Fireworks: Licensing of Premises

Caroline Nokes Excerpts

Friday 18th November 2016 Commons Chamber

[The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)]

First, I extend my heartfelt sympathy to the families of Simon Hillier and Stewart Staples, whose lives were taken in the terrible incident at SP Plastics in the constituency of my hon. Friend the Member for Stafford (Jeremy Lefroy) on 30 October 2014. He will acknowledge that, as there is an ongoing police-led investigation, I will not be able to comment further on it in my response today. However, Health and Safety Executive officials would welcome the opportunity to meet my hon. Friend once the coroner’s inquest has concluded. That would provide an opportunity to consider the findings in full and whether any further work is needed to help reduce the risk of similar incidents happening again.

The prevention of accidents with the potential to cause extensive harm to workers, members of the public and the environment remains a key Government priority. In the past 10 years, there have tragically been three significant incidents involving firework-licensed sites where people have died. Although that is a relatively low number, the consequences can clearly be catastrophic and, as in the case of the incident in my hon. Friend’s constituency, devastating to the families involved. There is, therefore, no room for complacency.

I reassure my hon. Friend that the Government are committed to making sure that the health and safety requirements in this area are robust, to enable businesses to effectively control their risks. Businesses in Great Britain must have a licence to manufacture or store quantities or types of fireworks that are considered to be of higher hazard. That is in line with their potential for harm. As my hon. Friend has said, in Great Britain the responsibility for issuing licences to business that wish to store fireworks or, indeed, other explosives is split between the local licensing authorities, which can issue storage licences for 2 tonnes or less, and HSE, which issues storage licences for more than 2 tonnes as well as licences to manufacture.

I shall talk first about the role of local licensing authorities. If any business wishes to store 2 tonnes or less of fireworks, or of other explosives, it must apply for a licence from the appropriate local licensing authority. The authorities require applicants to be “fit people”, and for them to supply accurate details of the types of activities being carried out; the types of fireworks or other explosives being manufactured or stored; and plans of the site. That helps to ensure that the authorities have a clear picture of what businesses are requesting the licences for and whether there are any issues that need further consideration.

Local authorities can grant licences only where predetermined legal separation distances between explosives and people are met, making sure that potentially higher-hazard licensing requests are referred to the explosive specialists at HSE. The licensing authority can revoke a licence if there is a change in circumstances that means that the person holding the licence is no longer considered fit, or if the site is no longer suitable. In addition, to acquire, or acquire and keep, certain types of explosives, the licence holder must have an explosives certificate from the police.

My hon. Friend has asked whether it would be more appropriate for the fire service to issue licences for larger traders. Licences to store smaller quantities of fireworks are issued by local licensing authorities, which include local council trading standards, fire authorities and the police. Local authorities are best placed to make decisions about licensing, as they understand, and are able to reflect, local concerns and requirements. HSE offers guidance to local authorities to support them in their assessments, and works closely with partner licensing authorities to ensure that the licensing framework is applied appropriately.

In Great Britain, if any business wishes to manufacture explosives or to store more than 2 tonnes of fireworks or other explosives, it must apply for a licence from HSE, which requires details of the types of activities being carried out; the fireworks or explosives being manufactured or stored; plans of the site; and the proposed distances between the fireworks or other explosives and people. HSE’s explosives inspectorate considers the suitability of the applicant and of the site and whether the application can be progressed. HSE-issued licences must have the agreement of local authorities. That enables local communities to highlight local factors and make sure that specific information regarding location and proximities is considered.

My hon. Friend raises an interesting point about whether the levels of scrutiny are appropriate for the risks, and queries whether the 2-tonne threshold for HSE-issued licensing is correct. I am reminded, given the time of year, that the amount of explosive to be used in the gunpowder plot was 2.5 tonnes.

The thresholds for licensing come from a long-standing historical approach first introduced under the Explosives Act 1875. The thresholds were reviewed in 2002 and were considered still to be valid. I have extended to my hon. Friend the offer to meet the Health and Safety Executive to discuss such concerns, and I encourage him to do so. That will provide him with the opportunity to raise the issue of the 2-tonne threshold directly with the HSE.

