.
My post above addressed the different point that I was making, which was that the goverment doesn't introduce legislation on the basis that compliance with laws is some sort of money spinner.
This may interest you it was issued in around 2005 and is the final draft document detailing the impact the RRFSO would have on the economy, if anyone wants the full version (I have just posted the summary) I can e mail it. I would suggest that these figures are well out and have not considered the full impact by assuming a certain level of compliance with businesses already.
Also what about the cost of FRA reviews year on year or premises such as blocks of residential flats that did not apply to previous legislation and now have to provide a certain level of fire safety provisions all of which costs money. I am not saying that the money shouldn't be spent in order to acheive a satisfactory level of fire safety just that the costs have not been fully assessed......in my view. (See averge cost to businesses given as £196.00!!)
17. Summary of Costs/Benefits
We expect those who operate premises (i.e. employers, the self-employed with non-domestic premises, and the voluntary sector, as discussed above) to obtain the guidance, and familiarise themselves with it. The costs of this are considered below.
We have estimated a range of costs likely to be incurred in obtaining the new guidance and familiarisation with it. This comes within the range £66m to £88.8m.
We know that many businesses are not complying with the existing requirements upon them. We have estimated the total cost of complying, in terms of producing risk assessments and training staff, would be in the range of £212m to £301m for all businesses in England and Wales (see section 10 and Annex D). Most employers (65%) would face an average cost of £196 for these activities. As this is not a new burden it has not been set against the quantification of the benefits of the arrangements proposed in the Order.
Essentially, therefore, we estimate the effect of the Order will be to achieve annual savings within a range of £47m to £137m, plus some wider but unquantifiable economic benefits, and benefits in respect of reduced suffering and trauma of victims of fire and their relatives and friends. This is set against an estimate of one-off costs within the range £66m to £88.8m for businesses to educate themselves about the new arrangements.
So, while it is estimated that there is likely to be one off cost to business of between £66m to £88m, this figure is offset by the projected savings. Consequently, in the year of introduction, the cost benefit range is from between a saving of £49m and a cost of £19m. Thereafter savings in the range £47m-£137m will apply. Thus over a ten year period (not allowing for inflation), ongoing savings to business at current prices of between £382 million and £1.304 billion would be expected to accrue.
The Government believes that the benefits explained in this assessment over the longer term, outweigh the initial costs and fully justify the proposals for reform
Abolishing fire certificates
1.65m No saving as resources will be deployed on new single regime
Consequential cost of fire 39m
118m
Reduction in false alarms 1m 3m 5m 15m
Subtotals 41.65m 122.65m 5m 15m
Total potential economic benefits
£46.65 m to £137.65m
We can say that the total quantifiable benefits across all sectors fall in the range £47m to £137m per annum.
Unquantifiable economic benefits
While the cost of fire calculation takes into account the cost of lost business, there are wider costs which may be saved by a reduction in the number of fires, for example when a fire causes business failure: the impact and consequential cost and effect on a community, for example unemployment which may result and the effect that loss may have on the local area (property values, sense of community and so on).
Contact points : Andy Jack
Head of Legislation Branch
Zone 17/C Portland House
Stag Place,
London SW1E 5LP
Tel: 020 7944 5532
