'Don't skimp on safety' amid recession fears

The Institution of Occupational Safety and Health (IOSH) said cutting down on safety as a result of the "deteriorating economic situation" could have "disastrous consequences" for employers and their staff.

IOSH president Ray Hurst said: "We recognise it may be tempting for firms to cut corners on health and safety to save money. But that choice will not only result in human tragedy but also have a major impact on the business’s bottom line."

He added: "Those who are tempted to skimp on safety should realise that we now have the new Corporate Manslaughter and Corporate Homicide law, which may bring with it hefty fines for companies - possibly up to 10% of global turnover - combined with the prospect of orders requiring publication of conviction and remedial orders."

Mr Hurst went on to say that the Health and Safety (Offences) Bill - which proposes increased penalties for breaches of health and safety laws - was making good progress through Parliament.

"I'd urge all organisations to ensure health and safety is very close to the top of their agenda even during an economic slowdown," he said. "Obviously, companies do need to still be able to operate - health and safety is often about what is reasonably practicable, balancing the level of risk against cost. So don’t take the cheap way out, you may not be complying with the requirements of law."

'Menacing deterioration'

Figures from the British Chambers of Commerce (BCC) today revealed how falling orders and rising costs were putting the squeeze on businesses.

Services firms saw "alarming" declines in the second quarter of 2008, with those reporting lower orders outnumbering those recording rises for the first time since 1990, the BCC survey of almost 5,000 firms found.

Manufacturers were not faring much better, with businesses in only four of the UK's 12 regions - Wales, Northern Ireland, the East and the North-East - recording higher orders on balance.

Confidence among services firms - which account for almost three-quarters of the economy - was also at its lowest ebb since 1990. The BCC's economic adviser David Kern said the survey showed a "menacing deterioration" in UK prospects.

Firms were facing soaring costs from rising fuel and electricity bills, as well as raw materials, as oil approached 150 US dollars a barrel, while banks hit by the crunch were clamping down on lending. This had put cashflow among UK firms under the most pressure since 1992, the BCC said.