and help his son off of the structure. Later the builder was fi ned, and sentenced with 80 hours of community service!

PASMA.indd 15 10/06/2014 14:29


OCH AYE DUNNOO?

A brave new Caledonia, or a thistle with a sti ng? David Kuczora clears (some) of the cloudy rhetoric surrounding the vote for Scotti sh independence.

An increasingly-strident Scotti sh Nati onal Party (SNP), which has had representati on in Westminster since Winnie Ewing won the 1967 Hamilton by-electi on, began to strengthen its power base in the new Scotti sh parliament. They served two terms in oppositi on, before forming a minority government in 2007.

A cornerstone of the SNP’s electi on campaign in 2007 was a commitment to hold a referendum on complete Scotti sh independence. A ‘Nati onal Conversati on’ was launched by the administrati on of the SNP, a consultati on exercise which included a draft of a referendum bill. However the proposal failed to garner suffi cient support from oppositi on parti es, so was subsequently withdrawn. >>

majoriti es in favour of both a devolved Scotti sh Parliament and that Parliament having the power to vary the basic rate of income tax.

DID THEY REALLY REPRESENT SCOTLAND?The fi rst new elected Scotti sh parliament was convened on 6th May 1999 – and with it came a resurgent nati onalisti c pride. Despite Scots such as Gordon Brown and Alistair Darling holding top leadership positi ons under Labour, a growing feeling of unease developed about Scotland’s representati on within overall UK Government. Yes, they may have become politi cal big-hitt ers, but did they really represent Scotland? Or had they become more interested in success in the South at the expense of what matt ered back home?

It is a marriage which has lasted 307 years, but it is a union which could be on the rocks. On 18th

September 2014, Scotland will decide whether it is ti me to go it alone from Great Britain.

Perceived politi cal dominance from “the South” has become an increasing bugbear for patrioti c Scots over the decades. In 1979 a proposal for devoluti on was put to a referendum but, despite a narrow majority of votes cast in favour, resulted in no change due to rules about proporti on of turnout required.

Any suggesti on of change was roundly quashed throughout the Thatcher and Major governments. It was only when New Labour came to power in 1997 that a formal referendum for devoluti on was tabled. This resulted in clear

24-29 Scottish Ref V2.indd 16 12/06/2014 11:07


FAIR, LEGAL & DECISIVE At the 2011 general electi on, the SNP gained 69 out of 129 seats; enough to govern alone – and also a mandate to hold an independence referendum. In January 2012, the UK Government began a process of legislati ng to give the Scotti sh Government the powers to hold a referendum that was “fair, legal and decisive”. Whilst formal details were being thrashed

out, the First Minister Alex Salmond announced his intenti on to hold a vote in the autumn of 2014. In October 2012 the two governments reached the Edinburgh Agreement.

The date was set, but what would independence actually mean for Scotland? A simple questi on, but complex outcomes.

The Electoral Commission, responsible for overseeing the

referendum, tested variously phrased questi ons for the public to vote for. It decided that of all those proposed that “Should Scotland be an independent country?” was the most neutral and concise.

Now, aft er years of campaigning for the right to a referendum, it was ti me for the nati onalist campaigners to set out their vision of what an independent Scotland would be. It



excluding the North Sea’s hydrocarbon bounty, per capita GDP is higher than that of Italy. Oil, whisky and a broad range of manufactured goods mean an independent Scotland would be one of the world’s top 35 exporters.

An independent Scotland could also expect to start with healthier state fi nances than the rest of the UK. Although Scotland enjoys public spending well above the UK average – a source of resentment among some in England, Wales and Northern Ireland – the cost to the Treasury is more than outweighed by oil and gas revenues from Scotti sh waters.

But, as Mr Cameron is keen to point out currently, an acknowledgment that Scotland could succeed alone does not mean it would be bett er off than within the UK. Over the past year, Mr Cameron’s government has published a series of papers arguing that Scotland benefi ts from free access to the UK’s market of more than 60m people and from the security of being part of a large and powerful state.

Batt le lines were being drawn, which were formalised into two campaigns: the nati onalist ‘Yes Scotland’ and the pro-union ‘Bett er Together’. ‘Yes Scotland’ is supported by the SNP, the Scotti sh Green Party and the Scotti sh Socialist Party. ‘Bett er Together’, led by former Chancellor of the Exchequer Alistair Darling, has the support of the Labour Party, the Conservati ve Party and the Liberal Democrats.

Both sides of the campaign draw att enti on to Scotland’s positi on in selling goods and services – currently trading more with the rest of the UK (65 per cent) than to the rest of the world combined (35 per cent). >>

We would be among the wealthiest nati ons in the OECD. Scotland has

contributed more in taxes, per person, than the rest of the UK for every single

one of the last 30 years.

would mean a departure of 8.3 per cent of the UK’s current populati on as well as about 9.2 per cent of its gross domesti c product.

In November 2013, the Scotti sh Government published Scotland’s Future – a heft y white paper laying out what the future might look like. Mr Salmond proudly described it as “most comprehensive blueprint for an independent country ever published”,

and argued it showed his government “does not seek independence as an end in itself, but rather as a means to changing Scotland for the bett er.”

The strength of Scotland’s economy and its ability to stand alone has been key to the nati onalist argument for independence, as they believe that being part of the UK has held Scotland back.

SCOTLAND’S UNDERLYING ECONOMIC STRENGTHIn a lecture for New Statesman, Mr Salmond said: “If we vote YES in September then Scotland will become independent in more promising circumstances than virtually any nati on in history.

“In fact, nobody really doubts that an independent Scotland could be successful. This consensus refl ects Scotland’s underlying economic strength. We would be among the wealthiest nati ons in the OECD. Scotland has contributed more in taxes, per person, than the rest of the UK for every single one of the last 30 years.”

There is some broad consensus on Scotland’s capacity to be a viable nati on state. Even David Cameron is quoted as saying “Supporters of independence will always be able to cite examples of small, independent and thriving economies … such as Finland, Switzerland and Norway. It would be wrong to suggest that Scotland could not be another such successful, independent country.”

The economic facts do appear to support this. If it’s geographic share of UK oil and gas output is taken into account, Scotland’s GDP per head is bigger than that of France. Even



In Scotland’s Future – A Business Plan for Scotland, the Scotti sh Government att empts to reassure voters that conti nued trade with the rest of the UK is in the interest of all parti es. There are complex cross-border supply chain arrangements which would not simply change overnight.

However, ‘Bett er Together’ warns that it could come at a long-term cost – an analysis also supported by independent economists.

James Knightley, senior economist at ING, said the high transiti on costs of separati on uncertainti es the terms of EU membership meant that the material benefi ts of independence were “far from clear”. However Mr Knightley also noted that greater sway over its own economy could be a real advantage for Scotland.

More wary is Dr David Comerford of Sti rling University, who has worked to try and quanti fy the cost of an independent Scotland on trade. He has studied what he describes as the ‘border eff ect’ – the observati on that trade is higher within countries than between countries.

