Practical proposals for improving the Department of Labour’s approach to high hazard industries
Recommendation five: Help high hazard industries to comply
General observations
The Department has a role to play in supporting high hazard industries to comply with the HSE and HSNO Acts and the relevant regulations. These industries generally are reasonably adept at identifying and managing potential risks and hazards. Both mining (at least for larger operators) and petroleum operators can draw on sophisticated bodies of knowledge and safety practices developed overseas and locally. As 'high reliability' type organisations, it is likely these industries have complex and highly systematised safety programmes in place.
However, what is not clear is whether the operators and these systems fit completely with the requirements of the HSE and HSNO Acts and regulatory frameworks. Notwithstanding the level of sophistication or care operators take in managing safety on installations or wells or in mines, they still need to comply with the requirements of New Zealand law. This includes, for example, meeting all the reporting incidents requirements and applying all of the relevant HSNO controls. Moreover, the appearance of smaller, lower budget operators introduces additional risks as these smaller providers tend to have more difficulty supporting sophisticated safety systems and may not have the same level of access to international best practice as major international firms.
The Senior Adviser High Hazards Petroleum has indicated his belief that, while petroleum operators are generally careful at having and applying systems and processes to manage safety effectively, they can sometimes be less aware or compliant with specific regulatory requirements. Essentially, operators are effective at implementing company/industry safety systems but may lose sight of the wider regulatory context. This review has not been able to confirm this observation. However, the Department does try to help educate and enable workplaces to be safe and to meet the necessary regulatory requirements.
Even without testing the Senior Adviser's observation, there is a good reason for the Department to provide assistance and information to high hazard operators to help them comply.
For smaller operators, such as the smaller mine operations, the Department's review has confirmed a need to provide simplified systems to help the mines systematically identify and manage hazards.
Identify any international standards that can be adopted within the current regulatory framework
General findings
In collaboration with other regulators and international bodies, the Department could identify any standards or evolving best practice models that can be used within high hazard industries.
For example, the US Bureau of Ocean Energy Management has issued an updated Drilling Safety Rule which addresses both well bore integrity and well control equipment in deep water (continental shelf). With the emergence of deep water exploration in New Zealand, the application of this Rule to New Zealand operators and inspection bodies, for example, ought to be considered (as a guide to expected industry practice).
The Department has an active role to play alongside the industry, to identify whether there are any overseas practices or standards that can be helpfully utilised in New Zealand.
Actions
80. The Department should identify any overseas standards, rules or practices that might be adopted in New Zealand. [MTTS]
81. The Department should consider circulating any identified standards to inspection bodies and operators. It should also consider and prioritise formally issuing these as guidance. [MTSS]
Help mines complete a safety assessment/report by providing a simplified template
General findings
The 2008 Department of Labour Mining Review recommended that the Department help smaller mines to comply with the statutory/regulatory requirements by developing simplified assessment/reporting templates that the operators could use.
This makes sense, as smaller operators struggle to have the necessary capability and capacity to work through detailed Approved Codes of Practice and detailed standards. However, the general point of simplifying complex rules is a reasonably well made one and is also applicable to larger operators. In keeping with any moves to help high hazard operators (all operators) comply with the regulatory requirements, thought should be turned to how the Department can assist compliance generally by simplifying and providing assistive tools.
Actions
82. The Department should action the development of a simplified template as recommended under the Mines Review. [NSM]
83. The Department should consider the wider applicability of simplified tools and information to help all high hazard operators comply with the regulatory requirements. [NSM]
Provide high hazard providers with targeted information on requirements of HSE, HSNO Acts and applicable regulations
General findings
The Senior Adviser High Hazards Petroleum indicated that while petroleum operators are generally careful at having and applying systems and processes to manage safety effectively, they can sometimes be less aware or compliant with specific regulatory requirements.
Essentially, operators are effective at implementing company/industry safety systems but may lose sight of the wider-regulatory context. This review has not been able to confirm this observation. However, the Department does try to help educate and enable workplaces to be safe and to meet the necessary regulatory requirements.
Even without testing the Senior Adviser's observation, there is a good reason for the Department to provide assistance and information to high hazard operators to help them comply.
Actions
84. Prioritise the development and distribution of targeted information and campaign information to operators. [NSM]
85. Develop an "orientation" pack for health and safety managers in high hazard industries that provide an overview of the legislative and regulatory requirements. [NSM]
86. Facilitate workshops and other training sessions for health and safety managers and health and safety representatives from high hazard industries. [NSM]
