1. Presentation to NZAAA Health and safety JULY 2015

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7. Health and safety JULY 2015/ 7 Reason Swiss Cheese Diagram

8. Health and safety JULY 2015/ 8 Pike River – a case study to provide insight into the future Factual findings relevant to the Board’s actions Difficult geology Financial problems – refinancing Management churn Staff churn Production bonuses promised to staff – affected safety Health and safety reports not followed up – loss of knowledge None of the directors had experience in underground coal mining. The HSE Committee was one of 3 formally constituted Board sub-committees. It was responsible for ensuring Pike River provided a safe work place; the Chairman of the Board sat on the HSE Committee.

9. Health and safety JULY 2015/ 9 Factual findings continued... The use of HSE Committees is commonplace and in line with international practice. The HSE Committee was to meet every 6 months; at the time of the explosion, there had not been a meeting for 13 months. The Board was responsible for annual approval of the risk management strategy. Health and safety did not feature as part of this. Two 3 rd party risk and safety reviews took place in the year leading up to the explosion; both were revealing and the Board did not see them. The Board’s focus was on meeting production targets.

10. Health and safety JULY 2015/ 10 “All Practicable Steps” 2A All practicable steps (1)In this Act, all practicable steps, in relation to achieving any result in any circumstances, means all steps to achieve the result that it is reasonably practicable to take in the circumstances, having regard to— (a)the nature and severity of the harm that may be suffered if the result is not achieved; and (b) the current state of knowledge about the likelihood that harm of that nature and severity will be suffered if the result is not achieved; and (c) the current state of knowledge about harm of that nature; and (d) the current state of knowledge about the means available to achieve the result, and about the likely efficacy of each of those means; and (e) the availability and cost of each of those means. (2)To avoid doubt, a person required by this Act to take all practicable steps is required to take those steps only in respect of circumstances that the person knows or ought reasonably to know about

11. Health and safety JULY 2015/ 11 Current duties As an employer - to take ‘all practicable steps’ to ensure the safety of employees while at work As a person who controls a place of work – to take ‘all practicable steps’ to ensure that no hazard that is or arises in the place harms; (a) people who are in the vicinity of the place; (b) people who are lawfully at work in the place as contractors of or sub-contractors; (c) people who are there with express or implied consent and who have paid either directly or indirectly to undertake an activity there. As principal – to take ‘all practicable steps’ to ensure that no employee of a contractor or sub-contractor is harmed.

12. Health and safety JULY 2015/ 12 Duties of a PCBU – General Duties PCBU means a person conducting a business or undertaking whether the person conducts a business alone or with others; PCBUs are in the best position to control risks PCBUs owe several general duties: ―To manage risks and eliminate those risks as far as reasonably practicable or to minimise risks where not reasonably practicable. ―To ensure, as far as reasonably practicable, the health and safety of workers.

13. Health and safety JULY 2015/ 13 Duties of a PCBU – Specific Duties The Bill sets out specific duties including: ―Providing a safe working environment (including safe plant, structure and systems); ―Safe use, storage and handling of plant, substances and structures; ―Providing adequate facilities for workers; ―Providing information, training, instruction and supervision necessary to protect all persons from risks; and ―Monitoring health and safety to prevent injury or illness.

14. Health and safety JULY 2015/ 14 Duties of an Officer An ‘officer’ includes; ―A director; and ―Any other person who makes decisions that affect the whole, or a substantial part, of the business of the PCBU (for example, the chief executive). Primarily to exercise due diligence: ―Acquiring and keeping up-to-date knowledge of work health and safety matters; ―Gain an understanding of the nature of the operations of the business or undertaking of the PCBU and generally the hazards and risks associated; ―Ensuring the PCBU has available for use, and uses, appropriate resources and processes to eliminate or minimise risks to health and safety from work carried out;

15. Health and safety JULY 2015/ 15 Duties of an Officer continued ― Ensuring that the PCBU has appropriate processes for receiving and considering information regarding incidents, hazards and risks and for responding in a timely way to that information; ― Ensuring the PCBU has (and implements) processes for complying with its duties and the Bill.

16. Health and safety JULY 2015/ 16 What should senior management team be doing? Implementation: ―practical implementation of policies and procedures; ―clearly defined responsibilities for H&S; ―identify resource requirements, secure and obtain approval for any necessary resources ―take any remedial action required ―Obtain external assistance where necessary Monitor and review: ―compliance with policies and procedures; ―the effectiveness of the system Report: ―to the board on H&S management, implementation and performance regularly