Does anyone remember the document that came out a few years before the RRO came in? The Regulatory Impact Assessment-fire safety order. I still have a copy but you don't seem to be able to source this on the web anymore! When you read it again now a few years on, the rationale of the RRO makes sense, from what was intended at least. That's why I feel we can debate this all day long but enforcement as we know it or have known it will change, perhaps to another enforcing body or a new one, I don't think anyone really cares that much, as long as it is "policed".
Below is Option 3 from the said document, that was implement, Option 1 was do nothing, carry on with FP Act and WP Regs, Option 2 was stop issuing fire certs and move to risk based approach legislation. Some of the reading will make you smile.
Option 3
Option 3 is a full rationalisation of all fire safety legislation. There are significant benefits over option 2 in terms of simplification, clarity and compliance, while the potential costs of option 3 are not expected to be significantly (if at all) larger than those for option 2.
While very little arises in respect of new burdens, it is expected that the new Order will improve compliance as a result of the clarity achieved through rationalisation, the attendant publicity and new guidance.
Removal of requirement to obtain a fire certificate
The removal of the requirement for businesses in England and Wales to apply for fire certificates will result in a saving to business of approximately ?1.65 million per annum .
Better targeting of resources
The move away from a system based on certification of prescribed classes or uses of building will give fire authorities the freedom to develop their inspection programmes on the basis of risk. Introduction of the new regime does not assume that there will be any alteration in the level of resources dedicated to fire safety, and it assumed that the number of inspections carried out will not change. Adjustments to resourcing levels may however arise due to other factors for example Integrated Risk Management Planning by Fire Authorities. Inspections will be focussed on premises that pose the highest risks in comparison to others in the area, and thus more effectively deployed. It also maximises the benefits in terms of the efficient use of fire service resources since fire authorities will more often be enforcing fire safety law in their own right, rather than as third parties consulted by those administering other regimes.
Savings in cost of fire
We have estimated the overall economic consequential cost of fire in England and Wales for 2001 at just over ?786m. (see Annex A). We have calculated the average economic consequential cost of fire to be ?25,900 , and have used this figure to calculate potential savings from the measures now proposed. (The economic consequential costs only include property losses, fatalities, injuries and lost business.)
The measures proposed in option 3 will promote greater compliance and more focus on prevention in high-risk properties. We cannot be precise about the reduction in fires, and cost savings, that might be delivered, but we can make a broad-brush assessment. A reduction in the number of fires in England and Wales of 5%, 10% and 15% would achieve annual savings of ?39m, ?79m and ?118m respectively. (See Annex B.) To this we should add the unquantifiable saving in terms of the human costs of fire outlined above.
Costs of Compliance
The proposed move to a system based on risk assessment should not create new burdens, because all those who would be covered by it are already required to undertake risk assessments under existing legislation.
We estimate it might take 1 to 1.5 hours for a manager (or the person nominated to implement the regime), to become familiar with the guidance, depending on how familiar they are with the existing requirements. Assuming an average labour cost for a manager of ?22.80 per hour , we would expect the cost of familiarisation to be within the range ?22.80 to ?34.20.
Total costs for an individual business would fall in a range of ?34.80 (assuming 1 hour is required for familiarisation) to ?46.20 (assuming 1.5 hours). Given the limitations of the available information, and the strong probability of double counting, we have used the broad estimate of 2m premises (England and Wales) for the purposes of our cost calculation. This suggests overall costs to business for obtaining the guidance and becoming familiar with it in a range of ?66m to ?88.8m.
Identify any other costs
The Fire Service has already moved towards a risk-assessment based enforcement regime independently of the reform following the introduction of the Workplace Regulations (1997): Most provisions of the new regime exist in law already and are enforced by relevant enforcing authorities who are already therefore, familiar with the requirements. Where new arrangements are in place it is not expected that there will be a need for re-training: New personnel who join will receive training in the new arrangements as part of the normal training programme.
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.
We intend to track the operation of the new legislation principally through monitoring and evaluation of performance statistics and data collection from fire authorities after a term of three years.