Asia Pacific Infrastructure Property & Build | Industrial Safety News : Dec '18 - Jan '19

2018 December 2018 - January 2019

Defining the future

TITLES HAVE CHANGED, YOUR RESPONSIBILITIES HAVEN’T… SAFETY NEWS

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RESPONSIBLE CARE NZ, YOUR ONE-STOP WORKPLACE CHEMICAL SAFETY EXPERTS

AUGUST 2018

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Content Partners 4-5

2018 a defining year

Environmental disaster scenarios range from the loss of 60 percent of Earth’s known species and habitats to rising sea levels caused by a rapidly shrinking polar ice cap

6-7

Facilities Management

BuildingIQ has launched a mobile app to provide the team with access while on the go (6). Acuite provides 360-degree health checks in real-time to the construction industry (7)

Worksafe heightens awareness of workplace safety with court actions and enforceable undertakings against unsafe work practices (8-9). A range of online safety guides from selfassessment, health by design and prevention of bullying (12)

Alcohol and drug testing

10-11

Komatsu

14-15

Drug and alcohol use by employees has been a long-standing issue for workplaces in New Zealand, as has the question of how to lawfully screen for drug and alcohol use in the workplace

Servicing 300 machines from a base in Invercargill and Tracks Concrete achieves a 500% productivity increase with a rented Komatsu PC210LCi-10 iMC excavator

Personal Protective Equipment

The over-riding fundamental principle for personal protective equipment is that it should only be used as a last resort (16-20). Guidance for the selection of PPE to protect building and construction workers (21)

Responsible Care

OHS management systems help companies meet due diligence requirements

High density housing development

We need to be bolder and embrace the positives associated with higher density living, instead of finding reasons not to do it

Across the ditch

8-9, 12

Safety

16-23

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Occupational Health & Safety

26-29

Significant investment will be needed to achieve the myriad aims of the draft Policy statement for transport but it is a move in the right direction for a gridlocked transport system

38

Climate change

Local Government NZ says that we need to have conversations about sensitive issues if our communities are to be resilient in the face of climate change

Water quality

39

Electricity

40

A new report points to opportunities for change that could be a focus for the government's Three Waters Review.

The chemical industry continues to lead by example, helping to ensure essential chemicals encountered at work and at home are safely managed

Toxic workplace

42-43

Eight behaviours to avoid a toxic workplace

Innovation

Success with a four-day week for Perpetual Guardian

Responsible Care

Harrison Grierson

Pages 4-5

Pages 26-29

Graham Tanner

Joseph Williams

Duncan Cotterill

Duncan Cotterill

Pages 10-11

Pages 10-11

Hamish Glenn

Dr Llew Richards

Infrastructure NZ

IANZ

Pages 34-37

Page 41

Ritchie Bower

Murray Dyer

HSE NZ

Simply Group

Page 25

Page 40

34-37

Auckland and NZ's electricity infrastructure is under scrutiny once again

24-25

Hayley Ellison

30-32

A weak Australian housing market has prompted warnings for bank regulators to be prepared for a hard landing (30).

Global tech players such as Google and Amazon are leading city development and redefining work, mobility and leisure (31-32). New chemical storage guide released for Australian workplaces (32)

Transport

Barry Dyer

44-47

Published by Media Solutions Ltd PO Box 503, Whangaparaoa Auckland 0943 09 428 7456

Managing Editor Geoff Picken 021 250 7559 geoff@infrastructurebuild.com

Publisher Mike Bishara 027 564 7779 mike@infrastructurebuild.com

Design & Pre-press Michael Curreen 021 029 20234 michael@infrastructurebuild.com

Original material published online and in this magazine is copyright, but may be reproduced providing permission is obtained from the editor and acknowledgement given to Media Solutions. Opinions expressed are those of the authors and may not necessarily be those of Media Solutions Ltd. ISSN 2624-0572 (Print) ISSN 2624-0580 (Online)

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A year of hope, inspiration and desperation

WORKPLACE SAFETY

By Barry Dyer

Environmental disaster scenarios range from the loss of 60 percent of Earth’s known species and habitats to rising sea levels caused by a rapidly shrinking polar ice cap The Paris Agreement signed by 174 countries to limit the rise in Greenhouse Gas emissions appears doomed thanks to China and the US When an overturned truck carrying chemicals can close our main highway for 17 hours on the eve of a holiday weekend, questions need to be asked about our emergency preparedness A compliant media less than diligent at investigating and reporting the issues undermines their obligation to ensure New Zealanders are well informed A plea by the Chief Scientist to reconsider the ban on genetic modification is a timely reminder we should also revisit high-temperature incineration of exported intractable plastic waste A new class of synthetic materials which act as molecule scale sponges to trap Co2 are an exciting weapon - the metal organic frameworks offer the collection area of a rugby field, within the surface area of a teaspoon 4

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The Chinese Year of the Dog is notable for the 100th anniversary of the “War to End All Wars” and growing concerns for the future of our faltering planet

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ustainability remains the all-pervading, global theme reflected in the recent International Committee report on Climate Change.

Disagreement over cutting carbon emissions by 50 percent continued in 2018 despite a popular campaign to reduce plastic waste.

The UN fails to prevent the continued use of chemical weapons primarily against civillians.

Disaster scenario reportage ranged from the loss of 60 percent of Earth’s known species and habitats to rising sea levels caused by the escalating shrinkage of polar ice.

The daunting challenge of feeding a burgeoning global population is exacerbated by refugees fleeing either war-torn, environmentally deteriorating or economically ravaged countries. In many cases all three.

The historic 2016 Paris Agreement signed by 174 countries seeking to limit the rise in Greenhouse Gas (GHG) emissions to less than two percent appears doomed by the non-participation of the two major GHG emitters, China and the United States. A major environmental conference in Poland this month is not expected to deliver the guidance required to help achieve this lofty goal.

Other significant 2018 events impacting Spaceship Earth, and New Zealand in particular, include: • The failure to establish the NZ sponsored and widely supported Antarc-

tic Sanctuary, the world’s largest (1.8m sqml) marine reserve, due to the intransigence of China, Russia and ironically Norway, a major sponsor of UN Environment causes • New Zealand’s ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) ensured this free trade initiative involving 10 Pacific Rim countries will proceed, significantly reducing tariffs, particularly on our agricultural exports The value of this landmark global trade pact is undermined by the withdrawal of the United States and the US/China trade war, while the consequences of ‘Brexit’ remain confusing.

• Confusion about the future global leadership role of ‘Superpowers’ United States and China.

• China’s investments in South Pacific countries under the ‘Belt and Road’ initiative designed to expand Chinese influence and infrastructure projects linking Europe, Asia and Africa in an economic network involving more than 60 countries • The growing influence of extremist political parties threatening the stability of democratically elected governments addressing social issues such as better economic development and living standards while accommodating refugees • Preference for social media and the Internet over recognized ‘experts’ plus ‘fake news’, ‘alternate facts’ and outright lies undermine confidence in politicians

and the mainstream media Trials by social media and the popular press pursue character assassination, often using illegally obtained information from anonymous sources and declare hapless victims ‘guilty until proven innocent’ - without the subsequent correction and apology • Failure of the UN to reform the Security Council or successfully deal with the re-emergence of chemical weapons against civilian targets. Of concern is the pending demise of the US ‘Trust But Verify’ policy which created the 1988 US/ Russia treaty banning medium/long-range nuclear weapons

Just tell me what I need to hear

A compliant media is proving less than diligent at investigating and presenting the facts of the matter, not just determining what is newsworthy. This undermines the obligation to help ensure New Zealanders are well informed about issues everyone needs to understand to play our part as a global citizen.

In politics, the phenomenon of ‘virtue signalling’ of good intentions without solutions is becoming the norm. Cycleways may be good for public health, but surely not at the expense of reducing congestion on our national transport network.

When an overturned truck carrying chemicals can close our main highway for 17 hours on the eve of a holiday weekend, questions need to be asked regarding

the effectiveness of our emergency preparedness.

The confidence conundrum signals other problems

The lack of business confidence contrasts with low unemployment and increased tax revenue. Business operators, particularly SMEs, have more immediate concerns arising from issues such as: • The unfilled demand for suitable employees, heightened by the rising number of prospects refusing to take a drug test.

• The government’s unclear intentions regarding the Taxation Working Group; • Employment legislation perceived as favouring unions and requiring employers to address socio-psychological issues typified by workplace bullying and reportedly extending into an employees’ domestic situations. A new concern is the addition of cannabis to the workplace drug problem.

• Disruption along our transport networks as major rail and highway improvements are endlessly reviewed and delayed; • The much publicized and equally criticised Provincial Development Fund, widely scorned as ‘pork barrel spending’ - taxpayer assistance for favoured businesses.

• Promoting self-sufficiency in energy while stopping

exploration for oil and gas and preventing new water catchment schemes in increasingly drought-prone areas.

• Banning single-use plastic bags was easy; dealing with the growing stockpiles of used tyres and plastic waste awaits sensible solutions.

It’s not rocket science – although that helps

A plea by the outgoing Chief Scientist to reconsider the ban on genetic modification is a timely reminder we should also revisit reinstating high-temperature incineration of intractable plastic waste to supplement our drive toward 100 percent renewable energy.

A virtual drought of science-educated workers by 2025 is of real concern to those advocating New Zealand as a poster child for innovation and scientific achievement.

Critics claim science is being largely neglected in our schools, particularly by missing early opportunities to engage young children with practical examples of chemistry and physics.

One of a select few countries to join the Space Race, New Zealand’s future depends on our ability to not just sustain our quality of life, but continue to enhance it. Science is the key to success.

International and New Zealand scientists attending a Massey University forum

of experts including the US Department of Energy, Exxon Mobil and Australia’s CSIRO, hail a new class of synthetic materials which act as molecule scale sponges to trap CO2, as an exciting weapon to combat climate change. The metal organic frameworks (MOF) offer the collection area of a rugby field, within the surface area of a teaspoon.

Multi-talented MOFs can absorb potable water from dry air.

Throwing out the baby with the bath water

The struggle to keep people safe at work continues.

Too many people are harmed by chemicals in their workplace. Diluting the requirement for competent chemical workers is a major problem for smaller businesses unable to conduct their own specialist training.

Two years after the incorporation of workplace chemical management under HSNO into the Health and Safety at Work Act (HSWA), non-compliance remains unacceptably high.

The sadly missed National Occupational and In 2019 New Zealand will be the first country in the world to mark the UN International Year of the Periodic Table of Chemical Elements, commemorating the 150th anniversary of Dmitry Mendeleev’s discovery, which enables scientists to predict the appearance and properties of matter on Earth and throughout the universe.

It offers the opportunity to pause, analyse and reflect upon our achievements.

Safety Advisory Committee (NOSAC) which regularly reported on chemical and workplace health, paid the price for insisting on ‘telling it like it is’.

What would NOSAC’s experts have said about the passing this week of the Misuse of Drugs (Medicinal Cannabis) Amendment Bill giving access to anyone needing palliative relief.

If it affects the senses and reflexes, does it herald a new generation of drug-impaired workers?

On the bright side, industry is pleased the EPA is introducing a realistic list of ‘Chemicals of Interest’ which incidentally does not include Fluoride, 1080 or Glyphosate.

SMEs in particular are turning to suppliers and the global Responsible Care chemical safety initiative to obtain the accurate compliance advice they cannot easily obtain elsewhere.

The views and opinions expressed by Media Solutions content partner Responsible Care CEO Barry Dyer may not necessarily be those of Responsible Care New Zealand.

The Year of the Periodic Table will hopefully spark a renewed interest in science and chemistry.

ISN.CO.NZ

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SAFETY NEWS

2018

WORKPLACE SAFETY

New app to streamline maintenance and enable comfort management BuildingIQ has launched a mobile app designed to provide a building’s facilities team with access to BuildingIQ’s 5i platform while on-the-go

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ith the app, members of the facilities team can identify and submit issues within a facility or campus, document with mobile photos, and automatically create a maintenance ticket in the moment.

Features can also be enabled to allow tenants to submit service requests for automatic ticket creation.

The app may also be used to engage tenants on how they feel about the space by enabling a Comfort module.

With Comfort enabled, it takes only a few seconds for a building occupant to let the facilities team know if a location is too warm, cold, or just right.

This vital feedback is mapped to building system status and presented through heat maps depicting the human factor of cooling and heating operations.

The BuildingIQ Mobile App is now available for current BuildingIQ customers utilising Facility Worksite.

“Mobile applications can be great for productivity when done right,” says Jimmy Cheung, director of Facilities and Engineering.

“Apps that combine both facilities professional and tenant tools in one – like BuildingIQ’s app – are potentially very valuable in delivering flexibility, utility and engagement.

“This is especially true as building owners, management firms

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and facility companies all embrace broader service offerings.”

The app is an integral part of BuildingIQ’s mobile-focused strategy to aid facilities teams by improving their efficiency and creating more powerful technology-enabled services for the buildings industry.

According to chief executive Michael Nark “this intuitive app integrates with our intelligent energy management platform, allowing the user to document, assign, track and verify tasks in real-time.

“The tenant-facing features are a key step in allowing people working within a building or campus to act as an extension of a building’s sensors and fault detection system, so that issues can be identified and resolved quicker.”

Streamlined operations and insights

Using the Service Centre module, each member of the facilities management team can create and manage work ticket that they created or have been assigned to them – all in the moment – to improve efficiency.

The Service Centre module provides an overview of all work orders so that managers can ensure operations are running smoothly in real-time.

By enabling the Comfort module of the BuildingIQ Mobile App,

facilities teams will be able to gauge the ‘human’ impact of their heating and cooling strategies, by turning tenants into the ultimate building sensors.

Everything is made simpler by using the Goldilocks principle – a tenant is either ‘too cold,’ ‘too hot,’ or ‘just right’ at any time during the day.

When submitting comfort information, feedback will be tagged by location within a building by floor and, more specifically, by the space/zone on that floor.

The data can then be used to create heat maps to correlate hot and cold comfort calls with building system settings. This will encourage more real-time feedback, replacing hot and cold calls that occur only once discomfort has escalated to a point of disruption.

Using the BuildingIQ Mobile App, facilities managers will also be able to: • Configure whole floors or spaces within floors • Obtain a quick overview of

aggregated feedback across all tenants and locations • See static information about comfort and energy management • Engage with tenants directly ** The BuildingIQ Mobile App is designed to be used by current customers. A Facility Worksite subscription is the minimum recommended requirement to benefit from using this app. The BuildingIQ Mobile App is available for download at the Apple App Store or Google Play. Learn more at www.buildingiq.com/app BuildingIQ provides technology-enabled services to help building owners and operators worldwide save energy, increase operational efficiency, and improve tenant comfort. Through its 5i cloud-based platform, BuildingIQ delivers on the promise of the Internet of Things (IoT) to help visualise, analyse, control, and optimise energy usage within a single facility, campus or portfolio of buildings. More than 100 million square feet of global building space is currently being serviced

by BuildingIQ www.buildingiq.com

Acuite has taken their ability to provide 360-degree health checks in real-time to the construction industry to a new level by integrating with PlanGrid

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cuite and PlanGrid have partnered to offer the construction sector a comprehensive solution that improves performance through streamlining project delivery and generating insights and analytics.

Construction productivity software has been game changing in the construction industry throughout the past few years.

Traditionally, project teams have gathered at the end of a month to run through spreadsheets and data to analyse how they were tracking – often uncovering hidden problems and delays that should have been rectified earlier.

Now, “monthly reports in real time” give project managers and executive management the ability to recognise issues and jump in

Critical control

Acuite’s new integration with PlanGrid facilitates critical project KPI information flow between platforms.