Dr Comerford writes: “If in the long run, the border between an independent Scotland and the rest of UK border aff ects trade like the current border between the Republic of Ireland and the UK, then we esti mate costs at 5.5% of Scotland’s GDP.”

IN FOR A PENNY, BUT OUT OF THE POUND?Whilst the potenti al fi scal benefi ts or complicati ons for Scotti sh trade should independence come are far from crystal clear, a more immediate concern is the currency Scotland would use.

Mr Salmond has lobbied for Scotland’s right to use the pound sterling as part of a currency union, warning that forcing Scotland to use an alternati ve currency would cost businesses remaining in the UK dearly.

However George Osborne, the Chancellor of the Exchequer, has made it clear recently that “if Scotland walks

away from the UK, it walks away from the UK pound.” This view is supported by Mr Osborne’s Labour and Liberal Democrat counterparts Ed Balls and Danny Alexander, who have also dismissed the idea of a union between Scotland and the rest of the UK.

Alistair Darling also reinforced the pro-Union view, saying it is “now simple fact that Scotland cannot keep the pound if we leave the UK”.

Setti ng aside the politi cal rhetoric, the Nati onal Insti tute of Economic and Social Research (NIESR) recently published a review into the issue of currency for an independent Scotland.

The paper’s authors Angus Armstrong and Monique Ebell examined three currency opti ons: being part of a sterling currency zone, adopti ng the euro, or having an independent currency.

STAYING STERLING?The att racti on of maintaining the sterling are familiarity, no risk of disrupti on to existi ng contracts, and no transacti on costs for exchanges between Scotland and the rest of the UK.

However, such a Sterling Monetary Union would require the endorsement and legislati on of the conti nuing UK government. Will Westminster sti ck to its guns stoically, or would it be prepared to make some sort of deal?

EURO TRASH?Scotland is expected to be an EU member and therefore is very likely to be required to commit to joining the euro at some unspecifi ed future date. However, no country has joined the eurozone without fi rst having a period of ti me with its own currency.

The Euro has experienced turmoil during the global economic crisis, with the UK seemingly vilifi ed in its decision not to join the currency. Would Scotland benefi t from an informal euro currency union? The paper’s authors think not, saying it would be fi scally worse than an informal sterling currency union.

A MINTED SCOTLAND?The biggest predicted benefi t of having a new Scotti sh currency is added fl exibility. An autonomy of currency comes hand-in-hand with freedom of economic control – those levers so



...if Scotland walks away from the UK, it walks

away from the UK pound.

crucial for politi cians to push and pull to ensure stability and encourage growth.

The clear downside is – as Mr Salmond warns – transacti on costs for trading, investi ng, moving and spending across the border. >>



HOW WILL THE VOTE GO?Amidst all the uncertainty and conjecture revolves one huge sti cking point – will Scots actually vote to go independent?

Politi cians and journalists love opinion polls, keeping the 24 hour news machine rolling along. Whilst they can someti mes be proven dramati cally wrong, all signs are that this will be an extremely close vote.

A YouGov poll for Channel 4 News on 1st May (the last available data before this magazine published) showed that the two sides are almost neck and neck, with 42 per cent intending to vote “yes” whilst 58 per cent will vote “no”.

These fi gures strip out the “don’t know” votes and people who say they will not vote, which currently represent 12 per cent of those polled. Taking these into account, 37 per cent say they will vote yes and 51 per cent say they will vote no to the questi on.

Looking south of the border, Briti sh business is fi rmly in the “no” camp. A Briti sh Chambers of Commerce survey has revealed that a whopping 85% of businesses outside of Scotland want the country to remain part of the UK.

The report, which surveyed 2,400 Chamber members in England, Wales and Northern Ireland, also revealed that only 11% of fi rms said that Scotland should become an independent country.

John Longworth, director general of the BCC, said: “Business opinion across the United Kingdom on the Scotti sh independence debate is far from unanimous. That’s only logical, as businesses have diff erent interests, and diff erent views on our complex history of economic and politi cal union.”

“Businesses in England, Wales and Northern Ireland remain less than capti vated by the intense debate unfolding north of the border. Yet they do have views on the potenti al impacts of a change in Scotland’s relati onship with the rest of the UK.”

Unlike many recent UK electi ons, it doesn’t appear as if voter apathy will be an issue in this referendum, with a high turnout predicted. Alex Salmond has an impressive track record of moti vati ng Caledonians to embrace his nati onalist agenda and get to the polls.

An opportunity for Scotland to become stronger by herself, or an over puff ed ill-construed folly? There is no defi niti ve answer, for now. Potenti ally a brave and bold new independent nati on lies ahead. Only in the fullness of ti me will we fully comprehend the consequences should Scotland resolutely say “yes.”

Potenti ally a brave and bold new

independent nati on lies

ahead.


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HAE Advert.indd 1 14/04/2014 13:04p23_int_sum14.indd 1 11/06/2014 12:39:56


The Hire Awards of Excellence was the fi rst project I was handed when I began working

at HAE in December 2010. Back then my goal was straightf orward – recruit sponsors, lots of them! However as ti me went on and some internal changes occurred rather naturally, but nonetheless out of necessity, I took on the overseeing of some other aspects of the event like liaising with the venue and suppliers, dealing with guest bookings, updati ng the Hire Awards website – no need to bore you with the details, in a nutshell I became somewhat of a project manager.

Three and a half years and four Awards shows later the challenge is somewhat diff erent. Each year we’ve tried to incorporate something diff erent

into the program, like the introducti on of the winners Twitt er Videos at the Grosvenor House in 2012, Hire Achiever of the Year and other people-centric award categories and the ongoing challenge of fi nding a host.

On this last matt er, getti ng the balance right between a host who has some knowledge of the trade and enough charisma to entertain and hold the att enti on of the guests is a nearly impossible thing. In the past this has generally lead us to opt for popular TV personaliti es with less concern about their background but a confi dence that they could adequately entertain as well as deliver the awards. However this year we decided to pursue a host who has been on our wish-list for many years; who could share some stories that our audience could

understand and empathise with, but with the right personality to engage the crowds – DIY SOS frontman and latt er-day host of the Nati onal Lott ery: In It To Win It, Nick Knowles.

Nick’s appreciati on and respect for the hire industry was evident during rehearsals and later on as he took to the stage. He mingled comfortably with our guests, like an equal in fact, and addressed the eager, trophy-baited audience with great ease and professionalism. How many of you reading this will occasionally be glancing up at that you-and-Nick-Knowles-selfi e, hasti ly printed and stuck to the offi ce or shop wall!

On that note let’s get proceed to the heart of the matt er – who won what and what did some of our winners have to say. >>

HIRE AWARDS OF EXCELLENCE 2014

AwardsV2.indd 24 12/06/2014 11:30


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WINNERS INTERVIEW: Mike Clegg, Managing Director of PSM Plant & Tool Hire Centres –

Winner SafeHire Company of the Year.

