Safety In Action 2014‘Cutting red tape, improving safetyand preventing major accidents?’

Kym Bills, CEO WA:ERA

12 June 2014, 11am

WA:ERA established 18 September 2003

• Capability building

across CSIRO, UWA

and Curtin (WA $20m)

with an initial focus on:

- Gas technologies

- Offshore facilities

- Subsurface

technologies

• ARRC opened 2001

includes 3 JV partners

& now Pawsey CentreWESTERNAUSTRALIANENERGYRESEARCHALLIANCE

Precinct: 3 World-Class Research Partners

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CSIRO

Curtin

UWA

National Resource Sciences Precinct

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WA:ERA links with NRSP, launched 8/4/14 by

CSIRO, Curtin & UWA in collaboration to position

Perth as a world capital for minerals & energy

R&D by 2020 - assisting global competitiveness of

the Australian resources sector through innovation

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• Woodside & Chevron fund R&D

via WA:ERA framework agreements

- collaboration with their experts is crucial

• Support professorial chairs at Curtin & UWA in:

Petroleum Geology, LNG Construction

Productivity, Corrosion, Gas Process

Engineering, Petroleum Geoscience,

Computational Geoscience, Palynology

• Shell chairs also at UWA & increasing

WA:ERA engagement and roles

Current Initiatives: NGL & FSC

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• $48.4m National Geosequestration Laboratory

(NGL) being implemented via CSIRO lead

• WA:ERA scoping help from Commonwealth to

engage industry to refine R&D focus for Floating

Systems Centre establishment second half 2014

- UWA lead: FLNG & related systems, eg subsea

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• The question mark in my topic is deliberate

- but like the conference theme of ‘enhancing

compliance, productivity and affordability

for big and small business’ - is it really possible

to do all of these things simultaneously?

• In both cases I think the answer is - ‘it depends’

• I want to canvass government regulatory

policy, remind you of our safety heritage and

major accident safety, and suggest an answer

needs to be risk-based and balance standards,

compliance, simplification and competitiveness

‘Cutting red tape, improving safety

and preventing major accidents?’

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Good health and safety is vitally

important. But all too often

good, straightforward legislation designed to

protect people from major hazards has been

extended inappropriately to cover every walk of

life, no matter how low risk. ... As a result,

instead of being valued, the standing of health

and safety in the eyes of the public has never

been lower ... businesses are drowned in red

tape, confusion and the fear of being sued for

even minor accidents.

Cutting UK Red Tape

British PM David Cameron

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We simply cannot go on

like this. ...

We’re going to end the

unnecessary bureaucracy

that drains creativity and innovation from our

businesses. ... we’re going to focus

regulations where they are most needed;

with a new system that is proportionate, not

bureaucratic; that treats adults like adults and

reinstates some common sense and trustBritish PM David Cameron 2010

Cutting UK Red Tape

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This scandalous culture of piling

on new regulations without

assessing the consequences

for productivity, and the costs involved, must now

come to an end. Protecting the consumer, the

environment and the worker ... are legitimate

interests but there are other legitimate interests ...

[We seek to ensure] regulation is never adopted as

the default solution, but rather introduced as a

means of last resort.

Cutting Australian Red Tape

Parl Sec Josh Frydenberg

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Regulation can have benefits, but ... can’t eliminate

every risk, nor should it. ... Policy makers must

seek practical solutions, balancing risk with the

need for regulatory frameworks that support a

stronger, more productive and diverse economy

where innovation, investment and jobs are created.

... [You can] look forward to a future with

substantially less red tape and Australia’s economy

continuing

to grow and prosper.

Parliamentary Secretary

Josh Frydenberg, 2013 & 2014

Cutting Red (& Green) Tape - Australia

But can we deregulate & avoid offshore MAEs?

Montara,

Aust

1/11/09

Varanus

Island,

Aust 3/6/08

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Macondo,

US Gulf

20/4/10

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The oil and gas industry is regulated

by around 150 statutes and more than

50 agencies, and much of the regulation

appears to be prompted by political factors

rather than by science or operational realities ...