Project data collected at the source through PlanGrid populates Acuite’s analytics dashboards, giving users the ability to identify trends, track performance improvements, highlight poor performance, reduce risk and improve margins.

The data-driven approach helps customers complete projects more efficiently, to a higher quality and with improved safety standards.

Everyone on the worksite is upto-date with developments, risks and changes.

David Speight, COO and co-founder of Acuite says it is important to his company to tap into PlanGrid as a best-of-breed system, to enhance services to customers.

“Since the cloud has gone mainstream, and the influx of mobile devices on the worksite, there is an expectation out in the field that technology will be available to make life easier,” Speight explains.

“The commercial construction industry is time poor and people want to get out, not do admin.

“Communications can, as a result, take a back seat,” he adds.

“We roll all the info at project level to regional and portfolio views.

“If the contractor chooses, they can also give the client access to certain KPI information, building transparency and trust between client and contractor, which has in the past been a challenging area.”

“PlanGrid gives users the tools to collect and share real-time intelligence from the field, and Acuite will now help our customers make even better use of that rich data to make stronger business decisions and build more effectively,” says PlanGrid Head of Strategic Alliances and Partnerships James Cook.

A common barrier in construction projects is keeping on top of consultant response times to queries, an architect’s response to a design question, or any of the other contractors who are part of the vast chain.

Acuite’s insights makes it possible to instantly visualize and report on subcontractor and consultant response times as well as the ability to set and track benchmarks around response times early on to increase the chances of a successful project outcome.

“The industry is so dynamic and people are expecting to use technology more and more,” says Speight.

“It is becoming increasingly important to use data to manage performance, providing transparency so stakeholders are aligned and not referring to different versions of the truth.

“This will go a long way to shift the sector from the constant adversarial relationships that are often the unfortunate outcome of years of work delivering a project.”

Acuite customers are reaping real benefits from Acuite’s continuing development and partner integration.

Long-term client Dominion Constructors, Programming Manager, Richard Joseph says: “The strength of our existing systems and Acuite combined together is to give access to accurate information quickly so that our staff focus on our core function and business which is constructing projects; not extracting and sifting data.”

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WORKPLACE SAFETY

Leading construction health check provider joins forces with construction productivity software leader

as soon as they become apparent, enabling conversations to happen before the fact instead of constantly fighting fires that are often only noticed as they start to delay and derail the project.

New Zealand company, Acuite, was launched in 2014 to provide a construction-specific business intelligence reporting platform that plugs into existing systems and gives real-time dashboard views into project and portfolio health.

It also provides insights into trends and analytics across critical reporting KPI’s of time, cost, quality, health, and safety and relationships.

This information is available not only on an individual level, but across the whole project, within regions and across different regions.

The leader in construction productivity software based in San Francisco, PlanGrid’s construction productivity software is used on more than 500,000 projects in 78 countries.

The company empowers contractors, owners, designers, and architects to easily and seamlessly collaborate throughout the entire project lifecycle by streamlining document control and distribution and providing teams with real-time access to all relevant construction information from any device.

WorkSafe actions heighten awareness of workplace safety This is a summary of some of the WorkSafe actions in the last four months of 2018 through the use of enforeceable undertakings and the courts to counter unsafe work practices.

Click on an incident to read more about it.

WORKPLACE SAFETY

Court decisions – Asbestos removal The court found Richard Knight was unlicensed for an asbestos demolition job carried out on a Christchurch building.

The sentencing is the first of its kind under new asbestos regulations and relates to strict new rules around licensing.

While the worker did have experience in the construction industry and in demolition, he was not licensed to manage the removal of asbestos. Nor had he obtained the required certification for the work he completed.

Court decisions – Forklift safety Cardinal Logistics was sentenced following an incident where a worker was hit by a forklift and crushed against racking. The worker sustained multiple fractures that broke his leg and arm, resulting in a 35-day stay in hospital. The injuries are ongoing, with the victim recently having his leg amputated and continuing to have ongoing medical intervention for his arm.

Court decisions – Forestry Rotorua based logging operator Cropp Logging was sentenced in court after an incident where a worker was struck by a tumbling log.

The worker was on his first day on a forestry site in Rangiuru working as head breaker-out when the incident occurred. The site was using a cabling system to move logs uphill, when a hooked-on log became dislodged and began rolling down a gully. The log struck the worker resulting in significant injuries and hospitalisation.

The operation of a digger above the worker was found to have increased the risk of the log becoming dislodged and tumbling downhill.

Court decisions – Farm safety Scott Alexander McRae appeared in court after a worker on his Wellsford farm was killed in a tractor incident. The worker was driving a tractor and towing a trailer carrying two bales when he lost traction on a sloping piece of land. The tractor and trailer jackknifed, resulting in the tractor rolling and fatally injuring the driver.

Court decisions Construction site The death of a retired man who fell from a mobility scooter on a damaged piece of footpath resulted in building development company YSB Group being fined $100,000.

The footpath had been damaged by heavy vehicles during the development of a Papatoetoe housing site. When the victim was driving his mobility scooter, the scooter tipped on the uneven terrain, he fell to the ground and was fatally injured WorkSafe’s investigation found there was significant pedestrian activity on the footpath and that YSB Group did not identify the damaged footpath as a risk.

Court decisions – Machine guarding

Court decisions – Machine guarding

Locker Group appeared in court following an incident where a worker's hands were crushed by a piece of machinery that folds sheet metal. He had to undergo significant medical work including finger amputations.

Locker Group manufactures and sells metal and mesh products for the construction industry.

“This sentencing serves as a reminder that machinery needs to be designed safely in the first place. Engineers of these types of machines are often overseas and they are not designed to New Zealand’s standards, or to keep workers safe from harm” says WorkSafe’s Head of Specialist Interventions Simon Humphries.

Machine guarding failures in the meat processing industry are continuing to cause life-changing injuries to workers. Alliance Group Limited in court after an incident where an inexperienced worker’s hand was amputated in a piece of machinery.

The worker had been employed at the plant for only five days and was left unsupervised on a task. Due to the worker’s lack of familiarity with the job, he opened a section of the machinery used for dehydrating blood into a powder and placed his right hand inside. His hand came in contact with a rotating screw and was amputated.

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Enforceable undertaking Height safety Worksafe accepted an enforceable undertaking from engineering and infrastructure company Opus International Consultants an incident when scaffolding collapsed underneath Auckland’s Panmure Bridge and six workers fell into the water below them. Although one worker was trapped on the scaffolding, all escaped the scene without serious injury.

Court decisions – Height safety

Court decisions – Height safety Enforceable undertaking Height safety Electrix was sentenced after a worker harnessed to the top of a 30-metre high temporary transmission tower was injured when it fell to the ground leaving him with multiple injuries.

The Worksafe investigation found that the temporary tower erected on the Waikato Expressway was not safely secured for the work being undertaken on it. Electrix was found to have failed to develop and implement a safe system of work, ensure the tower was erected in accordance with the manufacturer’s instructions and ensure the competency of its workers on the towers.

WorkSafe accepted an enforceable undertaking from Trojan Holdings after an incident at the Cromwell Transfer Station in 2017 where a worker fell into the waste hopper and sustained serious injuries.

The worker was assisting a truck driver to empty a skip bin. He was about to open the skip bin doors at the back of the truck when the truck began reversing and he fell more than three metres into the hopper below him.

The incident left the worker with a traumatic brain injury and a leg fracture.

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WORKPLACE SAFETY

Agility Building Solutions was sentenced after a painter was injured in the construction company's own workplace.

WorkSafe says the case is a clear example of workplaces not ensuring safety gear is actually safe for use.

The injured painter was given incorrectly installed mobile scaffolding to work from. On the first day of the job, the painter fell two metres from the scaffolding to the concrete floor below landing head first and sustaining multiple fractures to his skull, face and ribs. He suffered major brain trauma.

WORKPLACE SAFETY

The ins and outs of drug and alcohol testing in the workplace Drug and alcohol use by employees has been a long-standing issue for workplaces in New Zealand, as has the question of how to lawfully screen for drug and alcohol use in the workplace, Graeme Tanner and Joseph Williams note

U

nder the Health and Safety at Work Act 2015, employers’ obligations in relation to minimising or eliminating health and safety risks naturally extend to minimising the risk of impairment from drugs and alcohol.

This is especially so in safety-sensitive industries.

While drug and alcohol testing can be an effective measure to minimise or eliminate this particular risk, employers need to be conscious of the inherent invasiveness of any such process and the privacy implications of workplace screening.

These elements bring with them a myriad of legal issues that, if not appropriately borne in mind, can result in claims of unjustified disadvantage and/or dismissal by affected employees.

Getting your documents right The starting point for any drug and alcohol screening in the workplace is ensuring that the relevant workplace documents

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allow for testing of workers.

In particular, an effective drug and alcohol policy is key to ensuring that drug and alcohol testing can be lawfully carried out in a workplace.

As a general rule, a good drug and alcohol policy should: • outline the circumstances in which testing can occur in the workplace • the means of testing applied (be it saliva or urine testing) • the types of substances being tested for • the consequences of returning a non-negative test (or refusing to submit to a test without reasonable cause) • and any support that might be available.

While employers do have the right to introduce or amend drug and alcohol policies from time to time following consultation, it is also important to ensure that any policy is consistent with the terms of any prevailing employment agreement.

Oftentimes relevant employ-

ment agreements will be silent on the issue of drugs and alcohol but instead contain a generic provision requiring employees to abide by any reasonable policies that may be adopted or amended from time to time.

While this can certainly extend to the introduction of drug and alcohol policies, employers will at all times need to ensure such policies are reasonable, taking into account the particular circumstances of each specific workplace.

When implementing such a policy, employers must also consult with affected employees prior to its implementation.

When can you test?

While drug and alcohol testing in the workplace will always need to be carried out in accordance with any prevailing policy and employment agreement, as touched on, all screening also needs to balance the overarching requirements of reasonableness.

Pre-employment screening

Pre-employment drug screening is a practice that is widely used in a number of industries and it’s clear that, when used appropriately, pre-employment drug screening can be a useful tool for employers, particularly in safety sensitive industries.

With that said, if pre-employment screening is not widespread in an industry, employers should also be mindful of managing ‘candidate care’ during employment application processes.

From a legal standpoint, while employers certainly need to be alive to prospective employees’ rights to privacy and the inherently invasive nature of any form of drug testing, pre-employment screening is reasonably straight forward.

Typically, an offer of employment is expressly conditional on the return of a negative test and it is made clear that the employment relationship will not commence until after that time.

If a prospective employee then

Reasonable cause testing

If an employment relationship has commenced, the circumstances in which drug and alcohol testing can be lawfully conducted are limited.

One commonly used form of testing is where the employer has reasonable cause to believe that an employee is at risk of impairment due to the consumption of drugs and/or alcohol.

If an employer is going to carry out reasonable cause testing, consideration should be given to what reasonable cause indicators might look like.

Generally these will be expressed in a non-exhaustive list of reasonable cause indicators such as excessive lateness, odour of alcohol, violent or erratic behaviour, bloodshot eyes, or impaired motor skills.

Post-incident testing

Drug and alcohol testing can also be reasonable if it is carried out following an incident, accident or near miss in the workplace.

This is particularly so when an employer has reason to believe that an accident or incident in the workplace may have been as a result of impairment due to drugs and/or alcohol.

As with all workplace drug and alcohol screening, “reasonable cause” and “post-incident” testing must be carried out in accordance with the relevant workplace policies.

sonable (i.e. random testing) can be justified with reference to the overriding obligations of health and safety.

With that said, employers need to be conscious that random ‘suspicion-less’ testing can only be carried out in genuinely safety sensitive roles, assuming of course that this is provided for in the policy.

It is also important to note that when ‘random testing’ is carried out, it must be truly random.

Even if employees are in safety sensitive roles, random testing does not allow for employers to test employees based on a ‘hunch’ or mere suspicion.

Many employers fall down by calling what is effectively a ‘reasonable cause test’ or a ‘post-incident test’ a random drug test.

Tests and results

In addition to considering when testing will be carried out in a workplace, employers also need to give consideration to how that testing is conducted.

In New Zealand the preferred standard for drug testing is usually urine testing (as opposed to saliva testing).

a test, or should they refuse to undertake reasonable testing in accordance with their employment obligations, the next consideration is whether and how to implement any disciplinary action.

If disciplinary action is taken, it is crucial to strictly adhere to the relevant drug and alcohol and/or disciplinary policy.

A failure to apply and follow a policy can render any subsequent dismissal (or indeed any disciplinary action) unjustified.

This point has been demonstrated time and again through the Employment Relations Authority and Employment Court, which

that, when dismissing an employee for breach of a drug and alcohol policy, the employer must: • ensure that the testing (including the reasons for and the manner of testing) strictly complies with the relevant policy • the employee is given an opportunity to explain a failed test • and the employee’s explanation for the failed test is genuinely considered.

If the employee does not give an explanation, or if their explanation is not accepted, then this should be put to the employee, along with proposed outcomes (such as disciplinary action) for response, prior to any disciplinary action being confirmed.

Drug and alcohol testing in the workplace is not without controversy.

However, the requirement to maintain a safe workplace remains paramount.

A good drug and alcohol policy can be an invaluable tool for managing health and safety in your workplace, provided any such policy is implemented fairly and administrated reasonably so as to balance employees’ rights with employers’ obligations.

“Having a drug and alcohol policy in place and following it properly can be an invaluable tool for managing health and safety in your workplace…”

Random testing

The random testing of employees can also be justified in some cases, although, as random testing doesn’t rely on any reasonable suspicion on an employer’s part, it can only be used in limited circumstances.

Random testing is typically intended as a deterrent for drug and alcohol use where relevant employees are in a safety sensitive area or if an employee’s work directly impacts the safety of others.

Risk of impairment in these areas can have catastrophic consequences; and in these situations, intrusive monitoring methods that are generally considered unrea-

This is because it is governed by AS/NZS 4308:2008 (Urine testing standard) and has been designed to minimise false positives.

It is also more effective than saliva testing at detecting certain drug use.

The initial results of any such test will be either negative, or non-negative.

Non-negative test results will then need to be sent to an accredited laboratory for more detailed testing and to determine if the results are positive.

Where appropriate, alcohol testing will generally be carried out with a breathalyser, ideally from a testing agency that complies with Standard AS 3547-1997.

Results from testing of this kind are available immediately, making it a straightforward method of testing without delays that are usually present in urine testing.

have routinely held that, in order for any disciplinary action to be justified as a result of a positive test, an employer must have strictly complied with all elements of the drug and alcohol policy and followed a fair and reasonable disciplinary process in accordance with the Employment Relations Act. In practical terms, this means

Investigation process and disciplinary action

If an employee returns a non-negative/positive sample to

Graeme Tanner is an associate and Joseph Williams a solicitor at Duncan Cotterill, a full service law firm with locations in Auckland, Wellington, Nelson and Christchurch SAFETYNEWS.CO.NZ

11

WORKPLACE SAFETY

fails to return a negative sample, the conditions of the offer of employment will not have been met and the offer can simply be withdrawn at that time.

SafePlus’s new online self-assessment tool Businesses wanting to improve their workplace health and safety now have the SafePlus free online self-assessment tool to support them.

It’s mobile friendly and free to use, and designed for small to medium sized businesses to support health and safety performance.

You can see the new Online Self-Assessment Tool and more information about the other SafePlus initiatives on the SafePlus website.

Online health and well-being for SMEs WORKPLACE SAFETY

A new online resource is now available to help small businesses create a health and wellbeing policy relevant to their business quickly and easily. The Workplace Policy Builder on the business.govt.nz website makes it easy for small businesses to tailor policies to the individual circumstances of their workplaces.