ST: How did you feel, when you found out that you’d won?MC: We were ecstati c, obviously. It’s an honour to be noti ced aft er all these years. This award proves to us that the small independent hirers are a force to be reckoned with!

ST: Did you think you might win, or was it a total surprise to you?MC: We were prett y sure we would win actually! Making the shortlist was an incredible achievement and when we saw who we were up against we felt we had the edge. Keeping high standards is very important to us.

ST: Why do you think you won the Award, what gave you the edge over others do you think?

MC: We have a really good, dedicated team with years of experience between them. We also have strong policies and procedures. Winning this award shows us that good staffi ng and high standards sets you apart from other hirers large or small. It’s oft en hard work and not much fun but maintaining high quality is more important.

ST: How do you think winning this Award will aff ect the company going forwards?MC: It has boosted morale enormously. This award is a refl ecti on of all the hard work performed by every person working at PSM Plant. We will promote this win in our marketi ng and with potenti al clients when tendering for business.

1. Adams Catering Hire - Winner: EHA Company of the Year (single outlet). Sponsor GenSet

2. Alide Hire Services - High Commendati on: HAE Company of the Year (up to 5 outlets). Sponsor MHM Plant

3. Allens Catering Hire – Winner: EHA Company of the Year (multi ple outlets). Sponsor inspHire

4. A-Plant - High Commendati on: HAE Company of the Year (over 5 outlets). Sponsor HAE Insurance Services

5. A-Plant - High Commendati on: Workshop Manager of the Year. Sponsor STIHL GB

6. GGR Group - High Commendati on: Website of the Year. Sponsor Youngman Group

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WINNERS INTERVIEW:WINNERS INTERVIEW:WINNERS INTERVIEW:WINNERS INTERVIEW:WINNERS INTERVIEW:WINNERS INTERVIEW:WINNERS INTERVIEW:WINNERS INTERVIEW:WINNERS INTERVIEW:WINNERS INTERVIEW:WINNERS INTERVIEW:WINNERS INTERVIEW:WINNERS INTERVIEW:WINNERS INTERVIEW:WINNERS INTERVIEW:WINNERS INTERVIEW:WINNERS INTERVIEW:Mike Clegg, Managing Director of PSM Plant & Tool Hire Centres –

WINNERS INTERVIEW:

AwardsV2.indd 26 12/06/2014 11:30


ST: How did you feel when you found out that you’d been shortlisted?AG: It was a big surprise and quite a shock. I didn’t think it was possible! My Mum (Director, Sonia Gilbert) didn’t tell me I was entered unti l the shortlist was announced!

ST: Was there a lot of suspense leading up to the decision?AG: I was a bit nervous but I never really thought I could win so there wasn’t a lot of suspense. It was a wonderful surprise!

ST: How do you think winning this Award will aff ect the company and you individually going forwards? AG: We do openly disclose our award wins when going out looking for new business, we place logos

WINNERS INTERVIEW: Amy Gilbert, Site-Equip & Loos R Us - Winner New Starter of the Year

on our websites and documents. We also show our awards as an enti cement when we are recruiti ng for new staff .

ST: Is there anything else you would like to say to the readers about the Hire Awards? AG: I think it’s a great thing in the industry for a young person to win this award. It would be great for more young people to be openly recognised in this sector, as I think we are largely unseen. >>

7. GGR Group – Winner: HAE Company of the Year (up to 5 outlets). Sponsor MHM Plant

8. Higher Concept Soft ware (Syrinx) – Winner: Service Provider of the Year. European Rental Associati on

9. Hire Stati on - High Commendati on: Catalogue of the Year. Sponsor FT Soluti ons,

10. Hire Stati on - High Commendati on: SafeHire Company of the Year. Sponsor PASMA, Bill Leaver

11. Hire Stati on – Winner: Depot Manager of the Year. Sponsor HireTrain

12. Hire Stati on – Winner: HAE Company of the Year (over 5 outlets). Sponsors HAE Insurance Services

It was a big surprise and quite

a shock. I didn’t think it was possible!

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WINNERS INTERVIEW: WINNERS INTERVIEW: WINNERS INTERVIEW: WINNERS INTERVIEW: WINNERS INTERVIEW: WINNERS INTERVIEW: WINNERS INTERVIEW: WINNERS INTERVIEW: WINNERS INTERVIEW: WINNERS INTERVIEW: WINNERS INTERVIEW: WINNERS INTERVIEW: WINNERS INTERVIEW: WINNERS INTERVIEW: Amy Gilbert, Site-Equip & Loos R Us - Winner New Starter of the Year

WINNERS INTERVIEW:

AwardsV2.indd 27 12/06/2014 11:31


ST: How did you feel when you found out that you’d been shortlisted?SP: I was really surprised but felt very honoured. I wasn’t enti rely sure what I’d done to deserve it – I’m just doing my job – but I was really pleased to have me and my team’s hard work recognised like this. More than that, I was really proud to be nominated on behalf of my team. This award is really all about our enti re workshop in Beckton.

ST: Was there a lot of suspense leading up to the decision?SP: Yes! There was a lot of anti cipati on in the run up to the awards night. It seemed to take forever from the shortlist being announced to the actual ceremony. I was excited and a bit nervous but there was also a lot going on at work which kept me busy.

ST: Why do you think you won the Award – what gave you the edge over others?SP: I’m sti ll not quite sure why I won – I really was just doing my job! But as a team we’re very focused on equipment quality and have also signifi cantly reduced the amount of kit in maintenance over the last 12 months, helping to maximise product availability and quality of kit for our customers. At the end of the day, it’s all about the customer so I guess being able to show how a workshop has had such a direct and positi ve impact on customer service will have infl uenced the judge’s decision.

ST: How do you think winning this Award will aff ect the company and you individually going forwards?SP: As a company, it’s great to have our achievements recognised by the

WINNERS INTERVIEW: Shaun Palmer, HSS Hire Service Group – Winner Workshop Manager & Hire Achiever of the Year

industry. Our engineering functi on is always evolving and improving and it’s really nice to have recogniti on from outside the business for our hard work. The whole team are really proud of it.

ST: Have you won other awards in the past or is this your fi rst one?SP: This is the fi rst award I’ve ever won – well, the fi rst one I’m going to admit to anyway!

ST: Is there anything else you would like to say to the readers about the Hire Awards? SP: The awards night was fantasti c - it was great to see so many people from around the industry celebrati ng what we all do. I love working for HSS and was really proud to be there on behalf of the team. We won quite a few other awards too and we all had a great ti me.

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AwardsV2.indd 28 12/06/2014 11:31


At the start of this arti cle I awarded myself the ti tle of ‘project manager’ but that descripti on is rather clinical and doesn’t capture the enjoyment and oft en vicarious personal pride that I feel when it comes to the Hire Awards. Who wouldn’t want to be on the organising team for the event that showcases an industry at its fi nest, recognises the achievements of the best companies and the best people* and grants them their moment to shine before an audience of peers and supporters.

