Improving health and safety at work: An effective regulatory framework

In Confidencea. A facility or proposed facility would automatically be classified as a major hazardfacility and subject to the regulations, where very large quantities of particulardangerous substances are (or will be) processed, handled, or stored on site.Early estimates are that there may be up to 60 of these facilities in New Zealand(e.g. the oil refinery at Marsden Point, the methanol production plant at Motunui).The types of dangerous substances captured by the regime and thecorresponding threshold quantities applied would be based on thresholds set byexisting major hazard facility regulation in Europe (the ‘Seveso’ Directive), theUnited Kingdom, and Australia.b. A facility or proposed facility that holds (or will hold) more than 10 per cent of thethreshold quantity may be subject to an inquiry by WorkSafe to determinewhether the facility should be classified as a major hazard facility and subject tothe regulations.c. WorkSafe would:i. consider whether there is potential for a major accident to occur at thefacility or proposed facility having regard to the following matters;The quantity or combination of dangerous substances present orlikely to be present at the facility. The likelihood that an inquiry will beheld would be greater for those facilities where the quantity ofdangerous substances is close to the threshold, or if inherentlyunstable or mutually incompatible substances are present insignificant quantities.The type of activities within the facility involving dangeroussubstances. Where the activities conducted at the facility are in someway intrinsically of higher hazard, then the likelihood of the facilitybeing determined to be a major hazard facility will be greater. Forexample: if substances are stored in relatively large closely groupedtanks; if the process has the potential to generate by-products ofextreme toxicity; if the process involves extremes of temperatureand/or pressure; and if the process is complex, requiring advancedengineering controls to ensure safety.The land use and other activities in the area surrounding the facility.The potential consequences of an incident at a facility in a highdensityresidential area would be higher than if the facility were in aremote non-residential area. Similar concerns exist where there is thepotential for escalation of any major incident to neighbouring facilities.ii.iii.consider any submission made by the facility operator and consult withinterested parties, for example health and safety representatives at thefacility, local emergency services, and territorial authorities; andfollowing the inquiry, possibly designate the facility as a major hazardfacility.d. Once a facility or proposed facility is designated as a major hazard facility, theoperator of the facility would be required to:i. prepare a safety case (containing details of the dangerous substances, thefacility, the management system, the potential for major accidents, and themeasures to be taken to prevent, control and mitigate the effects of majoraccidents) and submit it to the regulator for assessment;ii.iii.prepare and implement an emergency response plan, in consultation withemergency services and the relevant territorial authority;investigate any dangerous occurrence (an incident that could be regardedas a ‘near miss’ for a major accident) and report to the regulator on theoutcome of the investigation; andMBIE-MAKO-1460855716