According to Mike Wood from logistic risk experts Latus, many organisations, including councils, are unprepared for the new heavy vehicle Chain of Responsibility laws coming into effect mid-2018.

And, with hefty fines of up to $3 million for non-complaint organisations and the possibility of jail-time for individuals, councils can’t afford to not be prepared.

According to the National Heavy Vehicle Regulator (NHVR), the Chain of Responsibility (CoR) laws that currently cover speed, fatigue, and mass dimension and loading will soon also be extended to vehicle standards and maintenance.

Speaking at the Australasian Fleet Conference held in Brisbane last week, Wood said a 2016 survey Latus conducted of 183 companies revealed only three had attained a level of compliance in line with the updated CoR laws.

“About 20 received some level of compliance and the rest failed. This legislation came out in 2003 and in 2016 we were still getting that sort of response, so it is a significant problem,” Wood said.

The issue for many councils is the perception they aren’t responsible for transport vehicles.

“A lot of people, particularly in councils, say ‘We’re a council, not a transport company’. But as soon as you operate a vehicle, you’re in,” Wood explained.

“You get the likes of Cleanaway that operate garbage trucks, and councils also operate garbage trucks – Cleanaway considers themselves a transport company, but councils don’t, despite the fact it’s the same vehicle being driven on the same road doing the same job.”

The extent of the new laws was demonstrated at the conference through a moot court case, which, though technically fictitious, was an amalgam of three real-world cases.

“The Octimockti Shire had engaged Ash &Phalt Civil to do road remedial works and to keep costs down under rate capping – they had said you use our shire depot and we’ll provide the quarry products,” Wood explains.

“As a result of that, there had been very little due diligence on the actual contract set up. Someone in one of the vehicles hit a car, and the vehicle was found to have catastrophic brake failure and the driver didn’t have the right licence.”

Both the shire and the contractor were found to be at fault, and copped hefty fines.

“The scenario was not uncommon in terms of what goes on,” Wood said.

Wood said councils need to have a system in place.

“Find out where you currently sit, get your gap analysis done and don’t wait for prosecution,” he said.

“The big thing that’s going to happen to a lot of councils is that by July 2018, you need to have a system in place, and if you don’t have a system in place that’s an offence in itself.

“Ignorance is no excuse, inaction is as culpable as action in this legislation, and there’s also a reverse onus of proof.”

And, Wood stressed that the changes can take up to 12 months for organisations to put into place.

“Bear in mind it will take 12 months, it’s not quick. It’s about a change in culture,” he said.

What the NHVR says

During a panel discussion following the moot court, NHVR National Investigations Coordinator Bill Esteves had this advice for delegates:  

“Be proactive, focus on prevention and take a risk management approach,” Esteves said.  

In an educational video on the NHVR websites, NHVR Manager Chain of Responsibility Michael Crellin explained how the changes will affect organisations on the supply chain. 

“The executive officer will need to know the risk management processes, the safety systems, and critically, if they are working,” he said.

“It’s a focus on the business practices and the system controls that are in place. Investigators won’t need to have a substantive offence, there won’t need to be an incident. We can simply go and have a look at the system and do one of two things: assure ourselves that the system is functional and effective, or detect that it’s not.

“It needs a shift in our thinking, to be one of preventative and proactive responses.

“I can’t impress upon you enough the requirement to consult with your partners across the supply chain.”

Crellin also said the integration of technology in assuring compliance in areas such as fatigue management would be critical.

Penalties 

Category 3

Situation: A breach of the safety duty – the discovery of the breach is sufficient, no event needs to have taken place

Penalties: $50,000 for an individual, and $500,00 for a corporation

Category 2

Situation: A breach of the safety duty that creates a risk of injury or death 

Penalties: $100,000 for individual and $1 million for a corporation 

Category 1

Situation: Recklessness is involved 

Penalties: Five years imprisonment and/or $300,000 for an individual, and $3 million for a corporation 

For more information on the changes to CoR laws, visit the NHVR website.