Rest assured, by the ti me the Awards is fi nished and we’ve got through all the follow-up work we’re all feeling quite glad that it’s over… but it’s never off our minds for long. In fact we are already talking about venues and hosts and pondering the seemingly impossible questi on of how we improve the event in 2015.

I’d like to see you try to win Company of the Year with poorly trained or unmoti vated staff and managers!

The team at HAE EHA are immensely grateful for the support shown by our members every year; we couldn’t run the Hire Awards without sponsors and suppliers, and we couldn’t carry out the ceremony without entrants and nominees. There’s a lot in the hire sector of which we can all feel quite proud, long may we conti nue to showcase this!

Keep watching our news channels for updates on the 40th Anniversary Hire Awards of Excellence in 2015!

*It’s all about the people of course.

13. HSS Hire Service Group - High Commendati on: Depot Manager of the Year. Sponsor HireTrain

14. HSS Hire Service Group – Winner: Catalogue of the Year. Sponsor FT Soluti ons

15. HSS Hire Service Group – Winner: Hire Achiever of the Year. Sponsor Higher Concept Soft ware (Syrinx)

16. HSS Hire Service Group – Winner: Website of the Year. Sponsor Youngman Group

17. HSS Hire Service Group – Winner: Workshop Manager of the Year. Sponsor STIHL GB

18. Kubota UK – Winner: Equipment Supplier of the Year. Sponsor A-Plant

19. Kubota UK – Winner: Product of the Year for the KX080-4. American Rental Associati on

20. Pop Up Products - High Commendati on: Product of the Year for the MiTower. American Rental Associati on

21. PSM Plant & Tool Hire Centres – Winners: SafeHire Company of the Year.

22. PSM Plant & Tool Hire Centres – Winners: SafeHire Company of the Year. Sponsor PASMA

23. Site-Equip & Loos R Us – Winner: New Starter of the Year. Sponsor CITB

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AwardsV2.indd 29 12/06/2014 11:31


43-44 Pheonix.indd 30 12/06/2014 11:37


In classical mythology the phoenix is a bird that burns itself on a

funeral pyre and rises from the ashes with

renewed youth to live again. There’s nothing

fi cti onal about the fraud of the same name, which can leave victi ms

thousands of pounds out of pocket or even

out of business. David Porteous investi gates.

Businesses fail for a variety of reasons and nobody would suggest that entrepreneurs

shouldn’t be allowed a second chance to achieve success.

This is why it is perfectly legal to set up a phoenix company, which is where the profi table assets of a failed limited company are moved to another company.

According to the Federati on of Small Businesses, one in three start-ups close within the fi rst three years. For honest individuals who are unable to trade out of their diffi culti es, a phoenix company gives them an opportunity to start over again and preserve the jobs of their employees. It also off ers some conti nuity for suppliers.

Any director of a failed company can become a director of a new company, unless he or she is personally bankrupt or subject to a disqualifi cati on order or bankruptcy restricti ons.

Phoenix company fraud, however, happens aft er a company goes bankrupt and a second legal enti ty is started up overnight with the same directors – but without any obligati on to pay for the failed company’s losses. The actual fraud is committ ed when the directors abuse this arrangement by transferring the assets of the failing company below their market value, before impending insolvency, leaving behind the debts.

CREDITORS ARE LEFT OUT OF POCKETThis way, the fraudulent directors reduce the funds available to creditors when the original company becomes insolvent. As a result, creditors are left out of pocket for the goods or services they supplied.

Very oft en, the new company will operate from the same premises, have a similar name, and conduct the same kind of business as its predecessor.

The Serious Fraud Offi ce cites the recent case of the owner of a whisky investment business who was found guilty of fraud. His company was engaged in marketi ng to the general public investment opportuniti es, principally in single malt whisky, but also in champagne. The company went into liquidati on a few years later with debts of over £500,000.

The founder immediately started to trade under another company, which had remained dormant unti l then and was similarly named. This company engaged in the same acti vity, and even had the same supplier and client list.

STRICTER RULES OVER THE PROCESS The Insolvency Act of 1986 has made it far more diffi cult for directors to deliberately force their companies into insolvency in order to buy back the assets at a reduced price while absolving their responsibility for the liabiliti es. It also imposed stricter rules over the insolvency process and who can become a liquidator. The liquidator must ensure that the best price is obtained for a business and its assets.

In additi on, Secti on 216 of this legislati on addresses one of the primary aspects of the phoenix problem, namely the re-use (oft en with a slight modifi cati on) of company names in order to exploit goodwill and business opportuniti es.

A spokeswoman for the government’s Insolvency Service said: “We can and will refer breaches of secti on 216 for prosecuti on acti on, and of those convicted of such a breach in 2013-14, four defendants received custodial sentences. We also seek to take rapid remedial acti on, requiring the company to change the off ending name and this acti on was successful in around 130 cases last year.” >>

43-44 Pheonix.indd 31 12/06/2014 11:37


WHAT CAN YOU DO IF YOU ARE A VICTIM OF PHOENIX COMPANY FRAUD?

The legal remedies against phoenix companies do not diff er from those with respect to other companies against which a business may have a civil claim.

Once a company enters insolvency or liquidati on proceedings, the creditors will be paid in order of priority from whatever remaining company funds are made available. But if you’re a trade creditor, it’s likely you will receive only a small proporti on of the money you are owed.

Clearly, this may result in serious fi nancial loss and have a direct impact on your own company’s cash fl ow and ability to keep trading and stay solvent. Business confi dence in your company could suff er, and your suppliers may impose less favourable payment terms on you.

PURSUE THE CLAIMS Acti on Fraud, the UK’s nati onal fraud and internet crime reporti ng centre, advises companies to pursue claims even if the phoenix company insists the failed company’s liabiliti es are not theirs when in fact both companies appear to be the same.

It also urges any creditor to a company undergoing insolvency to co-operate with the offi cial receiver or insolvency practi ti oner and inform them if you believe a company is withholding informati on about its assets.

And if you suspect that an individual is acti ng in breach of a disqualifi cati on or bankruptcy order, they are committi ng a criminal off ence and you should report them to the Insolvency Service. All this can help to ensure that unscrupulous directors are unable to set up new companies.

As with most things, preventi on is bett er than cure and there are some basic steps all businesses can take to protect themselves against phoenix company fraud.

It’s important to remember that most phoenix companies are legiti mate businesses but, as with any new customer, they should be carefully vett ed fi rst. In parti cular, follow up trade references and check the directors’ credenti als.

Find out why the previous company failed and ensure the directors are not serial abusers of the phoenix company arrangement. You can obtain informati on on company directors from Companies House or by getti ng hold of a status report from a credit rati ngs agency. Only extend trade credit if you are confi dent you will be paid – and paid on ti me.