For more information, check out the media release from the Beehive or click here.

Bullying prevention in the workplace Workplace bullying and harassment (including sexual harassment) has been making news lately; it is a serious issue for New Zealand. Studies suggest that up to one in three workers report experiencing some form of bullying or harassment each year.

Click here to read the article.

Health by design Designers have an important role in managing health and safety risks.

The health and safety by design process can apply to plant, substances, structures, materials, technology, facilities, equipment, hardware, software and the way workers interact with these.

Click here for more information.

Uber app to prevent drivers driving fatigued

Workplace health and safety guidance

To work safely, workers should be physically and mentally alert.

This means fatigue is a risk. Businesses and workers have a responsibility to manage fatigue at work.

There are certain health and safety requirements for workplaces that all businesses must meet.

Uber has introduced a safety feature that logs drivers off its app after they reach 13 hours driving time - the most Uber and taxi drivers are legally allowed to drive in a day. This follows a case in which one of its drivers exceeded the NZTA rule on the 13-hour driving limit. More info can be found here.

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SAFETYNEWS.CO.NZ

We have published new fact sheets on workplaces and workplace facilities, personal protective equipment (PPE) for businesses, PPE for workers, first aid and emergency plans.

Click here to read the new PPE Guidelines.

2

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To start earning today join Airpoints for Business at www.airpoints.co.nz/business *Terms & Conditions: Between 1 December 2018 to 31 January 2019, earn 2 Airpoints DollarsTM for every $50 excluding GST spend on Komatsu Genuine Parts. After 31 January 2019 the earn rate reduces to 1 Airpoints DollarsTM for every $50 excluding GST spent on Komatsu Genuine Parts. Airpoints for Business terms and conditions apply. Refer to https://www.airnewzealand.co.nz/airpoints-for-business-terms-andconditions for full terms and conditions. This offer does not apply to Komatsu Genuine Parts purchased or supplied under any of the following: parts provided or fitted by Komatsu’s service department; loyalty incentive agreement; point of sale discount agreement; consignment stock agreement; rebate agreement; fixed price agreement; parts by the hour agreement (PBTH Agreement); maintenance and repair contract (MARC); preventative maintenance agreement (PM Agreement); Servicing by the hour agreement; Komplimentary Maintenance Agreement; global supply agreement for the purchase of earthmoving machinery parts (including a local supply agreement that is subject to a global agreement); or other arrangement (or combination of the above) providing for discounted pricing. Purchases of new and used machines, and attachments and used or remanufacture earthmoving machinery parts are also excluded. This offer cannot be used in conjunction with any other offer. Valid until 1 June 2019 unless extended. Komatsu Genuine Parts are sold in accordance with Komatsu New Zealand’s “Terms and Conditions – Parts and Service”, available at www.komatsu.co.nz.

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Massive productivity increase Tracks Concrete recently achieved a 500 percent productivity increase on the construction of a stop bank after it switched from a conventional excavator to a rental Komatsu PC210LCi-10 iMC unit

T

racks Concrete is based in Whakatane and has been in business over 30 years.

The company carries out a range of civil contracting projects, including site development, concrete works, site walls, formwork and building projects, stop bank construction and maintenance throughout the eastern Bay of Plenty.

Earlier in 2018, the company began construction of a stop bank near Whakatane using conven-

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INFRASTRUCTURENEWS.CO.NZ

tional excavation techniques.

This job consisted of shifting 120,000 cbm on site and importing 70,000 cbm to construct a new stock bank and widen the existing channel.

The channel was cut in grade and lined with geotextile cloth and 11,000 tonnes of rip rap.

“Our initial work process included batter boards, stringlines, and lots of people on the ground measuring and checking.

“With this set up, we were

excavating the walls ready to lay the riprap, and struggling to do 11m a day.

“We were worried the job could get behind time, so we purchased a couple of machines and ‘bolted-on’ GPS-based indicate systems," says director Ken Young.

“Then Reimerd Mostert, Komatsu’s iMC (intelligent Machine Control) specialist, mentioned that Komatsu had an iMC excavator for hire, so we decided to bring that in to give us a hand.”

“Bringing in the iMC machine really rocketed our excavation rate, so we were achieving 55 m a day, every day. “We found it was even superior to the bolt-on GPS indicate system.”

Young explains: “The difference is that the Komatsu iMC system doesn’t let you overdig, you cut exactly to the grade as per the design, and you always know exactly where you are.

“The operator doesn’t have to watch all the time, so they are just digging precisely to grade.

That’s the difference with the GPS indicate system as, because it’s guide-only, you can overdig if you don’t watch carefully, so that slows you down a bit,” he says.

“As a result, we went from 11m a day with the traditional system, to around 40-45m a day with the GPS indicate system, and then to 55m a day with the Komatsu iMC. “We just found that iMC system really good, because basically

you can’t make an error, you can’t overdig; it just follows the design.”

Young said Tracks Concrete’s introduction to machine control had only been a short time earlier, when it had purchased a D61PX-23 dozer, to which it had fitted a ‘plug and play’ bolt-on GPS machine control system.

“We’ve had a few firsts this year: the first time we’d set up machine control systems, our first base stations and rovers, and the first time we’d rented a machine from Komatsu Rental,” he says.

“I was talking to Rei when we were setting up our new Komatsu dozer with machine control, and he mentioned the iMC 21 tonne excavator for rent, just at a time when we knew we needed to speed things up.

“So we tried it for a month, and we never looked back. In the end, we had the machine on hire from February until July.”

Setting up the PC210LCi-10 was very straightforward, says Young.

“Rei came down and trained us up; he was brilliant. The first time, he was there the whole day, then he came back a second time just for two or three hours.

“After that, it was all fine. Rei kept in contact every month to ensure that everything was going well; if we needed him, he was only a phone call away.

“Tracks will certainly be using this machine set up in our next project,” he says.

KOMTRAX supports the needs of over 300 machines From his office in Invercargill, Komatsu NZ’s Matthew Watson is responsible for keeping several hundred Komatsu machines throughout the country fully serviced and up-and-running 24/7

INFRASTRUCTURE

A

s National Product Support Systems Administrator, Watson looks after around 200 machines covered by Komatsu’s Komplimentary Maintenance offering, plus a further 50-odd under maintenance contracts, and the 50-60 machines in the national Komatsu Rental fleet.

His primary source of critical machine data and up-to-date operating status is Komatsu’s KOMTRAX remote monitoring system, which Watson is checking out every day, and – with its built-in web browsing capabilities – lets him efficiently manage a significant fleet from Invercargill.

Watson – who’s been in the parts business for nearly 15 years since a parts and merchandising apprenticeship with Titan Plant Services in Wellington – says KOMTRAX is essential to his ability to carry out his job.

“KOMTRAX saves just so much time and effort, and makes me so much more efficient,” he says.

“I can constantly monitor machine hours, so I know when each machine I’m responsible for is due for its next service, or if there’s a breakdown, I know exactly where the machine is, and I have a pretty good idea of what’s the matter with it.

“It saves a lot of time and a lot of assumptions; there’s no having to go back and forth to find out where machines are, or what their hours are; all that information is immediately there.

“With KOMTRAX, this industry is just miles ahead of where we were even five years ago."

As Product Support Systems Administrator, Watson’s role includes scheduling service calls based on each machine’s operating hours, setting up contract maintenance jobs, and providing technical support to Komatsu’s sales, service and parts teams.

“A big part of my job is looking after the large fleet of Komatsu equipment working for the HEB-

CPB Joint Venture on Wellington’s Transmission Gully project, covered by a maintenance contract with Komatsu NZ. “We’ve got 30 machines on this project, which I believe makes us the biggest equipment supplier there,” says Watson.

Komatsu equipment on site includes dozers from two D65EX16s to a D375A-6, excavators from two PC350LC-8M0s to two PC600LC-8E0s, 12 HM400-3 articulated dump trucks, and a GD655-5 grader. Also covered by the maintenance contract are eight Hamm rollers, which Komatsu is looking after on behalf of the joint venture.

“I’m using KOMTRAX on a daily basis with Transmission Gully.

“Each morning, I go in, look at any issues with the machines, as well as the machine hours.

“We aim to be very proactive with our servicing, so when a service is due, I’ll let our service technicians know, along with what parts or anything else that might be needed," he says.

“We give the customer 100 hours notice of each service that’s coming up, plus I’ll talk to our service technician in Wellington,

Alex Betteridge, he’ll get in touch with the site manager, and they’ll arrange for the service.

“And obviously if there’s a breakdown, Alex will let me know, so I can open a case for that issue, arrange parts, and anything else. That ensures it’s all ready for Alex to get out there and do the job as fast as possible.”

The large number of machines covered by Komplimentary Maintenance (basically every Komatsu construction machine over 14 tonnes), plus the Komatsu Rental fleet, means that Watson is in constant contact with Komatsu branches and its Service Agent network throughout the country.

“That’s one of the great things about this job; I’ve got to know a lot of our staff, a lot of people, so I know who’s who, and what they do,” he says.

When he came on board with this role in September 2017 one of Watson’s first challenges was to ensure that all Komplimentary Maintenance and Komatsu Rental servicing was kept up to date.

“Because there wasn’t previously one person solely responsible for this, things had got a bit out of kilter,” he says.

“Once I figured out how it worked, I was able to put a system in place to ensure no machine service ever gets missed.

“That’s working very well, so now it’s essentially just a matter of upkeep. That’s something that I’m very proud of, that I was able to fix the system and get it back on track,” says Watson.

One thing that he has noticed in this role is that it is less customer-facing than in the past.

“These days, I really do work more with Komatsu people, and it’s one of the first roles I’ve had where I’m not in constant contact with customers.

“But as Brent Hepple (Komatsu NZ’s Product Support Manager Technical Support), who’s my manager, put it to me when we were discussing this position: the Komatsu business is like a stool with three legs – sales, service and parts – with our customers sitting on top.

“Our role is to be the braces that help to hold these three legs together, dealing with each of them on a daily basis, and providing the support they need to ensure we continue successfully serving our customers,” he says.

INFRASTRUCTUREBNEWS.CO.NZ

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Getting started with Personal Protective Equipment The over-riding fundamental principle surrounding personal protective equipment is that it should only be used as a last resort

WORKPLACE SAFETY

The finer points of PPE selection

T

he four principles for eliminating or reducing work-related hazards are: 1. Eliminate the risk. 2. Isolate the risk. 3. Bar access to hazard zones. 4. Use PPE Personal Protective Equipment (PPE) has its limitations because it only protects the wearer and can be ineffective if not working or fitted properly.

In addition, conventional wisdom is that the theoretical levels of protection of PPE are seldom reached in practice and the psychological effect of PPE may be such that people feel more protected than they actually are.

Assess the risks and solutions

The employer or PCBU has to first make an assessment of the hazards in the workplace where risks to safety and health cannot be avoided or sufficiently limited by technical means or collective protection. They must identify the correct type of PPE to be provided and ensure that PPE is appropriate to the risk.

The first requirement for an employer/person conducting a business or an undertaking (PCBU) is a strenuous assessment and effort to ensure the safety and health of employees by eliminating workplace risks at source.

Engineering solutions do not eliminate hazards, but rather isolate people from hazards. For example, a PCBU might build a work platform rather than purchase and maintain fall arrest 16

SAFETYNEWS.CO.NZ

Suppliers can often advise on the different types of PPE available and how suitable they are for different tasks.

Safety data sheets or manufacturers’ catalogues may contain useful information to assist in identifying the most suitable type of PPE. It may be necessary in difficult cases to obtain advice from specialist sources and from PPE manufacturers.

When assessing whether PPE is suitable, the following should be considered: • Is it appropriate for the risks involved and the conditions at the place where exposure to the risk may occur? For example, eye protection designed to provide protection against chemical splashes will not offer adequate face protection for someone using an angle grinder to cut steel or stone.

• Does it prevent or adequately control the risks involved without increasing the overall level of risk? For example, where hearing protection is used, ensure users are adequately protected against hazards related to reversing vehicles or fire as they will not be able to hear alarms.

• Have any relevant medical conditions of the wearer of the PPE that the employer is aware of been taken into account?

• What are the needs of the job and the demands it places on the wearer? For example, the length of time the PPE needs to be worn, the physical effort required to do the job and the requirements for visibility and communication.

• Does the PPE cause discomfort? PPE that is uncomfortable is less likely to be used appropriately.

• If more than one item of PPE is being worn, are they compatible? For example, does a particular type of respirator make it difficult to get eye protection to fit properly.

• The PPE selected should be capable of achieving the level of protection required. Selection must also take account of the proper wearing and fitting of the equipment. Can it be adjusted to fit the wearer correctly?

• It is essential that an employee using PPE is consulted and involved in the selection of the equipment.

equipment.

Enclosure and isolation creates a physical barrier between personnel and hazards, such as using remotely controlled equipment.

Or through technical or organisational means such as substituting hazardous chemicals or by providing protection on a collective basis.

Collective protective measures covering numbers of employees in a

workplace has priority over protective measures applied to individual employees.

PCBU obligations regarding PPE include the selection, assessment, conditions of use and compatibility, maintenance and replacement, information and training for employees.

PCBU need to ensure any PPE buy is certified and complies with New Zealand standards. Employees must be informed of the risks against which they are being protected by the PPE. Employees must be provided with suitable information, instruction and training (including training in the use, care or maintenance of PPE) to enable them to make proper and effective use of any PPE provided for their protection.

Selection of PPE must take account of the proper wearing and fitting of the equipment -- select appropriate PPE which is user-friendly and which fits an individual employee correctly.

Employers also should be aware that special care may be needed if employees suffer from certain medical conditions - certain types of respiratory protective equipment (RPE) may not be suitable for employees with asthma, bronchitis or heart disease.

PCBUs need to be aware of the reasons for providing PPE, its proper use and, in particular, the level of protection afforded.

Provide training

Training, both theoretical and practical, should also cover persons involved in the selection, maintenance, repair and testing of PPE.The level of

Nuisance or comfort masks

People who work with harmful dust should not use or rely on nuisance masks. (They may also be called comfort masks, hygiene masks or non-toxic masks.

Nuisance dust masks are not protective devices – they should not be used for protection against fine dusts, welding fumes, fine sand, paint spray, gases, vapours or aerosols.

They are also unsuitable for protection against grain and flour dust, hard or softwood dust, fumes from rosin- based solder flux or any substances with a maximum exposure limit. They should only be used when dusts are not hazardous to health.

They may consist of a thin metal plate that holds a piece of gauze over the nose and mouth or a lightweight filter that looks similar to a disposable dust respirator. (see page 32 for more on respirators)

WORKPLACE SAFETY

Purchasing PPE

Hard Hats

Graeme Tanner is an associate and Joseph Williams a solicitor at Hard hats are normally supplied with an information Duncan Cotterill, Assuming a full service they have law been firm with welllocations maintained in Auckland, and none tag attached giving advice and lifetime expectancy of the above apply, replace according to manufacturer's Some manufacturers say three years, others say up to instructions. five years. Obviously how much exposure that they have Safety helmets should be stored in a safe place and had, how they have been stored and how many knocks not be stored in direct sunlight or in excessively hot, they have had will determine the replacement interval. humid conditions because long-term exposure can Generally, the advice is that safety helmets need to weaken the shell. They need to be checked regularly for be changed when damaged, when they have been signs of damage or deterioration. involved in an accident, when affected by sunlight and Certain chemicals can weaken the plastic of the shell so forth. leading to rapid deterioration in shock absorption or Hard hats will need replacing when the harness is penetration resistance. Chemicals that should be avoiddamaged or if it is likely that the shock absorption or ed include aggressive cleaning agents or solvent based penetration resistance has deteriorated. This could adhesives and paints. Where names or other markings mean when the shell has received a severe impact or need to be applied using adhesives, advice should be has scratches greater than 25 percent of the shell thick- sought from the helmet manufacturer. ness or if the shell has any visible cracks.