The gas industry has no issue with the regulation of

its activities, but the rules must be based on

science. There are significant opportunities — at

both federal and state levels — to reduce red and

green tape and streamline the duplicative and

overlapping regulatory processes

David Byers, APPEA CEO, Flowline, April 2014

APPEA thinks so

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British Safety Heritage: 20 Year Landmarks

1972 Robens1949 Asquith

2010 Young1990 Cullen

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‘ALARP’ underpins UK (HSE) and

Australian (eg NOPSEMA & WHS) law

‘Reasonably practicable’ is a narrower term than ‘physically

possible’ … a computation must be made by the owner in

which the quantum of risk is placed on one scale and the

sacrifice involved in the measures necessary for averting the

risk (whether in money, time or trouble) is placed in the other,

and that, if it be shown that there is a gross disproportion

between them – the risk being insignificant in relation to the

sacrifice – the defendants discharge the onus on them.

Edwards v. National Coal Board [1949] 1 All ER 743 (per Lord Asquith)

British Safety Heritage: 1949 Lord Asquith

1949 Asquith

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British Safety Heritage: 1972 Lord Robens

1972 Robens

• Too much law

• Jurisdictional fragmentation

• Complex drafting unintelligible

• Saps responsibility

• Neglects human & organisational factors

• Training & joint consultation needed

• Monitoring of safety performance

• Responsibilities at all levels

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British Safety Heritage: 1972 Lord Robens

• Need new framework Act

• Basic employer safety duty

• Regulations support, plus codes & guidance

• No regulation before detailed need assessment

• Flexibility for new technology & compliance

• But high risk areas should have tightened regulation

• Line management responsibility & specialist support

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British Safety Heritage: 1990 Lord Cullen

1990 Cullen• Piper Alpha 1988 - 167 dead

• Hazards & controls key

• Operators must demonstrate their case for facility

safety (ie fixed platforms & mobile) to the regulator

• Operators own, update and audit their safety cases

• Regulators undertake selective compliance checks

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British Safety Heritage: 1990 Lord Cullen

• Consistent with Robens

• Safety outcomes legislation focus

• Avoid prescriptive compliance that

can discourage innovation and lead to ‘box ticking’

• Use non-mandatory guidance material

• But some detailed prescription is still essential

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[The UK safety problem has been]

compounded by the actions

of some health and safety

consultants, many without

any professional qualifications,

who have a perverse incentive to take an

overzealous approach to applying the health and

safety regulations. As a consequence they employ a

goal of eliminating all risk from the workplace instead

of setting out the rational, proportionate approach ...

British Safety Heritage: 2010 Lord Young

2010 Young

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... since its coming into effect the

compliance driven approach and

prescription have continually

eroded the principles of the [1974]

Act’s risk based approach. ...there has been

significant regulation ‘creep’ ... with the original

principles of health and safety relating to hazardous

environments being extended to relatively low risk

activities and businesses.

Lord Young, Common Sense Common Safety, 2010

British Safety Heritage: 2010 Lord Young

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• Harmonisation is important for employers &

workers

• But we can’t jump over a copy of the Work Health

and Safety Act & Regulations, & Offshore Petroleum

and Greenhouse Gas Safety Act and Regulations

• There must be scope for simplification- application

of the enduring Robens & Cullen report principles

• Consultation, flexibility but clear controls and

responsibilities, monitoring, good guidance material,

collaboration, data-sharing, training …part of answer

A Way Forward

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A Systemic & Scientific Way Forward

Australian Work

Health and Safety

Strategy 2012-2022

Recent OECD Country Coal Mine Disasters

Soma, Turkey

May 2014, >300 dead

Pike River NZ,

November 2010

29 dead

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Upper Big Branch US,

April 2010, 29 dead

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• The 2014-15 Federal Budget cites a reduced

regulatory compliance cost target of $1b pa with a

‘one-stop shop’ for environmental approvals:

“How regulation is implemented affects

compliance costs. The Government has issued

statements of expectations to major regulators. …

a framework to assess regulators’ performance

is being developed.”

• We all face the serious challenge to learn from

our safety policy heritage, key compliance and

other standards, the SIA BOK, & MAEs

In conclusion I

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• There is no one right answer to ‘Cutting red

tape, improving safety and preventing major

accidents?’ and residual risk remains

• But we can’t afford to get the balance badly

wrong - either through more deaths and

injuries or through loss of productivity,

competitiveness and jobs

• So an answer needs to be risk-based, balance

standards, compliance, simplification and

competitiveness & learn key lessons from the past.

In conclusion II

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WA:ERA’s Mission

Fostering collaboration and resourcing

for petroleum and geosequestration

related research that provides

innovative, safe & sustainable solutions.