FOREWARNED IS FOREARMED…

Emma Miller, managing director of Top Service, the UK’s only specialist credit reference agency for the constructi on industry, said: “Forewarned is forearmed and we recommend companies use industry-specifi c credit reference agencies who will be bett er able to spot repeat off enders.

43-44 Pheonix.indd 32 12/06/2014 11:37


It’s also important to not just carry out checks at the beginning of a contract with a

new customer but throughout the ti me you are working with them. We can alert customers if the director of a fi rm they are dealing with

suddenly sets up a new company. This may be all above board but the more informati on you

have, the bett er protected you are.

FOR FURTHER INFORMATION:

The Insolvency Service0845 602 9848www.bis.gov.uk/insolvencyActi on Fraud www.acti onfraud.police.uk0300 123 2040Companies Housewww.companieshouse.gov.uk0303 1234 500Financial Conduct Authoritywww.fca.org.uk0845 606 9966Top Servicehtt p://top-service.co.uk01527 518800

43-44 Pheonix.indd 33 12/06/2014 11:37


How much would you expect to pay for a brand new luxury villa on the southern coast of Bali?

£100,000? Maybe even £1,000,000? One couple recently purchased their dream home for just over 800 Bitcoin (roughly £300,000), in what appears to be the largest real world transacti on in the cryptocurrency’s history. But, just what is Bitcoin and how long, if ever, will it be before you’re buying anything from fl ights to a loaf of bread with it?

or bitcon?Twenty years aft er Tim Berners-Lee fi rst proposed the idea of the worldwide web,

online technology took another huge leap forward with the advent of a new currency that existed solely in the online domain. “Bitcoin”, as it would come to be known,

has many supporters and detractors, but will you ever be using it in hire shops as a payment opti on alongside coins and notes? Matt hew Dingley fi nds out…

Bitcoin.indd 34 12/06/2014 11:41


First introduced in 2009 by developer Satoshi Nakamoto as open source soft ware, Bitcoin is a peer-to-peer payment system that is not controlled by a single enti ty (like a central bank). This decentralised currency directly transfers ‘digital cash’ from one person to another instantly with minimal transacti on fees.

Currently, the online cryptocurrency is accepted sparingly by mainstream insti tuti ons.

most diffi cult hurdle that it faces in infi ltrati ng the mainstream is a lack of regulati ng body. Whilst many in the online community see the lack of centralised bank as one of the positi ves of Bitcoin (no dishonest fat cats to dip their paws into the public’s saucer of milk) many will see it as too big a risk for their hard earned cash. >>

There are some places, such as, BitPremier, where adopters of Bitcoin can purchase anything from handbags to hotels. However, as its popularity grows from the tech savvy individual to the man on the street, there are those who wonder if it will ever gain tracti on as a common market currency. Will you one day be accepti ng payment for a hire with this crypto-phenomenon? The fi rst, and perhaps

Bitcoin.indd 35 12/06/2014 11:41


STOLE £300 MILLIONNowhere is this bett er demonstrated than by the recent MtGox scandal. MtGox (Magic The Gathering Online eXchange) was a website based in Tokyo, originally built for gamers to trade cards like stocks, but in 2010 was re-launched as a Bitcoin exchange. Aft er a few smaller breaches of security in 2011 and 2013 the exchange’s weaknesses were fi nally exposed in early 2014. Hackers stole £300 million worth of customers’ Bitcoin, leaving the company to be placed in administrati on by a Japanese court. As all Bitcoin transacti ons are fi nal and non-refundable, this court appointed administrati on and likely future bankruptcy proceeding, leaves its customers in limbo as to whether they will ever see their hard earned Bitcoin again.

GLOBAL BUSINESS MORE VIABLE Despite this there are many positi ves in adopti ng Bitcoin, for example, the low infl ati on risk. To avoid market saturati on the fl ow of bitcoins onto the market is controlled to release a steady rate of 25 new bitcoin every 10 minutes. This number is then halved every 4 years unti l the fi nal fi gure of 21 million bitcoins is reached in the year 2140, though this does not limit bitcoins ability to grow from that point forwards as each bitcoin can be divided into 100,000,000 units, or “satoshis”. Taxes and third party seizures are not currently of concern as the decentralised system, combined with a lack of controlling bank, make it extremely diffi cult for the government, of whichever country you choose to trade from, to put

regulati on in place. This factor also includes the benefi t of minimal transacti on costs and no exchange fees for foreign transacti ons. Thus making global business more viable to those that wish to expand and more profi table to those that have already done so.

Globalisati on however may have its limitati ons as currently only roughly 1000 bricks and mortar businesses and roughly 35,000 online vendors accept Bitcoin as a valid form of payment. Another negati ve to consider is price volati lity due to the supply and demand driven nature of the market and its relati ve small size compared to that of nati onal currencies.

Ulti mately it may be the technological barriers that seal the fate of Bitcoins att empt to become a globally used everyday currency.

Bitcoin.indd 36 12/06/2014 11:41


According to The Internati onal Survey of Adult Skills 2012 only 11% of adults conduct transacti ons on the internet on a daily basis, with only a further 40% doing so around once a week. Eric Schmidt, Google Chairman, has also voiced his concerns at the lack of computer literacy in the UK at the Edinburgh Internati onal Television Festi val by saying he was “fl abbergasted to learn that today computer science isn’t even taught as standard in UK schools”. A lack of broadband access will also be a barrier to entry when att empti ng to globalise the use of Bitcoin as a legiti mate currency, especially in third world countries like Africa, where only 1.8% of over 1 billion people have subscribed access to the internet.

Based on the evidence, Bitcoin needs ti me to mature and will need monitoring before it can be adopted as a sole form of currency for business use. It may be the case that Bitcoin could be off ered as an alternati ve to customers to show innovati on and modernisati on within an organisati on, though the risk involved may not yet outweigh the reward.

VITAL STATISTICS:Date Created: January 2009Creator: Satoshi NakamotoHighest market price: US $1216.73 (Just over £700 per Bitcoin)

HOW TO EARN BITCOIN:Bitcoins are released to the network through a process called ‘mining’ which involves an individual lending their PC’s computi ng power to complete ‘blocks’ by solving diffi cult mathemati cal problems that require a 64 digit soluti on. Each problem solved releases a new batch of bitcoins to the user that completed the block thus providing an incenti ve to users to further increase the computi ng power they make available to the network.

HOW TO USE BITCOIN:To receive Bitcoin a user must create a digital wallet, or Bitcoin address, from which they can store and spend their digital cash. The address consists of a 27-34 lett er and number combinati on accompanied by security keys that must be unlocked by both parti es before any money can be sent or received from the wallet.

...fl abbergasted to learn that today computer science isn’t even taught as standard in UK schools...