My hon. Friend expressed concerns that business insurance policies for companies storing or manufacturing fireworks are not sufficient. Specifically, he suggested a requirement to protect third-party businesses from damages caused by any firework-related incident. Over the years, Parliament has legislated to require compulsory insurance for specific categories of risk, such as liabilities incurred by those using a motor vehicle on a road or in a public space. Businesses that employ staff are legally required to have employer liability compulsory insurance to provide redress for employees against bodily injury, illness or disease sustained in the course of employment. In addition to those requirements, businesses such as a firework display operator must have valid liability insurance.

The explosives and fireworks licensing framework focuses on the health, safety and security of the licensed premises and the impact on the surrounding community. Consequently, that health and safety legislation does not extend to cover business insurance requirements for licensed premises. However, I have already made the commitment that HSE officials would welcome the opportunity to meet my hon. Friend once the coroner’s inquest into the SP Fireworks incident has concluded to consider the findings in full.

My hon. Friend suggested that we should introduce a requirement for licensed businesses to inform neighbouring businesses of, and display, the fact that fireworks are stored on their premises. The HSE licence approval process requires businesses to notify local communities that they are applying for a licence. Applicants must publish a notice in a local paper stating: they are applying for a licence; they are inviting any representations on the application; and how the application may be inspected. Applicants should also write to or leaflet those affected. That helps to inform neighbouring businesses, communities and residential properties.

I note carefully the specific impacts that my hon. Friend described on companies in his constituency, including River Canal Rescue. He made some cogent arguments about what can go wrong when there is a lack of adequate information or separation from other businesses. I congratulate River Canal Rescue on its success in continuing to employ apprentices, which is such an important part of ensuring that our young people can go on to fulfilling careers. However, I have noted carefully what he said about the difficulties it has faced, which indeed many companies can face in emergency situations.

The Government strategy for regulators is set out in the regulators’ code, which requires regulators to ensure that they take proportionate approaches to regulation in line with the level of risk. The principles of the regulators’ code are applied by HSE’s explosives licensing team, with sites undergoing targeted interventions, including inspection. HSE has an effective enforcement policy statement and has developed an enforcement management model that aligns to the Government’s better regulation principles. Similarly, local licensing authorities also adopt a risk-based approach to targeting health and safety interventions. This principle-based framework is set out in the published local authority national code.

My hon. Friend has suggested that bodies responsible for licensing should conduct unannounced checks on premises and receive specific training in fireworks. As I have mentioned, the HSE works closely with local authorities and the industry to ensure that the licensing framework is applied appropriately. Licensing authorities use a number of intervention approaches to regulate and influence businesses, including the provision of advice and guidance, and both proactive and reactive inspection.

The Government fully recognise the importance of ensuring suitable licensing requirements for fireworks and other explosives. The Health and Safety Executive works extensively with explosives and fireworks industries to support compliance with the law. The HSE regularly engages with industry stakeholders and has developed guidance with the industry. The existing licensing framework aims to make sure that, where businesses comply with the licence conditions, the risks of an uncontrolled explosion occurring are greatly reduced. Where businesses fail to meet these requirements or harm occurs, regulatory action is swift.

As I have already mentioned, the Health and Safety Executive is undertaking a review of explosives licensing as part its ongoing commitment to continual business improvement, and to ensure that the framework is fit for purpose. The review will look at how the HSE’s licensing approach can be improved and whether any possible burdens on business can be reduced while maintaining standards of safety. It will involve input from industry, other Departments and other regulators, including local authorities, which will provide my hon. Friend and other hon. Members with an opportunity to feed into the process.

We have heard my hon. Friend’s specific areas of concern, but there may well be others. The review is certainly a chance to scrutinise the current system. The concerns he has raised include those about the 2-tonne limit on local authority, as opposed to HSE, licensing and about the categories of fireworks, which is very important. However, there may also be other areas, such as the secondary manufacture or fusing of fireworks, which often takes place in companies seeking to put on professional displays.

My hon. Friend raised the concern that licensing should be required for any business in Great Britain manufacturing or storing hazardous quantities or types of fireworks. I hope he is reassured by my response that this is already the case. I thank him for bringing these important issues to our attention. Again, I would like to extend my sincerest condolences to the families of Simon Hillier and Stewart Staples. My officials would welcome the opportunity to meet my hon. Friend to discuss the coroner’s findings once the inquest has been concluded, and to consider any areas of further work.

Question put and agreed to.