Trade body and unions unite against European Commission’s oil regulations

BRITAIN’S oil industry trade body and the two main North Sea trade unions yesterday joined forces in a rare show of unity to condemn a bid by the European Commission bring in a raft of regulations that would effectively relinquish regulatory control of the UK Continental Shelf to Brussels bureaucrats.

Oil & Gas UK and the RMT and Unite unions claimed in a joint statement that the plans for the European Union to run safety controls for the North Sea from Brussels would have a “serious detrimental impact” on the current “high” standards of safety and environmental protection in British waters.

The statement argued that the existing UK offshore oil and gas safety regime is already robust and fit-for-purpose- and that the proposed regulatory reforms will “add no tangible benefit” to the UKCS. T hey warned that control from Europe would result in substantial industry and regulatory resources having to be redeployed away from tackling front line safety challenges and into “desk-bound paperwork compliance.”

Malcolm Webb, the chief executive of Oil & Gas UK, said: “The safety of the workforce is the UK oil and gas industry’s top priority. When considering how this would be affected by the proposed EU Regulation, exactly the same conclusion is reached by oil and gas companies and trade unions representing the workforce alike. We fear that far from adding any tangible benefit to the UK’s world class system, moving overall responsibility for offshore safety to the EU, which has absolutely no experience or competence in the area, would undermine our high standards of offshore safety and environmental protection.”

Mr Webb, who will reinforce the sector’s concern over the proposed regulation at a seminar in London later this month, claimed: “The four European countries that account for 90 per cent of the region’s production already operate under safety regimes that the Commission accepts are global exemplars. To propose that legislative competence should shift from these countries to the 27 EU member states, the vast majority of whom have no involvement in the industry at all, is totally unjustified.

“The improvement of other safety regimes to bring them up to North West European standards would be best handled by a properly worded EU Directive which would also have the advantage of leaving the existing world class safety systems intact. If that route was adopted, the UK oil and gas industry would be happy to work closely with the Commission to help disseminate North Sea experience and good practice.”

Jake Molloy, the regional organiser of the RMT, backed the industry’s stance. He said: “We see workforce involvement as a fundamental part of improving all-round safety performance in the offshore industry and this is increasingly being recognised by operators and contractors. Significant improvements in this vital area have been made with a great deal more still to come but all the good work currently underway could be jeopardised with the application of the EU Regulation.”

And John Taylor, Unite’s regional industrial organiser, declared: “The proposed EU Regulation will do nothing to improve safety offshore. If allowed to come in, it will set offshore safety back years. We will continue to work with employers, the HSE and our fellow European unions in an attempt to persuade the Commission to listen to the many voices that have been raised against the proposal. We must not fail because the reality that is our failure will put people’s lives at risk.”

The joint statement argues that the EU regulation would require the re-writing or revocation of significant parts of the existing UK legislation. As a result, almost 300 UK safety cases would need to be re-drafted, re-submitted to the HSE and re-accepted, which would divert substantial industry and regulatory resources away from tackling front line safety challenges and into desk-bound paperwork compliance.

It also claims the regulation is poorly drafted and ambiguous, which risks creating widespread confusion over how they should be complied with.

The statement continues: “The UK offshore oil and gas industry has a proactive, flexible and responsive approach to managing risks, born out of the lessons learnt from Piper Alpha as well as the evolving nature of the offshore oil and gas business itself.

“The proposal does not take sufficient account of the importance of industry and workforce involvement in contributing to a well functioning regime. In the UK, constructive regulator, industry and workforce involvement in the development of the post-Piper legal framework and supporting guidance has proved a key aspect in contributing to the success and evolution of a well functioning offshore safety regime.

“No similar involvement has taken place in the development of the Commission’s proposals. Indeed the draft Regulation fails to take adequate account of the important role of the workforce and safety representatives offshore and their role in regulatory compliance.”