Bitcoin.indd 37 12/06/2014 11:41


Talking of electi ons, the European and Local electi ons on 22nd May are likely to

deliver some surprises, with much interest in the fortunes of anti -EU parti es and the governing coaliti on partners, plus how Labour, as the main oppositi on party, is faring. Much depends on turnout (which is

As Parliament starts yet another break it is useful looking ahead to the new session which will begin with the Queen’s Speech on 4th June. This session for 2014-15 will last

for under twelve months unti l the General Electi on on 7th May 2015. With fi xed fi ve-year Parliaments, all this is now known in advance. The new session is likely to include

a number of eye-catching proposals, but not too much business as to jeopardise the enactment of this legislati on well in ti me for the electi on.

usually quite low for both EU and local polls) and regional and local trends. The outcome will set the scene for the autumn party conference season and manifesto preparati on. HAE will have an opportunity to provide input into the various party manifestos, as will other business organisati ons and employers.

INVALUABLE REPORTS To assist with monitoring these developments and evaluati ng proposals, HAE has lined up DeHavilland, a respected and well-known monitoring and analysis organisati on, to monitor issues of interest to our sector (www.dehavilland.co.uk).

40-41 Lobbying.indd 38 12/06/2014 11:43


Their reports will prove invaluable in identi fying key themes and campaigning opportuniti es. This work has already begun. We will also be looking at the scope for an EU-level service later in the year when the European Commission and Parliament are back aft er the electi ons and the protracted and inevitable alliance building in Brussels.

The hire sector has a commendable record in creati ng opportuniti es for apprenti ceshipsTurning to the UK, HAE has been alarmed at a proposal from both the Business Department and Treasury to fundamentally alter the system for payment to reimburse the costs of taking on apprenti ces. The hire sector has a commendable record in creati ng

opportuniti es for apprenti ceships and the combinati on of the trade associati on providing the funding and administrati ve support and identi fying potenti al employers seems to work well. However, the recent consultati on document is proposing to shift these payments directly to the employer (which we recently reported on, on our social media platf orms and welcome any comments you have on this), with implicati ons for bureaucracy, costs and also potenti ally deterring SMEs and micro-enterprise from taking part. One opti on would be to allow employers to be reimbursed via PAYE - an already complicated regime. Another is for employers to make a fi nancial contributi on towards the costs of external training. Working with CITB and other trade bodies, HAE is opposing these changes by registering our concerns in response to the consultati on and will be using all opportuniti es to highlight what we consider to be a retrograde step.

HAE conti nues to support eff orts to deregulate and ensure that enforcement is both proporti onate and risk-based. Several members have raised the operati on of the Environment Agency, which has extensive duti es under a range of environmental and other legislati on. Hire operati ons and transportati on fall under various obligati ons and we would be keen to learn from members of parti cular incidents or concerns in relati on to environmental enforcement and linked issues, such as record-keeping.

Please contact [email protected] if you have informati on to share on this topic or would like further informati on on this or other policy and lobbying issues.Mark BradshawPolicy & Public Aff airs, HAE EHA

40-41 Lobbying.indd 39 12/06/2014 11:43


SAFE USE OF MACHINERY

The HSE has published yet more guidance on maintaining portable electric equipment in low-risk environments. Does this clear up any confusion?

SETTING THE RECORD STRAIGHTThe HSE has recently updated 1NDG236 — Maintaining portable electric equipment in low-risk environments www.hse.gov.uk/pubns/indg236.pdf. This leafl et explains what’s expected if you use such equipment in environments like offi ces, shops etc.

WHAT DOES IT SAY?Although the HSE has stated that over £30 million is wasted each year by businesses paying for unnecessary portable appliance testi ng (PAT), this document doesn’t advocate stopping the tests. In fact, quite the opposite. Plus, it doesn’t give a defi niti ve answer on how oft en a test should be undertaken. It simply states: “The person carrying out the test should not assess when the next test will be due as this decision should be made by you on a risk assessment basis”.

WHAT DOES THIS MEAN?In simple terms, this rules out having a policy of testi ng everything annually. The HSE, quite rightly, states that this isn’t the correct approach. Instead, you should:

Tip 1. Instruct staff to complete user checks to identi fy any obvious signs of damage, e.g. cuts in cables, loose/exposed wires etc.

Tip 2. Arrange for a formal visual inspecti on to be completed: the HSE has included a table in its guidance which suggests how oft en this should be done. It doesn’t need to be carried out by an electrician — someone who knows how to spot signs of damage, whether the fuse is correct etc. can do it.

Tip 3. If there are doubts about the safety of a piece of equipment, or if it’s been damaged, a PAT should be completed. If there are no problems identi fi ed by the user checks or visual inspecti ons, the ti me between tests can be extended to up to fi ve years.

To PAT or not to PAT?

HAE has always advocated electrical testi ng of equipment for hire aft er each hire or at least every 3 months on longer hire periods, which culminated in the publicati on in 2013 of its Code of Practi ce on Electrical Safety Testi ng (available free to all members). Whilst this advice is highly perti nent in the world of hire where a rigorous schedule of maintenance and testi ng is essenti al when it comes to a low risk environment, such as an offi ce, then the new HSE guidance is of more relevance.

Hire Doctor.indd 40 12/06/2014 11:46

HAE Insurance Services and EHA Insurance Services are trading names of The Insurance Partnership Services Ltd (Reg No. 3937509) which is part of Jelf Group plc (Reg No. 2975376) and is authorised and regulated by the Financial Conduct Authority (FCA). Registered address: Hillside Court, Bowling Hill, Chipping Sodbury, Bristol BS37 6JX (Registered in England and Wales). Not all products and services offered are regulated by the FCA.

Insuring the way for the Hire Industry

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Contact our Friendly Team at HAE & EHA Insurance ServicesBy calling Tel: 01482 388 552 or Email: [email protected]

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18-19 DIY copy.indd 42 12/06/2014 11:53


“The industries we serve, constructi on and event, are both complex and fragmented. Complex because they embrace a wide and varying range of skills and services within which they sit, and fragmented because they are so vast, very litt le is in our vision at any one ti me. This results in the need for precise and targeted marketi ng, especially

as we move from our previous status of recession into a growth phase - and long may this remain, parti cularly within our sector.”

Moti vati ng a customer is a diffi cult and complicated task. Taking all issues around

customer wants and packaging them into a campaign is not the answer, individual needs should be addressed. But what if you lack the budget to compete against larger operators? This is where thoughts turn to DIY marketi ng and what can used to promote a business, enti ce customers (in parti cular individual needs), AND stay ahead of the game. Thousands of start-ups and SMEs are now out there doing it for themselves!

