KP3 follow-up event in Aberdeen

Judith Hackitt CBE, HSE Chair, 14 July 2009

Thank you for joining us at this press conference today. A number of you will have been present back in November 2007 when Ian Whewell and I jointly presented the original KP3 report.

At the time we issued some challenging messages to offshore operators about the need for them to show leadership in addressing these issues, and we have been greatly encouraged by the spirit in which those tough messages were received by industry and the way in which industry has responded.

There has been a good deal of activity taking place on a number of fronts in the meantime:

• In April 2008, HSE hosted a conference for all of the Major Hazards industries in London which was attended by more than 200 senior executives from the relevant sectors – including offshore. This conference reinforced our message to industry about the scope for learning from one another – not just within offshore operations but also from nuclear, petrochemical and other major hazard sectors.
• HSE has produced a new strategy for H&S in Great Britain for the 21st Century which calls upon all stakeholders to recognise the important role they have to play in delivering a major improvement in health and safety performance. The strategy makes it clear that preventing catastrophe in GB’s major hazards industry will continue to be high on our priority list, but also that we see the need to ensure that H&S must be managed and delivered in the context of other issues and priorities which businesses inevitably face. This is not about trade-off or compromise but about ensuring that solutions are found which meet several agendas at the same time – safety is good business and nowhere is this more true than in the offshore industry.
• On the 20th anniversary of the Piper Alpha disaster in July last year, the Secretary of State for Work and Pensions commissioned HSE to review the progress made by the UK offshore oil and gas industry in addressing the issues identified by the KP3 work.

It is to present the results of that review that we are gathered here today. HSE’s Offshore Division has undertaken the review, with input and cooperation from key industry stakeholders, including trades unions and industry trade associations.

Overall, I believe the findings can be summed up as “so far, so good” -  progress has been made but sustained effort is still required - this was never going to be a quick fix or a ‘job and finish’ task.

The UK Offshore Oil and Gas Industry has indeed made good progress and is now showing leadership and ownership in addressing the issues of most concern in the original KP3 report, but that progress and leadership must be sustained. The challenges remain, they are ongoing and must not be underestimated.

The challenging economic climate is a new factor but it cannot be allowed to slow progress or be an excuse for cutting back on health and safety. Remember how we got to where we are – it was the underinvestment in and neglect of asset integrity in previous years of economic uncertainty which created the situation which was highlighted by KP3.

HSE recognises the significant commitment which the industry has had to make to deliver the improvements made so far – and we urge them to maintain it.

This is not just about the industry itself but also recognises the important contributions made by industry trade associations, the unions and the workforce themselves, not least to this review.

Safety has to remain top of the agenda, and we will continue to work closely with the offshore industry to ensure that progress is maintained.

This is an important industry – to the Scottish economy, to the UK economy and to energy security – but the long term future and sustainability of the UK Continental shelf depends upon plant and equipment being properly maintained.

We have been very pleased with the response from industry and see the cooperative approach as one which works well – but as our broader HSE strategy makes clear to all businesses – we will not hesitate to use enforcement powers to secure improvement if that is deemed to be required.

Please remember that what we are reporting today is a snapshot of the situation within the industry. It is a review we were asked to conduct by the Secretary of State, it is a progress review – and the story so far is encouraging. The challenge now is to ensure that it stays that way……

Over to Ian.