Regulatory Enforcement and Sanctions Bill

Talk for CCA Conference, 19 Nov 2007

David Bergman

Centre for Corporate Accountability

www.corporateaccountability.org

Two Parts

• Regulatory Enforcement by Local Authorities

- creation of a Local Better Regulation

Office

• New regulatory sanctions

Local Authority - Background• CCA research “Safety Lottery”

- 1999/00 data

- significant inconsistency

- 90 Local Authorities investigated every single injury, 17

investigated less than 10%

• Hampton Report

- need to coordinate local authority regulatory functions

Creation of LBRO

• objective of ensuring that LAs exercise ‘relevant functions’

(a) effectively

(b) in a way which does not give rise to unnecessary burdens

(c) so that regulatory activities are transparent, accountable,

proportionate and consistent.

(d) targeted only at cases in which action is needed

Particular Functions

• Giving guidance to one or more LAs about how they should carry out relevant functions - which Las must have regard to

• Provision of financial support to LAs;• Advice to Ministers on how Las carry out

functions, effectiveness of legislation, whether other regulatory functions could be exercised by LAs

•  prepare and publish list of priority areas for LAs

Particular Functions - cont

• Co-ordination of regulatory enforcement - system of ‘primary authorities’

– Where LA and regulated person cannot agree, on which LA should be regulated person, LBRO may nominate.

• Where principle carrying out of activity by regulatory person

• Where regulated person administers carrying out of activity

• Regard to resources of LA– Function of Primary Authority

• Giving advice to regulated person• Giving advice to other LAs.• Enforcement action by other LA needs consent• Reference to LBRO if primary authority not agree.

Regulatory Sanctions - Background

• Macrory Report (Nov 2006)– Sanctions important part of any regulatory system

(deterrence, catalyst to ensure regulations are complied with, indicate non-compliance not tolerated)

– Sanctions help ensure businesses not compromising health and safety etc, or distorting a free market

– Criminal law important role to play, but system should be less reliant on criminal prosecution

– Effectiveness of criminal courts, can be improved if have access to more imaginative sentencing than just fine.

Background - cont

• Macrory’s proposed new sentences

– Profit order– Corporate rehabilitation order– Publicity order– Use of restorative justice

Background - cont

• Revitalising, Action Point 8 and 9

– The Health and Safety Commission will advise Ministers on the feasibility of consultees' proposals for more innovative penalties.

– Increased fines and imprisonment

Bill - three new sanctions

Administrative fines

- fixed fines

- Variable fines

Statutory notices

Enforceable undertakings

Regulatory Enforcement and Sanctions Bill

Talk for CCA Conference, 19 Nov 2007

David Bergman

Centre for Corporate Accountability

www.corporateaccountability.org