SAFETYNEWS.CO.NZ

17

training provided will vary with the level of risk involved and the complexity and performance of the equipment.

For instance, the use of respirator equipment may require a comprehensive degree of training with regular refresher courses, whereas the training for using protective gloves for dealing with hazardous substances may require demonstration only.

The frequency of the refresher courses required in the case of PPE for high-risk situations will depend on the nature of the equipment, how frequently it is used and the needs of the employees using it.

WORKPLACE SAFETY

Maintain the PPE

PPE must be thoroughly examined regularly by competent staff according to manufacturer’s instructions. As a general rule, simple maintenance may be carried out by the user, provided that he or she has been adequately instructed and trained -- for example lens cleaning on goggles or replacing helmet straps.

The examination, maintenance and repair of PPE used in high-risk situa-

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SAFETYNEWS.CO.NZ

tions should be carried out by properly trained staff of the supplier using the appropriate tools and materials to carry out proper repairs.

PPE must be stored according to the manufacturer’s instructions. This is extremely important as leaving PPE lying around increases the risk of parts deteriorating by exposure to dirt, oil, UV rays, sunlight and other elements.

Remember expiry dates

There is no legislation or Code of Practice stating the life expectancy of any PPE. In general, it is recommended you follow the manufacturer’s instructions. The manufacturer must give the obsolescence deadline or period of obsolescence of PPE or its components.

The date of obsolescence is the date from which the PPE becomes useless for its intended use or is no longer fit for its purpose.

The manufacturer must provide all information necessary so that the user can determine a reasonable period of obsolescence.

One PPE one user

The use of an item of PPE equipment provided by the employer is normally confined to one employee.

On occasions it may be necessary for PPE, particularly for more complex and expensive PPE such as respirators or diving equipment, to be used by more than one person. In those circumstances arrangements should be made by the employer to have the PPE cleaned and disinfected before use by another individual. Employees must ensure that PPE provided for their use is returned to storage after use.

This report is designed to bring the attention of employers to aspects of PPE that may affect their businesses.

It does not set out to be a definitive guide to PPE legislation or requirements. PCBU and business should seek professional advice or consult WorkSafe, Site Safe, Responsible Care and other agencies if in doubt.

WORKPLACE SAFETY

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Lifting the Game of Maintenance Engineering SAFETYNEWS.CO.NZ

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PPE under stress at the workplace

WORKPLACE SAFETY

When selecting PPE there are certain ergonomic, physical and health factors which need to be taken into account: • Movement: Some forms of PPE may be heavy and cumbersome thereby restricting mobility and frequent short rest periods may be necessary.

• Visibility: Many types of safety goggles may restrict the area of view and cause tunnel vision. Misting of lenses also arises, particularly where the operation involves hard physical work. Ventilated goggles may reduce this problem.

• Breathing: Breathing ability may be restricted when using PPE, especially if particulate filters are being used. Breathing difficulties may arise as filters become clogged. Frequent changing of filters may be necessary.

• Irritation: Employees with sensitive skin may suffer from irritation when wearing PPE. • Health: Employees with chronically discharging ears (from chronic infection of the middle ear) or with “itchy ears” (otitis externa) may have great difficulty inserting ear plugs and ear muffs may be more suitable.

• Special care should be taken where persons suffer from certain medical conditions, eg certain types of respiratory protective equipment may not be suitable for employees with asthma, bronchitis or heart disease.

• In some cases, PPE is required to protect the wearer against a number of hazards. For example, ordinary protection helmets protect construction workers against small falling objects and bump injuries. Such helmets would not be adequate for workers such as

scaffolders, persons working on ladders, linesmen or steel erectors, where the workers are not protected from falling objects by collective measures.

• In circumstances where different items of PPE are worn simultaneously, they must be designed to fit together properly and not create additional hazards. For example, firemen may, on occasion, be required to wear simultaneously safety boots, heat-resisting protective suits, breathing apparatus, helmets and face shields.

• Asbestos: Every employer shall ensure that protective clothing which has been used and is to be removed from the premises (whether for cleaning or disposal) is securely packed, before removal, in a suitable container and adequately labelled as a product containing asbestos whether it is intended for cleaning or for disposal as asbestos waste.

• Because PPE is the last resort after other methods of protection have been considered, it is important that users wear it all the time they are exposed to the risk.

Exemptions should not be allowed for those jobs which take ‘just a few minutes’.

• The assessment of the PPE selected must be periodically reviewed. Replacement PPE must be provided where necessary. The assessment of the risks involved should be carried out in the context of the risk assessment and the safety statement required under the regulations. An example of the need to review the risk assessment for PPE would occur where, for example, a worker is no longer able to use the PPE due to a medical condition such as an allergic reaction caused by latex exposure.

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The following information provides guidance for the selection of PPE to protect workers involved in building and construction activities.

It must be emphasised that PPE must only be selected once other methods to eliminate or minimise risks have been considered

SAFETYNEWS.CO.NZ

21

WORKPLACE SAFETY

Personal Protective N Equipment for construction and building sites

ormally PPE is used to support other methods of risk control rather than as a stand alone means of protection. For instance a dust mask would be worn when cutting cement board on site; however the primary means of control may be the use of an extractor to remove the dust.

The following recommendations for setting mandatory PPE requirements fall into one of three general categories: • Mandatory for site • Mandatory for activity • Mandatory for trade Site requirements will be determined by the main contractor or project management based on known site risks.

Activity and trade requirements will be determined by the main contractor or project management based on known activity or trade risks; generally supported by information supplied by the workers.

For more information on specific items of PPE visit www.sitesafe.org. nz for a selection of Toolbox talks and factsheets.

WORKPLACE SAFETY 22

SAFETYNEWS.CO.NZ

If you’re an employer, it’s up to you to ensure your workers have the right personal protective equipment (PPE) for the job, and to provide it for them if they do not.

The Health and Safety at Work (General Risk and Workplace Management) Regulations 2016 state that an employer/person conducting a business or an undertaking (PCBU) carrying out work at a workplace must ensure that: • They or another PCBU has provided workers with the PPE appropriate for the job nd • They ensure, as far as is reasonably practicable, that workers use or wear the PPE provided The following example from the guidance illustrates those duties: “To prevent eye injuries, the PCBU of a welding workshop provided its welders safety glasses to wear under their welding helmets. However, even after being instructed by the PCBU to always wear the safety glasses while welding, one worker regularly removed them.

“As the PCBU must ensure workers wear PPE so far as is reasonably practicable, the PCBU talked to the worker to find out why he removed his safety glasses. The worker told the PCBU that it was because wearing the safety glasses over the worker’s prescription glasses caused him discomfort. The PCBU then worked with the worker

to find safety glasses that the worker could wear without discomfort.”

propriate notice if they wish the PCBU to begin supplying their PPE.

What you need to know

Tips

The PPE provided by employers must be compatible with any other safety equipment or clothing required for the job, fit correctly and comfortably, and be suitable for the nature of the work.

Employers also have a duty to ensure that workers’ PPE is maintained properly and replaced when necessary. Proper training on use and maintenance should also be provided to workers.

On the other side of the equation, workers are responsible for ensuring they use PPE in line with the information and training given to them by the PCBU. They also must not intentionally damage safety equipment, and they must tell the PCBU when PPE needs to be cleaned, decontaminated or has been damaged.

Remember that PPE must only be used as a risk control once other methods to eliminate or minimise risks have been considered. Normally PPE is used to support other methods of risk control rather than as a standalone means of protection. For instance, a dust mask would be worn when cutting cement board on site; however, the primary means of control may be the use of an extractor to remove the dust.

Exceptions

Provided by Site Safe. For some guidelines about what is recommended, check out Site Safe’s PPE factsheet at https://www.sitesafe.org.nz/ globalassets/guides-and-resources/ ppe_2017.pdf

The only exception to the provision to providing workers with PPE is when the worker ‘genuinely and voluntarily chooses to provide their own’. In these cases, the PCBU must be satisfied the gear is appropriate and meets all necessary regulations.

It is important to note that workers may change their minds about this at any time; however, they must give ap-

What PPE do I need to provide?

The type of PPE you need to provide as an employer/PCBU will depend on the nature of the tasks the workers will be doing and the risks they will be exposed to. In addition, PPE requirements on site will usually be set by the main contractor or project manager.

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It accredits laboratories in all sectors, including medical testing, dairy testing, meat testing, drinking water testing, as well as mechanical and physical testing.

It also accredits inspection bodies for engineering safety, food safety, and fire protection activities, and Building Consent Authorities.

Making life easier Talk to IANZ about integrated accreditation solutions for your industry.

Building Consent Safety assurance Certified products For confidence through accreditation, choose IANZ. ianz.govt.nz 09 525 6655

For a nominal fee of $199, IANZ offers a service whereby it can use its network of accreditation bodies around the world to check that test reports from the originating countries have actually been done by an accredited laboratory.

“It is always better to understand the issues in advance and prevent problems arising rather than having to sort out expensive problems after the event,” says Chief Executive Dr Richards.

An independent investigation by the New Zealand Institute of Economic Research recently demonstrated the crucial role accreditation plays in supporting the New Zealand economy, with IANZ now supporting industries accounting for $35.8 billion of the country’s GDP. It also supports production in sectors that employ over 357,700 workers, 17% of all employment in New Zealand.

SAFETYNEWS.CO.NZ

23

WORKPLACE SAFETY

The low down on safety gear

Sponsored Article

Chemical industry leads by example

SAFETY NEWS

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hile 130,000 businesses are reportedly captured by the Hazardous Substances and Major Hazard Facilities regulations, the official mantra of “600-900 persons seriously harmed each year by unwanted exposure to chemicals in their workplace” presumably applies to all of the country’s 530,000 workplaces.

Downgrading the flawed but effective HSNO Certified Handler requirement has inadvertently undermined an invaluable capability.

The action deprived businesses, particularly SMEs, of an immediate and recognisable source of workplace chemical safety and compliance advice -- a safe chemical handling capability and emergency response knowledge – critical when a chemical incident occurs.

PCBUs and SMEs must now devise their own solutions to ensure employees are competent to safely handle the chemicals with which they work.

So where to from here?

Responsible Care is a global voluntary chemical industry initiative developed autonomously by the chemical industry for the chemical industry.

Chemical suppliers continue to help customers achieve workplace chemi-

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ISN.CO.NZ

The chemical industry continues to lead by example, helping to ensure essential chemicals encountered at work and at home are safely managed - safeguarding employees, communities and our environment cal safety aspirations through product stewardship initiatives.

To help solve the in-house chemical compliance dilemma in New Zealand, Responsible Care NZ www.responsiblecarenz.com delivers specialist and cost-effective Certified Handler standard training, complete with a certificate.

Internationally, chemical industry leaders are moving away from relying on lagging indicators of safety performance in favour of identifying safer work practices and workplaces, by responding to workers’ suggestions about improvements.

WorkSafe NZ has warned against business operators falling victim to uninformed and always expensive ‘consultants’.

Responsible Care NZ site compliance assessments are non-threatening, effectively capturing and assessing chemical safety performance in a variety of workplaces.

Conscientious business operators can add value by sourcing accurate, cost-effective workplace chemical safety advice and compliance tools from their suppliers, industry partners and Responsible Care NZ.

The core problem

Hundreds of business operators turned out for a free Responsible Care NZ compliance workshop, eager for accurate and practical advice, indicating an unsatisfied demand for assistance and education.

Attendance highlighted the need to provide SMEs and others with the ability to access, correctly interpret and successfully implement complex regulations with clear and concise compliance advice.

Inviting enquirers to “read the regulations” is falling well short of the industry educational expectations arising from WorkSafe’s Statement of Intent 2016-2020.

Responsible Care NZ provides practical products and services to enable compliance with New Zealand’s world class chemical management regime.

Talk to us today about your compliance requirements.

Phone: +64 4 499 4311 Email: info@responsiblecarenz.com Website: www.responsiblecarenz.com

Ethical, moral and legal duties Ritchie Bower is the Chief Executive of HSE New Zealand and Asbestos Environmental Consultants

An Occupational Health and Safety Management System helps companies meet due diligence requirements under the Health and Safety at Work Act 2015, says Ritchie Bower

Irrespective of the mandated purpose of an Occupational Health and Safety Management System (OHSMS), its effectiveness will vary depending on stakeholders’ participation and investment in the system, and the priority it receives within the organisation.

New Zealand’s Health and Safety at Work Act 2015 (HSWA) “places a positive duty on directors, as officers of a PCBU (Persons Conducting a Business or Undertaking), to exercise due diligence to ensure that the organisation complies with its health and safety duties and obligations.”

SAFETY NEWS

A proven strategy is government agencies collaborating with proactive industry associations to best achieve workplace safety aspirations.

The problem is that SMEs rarely join associations. However they all obtain their chemical requirements from suppliers and can benefit from product stewardship advice and cost-effective industry compliance initiatives.

Responsible Care NZ extols less regulation in favour of enabling business operators to be increasingly self-sufficient, using cost-effective products and services such as site compliance assessments and specialist training.

The focus is keeping people safe around the chemicals we encounter every day, by once again adding value to businesses.

Proven, collaborative and cost-effective initiatives to raise awareness and improve workplace chemical safety performance include: • Joint agency and industry-focused local compliance workshops at times convenient to SME operators.

• WorkSafe NZ inspectors distributing free copies of user-friendly ‘compliance tools’ such as the Storage of Hazardous Substances HSNO Approved Code of Practice and posters explaining GHS pictogrammes • Supporting industry initiatives such as product stewardship • Referencing industry ‘compliance tools’ • Upskilling workplace inspectors in chemical safety.

• Encouraging ‘no blame’ reporting of incidents • Acknowledging successful, proactive industry compliance initiatives • Restoring the status of Approved Industry Codes of Practice A refreshed and energized government strategy for improving workplace chemical safety is both welcome and essential if we are to significantly improve sub-standard performance and learn from our successes and shortfalls.

Expanding mutually beneficial government- industry partnerships helping business operators ‘do the right thing’ with minimal fuss and expense should be ‘a no brainer’.

Chemical suppliers are ‘Impatient optimists’. They know we can all collectively do better through continuous improvement.

From a moral, legal and ethical perspective, the primary purpose of an OHSMS should be to provide a safe and healthy workplace and create a structured, consistent and documented approach to managing health and safety.

The International Labour Organization says that “OSHMS is a ‘generic’ method that can be tailored to the management of hazards specific to a given industry or process, particularly in high-risk industries where the implementation of preventive and protective measures requires a comprehensive and organized evaluation of risks and monitoring of performance of complex control systems on a continuous basis.”

It is increasingly common for legislation to require PCBUs, particularly in high-risk industries, to implement an OHSMS. WorkSafe NZ requires Class A Asbestos Removal Specialists to hold a JAS/ANZ (Joint Accreditation System of Australia and New Zealand) accredited OHSMS audited to AS/NZS4801:2001 standard.

The purpose of the OHSMS in this instance is to ensure high-risk work is suitably controlled and that performance criteria are met.

“Working with asbestos should be performed in a manner that is at least as safe and effective as the practices described in the WorkSafe New Zealand Approved Code of Practice (ACOP) - Management and Removal of Asbestos,” according to JAS/ANZ The Civil Aviation Authority of New Zealand and Maritime New Zealand (MNZ), the lead agencies in their particular specialist areas, have industry-specific OHSMS. MNZ, for example, introduced OHSMS to be “in line with a global move to put ongoing safety measures in place to prevent maritime accidents and place the responsibility of this on vessel owners and operators.”

