Cost of Harmonisation

Costs of Harmonisation to Business

Excellent article from Safety At Work Blog. Extract:

Australian lawyer Andrew Douglas has provided a frank assessment of the OHS harmonisation process instigated by the Australian government to reduce red tape and administrative costs of safety. In Smart Company on 1 March 2011, Douglas wrote:

“…the Model Act, the regulations and documents that flow from it will dramatically increase state-based businesses legislative compliance, will massively increase the paperwork proving compliance and will inevitably lead to a substantial increase in costs to business in managing safety and OHS.”

Most State governments continue to support the harmonisation process, in almost all its elements, as a positive for business. So what’s the story here?

Andrew Douglas’ opinion needs serious consideration as it is one of the few contrary positions expressed to date……..The government has committed itself to the harmonisation process and, although it may fall over due to political issues, changes will occur from 1 January 2012. However, the government needs to acknowledge the limitations of this approach and the increased costs of safety that Andrew Douglas has identified. If safety is going to increase its prominence as and unavoidable but necessary element of business operations, the government should apply some of those business elements to OHS law changes. It is suggested that the following options be considered

On the anniversary of the introduction of the OHS laws, an investigation be undertaken to assess the new costs of compliance across all sectors of business with the results to be considered and implemented within 6 months after the report.
The new laws include a sunset provision of five years with a concrete obligation that a root and branch analysis be undertaken.
From January 2013, Safe Work Australia begin a consultative process looking at safety management principles, concepts and application across all levels of business in order to provide case studies and national guidance on safety management strategies that result in genuine safety improvements.

READ THE WHOLE ARTICLE HERE