DO IT YOURSELF

With the expansion of the digital toolbox SMEs can now market well above their weight and prove that big ideas can compete against those with a big budget! A myriad of opportuniti es now exists for those on a shoestring to connect with their target audience quickly and eff ecti vely. Digital marketi ng has given small businesses the ability to take control of their own desti ny. Social media, content marketi ng, blogging, e-mail, SEO and paid search - the opti ons can be endless! >>

18-19 DIY copy.indd 43 12/06/2014 11:53

LEVELLING THE PLAYING FIELDDigital can provide a solid foundati on from which to build a successful business, through the use of creati ve ideas by SMEs rather than aiming for a budget which doesn’t exist – it makes for more of an even keel against the big boys. You don’t have to spend thousands of pounds to make eff ecti ve use of social media and to become successful on platf orms like Twitt er and Facebook – you just need more creati vity and perseverance and oft en a Smartphone! No matt er how much money you have you can’t buy a “bett er” Twitt er profi le or Facebook page – it sti ll has to be earned.

THE DIY CONCLUSIONDIY technology packages have made it easier for SMEs as soft ware systems are much more integrated with each other and packages e.g. Salesforce allow leads to be managed in-house. Marketi ng is now seen as integral to a product/service being sold, not as an add-on aft erwards. This doesn’t mean to say it should all be rushed in-house, an agency can sti ll be considered as keeping up with the rapid change in digital marketi ng can prove diffi cult – and an agency can introduce ideas not previously thought of.

In 2012 the barrier to SME growth was the economy, but as we climb out of the recession and into a growth phase those who have kept up with the marketi ng game, or are currently going down the DIY route, will benefi t.

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18-19 DIY copy.indd 44 12/06/2014 11:53


NEW GOVERNMENT INITIATIVE MAY ASSIST SMES The Government is set to launch a digital marketi ng apprenti ceship in January 2015 and are currently in talks with the likes of IBM and Google to set this up. A draft standard is out for consultati on and due for submission to BIS (Business, Innovati on and Skills) in June. Once accepted course content will be agreed (with input from the Chartered Insti tute of Marketi ng and Briti sh Computer Society), providing a government-backed template for all digital marketi ng apprenti ceships in England/Wales. Once fi nalised standards will be published on the Nati onal Apprenti ceship Service website www.apprenti ceships.org.uk

DO YOU WANT TO DO SOME MARKETING BUT AREN’T SURE WHERE TO START?DO YOU HAVE A LIMITED BUDGET?DO YOU NEED HELP WITH DIGITAL MARKETING?

HAE already provide some assistance to smaller members with marketi ng e.g. the Print on Demand product, whereby you can insert your logo onto our safety leafl ets, working alongside the HAE logo – to promote your focus on the safe use of tools hired. We’d like to hear from you if you answered yes to this, as we are currently considering introducing a marketi ng product for members.Please email [email protected]

The age of digital will conti nue to change, but traditi onal methods of marketi ng are sti ll very much on the agenda, in combinati on with the digital aspect. Without a doubt

in 2014 though is if your website isn’t adapted for mobile marketi ng, your business is missing out!

18-19 DIY copy.indd 45 12/06/2014 11:53


MEMBERSHIP NEWS

HSE INSPECTORSHSE INSPECTORS

Nati onally, HSE Inspectors are receiving briefi ngs on key topics of operati onal

guidance on Inspecti on and Enforcement for future site visits. The HSE are planning to carry out health focussed visits to sites from the last week of June 2014 onwards. These topics include: dust, noise, vibrati on and MSD’s (e.g. back injury / manual handling).

Enforcement acti on will include: FFI (Fee For Interventi on, currently £124 per hour plus VAT), Improvement Noti ce Prohibiti on Noti ce (if an immediate risk of injury / harm) and Prosecuti on for serious breaches.

Note: HAE members who uti lise the BusinessGuard Plus service can now access FFI Protecti on to cover FFI costs – see below for more informati on.

Dust management will be a specifi c focus, and sites will be visited with Inspectors concentrati ng on how employers manage dust exposure for workers and others aff ected by their work e.g. shared occupati on (where

the building is sti ll in use by the client), refurbishment

works and constructi on.

EQUIPMENT SPECIFIC POINTS ARE:• Safe Systems of Work should focus

on dust capture at source and equipment should be:- Well maintained- Have eff ecti ve connecti ons to

equipment e.g. between the vacuum / dust extractor and the power tool for on-tool dust extracti on e.g. vacuum and a cross-cut mitre saw

• Thorough examinati on and test (TExT) - HSE are discussing with industry (to include HAE) issues associated with the practi cal implementati on of this. Unti l this has been concluded Inspectors should focus on general maintenance issues.

• Wet cutti ng – where appropriate is suppression being used, does the water system work eff ecti vely.

• RPE – are suitable face-fi tt ed masks being used - NO COMFORT MASKS!

Visit the HSE website for more informati on and new operati onal guidance documents.

WHAT SHOULD HAE MEMBER COMPANIES DO?• Encourage the use of extracti on or

suppression equipment• Ensure equipment has its dust

ports / capture ports fi tt ed

Membership.indd 46 12/06/2014 11:57


• Off er air-cleaning equipment e.g. AirCubes or similar for capturing dust missed by any extracti on system

• Ensure availability of M or H class vacuums / dust extractors

• Ensure vacuums / dust extractors are supplied with suffi cient bags and / or instructi on on how to reverse pulse fi lters

• Ensure all equipment is serviced, tested and cleaned ready for hire without releasing dust into workshops / hire environment

FFI PROTECTION FROM HAE EHA BUSINESSGUARD PLUSFee For Interventi on (FFI) Explained If the Health and Safety Executi ve (HSE) Inspector decides to noti fy your business in writi ng of what they regard as a ‘’material breach’’ your business becomes responsible for reimbursing the HSE for their costs in investi gati on, inspecti on and recti fi cati on of the breach. Your business will pay £124 per hour unti l the breach is recti fi ed.

One of the issues here is uncertainty. Your business is unlikely to know the full extent of any cost unti l an invoice is received, as there is no real way of knowing how much ti me HSE is spending on the fi le. HSE can also charge the same amount for any third party input it requires in investi gati ng the matt er.

In the event the costs appear to be unreasonable, there is of course an appeals process available to you, but beware, the rate already charged will conti nue to be applied throughout the appeal.

More informati on is available here: www.hse.gov.uk/fee-for-interventi on/what-is-ffi .htm

So what are the implicati ons for your business? This development introduces a signifi cant fi nancial unknown to your business as the eventual cost is limitless.

However HAE BusinessGuard Plus has been enhanced and now includes invaluable fi nancial protecti on in this regard. HAE BusinessGuard Plus is an inexpensive health and safety hands-on soluti on available exclusively to HAE members, and with the improved cover the service now incorporates fi nancial compensati on in the event of an FFI being launched. This is subject to conditi ons and a maximum payment of £10,000.

Please ring HAE BusinessGuard Plus on 0121 380 4612 for full details.www.hae.org.uk/businessguard

Membership.indd 47 12/06/2014 12:10


W ith the high volume of hire industry events in the fi rst quarter of 2014

we took the opti on to forego our Spring Golf Society event, and hold a single event in the Summer… but make it a large one!

