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Economic Impact Assessmentof Occupational Safety &
Health Legislation in Ireland
“THE SUCCESSFUL WORK SAFELY AND HEALTHILY” November 2008
Daniel Kelly, Health and Safety Policy Unit, Department of Enterprise, Trade and Employment,
Ireland
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Slovenia and Irelando POPULATION 2M v 4.3mo Land area 20k km2 v 71km2
o PERCAPITA GDP €22k v €50k
o Population density 100 v 52 per KM2
o Each of our countries has had an eventful past – we were not masters of our own destiny!
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Background1950s to the 1980s various sectoral laws emphasisied enforcement1989 - safety and health laws law applies to all Irish employments.New Health and Safety AuthorityEmphasis on prevention Preceded the Framework Directive 89/391Increased awareness of occupational safety and health amongst employers and Irish workers. New era of social partnership cooperationReduction in the rate of deaths and accidents at work since 1995
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In 2005 new consolidated legislation was enacted
In 2005 new consolidated legislation was enacted
Duties Consultation Prevention Fines and penalties
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Need to assess if OSH law is of benefit
Minister announced his intention to carry out an economic assessment of occupational safety and health legislation, with a particular emphasis on its effect on competitiveness.
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The objective was to undertake an economic assessment of the effect since 1989 of occupational safety, health and welfare law on the Irish economy,
Focus on: particularly on competitiveness, taking into account the current law, the provisions in the new Safety, Health and Welfare at Work
Act 2005, the resources devoted to occupational safety health and
welfare, the size of the workforce and the statistical data available with a view to ascertaining
what benefits both economic and social accrue.
Objectives, Focus
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Economic Impact Assessment
MethodologyWide range of research techniques were employed including:
analysis of available data including at international level, a review of available research, a detailed consultation programme, econometric analysis a general survey of industry a specific survey of the construction sector.
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HighlightsA number of highlights have
emerged from the Report1. Costs of work related accidents and ill-health to the Irish economy =
c. 2.5% of GNP
2. Health and Safety compliance brings Benefits
3. Health and Safety compliance improves working conditions in the
construction sector and reduces the cost of accidents
Economic Impact Assessment
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Economic Impact Assessment
1. Costs of work related accidents and ill-health to the Irish
economy = c. 2.5% of GNP (a figure in the range €4 to €4.5
Billion in today’s values)
The Report took two approaches .
international research+data available on Irish costs
and arrived at broadly the same figure for the costs of work related accidents and ill-health
Highlights
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Economic Impact Assessment
2. Health and Safety compliance brings
Benefits
Highlights
Economic Impact Assessment
3. Health and Safety compliance improves
working conditions in the construction sector
and reduces the cost of accidents
Highlights
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Economic Impact Assessment
Average cost of compliance with legislation per firm estimated at 2% of
annual labour costs in the construction sector
“Positive” responses on the impact of health and safety on various
aspects of the business ranged from 59% to 82% of respondents
Survey Construction Sector
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Effect of Compliance with health and safety law on accident costs
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Economic Impact AssessmentSurvey General Industry
Average cost of compliance with legislation per firm estimated at 1% of
annual labour costs across industry.
There is considerable support for the legislation that has been
introduced.
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Survey General Industry
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Survey General Industry
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Survey General Industry
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Economic Impact AssessmentIn a comparison of a large number of
construction firms and other businesses to ascertain if experiences differed:96% of firms said Occupational Safety and Health legislation had benefits for their business, compared to 52% in the construction sector;
23% found it had reduced insurance costs, versus 40% of construction firms;
66% noticed reduced accident costs as a result of the legislation as against 54% in construction;
In non construction firms it was estimated that the costs of complying with occupational health and safety legislation relate to less than 1% of annual labour costs, compared to 2% in construction.
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Economic Impact AssessmentImpact of Legislation
Decrease in the work-related accidents and injuries
Coincides with increased health and safety activity
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Trends in Enforcement & Activity in IrelandThe total Irish workforce is c. 2.22m people of which
2.11m are at work
No. of inspections has increased 1999-2008 - 8,800 to17,000
Focus on criminal prosecutions also increased 17 indictment convictions in 2007 vs 7 in 2001
Focus is now on high-risk sectors like Construction, Agriculture, Quarrying
58% of all inspections in 2004 vs 35% in 1994
Greater activity noticeable safety statements in 70% of firms in 2007 vs 38.3% in 1994
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The Report has been published on the Department of Enterprise, Trade and Employment Website:
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The report is at:
http:www.entemp.ie/employment/osh/indecon.pdf
