Friday, 1 April 2016

Poor economics when ignoring improvement and prohibition notices

We reported in February about William Fry Fabrications Limited being fined £15,860 (inc.costs) for failure to comply with improvement and prohibition notices regarding the lack of inspection of 2 cranes. 
A report in the April addition of IOSH magazine gives some more information and shows what poor economic sense the practice at William Fry Fabrications made.
They claimed that they could not find an engineer to carry out the inspection. However, during the court appearance, the HSE Inspector stated that he easily found 3, ranging in costs from £375 to £650 + VAT.
The £15,860 figure was just the fine and court costs, and the HSE's Fees For Intervention could quite easily have doubled this.
So for the sake of saving a maximum of £650, the company lost £30,000. 
The lesson to be learnt is to not make silly savings when it comes to health and safety. Fortunately in this case, nobody was hurt. 

No comments:

Post a Comment