The agency requires NZ-flagged ships which meet certain criteria to comply with Maritime Rule Part 21 which incorporates the requirements of the International Safety Management Code, the purpose of which is “to provide an international standard for the safe management and operation of ships and for pollution prevention.”

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PROPERTY & CONSTRUCTION

Embracing high density development Harrison Grierson's Technical Leader for Urban Development, Hayley Ellison, believes that we need to be bolder and embrace the positives associated with higher density living, instead of finding reasons not to do it

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his new focus creates an opportunity for the market to lead brownfield development and building in more sustainable locations, planning for future living that is better for the environment and our wellbeing.

There is so much talk about the need to increase density in our urban areas, about creating more compact cities and ending urban sprawl.

There is even extensive spending proposed and, in some cases, budgeted for significant improvements to public transport and infrastructure which would, along with reducing congestion and carbon emissions, enable higher density residential development in sustainable locations.

However, the delivery of higher density development has been limited to date and mention of high-density development is met with trepidation.

Since my return to New Zealand I’ve heard much about medium-density developments comprising terraced housing.

I believe there is a need for all types of housing in New Zealand and accept that apartment living is not suitable for everyone.

However, to face up to the housing crisis in Auckland and

the emerging crisis in other main centres, and to address the environmental and wellbeing issues of urban sprawl, it is essential that we build more housing in existing centres on previously developed land to a higher density.

What do we mean by high density?

Density can be defined as the spatial compactness of urban development in a given area (Department of Internal Affairs).

Housing can be measured in dwellings per hectare.

Typical urban densities being achieved in New Zealand at present are: for single family

dwellings per net hectare are not unusual.

It is too easy to be fixated on the numbers and judge development by a density calculation because it is tangible.

However, the dwellings per hectare resulting from urban development should be a product of high quality design rather than a simple mathematical formula used to determine whether the development is suitable.

Historically in the UK, local planning authorities included minimum density guidelines in their equivalent of the District Plan.

In recent years these prescrip-

and stakeholders were primarily focused on the quality of the development and community that would be created.

Compare that to the New Zealand planning system, in which density controls have typically been a tool to limit density – there was a considerable outcry from resident groups when the mediation process for the Auckland Unitary Plan first postulated removing density as a control on development capacity.

Density really is just a number, if high quality development can be delivered creating a sense of place and community.

We talk about developing higher density housing in New Zealand because currently housing is delivered at densities that result in urban sprawl and the associated implications of that.

We’ll be doing urban development really well in New Zealand when we’ve stopped referring to density – either as a target or as a cap and are just building high quality schemes in sustainable locations and creating communities where we enjoy living.

"to address the environmental and wellbeing issues of urban sprawl, it is essential that we build more housing in existing centres on previously developed land to a higher density"

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homes on individual sections, 15-30 dwellings per net hectare; for duplex and terraced houses 30 to 60 dwellings per net hectare; and for low rise (often ‘walk-up’’ apartments) 60-100 dwellings per net hectare.

Apartment blocks can and do achieve much greater densities.

As a function of their height for an apartment block, 150-250

tive measures have made way for design guidance and insistence from the local planning authorities that high quality design be delivered enabling suitable higher density development.

In London, I have worked on development schemes with densities that equate to 350 – 500 dwellings per hectare.

However, the planning authority

Taking the long view

The reality about the extent of development required to address

housing issues in New Zealand, and Auckland in particular, is that it will take decades.

We’ve heard for years that the targeted numbers of new dwellings in Auckland are not being achieved.

There are no quick fixes.

For long-term development planning to work, there needs to be a long-term plan which is adhered to by successive governments.

This includes continuity and commitment to the essential infrastructure projects to support urban growth and development.

And while we’re planning for the future, are we also planning for the changes to the way we live and to how our communities will function?

The quarter-acre dream cannot be a reality for most.

Affordability of housing (or lack of), changing technology, and an aging demographic are already influencing our lifestyle choices.

Such changes are only going to be more extreme in the future. But change does not have to be bad and, in fact, if planned for it can be great.

For example, what are the opportunities for New Zealand’s aging population?

Could we plan our urban areas to increase the opportunities for older people living in higher den-

sity developments within cities, with access to public services, shops and their communities?

Addressing loneliness and isolation issues for the elderly and in fact all the community has recently been acknowledged as important to good mental and

ed greenfield land.

In established areas, redevelopment of traditional quarter-acre sections by infill development (additional houses) has also been reasonably common.

‘Medium density housing’ in locations focused around centres

tion techniques have held back medium-high density development, also leaving a stigma about apartments.

For ‘Mum and Dad’ investors, a much safer investment is detached brick and tile houses, which are reliable and known to stand the test of time, without the complications of body corporate arrangements.

A positive, however, of these early experiments in apartment living was that they set in train – by establishing a resident population in the Auckland and Wellington CBDs – a long term revitalisation of both centres, which today are far more vibrant than they were 20 years ago.

However, to date, there has been very limited high-density development in New Zealand.

Another encouraging change which occurred in the early 2000s was the emergence of the first larger scale (typically 100 hectares plus) master planned residential communities.

By design and by economic necessity these developments began to embrace terraced style housing and began to successfully achieve greater density with strong market acceptance.

Possibly the most representative market-led example of a master-planned community has been Stonefields, a Harrison Grierson project with Stonefields Communities Limited and Fletcher Residential Limited.

The 2,500-home redevelopment makes good use of the 105ha former Mt Wellington quarry.

Since its commencement in 2005 it has progressively introduced family housing typologies (detached, duplex, terrace), small home terraced living, and now 4-6 storey apartments, supported by a school and local centre, multiple neighbourhood parks and a major wetland area.

Stonefields is still a relatively low-density development by empirical standards.

However, it demonstrates that a variety of housing types are attractive to the market and so is higher density when delivered as part of a scheme that creates a positive community with a mixture of uses and amenities.

By the early 2010s, it became evident that Auckland was falling well behind its required production of dwellings to meet demand.

First introduced in 2013 as a fast track way of implementing aspects of the emerging Unitary

physical health and needs to be planned for accordingly.

Planning for growth in urban areas has obvious benefits in terms of reducing sprawl, travelling times and congestion, but it can also have positive benefits for our wellbeing if communities are created where people can live, shop, socialise and possibly even work in their local neighbourhoods.

We need to actively manage our urban areas to address spatial and social issues now and in the future, recognising that this takes time.

What’s happened so far?

The focus of urban development in New Zealand has always been and continues to be greenfield, with the lion’s share of new housing occurring on newly subdivid-

and transit nodes was first recognised in many of our statutory planning documents in the mid to late 1990s.

A flurry of terraced house-based developments – some good and some not so good– followed.

Many were tainted with ‘leaky building’ problems due to construction techniques, and rightly or wrongly some correlation between density and construction quality began to be perceived by the buying public.

Also in the late 1990s to mid2000s, a surge of apartment development occurred in Auckland’s CBD. They were mainly small and the design quality was often poor.

Many of these buildings also became ‘leaky’, which has meant that historic construc-

Harrison Grierson worked with the developer to deliver quality housing on the former quarry site at Stonefields, Auckland

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PROPERTY & CONSTRUCTION

"There are no quick fixes. For long-term development planning to work, there needs to be a long-term plan which is adhered to by successive governments"

PROPERTY & CONSTRUCTION

Plan, the recent Special Housing Area legislation has had the positive effect of increasing the number of consents granted for housing in urban areas.

The legislation has also brought about increased expectations of land values where residential rezoning and consents have been obtained.

While additional housing was delivered, the numbers did not represent the number of consents granted in areas that been identified for more housing.

Land banking resulted because of different markets getting involved in the development industry.

While local investors have a shorter view and are more likely to build and move on, foreign investors can often take a longer view and are less inclined to progress development quickly.

Also, there are unfortunately still greenfield developments adding minimum house size to covenants, which impacts the price point and restricts many buyers from the market.

What should be done?

As we move forward with addressing the housing issues in New Zealand, there are four key steps to success: • Be bold and accept that not everything is going to be exactly right It seems that in some places we are so desperate to get the outcomes absolutely right that as a consequence we do nothing.

There are valuable lessons to be learned from overseas that are of

ning framework is prescriptive and restrictive.

While the Resource Management Act impacts the processes we work with, the Act (s75) sets out that a District Plan must state the objectives for the district and policies to implement the objectives. And rules, if any, to implement the policies.

There’s no reference in the RMA to the arbitrary height, side and front yard rules, for example, that have made their way into many District Plans.

high risk for the developer).

The proximity and height of development yielding higher density would almost inevitably be contrary to the ‘rules’.

This is despite what appears to be general consensus on the need to deliver much needed new homes in more sustainable locations and in a form that increases density in our cities.

The Mayor of London designated 33 Opportunity Areas and worked with the local planning authorities and stakeholders to publish Planning Frameworks for those designated areas.

These did not supersede or circumnavigate the planning policies for the area, but they did set out expectations for the number of new homes and jobs that would be delivered and positively planned for the anticipated growth – giving developers and stakeholders more certainty about the future.

The Special Housing Areas legislation provided an opportunity for positive planning for housing.

However, this approach needs

"While local investors have a shorter view and are more likely to build and move on, foreign investors can often take a longer view and are less inclined to progress development quickly"

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immense help.

While no one wants new development to be unsuccessful, we’re missing opportunities to enhance our urban environment by delaying decisions to implement residential-led, mixed use development in city centres.

• Plan positively for growth Much of New Zealand’s plan-

The extensive and complex sets of District Plan rules introduce obstacles that would make nearly all higher density urban development projects at least a discretionary activity, and often one which will involve either public notification or at least the involvement of neighbours as affected parties (both of which introduce

PROPERTY & CONSTRUCTION

Stonefields Reserve offers a mix of housing types

to be considered more widely for higher density mixed-use development within our urban areas to deliver much needed housing and associated amenities in sustainable locations.

• Work together collaboratively for good outcomes There seems to be an ‘us and them’ culture between the public and private sector in the development industry, which is holding back the opportunity to deliver the housing and communities we need.

Greater collaboration between the public and private sector, and the community organisations and trusts that also deliver housing, is needed to understand the difficulties for each and to work better together to overcome these, recognising that both parties are going to have to give a little.

Working together for the benefit of all sectors will help deliver the pipeline of housing we need and the public benefits that can be achieved through high quality urban development.

• Embrace higher density mixed use development and

the benefits it can bring to the community Smaller footprints from taller buildings create opportunities for open spaces and public uses at the ground floor, bringing activity

development will enable the industry and practitioners to work with stakeholders to achieve the type of development that is so often discussed.

In London, Hayley’s work on

their urban growth and jump straight to the way their thinking has evolved.

This includes providing inclusive environments that respond and connect to the existing neighbourhoods while creating new homes, jobs and amenities that make up new communities.

It’s an exciting time in New Zealand’s urban growth.

Urban development, including the associated infrastructure, is high on the political agenda.

We need to capitalise on the ambition to develop great places for people to live, work and play by planning positively for growth and working collaboratively to make it happen.

"The extensive and complex sets of District Plan rules introduce obstacles that would make nearly all higher density urban development projects at least a discretionary activity" and vibrancy and making places safer and more liveable.

Less than 10 years ago, the majority of urban development in London was ground-scraping built form, which restricted daylight and sunlight into the development site and gave little to the public realm.

In suitable locations the development of taller buildings has enabled the developers to achieve their profit margins while providing access and amenities to the wider community within the new development.

Clearly not all sites are suitable for tall buildings, but embracing the opportunities, where appropriate, to build higher density

previously developed land and constrained sites helped to create thousands of new homes, including affordable housing, new jobs and public and private amenities.

Where to from here?

New Zealand is a unique country with unique urban areas.

One solution will not fit all cities or even parts of cities, but taking a more positive approach to the planning of our urban environment and the benefits that higher density living can afford would be giant step in the right direction.

We have the opportunity to leap-frog the years spent by many overseas cities which made mistakes or poor decisions about

Hayley Ellison is Technical Leader for Urban Development at professional engineering and design consultancy, Harrison Grierson, and worked on highprofile major redevelopment projects in London for 20 years before returning home to join Harrison Grierson PROPERTYANDBUILD.COM

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ith 27 years of positive economic growth, the report says Australia has demonstrated a “remarkable capacity” to sustain steady increases in material living standards and “absorb economic shocks”.

However, the nation faces economic challenges that, if not handled well, could see an end to its strong track record, according to the Paris-based group.

“Risks include potential instabilities from high house prices and large household debt,” explains OECD's 2018 Economic Survey of Australia report.

AUSTRALIA

The housing market poses macroeconomic risks

While the nation’s housing prices have fallen, the report notes these decreases have only been gradual since late last year.

“The current trajectory would suggest a soft landing, but some risk of a hard landing remains.”

After several years of rapid increases, most notably in Sydney and Melbourne, the report says a "welcomed cooling of house prices" is under way with average prices in Australia’s two largest capital cities leading the trend.

“Contributory factors include prudential measures taken by the Australian authorities and a sizeable pick up in new housing supply.”

While the report states that a direct hit to the financial sector from a wave of mortgage defaults “is unlikely”, the event would drag the overall economy.

“If house prices collapse consumer spending could suffer... including from exposures to bank shares, which would encourage deleveraging.

“Together with reduced housing-related expenditures, this would put pressure on the whole economy,” the report said.

And in the absence of negative shocks, the report suggests that policy rates should start to rise.

“Monetary conditions remain very accommodative, with the risk of imbalances accumulating further if the low-interest rate environment persists.

“In the absence of a downturn, a gradual tightening should start as inflation edges up and wage growth gains momentum.”

OECD also suggest financial supervisors and bank regulators should continue to address shortcomings in the financial sector identified in recent inquiries, particularly competition, misconduct and fraud.

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Is the housing market putting Australia's economy at risk?

Australia’s economic growth has been resilient, but risks posed by the weakening housing market has seen the OECD warn financial institutions and bank regulators to “be prepared in the event of a hard landing”

Other challenges?

Australia's socio-economic challenges include globalisation and technological change, and “while overall beneficial”, have brought challenges for some segments of society.

“Certain groups are vulnerable with low labour force participation and high risk of poverty.

“The substantial gaps between Indigenous Australians and the rest of the population are narrowing too slowly.”

The report also cites climate change policy as still lacking “clarity and stability” with Australia making “little progress in reducing its environmental footprint”.

AUSTRALIA

Are the tech giants taking over as your city leaders?

Global tech players such as Amazon, Google, Apple, Facebook, Amazon – the so-called Big 4, or GAFA – Airbnb and Tesla are redefining work, mobility, leisure and the everyday of how we live

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ur cities are increasingly being used as laboratories for countless innovations.

Cities are expected to be home to nearly 70 per cent of the world’s population by 2050, with 95 per cent of urban population growth taking place in developing countries.

The Big Four have a combined global workforce of more than 400,000 people and market capitalisation of more than US$2.3 trillion, which is roughly equivalent to France’s GDP. Many people demonise them for their excessive power, but how about considering the ways they are contributing to urban life?

These giant technological gurus are carrying out experiments with cities themselves.

For example, Belmont is a futur-

istic city in southwestern Arizona, conceived by Bill Gates and very much looking to the future.

Oakland, California, is another field of social experimentation in which Silicon Valley entrepreneur Sam Altman is analysing the social impact of universal basic income.

Beyond these exercises in urban acupuncture, we need to know who is making the decisions that will define the day-to-day life of our cities, places where we find ourselves swinging between digital and analog realities, between the physical and the virtual.

