Memorandum submitted by the National Joint
Utilities Group (NJUG)
REGULATORY REFORM
SELECT COMMITTEE
INQUIRY INTO
THEMES AND
TRENDS IN
REGULATORY REFORM
I am writing on behalf of the National Joint
Utilities Group (NJUG)[202]
in response to the Regulatory Reform Select Committee's call for
evidence as part of its inquiry into Themes and Trends in Regulatory
Reform. Background information on our organisation has been
included at the end of this letter.
NJUG welcomes the opportunity to provide input
into the Committee's inquiry. Whilst we do not feel the Government
has always effectively embraced the spirit of better regulation
over the years, it is clear that the current economic climate
has increased the need for such principles to be adopted to ensure
unnecessary and costly burdens on UK businesses are reduced.
As NJUG has argued in previous responses to
your Committee's inquiries,[203]
we feel Government should always fully consider existing legislation
before introducing new regulatory measures, especially considering
the already excessive and unnecessary regulatory burdens placed
on the utilities sector. In the area of street works alone, utilities
are faced with the Traffic Management Act, Communications Act,
Diversionary Works, New Roads and Street Works Act and London
Local Authority Bills to name only a few. Whilst each regulation
may on its own appear eminently sensible and not overly burdensome,
the cumulative effect is increasing costs and bureaucracy for
utilities, which ultimately is having an effect on the competitiveness
of UK plc, and increasing the cost for consumers.
With the additional burden of an economic recession,
the need for better regulation is greater than ever. NJUG has
therefore welcomed Government's decision to introduce departmental
regulatory budgets to ensure costly regulation is kept to a minimum
and only introduced when necessary. However, this should not lead
to Government unilaterally deciding not to pursue regulations
essential for reasons of safety and quality, especially without
first consulting relevant stakeholders.
Unfortunately this is what has occurred in the
case of training and accreditation regulations, due to be implemented
as part of the Traffic Management Act 2004, to enforce mandatory
re-assessment of street works operatives every five years. The
Department for Transport (DfT) has informed the UK Highways and
Utilities Committee, on which NJUG represents the utility industry,[204]
that these regulations are to be postponed indefinitely to reduce
the total cost of DfT regulations on industry.
NJUG and HAUC(UK) strongly disagree with this
decision for a number of reasons. Firstly, the regulations have
been supported by local authorities and the utility industry since
they were first suggested within the Traffic Management Bill in
2003, as important and eminently sensible measures. In line with
this, the financial burden upon industry has been deemed acceptable
when compared to the benefits the regulations will bring. Furthermore,
any costs incurred will not be felt for many years.
The DfT's decision also raises serious safety
concerns. Without a statutory requirement to re-assess and enforce
appropriate quality training among street works operatives, there
is a real danger of accidents occurring. This is particularly
worrying given the dangers posed by street and road works activity
and the disruption that arises from prolonged works. If operatives
do not conduct their work properly, serious injury can occur not
only to those involved, but also to the general public. Furthermore,
with an ever-increasing influx of foreign workers (holding varying
qualifications) from other EU states, the need for statutory re-assessment
is greater than ever. A mandatory requirement to reassess every
five years is also important to ensure integrity and credibility
of work. As you will be aware, the necessity of street and road
works, and the quality to which they are conducted, are often
misunderstood by stakeholders and the general public. A statutory
re-assessment process would guarantee that quality of work not
only remains a high priority, but is also seen to remain as such.
The intended regulations would allow for operatives
to be kept up to date with developments in materials and equipment.
There is considerable pressure on industry to promote the use
of sustainable and recycled materials, as well as the use of minimum
or non-intrusive technology where possible. Whilst industry is
committed to such initiatives, they become considerably more challenging
without a standard system of assessing operatives' abilities,
knowledge and competency.
NJUG feels that decisions on which regulations
to postpone and/or cancel should be made in full consultation
with stakeholders to ensure that Government is fully informed
of the potential impact of their actions. The indefinite postponement
of the reassessment regulations under the TMA is an unfortunate
example of this not having occurred. HAUC(UK), a primary stakeholder,
was not consulted in any way, and was only informed after the
decision had already been taken.
NJUG's concern is that the Government is using
the recession as an excuse to abandon essential regulation, and
appears to have lost the ability to balance the need for an effective
regulatory framework—providing the necessary benefits and
protections—with the need to reduce the financial burden
on industry. Whilst NJUG supports the minimisation of burdensome
regulation, it must be done effectively and in full consultation
with stakeholders so that Government is fully aware of the consequences.
March 2009
BACKGROUND INFORMATION
ON THE
NATIONAL JOINT
UTILITIES GROUP
NJUG was formed in 1977 and is recognised
as the only UK industry association representing utilities on
street works issues. Our focus is on promoting: safety; the prevention
of damage to underground assets; quality and sustainability of
street works; sharing of best practice; self regulation; and a
two-way working relationship with Government, local authorities,
and other key stakeholders to minimise disruption.
To further these aims we launched NJUG's Vision
for Street Works in 2007 (http://www.njug.org.uk/uploads/0801_Vision.pdf)
and have since held a number of fora around the country to promote
our objectives and achievements. Furthermore, NJUG launched the
NJUG Awards in 2008 to promote good practice within the industry.
All submissions are currently being turned into case studies,
available from our website www.njug.org.uk.
Many of our members are actively supporting
a number of Government sponsored projects including the 2012 Olympics
and Paralympics, and Crossrail, as well as representing utilities
in discussions with Government and other key stakeholders to seek
to ensure that any legislative or regulatory proposals are fair,
workable and do not affect the safe provision of our essential
services.
NJUG is also the utility arm of the Highway
Authorities and Utilities Committee, known as HAUC(UK), working
collaboratively with local authorities to better standards of
road and street works in England, Northern Ireland, Scotland and
Wales.
202 NJUG's current members are Energy Networks Association
(representing electricity and gas), Water UK (representing all
water and wastewater companies), National Grid, BT Openreach,
Virgin Media and THUS, a Cable and Wireless Business. Our associate
members are Clancy Docwra, Skanska McNicholas, Balfour Beatty,
Morrison, Morgan Est, NACAP, PJ Keary, First Intervention, Carillion,
Enterprise and Laing O'Rourke. Including members through trade
associations, NJUG represents thirty-eight utility companies. Back
203
For example, within NJUG's response to the Regulatory Reform Select
Committee's 2008 inquiry entitled Getting Results: The Better
Regulation Executive and the Impact of the Regulatory Reform Agenda. Back
204
The Highway Authorities and Utilities Committee (HAUC(UK)) was
established in 1986 by the constituent bodies of the local
Highway Authorities and the Utilities to assist the Secretary
of State in arriving at proposals for new street works legislation.
HAUC(UK) played a significant role in the drawing up of the New
Roads and Street Works Act 1991 (NRSWA), its subsidiary legislation
and associated Codes of Practice. HAUC(UK) currently works with
the Department for Transport on the implementation of the Traffic
Management Act 2004 (TMA) and associated secondary legislation.
It is made up of the Joint Authorities Group UK, representing
local authorities, and the National Joint Utilities Group, representing
the utility industry. HAUC(UK)'s website can be located at http://www.hauc-uk.org.uk/ Back
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