HIP Royal Commission – Risk Registers

Cover of ReportoftheRoyalCommissionintotheHomeInsulationProgramSafetyAtWorkBlog has written previously about the evidence of Margaret Coaldrake to the Royal Commission into the Home Insulation Program (HIP) given at the public hearings and also the occupational health and safety role of risk management and risk registers. The release of the Royal Commission’s final report on 1 September 2014 provides further details on a risk management process that is common to all large projects.

Commissioner Ian Hanger spent considerable time on the issue of the risk register as this was one of the crucial elements in the project’s whole decision-making process up to Ministerial level.

Risk Register

Commissioner Hanger was scathing of the risk management process that not only ignored the risk of worker fatalities but purposely dropped this risk from the register. He was unforgiving in his criticism of Margaret Coaldrake. He criticised her judgement. In working with her Minter Ellison colleague Eric Chalmers:

“it was up to [Coaldrake] to make sure that she and the people working with her were qualified to provide the service that Minter Ellison consultants had been retained to do.” (para 7.11.15)

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Ministerial responsibility in finance but not in workplace safety

Ministerial responsibility seems to be advantageous in financial policies but irrelevant to workplace safety going by actions by Australia’s political leaders.  This week former senior (Labor) parliamentarians, Mark Arbib, Peter Garrett, Greg Combet and Kevin Rudd, will be fronting the Royal Commission into Home Insulation to explain their lack of due diligence on workplace safety matters.  This is only a week after the Federal (Liberal) Government released a Commission of Audit report that promoted ministerial responsibility.

The popular perspective is that these ministerial decision-makers will be held to account for the deaths of four young workers but this is unlikely to occur because State occupational health and safety (OHS) laws establish a direct OHS relationship between employers and employees and the senior politicians did not employ anyone who was installing home insulation.  The argument at the Royal Commission mirrors the chain of responsibility concept except that in work health and safety (WHS) legislation, government ministers are not covered by the definition of ‘officer’ and therefore have less OHS/WHS responsibility that anyone heading up a company or organisation.

Labour lawyer

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Australia’s Construction Code and the Home Insulation Royal Commission

On 17 April 2014, Senator Eric Abetz, Australia’s Workplace Relations Minister, released the Building and Construction Industry (Fair and Lawful Building Sites) Code 2014 and supporting guidelines.  This Code is, fundamentally, an industrial relations Code however there is an occupational health and safety (OHS) element that needs to be noted, particularly when considered against the background of the Royal Commission into the Home Insulation Program.

Section 6.2.1 of the Code’s Guidelines says:

“Improving the industry’s WHS&R [Work Health Safety and Rehabilitation] performance requires positive measures that aim for prevention rather than correcting things when they go wrong. This initiative is directed at making WHS&R management an integral part of the organisational culture of companies and enterprises.”

The aims of this section are laudable – “positive” actions, “integrated, pre-emptive instead of reactive – but there are also hints that role of safety in this Code has not been fully thought out.

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