The speed and impact of change means we have a duty to know who is charge of our cities.

The following are just some of the initiatives being driven by the tech giants.

Apple, or how to interact in the city

Apple is building stores it says will redefine the shopping experience.

Instead of just buying something, the idea is to generate excitement about entering a space-cum-event in which something is always going on thanks to free WiFi. It’s a kind of private-development town square – a place where we can expect to experience a range of interactive activities, as well as buying stuff, of course.

A new store at the Carnegie Library in Washington DC will open soon.

Designed by Foster & Partners, it will occupy the space previously reserved for library users who can

now sniff the aroma of the latest iPhone while watching what happens on the stage.

Google, the world’s first neighbourhood built on our data

Sidewalk Toronto brings together Waterfront Toronto, a government agency, and Sidewalk Labs, belonging to Alphabet, Google’s parent company.

The project aims to create a mixed residential and commercial community on Toronto’s eastern shore.

It’s the right choice of city, as the economist and town planner Richard Florida would say when describing the best locations for innovation based on the three Ts: technology, tolerance and talent.

Toronto has a culturally diverse THEURBANDEVELOPER.COM

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creative community within a highly technological cluster.

This didn’t go unnoticed when the decision was made to create the first internet city.

Data will be monitored by an independent organisation called the Civic Data Trust in response to some residents’ fears about privacy.

Meanwhile, the eyes of the world are on the initiative.

AUSTRALIA

Uber, mobility as a service and the future of work

When Uber recently announced it was going to distribute Uber Eats by drones, we all looked skyward.

Autonomous driving is now a reality and Uber one of its great explorers.

At its Pittsburgh HQ, located on “Robotics Row” next to the headquarters of other companies developing AI and machine-learning technology, the outside of the Uber building gives little indication of what is happening within.

Some 200 high-tech Volvo cars, equipped with 360-degree rotating LIDAR cameras, are constantly coming and going, collecting data from tests on vehicles carrying Uber passengers.

In line with research in the Netherlands, China and Switzerland, Uber is also studying autonomous public transport options.

These include driverless electric ferries that can carry up to nine people, along with full-size self-driving buses.

Initiatives like these will redefine transportation and the design of our cities.

All this involves important, seemingly unconnected changes: along with the rising value of property located close to public transport nodes, reduced revenue sources from fuel taxes, traffic tickets and parking fees for local authorities, there is also the transformation of the future of work, from driver to mobility manager.

If millennials no longer want to own a car and mobility becomes a basic service like electricity, there are new opportunities to explore that must involve consulting citizens and taxpayers.

States have been vying to be the location for the e-commerce giant’s joint new headquarters in a process likened to the bidding process to host the Olympics.

The winning bid for HQ2, as the dual initiative has come to be known, was decided last month after almost a year of uncertainty.

The mayor of Frisco, Texas, had promised to build the remaining 40 per cent of the town around Amazon, while Stonecrest, Georgia, said it would construct a new urban centre called Amazon, and Newark, New Jersey, offered extensive tax cuts.

But the decision came down

in favour of Arlington, Virginia, and Long Island, New York, and was rightly based on the three Ts mentioned above.

The winds of change are blowing. There was a time when governments invested in infrastructure and taxpayers had a voice in decision-making.

Now Apple tells us how to interact in the city, Google controls our data, Uber redefines transportation as a service, and Amazon chooses whether a city is suitable or not to host its headquarters.

Are these companies our new mayors?

The first Amazon Go store on opening day in Seattle, Washington, in 2016.

Amazon’s Olympic contest

While Amazon continues to use its Seattle headquarters as a laboratory to test new retail and logistics models such as Amazon Go and Storefront Pickup, cities throughout the United

New chemical storage guide for workplaces Learn how to safely identify, position and manage the risks of chemicals in your workplace

I

f you store chemicals in your workplace and need information on how to store them safely, this guide is for you, said Director of Chemicals Policy, Dr Paul Taylor.

“We particularly want to help small to medium sized businesses safely store their chemicals.”

“It is important to know which chemicals are safe to store together, where you can safely store them and which ones you should separate,” said Dr Taylor.

“In this guide, we go into some of the common health and safety risks of storing chemicals and ways to manage those risks. We have included a handy storage checklist that sets out the standard precautions everyone should take and a detailed chart that will tell you which types of chemicals to separate and by how far,” he said.

The guide was developed in consultation with representatives from national work health and safety regulators, unions and industry groups.

To find out more about complying with work health and safety requirements in your region, contact your local WHS regulator.

Click here to read and download the guide.

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NE W ZE AL AND

INFRASTRUCTURE

Funding

CONFERENCE 19-20 March 2019 Crowne Plaza, Auckland

2045 funding methodologies for sustainable and resilient infrastructure FEATURING KEYNOTE SPEAKERS: THOMAS SIMONSON

Principal Regulatory Advisor, Local Government New Zealand

ALEX SUNDAKOV Executive Director, Castalia (Australia)

BOON CHIN HAU

Managing Director, Infrastructure and Head, Asia & Emerging Markets, GIC (Singapore)

CONFERENZ.CO.NZ/INFRAFUND

CO

FEATURED THEMES: Comparing global infrastructure funding mechanisms Models & mechanisms for funding infrastructure Infrastructure financing supporting sustainable growth Funding different sectors of infrastructure

D TE A C -LO

19-20 March 2019 | Crowne Plaza, Auckland The Urban Futures New Zealand Conference and the New Zealand Infrastructure Funding Conference are co-located. By registering for one conference you will also be entitled to attend sessions at the other conference. This will enable delegates to make the most of the 2-days and tailor their conference experience.

CONFERENZ.CO.NZ/URBANFUTURESNZ

INFRASTRUCTURE

Strategic transport priorities heading in the right direction Infrastructure New Zealand commends the government on publication of its draft Policy Statement for Transport, but significant investment will be needed to achieve its myriad aims, Policy Director Hamish Glenn believes

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e support the focus on safety, noting New Zealand death and accident rates appear to be comparatively high.

Care should be taken, however, with respect to comparing New Zealand with some other countries. Snow conditions in northern Europe, for example, could make death and severe accidents less likely, as drivers travel less, with greater caution and at slower speeds.

We do not support road pricing as a demand management tool alone. If deployed as a demand management tool, road pricing

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will disincentivise travel, increase costs to users and reduce access.

Road pricing is a tool to enhance access and this should be highlighted in the Government Policy Statement for Transport (GPS).

Also, the higher wealth of Scandinavian countries, resulting in higher incomes and newer, more expensive and safer cars, could play a role independent of land transport policy.

Small changes in policy and acknowledgement of local economic and driving conditions may account for the majority of the difference, though we agree

that reducing transport injury and death costs is important.

Access

We support the prioritisation of access to opportunities via improved mobility and well aligned land use-transport policy.

It is critical that investment in basic transport services which unlock land for housing is prioritised through the GPS and reflected in New Zealand Transport Agency (NZTA) priorities.

A key aspect of this policy should be a shift in fast growing centres to transit-oriented development, whereby access to rapid

transit is used as a catalyst for urban development.

Retrofitting public transport services to development areas after roads have been built and homes occupied is inefficient.

It challenges residents to change behaviour, rather than enabling decisions aligned with policy in the first instance, can be met with local opposition and often requires the purchase of high value land which pushes up project costs.

We support additional revenue for tourism infrastructure.

It is not economically sustainable for local authorities with small rates bases to invest in roads and rail to support large numbers of tourists when the benefits of tourism almost all flow to central government (in the form of GST, income and corporate tax).

We emphasise that an objective of transport policy should not be to reduce the number of single-occupancy vehicles.

Though it should be expected that in dense urban areas good transport policy leads to higher vehicle occupancy rates, single-occupancy vehicles are not the problem.

The problem, rather, is if pricing for transport does not reflect the true economic, social and environmental costs of private decisions.

Identifying and charging the “right� price to use transport networks must be the ultimate priority of the government and to achieve this road pricing is required.

However, we observe road pricing is not referenced in relation to access despite it being a key tool to improving access over the medium-long term.

When deployed as a mechanism to balance demand with revenue, road pricing is the fairest and most affordable option to improve national transport outcomes, principally access.

Environment

An advantage of the shift to road pricing in the nearer term is the freedom this grants from a network funding perspective to shift to electric vehicles.

By far the most effective way for New Zealand to lower its emissions profile (and improve local air quality) is to move to electric vehicles.

Public transport can reduce by some degree carbon emissions per traveler, but in total this impact is marginal.

Bus fleets remain largely diesel

Transport Minister Phil Twyford, Prime Minister Jacinda Ardern and Assistant Transport Minister Julie Anne Genter present the draft Government Policy Statement for Transport. Picture by Lynn Grieveson, Newsroom Pro

be available to purchase in New Zealand and/or be permitted to use public roads.

We would expect a number of exceptions to this “bright line” rule, to the point where in practice the policy would ideally have limited enforcement.

The objective, rather, would be to send a clear public signal to consumers at the earliest opportunity about the future direction of vehicle technology, helping to generate momentum and scale at the same time as electric vehicles

become a financially sensible decision for most consumers.

Momentum and scale are critical to enabling public and private infrastructure providers (including refuelling station operators) to invest in new assets.

The urgency of government direction is important given that new cars today can be expected to be on New Zealand roads well into the 2030s.

The coordination of this policy with the shift to road pricing would be mutually supportive and would help explain to consumers why both initiatives are essential.

Value for money

We support the government’s intentions for value for money.

We are pleased that there is flexibility in the language around value for money which reflects the fact that not all benefits are measurable and that lowest cost is not always best value.

Implementing these policies in a consistent manner will require transparency of decision making and genuine public engagement.

We welcome the GPS commitment to transparency.

Themes

We strongly support the three identified themes in the draft GPS:

Mode neutrality

Single-occupancy vehicles are not the problem. The problem is if pricing for transport does not reflect the true economic, social and environmental costs of private decisions

We support mode neutrality in the consideration of investment decisions.

However, investment mode neutrality is meaningless unless funding is also mode neutral.

At present, the National Land

Transport Fund is overwhelmingly resourced by private vehicle users.

Pedestrians, cyclists and public transport users are net consumers of the NLTF, while (conventionally powered) private vehicle owners are net contributors.

Two major issues result.

First, private vehicle users can be exposed to additional costs which overstate the true cost of their decisions and disincentivise travel.

Where road users are asked to fund investments which benefit other users or activities, for example, cycleways where the principal benefit is improved physical health for cyclists, an inaccurate price signal is generated regarding the true cost of private travel decisions.

As well as overcharging road users, there is a risk that, if the planned outcomes are not achieved, additional costs will be levied on road users to promote a flawed policy which underestimates the value road users place on mobility and access.

Second, non-private vehicle users do not receive signals about the costs of their priorities, potentially leading to higher project costs The tension between taxation and expenditure is critical to keeping costs in check, projects affordable and the speed of investment consistent with willingness to pay. Where users do not pay for a service there is a high risk that their expectations will become inconsistent with the value they receive from the service.

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fueled and operate on bitumen roads.

Rail services, which also largely run on diesel, require large amounts of steel and “last mile” connectivity.

Even under the most ambitious public transport scenarios, some 90% of travel in cities will always take place in private vehicles.

To reduce New Zealand’s carbon emissions, the private vehicle fleet must migrate to electric (or other carbon neutral) vehicles.

Overseas evidence suggests that around 2021 the price to buy a new electric vehicle will fall below the price to buy a similar combustion engine vehicle for common models.

In our view, the government could have a much greater impact on carbon emissions by facilitating and encouraging the shift to electric vehicles than from investing in public transport for this purpose (the shift to public transport should always be guided by a desire to move large volumes of travellers and effect land use change).

The government should give some serious consideration in the GPS update to establishing a conventional engine termination horizon.

For example, the government could announce that, as of 2030 or 2040, depending on ambition and public feedback, “no” conventional engine vehicles will

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In order for investment decisions to be made which reflect the actual and changing needs of individuals and businesses, the relationship between the funders of the NLTF and the beneficiaries of the NLTF needs to be as robust as possible.

Funding sourced from road users must be invested to the benefit of road users and other revenue sources need to be exploited to fund parts of the network which do not benefit private vehicles. This will ensure true “mode neutrality”.

One option, given the local impact of public transport, walking and cycling infrastructure, is a targeted regional or local rate dedicated to these activities.

Another option for large, transformational rapid transit projects with strong agglomeration tendencies or active investments targeting improved physical health and well being is for the government to allocate capital (as it does currently for heavy rail) from the consolidated account.

Regardless of where non-private vehicle funds are sourced, it is critical that “tension” is created which recognises the scarcity of capital.

If this tension is not created either through the democratic process or through carefully designed funding processes, projects will be “gold plated” and users will demand services which cost more than the same users value them.

The government could have a much greater impact on carbon emissions by facilitating and encouraging the shift to electric vehicles than from investing in public transport for this purpose

Technology

We are pleased to see additional focus on transport technology in the draft GPS. We consider there is significant scope to improve traffic flows via emerging (and even established) transport technologies.

Integrating land use and transport

We strongly support the added emphasis on land use and transport integration.

This is the first time in many years a major government transport document has been so explicit about the relationship between transport and land use.

However, further detail is required. The current level of discussion in the GPS remains light and needs to be strengthened given the criticality of the land use-transport relationship.

Most notably, there is bare rec-

ognition in the GPS of the government’s urban policy centrepiece, the Urban Growth Agenda, nor of its signature housing policy, Kiwibuild.

It is of the highest national priority that the GPS is aligned with government priorities in urban development.

The government has identified an extremely ambitious programme for housing and urban growth. Transport investment must support, and be supported by, this programme if key political objectives are to be achieved.

As an organisation, we have been continually disappointed that the Auckland Transport Alignment Project has not experimented with different land use assumptions in its various rounds of analysis, in spite of weak outcomes under all transport investment scenarios.

In our view, the land use provisions of the Unitary Plan

are fundamentally misaligned with transport investment. The Unitary Plan permits density in areas without adequate amenity or rapid transit, spreads greenfield growth around the region simultaneously and concentrates employment in existing, capacity constrained employment areas.

A satellite city, for example, where a higher number of jobs and homes are targeted in Auckland’s south, could redistribute traffic flows around the region, support transit-oriented development and improve regional transport performance.

A true “mode-neutral” GPS should support and encourage different land use options as a means to improve transport outcomes.

The GPS should be more specific about the benefits of realigning land use to support transport investments, and vice-versa, and list opportunities to do so in

The government has identified an extremely ambitious programme for housing and urban growth. Transport investment must support, and be supported by, this programme if key political objectives are to be achieved.

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Total funding

We acknowledge and support the increase in transport funding over the planning horizon of the GPS, including the lift in expenditure from $4 billion per annum to over $4.5 billion per annum.

However, we are concerned at the retrenchment in state highway investment.

We do not perceive a scenario which sees state highway investment in the late 2020s dropping to $500 million per annum as sustainable as charges to road users increase.

A more realistic programme for state highway improvements for New Zealand’s growing population is required.

We recognise the government’s desire to shift the investment focus to public transport, but in reducing the amount invested in state highways by some 70% the government risks a repeat of the same political dynamic which has given rise to the new government’s transport agenda.

Specifically, too much emphasis on one mode risks a proportionate swing to an alternative mode via the political process.

A reduction of state highway investment of this scale, especially in provincial New Zealand, in-

creases the risk of another major policy swing in 2, 5 or 8 years.

Major changes in policy are bad for long term construction productivity.

The contracting industry which will be called upon to build both road and rail assets has been materially impacted by the sudden change of transport priorities following the 2017 election.