Also we knew the extra-long wait would have you gnawing at your golf clubs with the anti cipati on… or ready for a decent round at the very least! So with no further frippery let’s get on with the details:

Date: Wednesday 17 September Venue: Menzies Welcombe Hotel, Spa & Golf Club, Stratf ord-upon-Avon, WarwickshireArrive: 10am for coff ee & bacon rollsTee ti mes: From 11am onwards

We will conclude the day with an evening meal and trophy ceremony where we will hand out prizes for best team (and runners up), best player, longest drive and nearest to pin.

Thanks go to 2014 sponsors Higher Concept Soft ware and HAE Insurance Services.

For full details and prices visit www.hae.org.uk/golfdays; to book in and/or take a sponsorship opti on contact Stuart on 44 (0)121 380 4622

or [email protected] .

Golf Day.indd 48 12/06/2014 12:03

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Training

PROGRAMME OF SEMINARS, WORKSHOPS, TRAINING COURSES & SPECIAL EVENTS SUMMER 2014

TOOL & EQUIPMENTHIRE MANAGER LEVEL3 NVQ DIPLOMASPECIALIST UP-SKILLINGPROGRAM (SUP) FULLYFUNDED FOR CITBMEMBERS

Programme consisti ng of a3-day off -site Management &Leadership course and 2-daySite Supervisor Safety TrainingScheme (SSSTS). Training youreally cannot aff ord to miss!

Glasgow - TBC3rd, 4th, 17th, 18th and 25th September

Birmingham – HAE Solihull30th September, 1st, 7th, 8th and 15th October 2014

£795 - 5 day MLP with SSSTS£1900 - fully funded 5 day MLPwith SSSTS and level 3 NVQ

CITY & GUILDS 6302 -PTLLS TRAIN TO TRAIN

HAE is off ering this fantasti ctraining opportunity to allof its members, perfectfor companies that delivertheir own in-house courses.Discounts available to HireTrainmembers and for early booking,contact us for more details

Bristol9th, 16th, 24th September, 3rd, 10th October with opti onal extradays: 13th and 14th October

An all-inclusive cost of £575 +VAT for PTLLS and £150 per dayfor the opti onal days

SAFE USE OF LPG IN THE EQUIPMENT & EVENT HIRE INDUSTRY

Three training courses are available. On successful completi on all att endees will receive full certi fi cati on and LPG Safety Passport to HSE IND G381. Opportunity for onsite courses also available.

Drivers - Half-DaySafe handling, loading, transporti ng

Maintenance Staff - Full DaySafety checks, standards, servicing

Managers - Full DayLegislati on, Codes of Practi ce, Responsibiliti es

Training.indd 50 12/06/2014 15:15


Training

Or for more informati on or to book a place contact: Richard Whiti ng on 0121 380 4623 or

richard.whiti [email protected]. Full details can also be found at www.hae.org.uk/training

DRIVER CPC TRAINING

For LGV drivers with a C1, C and C+E licence. All drivers will need to complete 35 hours of periodic training by 10th September 2014 in order to drive professionally.

Various Dates Throughout 2014

Various Locati ons Across the UK & Northern Ireland

£55 + VAT per person plus £8.75 (VAT exempt) DSA upload fee per person

Training.indd 51 12/06/2014 12:07


IS THE BUBBLE CLOSE TO THE PIN?

Housing.indd 52 12/06/2014 12:11


The UK economy is on the rise and once again it seems that the housing market is helping to fuel it. This is

good news for the constructi on industry and equally good news for the Hire Industry that is poised to

take advantage of the opportuniti es presented by the building policy emerging from future home building

requirements outlined by the UK Government.

The Government recognized the importance of the sector and the boost it could provide

to the economy as a whole and made positi ve moves to provide assistance. The principal tool was the by introducti on of the ‘Help to Buy’ scheme, but has it worked?

For many years the UK has not created suffi cient housing stock to meet the demand and if you look at the last ten years, which includes the good ti mes pre 2008, the sector has never built anywhere near the current requirement of 220,000 homes a year up to 2021. In fact, the best year for completi ons was 2007-08 when a fi gure of around 170,000 was achieved, some 23% below our annual requirement through to 2021.

SO WHAT PREVENTS US REACHING THE TARGET FIGURES? There are a number of factors:• Issues around a shortage of land

with suitable planning permission • A common percepti on that the

countryside is overdeveloped, in fact only around 10% of the total area of the country is developed leading to planning issues.

• A consensus that there are an enormous number of empty houses available, this is a myth and although it could be argued numbers are 3 ti mes the actual we all know that stati sti cs can be manipulated to say whatever you want.

• The misconcepti on that there is suffi cient brownfi eld land to sustain the growth when by the ti me planning and recovery is completed it would only provide around 15% of the annual need over a 20 year period.

Having identi fi ed some of the development restraints you can then add in the human factors that discourage development. The problem of aff ordability is a major issue with the average house price to salary rati o doubling in the last 40 years. First ti me buyers are low in number because they can’t aff ord the deposit levels without support from family so as a consequence the average age of fi rst ti me buyers has increased signifi cantly. This creates a lag in the market.

The UK Government has, to its credit, recognised a lot of these issues and introduced a variety of schemes to assist both developers and the buyers. >>

Managing the housing boom

is essenti al, it must remain sustainable to

prevent a similar outcome as 2008 for the constructi on

industry.

Housing.indd 53 12/06/2014 12:11


• Introducti on of relaxed planning conditi ons through the Nati onal Planning Policy Framework, although Local Authoriti es seem to be fi nding other ways of controlling the planning programme and slowing down development.

• Launch of the ‘Help to Buy – Equity Loan’ scheme in mid 2013, which has been a great success and is credited with almost singlehandedly bring about the recovery in the housing market with housing starts up 34% since its introducti on.

• Further additi on to the above scheme with ‘Help to Buy – Mortgage Guarantee’ in January of 2014

• A ‘New Buy’ scheme aimed at reducing the deposit level for fi rst ti me buyers of new build homes.

The above assistance has defi nitely resulted in the growth of the sector but there is now a fear that the help has been both too great and lasted too long, and because the economy is also showing a healthy

growth demand is rising faster than expected. This is leading to soaring house prices and recently the Bank of England have talked about taking acti on to slow things down and to avoid the bubble bursti ng leading to the need to answer two questi ons:How close is the pin to the Bubble?Is it a nati onal problem?

All this comes about, principally because of the extreme demand in the South East (mainly London) where property prices are rising at 17 % a year yet in the rest of the country the average is in the order of 4.5%. It is clear that whilst an umbrella approach appears to have sti mulated the market a similar umbrella approach to withdrawing or reducing assistance would have a negati ve eff ect on the regions. Surely the only real way to balance the market is to increase the stock of housing, thus reducing demand and taking the heat out of prices.

Cauti on is required with how the market is managed because employing the wrong tacti cs could have a devastati ng eff ect on the economy and more parti cularly on individuals.

The Help to Buy scheme is providing desperately needed homes

and creati ng jobs

Housing.indd 54 12/06/2014 12:11

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