5 Conclusion
111. There are no easy answers to the difficulties
exposed in the compensation system during this inquiry. It is
evident from the statistical evidence that the UK is not moving
towards a "compensation culture" driven by a significant
increase in litigation. That said, however, there is ample evidence
that risk aversion is becoming an insidious problem which the
Government and the Health and Safety Executive must attempt to
address.
112. While the accumulation of stories published
in the press about compensation and risk aversion may give a distorted
impression, they still have a significant effect in leading people
to become more risk averse. The Health and Safety Executive mentioned
a "grapevine" effect, which spreads the popularly held
notion that it is easy to obtain compensation and leads people
to believe that all risk must be avoided. Indeed in those stories
of undue risk aversion that are pursued and found to be true,
it is often a misplaced fear of or misinterpretation of health
and safety legislation that is cited as a problem, overwhelming
the decision makers' common sense. It sometimes involves the use
of health and safety as an excuse for decisions which originate
with financial or other considerations. We do not believe that
the attempted statutory restatement of the common law will have
any useful effect. The phenomenon of risk aversion which we have
described does not arise primary from the wording of the law or
from litigation and will need to be addressed by changing practices
and perceptions in the fields of health and safety and risk management.
These go beyond the scope of the Compensation Bill [Lords].
113. We welcome the fact that the Compensation Bill
[Lords] sets out to provide a system of regulation for claims
managers, but we were disappointed to find little detail in the
Bill and a number of unresolved issues.
114. On the basis of what we have been able to establish
so far, we are not convinced that the NHS Redress Scheme is adequately
prepared.
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