The reversal of a number of large roading projects and lack of certainty about the timing of new road and rail projects has undermined long term sector productivity.

People have lost their jobs, skilled labour has migrated overseas and businesses have recapitalised to meet shorter term financial targets.

It is possible that this level of disruption is repeated in two years.

To be clear, the industry will sustain this uncertainty.

But it will do so with less participants in the market, fewer skills, under-investment in productive capital and higher costs and longer time frames for taxpayers.

These are mutually bad outcomes which must not be repeated.

The infrastructure sector requires long term certainty to invest in productive skills and capital.

The GPS must recognise the importance of investment certainty to delivering the government’s transport programme.

NZTA should be instructed to develop a long-term national investment programme, highlighting key corridors and projects and giving all political perspectives a suite of projects from which they can identify their preferred sequencing.

Funding land transport

We do not support the continued use of pay-as-you-go hypothecated funding as the primary approach to funding transport investment.

The model has not achieved good outcomes, with New Zealand cities continually performing at very poor levels on international comparisons of congestion for similar-sized cities.

This is not just an Auckland problem, it is evident in Wellington’s rapidly deteriorating congestion and in Christchurch and Tauranga.

NZTA has a reliable, independent revenue stream.

It can raise significant debt off the Crown’s core balance sheet and should be empowered to invest in projects which unlock new housing and employment.

The hypothecated fund must be supplemented with transfers from the consolidated account to reflect benefits to all transport users.

Value capture tools are urgently required to reflect the benefits land owners experience from major transport improvements.

If not supported by some form

of value capture, a project like light rail to the airport in Auckland will represent a direct transfer of wealth from transport users to local property owners along the route.

We strongly support additional approaches to funding transport which better align the funding of transport with the beneficiaries of transport investment.

More investment will be required if New Zealand is to get “ahead of the curve” and reverse several decades of playing catch up with transport investment.

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order to achieve better transport outcomes.

We seek stronger and more defined direction in the final GPS regarding land use-transport integration.

Hamish Glenn is Policy Director at Infrastructure New Zealand, the peak industry body for the infrastructure sector that promotes best practice in national infrastructure development through research, advocacy and public and private sector collaboration

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Climate change report a step in the right direction Local Government New Zealand has welcomed the release of the Climate Change Adaptation Technical Working Group’s final report on how New Zealand can adapt to the impacts of climate change

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he Climate Change Adaptation Technical Working Group’s (CCATWG) report recommends that New Zealand needs a national adaptation action plan, a regularly updated national climate change risk assessment, a review of existing legislation and policy to integrate and align climate change adaptation considerations and an investigation into who should bear the costs of climate change adaptation and how it can be funded.

LGNZ President Dave Cull says the report shows that a number of the CCATWG’s recommendations on adaptation meet the needs of our communities and align with what LGNZ has already outlined in its Climate Change project.

“We are pleased to see that the CCATWG’s report has picked up on the need for what local government has been calling for, particularly a national adaptation plan, engagement with communities on impacts of climate change and discussions around adaptation funding,” Cull says.

“We now need to take these recommendations further and with the Government work

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through the options and how to implement them in order to make real progress that will build the resilience of our communities.”

However, there are still a number of sensitive questions that central and local government must collectively discuss with businesses and communities.

“We need to have conversations about sensitive issues that we must address if our communities are to be resilient, such as how to manage the relocation of communities shown to be at risk in a national risk assessment, and whether existing insurance models are sufficient.”

In the report, the CCATWG also

recommends the establishment of a centralised service that provides risk-based decision-making expertise to local government.

LGNZ’s proposal for a Local Government Risk Agency would deliver on that recommendation.

“Our proposed Local Government Risk Agency would provide comprehensive and consistent risk management expertise, knowledge and tools to local authorities across the country,” Cull explains.

“It would help to manage the risks presented and exacerbated by climate change, but also risks associated with other natural

disasters such as earthquakes.

“We are looking forward to working with the Government on addressing the adaptation challenge.

“Local government’s view is that it is critical we work together to develop a national adaptation plan so that councils, industry and community can start taking a consistent approach to adaptation, and that we start conversations about who bears the cost of climate change adaptation.

“These things need to happen as a matter of urgency.”

“Real and urgent action now is critical – we can’t rest on our laurels any longer.”

Key to infrastructure development Local Government New Zealand represents New Zealand's 78 local, regional and unitary authorities, advocating for local democracy, developing local government policy, and promoting best practice and excellence in leadership, governance and service delivery.

The local government sector plays an important role, owning a broad range of community assets worth more than $120 billion in addition to giving citizens a say in how their communities are run.

These include 90% of New Zealand's road network, the bulk of the country's water and waste water networks, and libraries, recreation and community facilities.

Council expenditure is approximately $8.5 billion dollars, representing approximately 4% of Gross Domestic Product and 11% of all public expenditure.

Local Government New Zealand’s Water 2050: Quality – Review of the framework for water quality discussion paper has identified three key issues for New Zealand’s framework for water quality

“If new standards for water quality are set we need to understand the costs, how we fund these and whether communities can afford them on their own.

“We need to partner to meet these quality and funding challenges so we are all part of a single system, while also recognising our respective roles and responsibilities.”

The Quality discussion paper was launched at the recent LGNZ Water Summit, where national and international speakers will explore issues around drinking water regulation, funding for three waters infrastructure, alternative options for the delivery of water services and challenges in freshwater management.

The Quality discussion paper is the second from LGNZ’s Water 2050 project which seeks to develop an integrated water policy framework.

It will be followed by a discussion paper on Cost and Funding, which considers funding options for water infrastructure and an issues paper on water infrastructure that will focus on the costs and investment challenges of rising standards, impacts of climate change and new regulation.

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Water quality T framework needs improvement

he local government representative organisation’s report points to opportunities for change that could be a focus under the government’s Three Waters Review.

Local Government New Zealand’s (LGNZ) review of the regulatory framework considers how we can better meet the quality of freshwater through environmental standards and protect the quality of our drinking water through specific health-related standards.

“The key finding from our review is that the regulatory framework for fresh water and drinking water does not take into account adequately the costs for communities to meet these standards,” says LGNZ President Dave Cull.

“There also needs to be better understanding of the costs and associated funding to meet these.

Councils have competing priorities on water quality standards and we need to work with central government to agree what the priorities are that need to be addressed.”

LGNZ’s Quality discussion paper identifies five key opportunities for change that could result in better drinking and freshwater quality.

The future of electricity management Recent storms in Auckland and the power outages that ensued put Auckland and New Zealand’s electricity infrastructure under scrutiny once again, Murray Dyer observes

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here was much media commentary around whether we are spending enough on our infrastructure investment, and whether it is adequate.

Some factions questioned why network companies still have not converted electricity network lines to underground systems.

While new build areas such as Auckland’s Hobsonville are being successfully developed to include underground electricity infrastructure, and a number of network companies around the country are actively converting poles and wires to underground network structures as per maintenance and replacement programs, many parts of the country will continue to run on existing infrastructure.

Making an assessment of optimal electrical infrastructure system to service an area is complex as whilst under-grounding may be an option, it is costly and exposed to seismic activity (such as the infrastructure affected by the Christchurch earthquake).

A broader replacement program would seriously challenge the labour market to deliver projects from skilled electrical workers, not to mention the huge cost to the consumer of a large-scale infrastructure upgrade.

This would also occur in an environment where the new government is already conducting a review of the electricity market to ensure it is delivering an efficient and cost-effective service.

Therefore, a balanced approach is key and it might look something like this: data capture and analysis for targeted maintenance, replacement programmes and vegetation management, together with better understanding of the individual consumer and their capability to be self-sufficient, and whether the network

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can use localized on-site solar and battery power to support it during outages.

This means natural hazards will have to be identified and assessed for specific areas, including the modelling of the effects of climate change.

Questions will be whether the area is more exposed to tropical type storms and if a once-in-adecade event is now an annual risk, if it is acceptable, and whether consumers understand that to have greater security of supply they need to pay more for system redundancy or be an active part of the solution.

It also begs the question whether this becomes a broader government infrastructure issue.

If we want to move to a higher wage economy we require greater productivity.

Therefore, should industrial areas have greater infrastructure investment?

In more practical terms a balanced approach would be using real time meter data to better manage the network, from a pre-emptive and real time perspective.

If we had more information available for scrutiny on individual connection points (the consumer level) as opposed to substation level (an entire suburb) which is what network companies have traditionally focused on, would it make it easier to detect and address outage issues?

This type of data analysis would bridge the gap between network companies and their customers (as opposed to being separated by the retailer owning the relationship) via the better use of data and controls for more dynamic grid management.

This still does not replace people with chainsaws trimming back trees from power lines and core

YEARBOOK 2018 INFRASTRUCTUREBUILD.COM

infrastructure to reduce the key risk as per the recent outages, but it will support the broader management and optimisation of the networks.

It will better to pinpoint shortfalls and faults that can lead to a more targeted response and an improved understanding of who is at the end of the connection and whether to prioritise the response: is it an old people’s home with medically dependent residents or is it just an empty warehouse?

The first stage would be utilising modern wide-area network communications to manage real time data by linking the individual connection point GPS mapping with vegetation maps, mapping energy use and consumer profiles (solar/ battery and electric vehicles), that within a data protected environment, provides the tool set to pre-empt and optimise the networks.

Does the network have access and controls to the consumer to utilize their solar power, battery or electric vehicle (mobile battery) that can manage short term interruptions?

This is the start of a journey where network companies will evolve from being asset managers to solution providers, actively using broader data sets, data

analytics and real time communications to keep the lights on and support the move from individual energy consumers to prosumers.

The solution is not necessarily to build more physical infrastructure, but to better plan a maintenance and replacement program through better use of data, data analytics, that in time leads to utilising two-way communications and controls with individual consumer sites for real time management of assets.

Murray Dyer is Managing Director, Simply Group, whose subsidiary technology businesses Axos Systems and Ampli provide smart meter enabled technology solutions and data analytic services to network company clients

Make sure products are the genuine article

The issue of counterfeit product certificates continues to surface around the country, leading to another strong warning from International Accreditation New Zealand.

“Non-compliant building products are an ongoing problem,” says IANZ Chief Executive Dr Llew Richards, who has recently returned from the Asia Pacific Laboratory Accreditation Cooperation General Assembly meetings in Japan, where counterfeit certificates were discussed.

“Some countries have already moved to traceable certificates that link directly back to the laboratory that carried out the test.

This is good practice and comes as a result of counterfeit test certificates being common from

certain countries.

“Building products are also coded so regulators and inspectors can easily check if a product is the genuine article and has been properly checked to ensure it meets the relevant standards.”

Price vs quality

Dr Richards says, in New Zealand, the quality and acceptability of imported materials such as steel and building products has caused issues, and one of the main drivers is price.

“If construction companies are seeking low prices by sourcing from offshore, their procurement teams need to make sure they understand the pitfalls and how to guard against them. Bargain-priced materials that cannot

prove their quality may end up on the scrapheap.”

Price should not be the sole consideration; quality is equally as important, if not more so.

“Price is easy to compare but quality is more complicated. Quality is commonly defined as ‘fitness for purpose’. And this is where problems can start as the person arranging the purchase contract may not know the detail of what a particular product is to be used for,” says Dr Richards.

Trust the documentation?

Then there’s the issue of the trustworthiness of the documentation presented with any product.

“We have a robust worldwide system of accreditation that ensures test and inspection results are technically reliable.

IANZ is part of an international network of more than 100 economies in which accredited laboratories and inspection bodies have demonstrated their technical reliability and equivalence.

However, even with these systems in place there is increasing evidence of unacceptable paperwork arriving with products.”

In the past couple of years, for example, the level of non-compliance in the paperwork for imported steel has been high, says Dr Richards.

“If you are spending hundreds of thousands of dollars on imported steel, it’s a good idea to do some due diligence to make sure the test certificates actually mean something, rather than assuming everything is perfectly okay.”

IANZ Chief Executive Dr Llew Richards

“We have a robust worldwide system of accreditation that ensures test and inspection results are technically reliable.”

Understand the requirements

Clear and detailed specifications are very important, given there are so many uses for steel, many shapes of steel products and a wide range of steels with different properties.

“Design engineers understand the requirements of their designs and specify characteristics of materials accordingly, including the relevant Standards for materials they need.

“But do not assume overseas suppliers will know anything about New Zealand Standards.

If the supplier cannot meet your requirements discuss alternatives with the designer before placing the order or look elsewhere.

“If there is doubt about the authenticity of test reports or certificates received, IANZ can help to verify their reliability and where appropriate liaise with the relevant overseas accreditation body,” says Dr Richards.

IANZ is always happy to provide guidance on the accreditation process, advice on which economies operate equivalent accreditation programmes and make available contact details for the overseas accreditation authorities. www.ianz.govt.nz 09 525 6655 SAFETYNEWS.CO.NZ

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If a product does not have legitimate certification or testing from a properly accredited laboratory, you have no assurance it will do what you expect. It may fail in six months, it may be a totally unsuitable specification, or it may be dangerous

Symptoms of a toxic workplace and what to do about them

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Not becoming a toxic workplace comes down to avoiding these eight behaviours, says Marcel Schwantes

A

ny good executive or owner of a company knows that culture is king. It's in your best interest to build an organisation where shared values and virtues are held firmly, and where jerks, bullies, and troublemakers don't thrive.

Reason being, if your good workers and high performers are witnessing the toxic behaviours outlined below, it may be affecting them already. It means you may have lost the war on retaining them long term.

Here are the toxic behaviours commonly found in the unhealthiest of companies:

Management only focuses on what's wrong

The atmosphere is one of fear, and employees walk on eggshells.

Their bosses spend too much time looking for whom to blast for the latest wrongdoing. They wield their managerial batons to

correct problems and reprimand people instead of giving positive feedback when things go right.

Too much bureaucracy keeps work from getting done

There are so many levels of approval, so many committees that meet, and so many layers of management to make a final decision. The people that suffer from bureaucracy are the employees.

It clearly communicates to them, "We don't trust you."

Employees are bullied or management tolerates bullying

Babs Ryan, author of America's Corporate Brain Drain, says, "Only one percent of bullies are fired; action is usually taken against the [bully's] target. Your only choice may be to leave as quickly as possible -- especially if the company supports that bully repeatedly and has already exited several of

the bully's targets."

Employees are treated as objects or numbers

People are seen as worker bees serving the wishes of a top-down hierarchy in order to drive the bottom line and make shareholders happy. There is typically little regard for employees' happiness or well-being.

Employees are overworked and overburdened

People's personal or family lives are sacrificed for the job because overwork is common. As a result, you'll encounter high levels of stress, turnover, absenteeism, and burnout.

Too much gossip is killing morale

Gossip is poison to the work setting. It causes disruption and is specifically designed to take someone down. Gossipers are often disgruntled and entitled. They spread their tumor by enlisting others, especially new hires, in their negative spin campaign.

Unethical behaviours are common

In the most toxic workplaces, you'll find a rise in things like theft, fraud, sexual harassment, and workplace sabotage that disrupt morale and productivity.

The stress level is almost insurmountable

Stressful workplaces can greatly decrease the ability to focus and be productive. One study found that employees working under

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toxic managers were 60 percent more likely to have suffered a heart attack or other life-threatening cardiac condition.

What do you do if you work for such a place?

First and foremost, steer clear of toxin mongers and don't get sucked into their toxicity. And if

you truly love your job and don't want to leave, doing nothing is not an option.

If your trusted allies of good conscience outnumber toxic workers, and HR works on behalf of protecting the employee against a hostile environment, rally together to expose the problem and take out the perpetrators.

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If toxic behaviours persist in close quarters, bring in a third party to document meetings to protect yourself from undue stress and drama.

Lastly, work to promote a healthy work culture together by living out virtuous behaviours of trust, respect, empathy, listening, and compassion.

Do it consistently to squeeze out unwanted things like gossip, bullying, sabotage, disrespect, and insubordination. The larger the group campaigning against toxic behaviors, the better your chances that your toxic colleagues will be rooted out.

Marcel Schwantes is the principal and founder, Leadership From the Core@ MarcelSchwantes This article first appeared in INC https://twitter.com/Inc

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Philosophies of a thinking man Andrew Barnes views the trial and its successful outcomes as being much bigger than just the future of work at Perpetual Guardian.

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“This is about flexible working and about using technology to enable that,” he says. “The learnings and challenges uncovered as part of the trial raise a number of questions that we will work through to ensure we address areas that need improvement or further innovation in order to increase flexibility and productivity,” Barnes says.

“If you can have parents spending more time with their children, how is that a bad thing? Are you likely to get better educational outputs as a consequence?

“Are you likely to get fewer mental health issues when you have more time to take care of yourself and your personal interests – probably.

“If you can take 20 percent of people off the roads every day, what does that mean?

“If you have fewer people in the office at any one time, can we make smaller offices?

If people work more efficiently or remotely, coming to the office less frequently, what does that mean for urban design?

“These are interesting issues, and we should be debating them because I think it changes the composition of society.

And once that changes, opportunities available for people will change. Maybe more people will be providing services for people’s leisure as opposed to traditional business-related support services.

“I don’t know what the outcomes will be, but I would say to all business owners, be a little creative -- think about trying a few things.”

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How five will go into four without anything left over Perpetual Guardian attracts global attention for its innovative trial of a four-day work week Robust methodology

Two academic researchers worked with the company before and during the trial to help ensure robust methodology and to gauge levels of staff engagement. They also studied any impact on employee stress and well-being.

They were Dr Helen Delaney, Senior Lecturer at the University of Auckland Business School whose trial-based research was qualitative, and Professor of Human Resource Management

at AUT Jarrod Haar who conducted quantitative research into the trial and its effects.

One key to the operation’s success noted by Dr Delaney was that being involved in pre-trial planning discussions gave many employees a sense of greater voice and empowerment in their work.

“Employees designed a number of innovations and initiatives to work in a more productive and efficient manner,” she says.

Employee pre-trial innovations and initiatives The trial’s planning phase resulted in many employees designing and implementing innovations and initiatives to work in a more productive and efficient manner.

These practical micro-initiatives included: Automating manual processes, changes to meeting behaviour (shorter, focused, only when necessary), sharing email inboxes, phone call forwarding systems, using new smart-phone applications, installing instant chat functions for team communication.

Using technology to connect with clients (phone calls as opposed to face-to-face to save commuting time), combining meal breaks with work tasks, prioritising, planning and focusing on work tasks, and reducing or eliminating non-work related internet usage.

An enduring theme was the increased level of focus and presence, a ‘head down’ ‘just do it’ approach.

The reduced hours meant that employees could sustain a more intensive work pattern, and they were more motivated upon returning to work.

Employees reported an increase in the level of collaboration and teamwork directly related to the trial.

Employees describe how they felt a mutual willingness to ‘help each other out’.

Multiple new communication initiatives enabled greater engagement between employees. Many teams (including managers) experienced greater sharing of information and/or delegation of tasks.

Some managers report feeling an increase in appreciation and trust for the ability and reliability of their team members.

The trial has opened managers and employees up to the idea of enabling workers to have some degree of discretion over where, how and when they work.

Some employees also described the benefits of upskilling and cross-training, such as feeling more

Dr Helen Delaney, Senior Lecturer at the University of Auckland Business School

challenged and stimulated by their work, increased understanding of other organisational functions, and less ‘key person risk’.

This notion of less risk was raised by some employees who believe the organisation as a whole is more resilient now when confronted with unexpected events, such as the absence of a key person or an extreme weather event.

A resounding theme across all focus groups was that employees have a shared commitment to the purpose of the trial from a business perspective. That is, there is deep and broad agreement that reduced working hours can only be viable if employees meet, and where possible exceed, the agreed productivity measures. There is much motivation to do so.

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any people enjoyed significant benefits when financial analyst Josh Mattingley switched to working four days a week. They included his employers as well as his family and friends.

Recommendations have been put to the Perpetual Guardian board and they are looking to make an announcement in September whether or not to make the four-day work week a permanent fixture.

Approval of what originated as an eight-week experiment could help spark a major change to work patterns in many industries.

With adaptations, the success of the project with Perpetual Guardian can be widened to include non-officebased activities such as construction and civil engineering projects across all sized companies, say analysts.

In March and April this year Mattingley was among the 240 staff at Perpetual Guardian, a statutory trust business, trialling a four-day work week which did not involve salary cuts or longer working days.

Employees were given four week’s notice of the plan and could nominate a day off each week on full pay.

Their ideas included automating manual processes to reduce or eliminate non-work-related internet usage.

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No reduction in job performance

Dr Delaney’s verdict on the trial’s success is enthusiastically shared by Perpetual Guardian’s founder Andrew Barnes who reports ‘positive improvements across all aspects of the study’.

“The key areas we sought to measure -- including work-life balance, engagement, organisational commitment and work stimulation -- all showed positive increases That is a powerful combination, leading to job satisfaction, he says.

“Our leadership team reported that there was broadly no change in company outputs pre and during the trial. They perceived no reduction in job performance and the survey data showed a marginal increase across most teams.”

The company’s Head of People and Capability, Christine Brotherton, points out that the trial also uncov-

People and Capability head Christine Brotherton (left) with Zandri Spies-Clarke, Andrew Barnes and Tony Tung: “Where leaders coached, guided and supported their teams to come up with their own productivity measures and rosters for ensuring excellent client service, we think that teams felt empowered and motivated to succeed”

ered unanticipated and useful findings.

“In particular, it has given us an opportunity to evaluate leadership within our company. The academic research shows our people are ready

Wave of change begins to build The perceived need for a revamped attitude to work-relaxation balance is endorsed by figures recently released by The Organisation for Economic Co-operation and Development. They show that New Zealanders on average spend 43.3 hours a week at work. This compares with 42.7 and 42.6 hours respectively for their counterparts in the UK and Australia.

Chief economist for The Council of Trade Unions, Bill Rosenberg, attributes the higher New Zealand level to steep increases in the 1990s caused by the country’s low-wage economy. The New Zealand the US level did fall in the mid-2000s but has risen again since 2010.

"The proportion of couples with

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children both working full-time has gone up since 2012, and this indicates people are working longer hours because they have to," says Rosenberg.

OECD data shows that the average Kiwi spends 14.9 hours a day on personal care and leisure, including sleeping. Australians have slightly less ‘spare time’ – probably because high numbers have longer journeys to their place of work.

People in Turkey are working the longest -- an average of 51.2 hours a week for full-time employees. The OECD rates Turkey a 0.0 in its worklife balance index.

All EU countries are supposed to have a maximum 40-hour week for full-time employees, and this is reflected in the low average hours worked in Sweden (39.7), the Netherlands (39.1) and Denmark (38.3).

France has a mandatory 35-hour working week contract for full-time employees but its average figure of 38.9 indicates this is not being observed by some employers.

Accurate statistics for the US are virtually unobtainable because of the country’s high total of undocumented workers.

However, a 2015 study by the internationally-respected business research organisation GetVoIP claimed workers were putting in an average of 43 hours a week -- just below the GetVoIP figure of 44.5 hours for their counterparts in Japan.

to embrace change,” she says.

“In some teams, the experience of the trial was more successful than in others. Where leaders coached, guided and supported their teams to come up with their own productivity measures and rosters for ensuring excellent client service, we think that teams felt empowered and motivated to succeed.

“Where leadership was not demonstrated so strongly (for example, not empowering staff to make good decisions), we have been able to identify deficiencies in leadership that perhaps we may not have had the opportunity to see if not for the trial.”

She applauded the Autonomy Institute which last year made renewed calls for a four-day week -- saying it would help even out the unhealthy distribution of work and shift focus to producing better work in a shorter time.

Motivated employees

Many Perpetual Guardian’s employees brought a similar level of focus to making the most of the extra day off as they would apply to their work.

“People have been thinking quite hard about that third day off and how best to use it so it can change their life. Some people come back to work and are incredibly energised.” People have been training for marathons, going to the dentist, getting their car serviced, or doing the shopping for their elderly parents. All the stuff that has been put on the back burner, but either helps themselves or their family.

Life administration,” says Brotherton.

“But,” she adds, “some haven’t quite realised that if we have three days off, the four at the office have to be very productive, and we need to address that”.

Spread to other industries

Enthusiasts for the five-into-four operation are often asked if it could

A challenge but doable

That is also the view of Professor Haar who considers that implementing it in infrastructure or construction projects, for instance, would be ‘a challenge but definitely doable’.

“It comes down to how the work is currently done and whether that could be condensed and achieved in four days?,” he says.

“Do we need construction sites working 5-days a week? Probably but are workers really doing 40-hours a week work.

“Or are they on-site for 40-hours, spending half that time actually working – that is constructing -- and the rest of the time getting materials, getting things ready, meetings and other forms of ‘inefficient’ time wasting.

“If so, then yes. The focus has to be on the work getting done not being onsite for 40-hours.

“The ‘trick’ with Perpetual Guardian is they gave their workers the psychological tools – ‘if you can do it then you can benefit with an extra day off and then got the workers themselves -- not management --to figure out how.

Therein lies the key. Empowering workers to do the figuring out.

“That said, if a construction site has workers doing close to 40-hours of work a week already, then unless the workers could genuinely and safely work 20 percent faster then it is unlikely.

“Research confirms there is plenty of ‘spare time’ in office work. Might be different in construction or trade sites?

“It may be hard for electricians and plumbers who move through multiple houses a day. That might be difficult but if we said ‘on average you do 20 houses at 1.5 hours each including travel’ then they might be able to do it.

“By being more efficient – planning their routes etc so they go from house

AUT’s Professor of Human Resource Management Jarrod Haar: “They gave their workers the psychological tools – if you can do it then you can benefit with an extra day off - and then got the workers themselves, not management, to figure out how”

to nearby house to increase efficiency.

They might not stay around and have a cuppa this way but they’ll get an extra day in the end” “If it were up to me, I’d rotate the day off. I think Wednesday’s are great as it’s a 2-day week, rest and recover on the day off, then back into a two-day week.

And then maybe a long weekend every other week?

New twist on flexitime More major companies are giving staff greater freedom to make decisions about their working hours and conditions. Among the latest is Westpac NZ which has adopted a flexible time-away policy.

General Manager Human Resources and Corporate Affairs Gina Dellabarca says this gives staff the freedom to be away from the bank at times suitable to them.

“We’ve encouraged them to ‘leave loudly’ when it’s time to head off. In practice, this means employees wanting to leave to watch their kids at sport or attend an appointment should feel comfortable doing so without feeling the need to justify themselves – they should leave loudly and proudly, without fear of judgement by others,” she explains.

“We focus on making sure that flexible arrangements work for the individual, team and the organisation but most importantly that we keep our customers at the front and centre of making sure these arrangements work. The key is regular and effective communication, flexibility has to work for everyone.

“We believe everyone wins when our people feel they can manage their lives effectively. Our flexible working policy has really driven staff retention and engagement.

It has made it easier to attract great, talented people to the company. We’ve seen no loss of productivity as a result of more open flexible work policies and it hasn’t

hindered either salary or career progression for our staff.

“It’s important to set the tone from the top so we make sure that executives and senior managers are living and breathing flexibility as well, this helps demonstrates flexibility being practised across the whole organisation.

“We’re really pleased to see that the policy benefits all of our staff and not just those who are parents or have carer responsibilities.”

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be transferrable to a non-office setting such as construction.

“It is clear that some industries and workplaces have specific deadlines or locked-in daily outputs – construction output, for instance – that means a certain number of workers is required at specific times,” says Barnes.

“But if you take construction as an example, huge technological strides are being made that are increasing output, or productivity, while reducing the requirement for constant human input.

“You are always going to have deadlines, and we have plenty of deadlines at Perpetual Guardian, but you can certainly change work practices in order to make work more flexible and better for the staff. “It is about how you structure staffing, the mix of full-time and part-time staff, to get the balance right to meet the productivity targets while people are on the worksite or in the office.

“What worked for us might not work for another business – but they do not know unless they ask their workforce how they might do it.”

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Smart choices key summits at Safety 360

SAFETY NEWS

The past three years have seen a massive shakeup in health and safety with changes to the regulations, attitudes and protocols needed to handle workplace incidents

T

he National Health and Safety Leaders’ Summit at the Safety 360 event this March brings Safety II and other key topics to the forefront of discussion.

The 2018 Hazardous Substances Management Summit at the same event seeks to acquaint participants with practical solutions to workplace chemical dilemmas.

There are two other summits Health and Wellbeing and Occupational Health.

Many believe it is time for a change in our approach to workplace safety.

Businesses have adopted an approach to health and safety which leaves workers inundated in paperwork and protocols warning them of the risks in their job and mandating how to deal with breaches in health and safety codes.

The goal of this approach is to work towards a society of Zero Harm – which focuses on having no incidents Unfortunately, this approach has had the unintended effect of stifling proactive thought about health and safety risk and disengages the workforce.

This attitude toward health and safety is referred to as Safety I and tries to deliver on the unrealistic goal of no accidents – avoiding the fact that things

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actually do go wrong.

There’s nothing fundamentally bad about this approach, but in reality it leads to a focus on stopping small events from happening, diverting attention from critical risk events.

Increasingly, organisations are adopting a Safety II approach to their health and safety practice.

Health and safety managers realise that the best people to mitigate risk are those who are at the coalface.

“Organisations have traditionally desired as much central control over their people and activities as possible. But this compliance-based approach may not be the best way to manage work and safety in modern, complex and dynamic environments,” says Dave Provan, PhD candidate in Griffiths’ Safety Science Innovation Lab. “Safety I isn’t applied well to modern environments where safety incidents fall outside the prescribed manual. Safety II applies a mindset of ‘what could go right?’, rather than detailed scenarios of wrongdoing.

“Safety II describes a different approach, one that is centred around openness, collaboration and flexibility, such that the people performing the work are enabled and supported to adapt their work as needed to overcome

the gaps, challenges, surprises, multiple conflicting goals, limited resources, and pressures to always achieve more."

Jono Brent, Chief Executive of Connetics is a pioneer of the Safety II paradigm in his business – a high risk contracting, engineering and logistics company.

Brent stresses the importance of being a visible leader, driving proactive health and safety through communication.

A key factor of applying Safety II is supporting health and safety with two-way communication that allows for health and safety protocols to be continually improved, revised and supported by both management and workers.

“While we have achieved great things under the Safety I paradigm, unfortunately the top down, hierarchal approach to safety has left our staff, who are at the heart of our efforts to keep safe, disengaged with current safety practices.

“At Connetics, we have been using the philosophies of Safety II to put our staff at the centre of the solution and giving them the chance to design their own solutions that drive improved culture and safety performance.

“The implementation of Safety II can be hard – managing the culture shift to develop proactive health and safety means changing the way workers, management and boards view and talk about health and safety,” says Brent.

The chemical industry association Responsible Care NZ has helped provide presentations which will help clarify complex and often confusing compliance requirements “The key to keeping people safe around workplace chemicals”, says Responsible Care CNZ chief executive Barry Dyer “is to provide answers to the all-too-familiar ‘just tell me what I have to do and how to do it’.”

Dyer chairs the hazardous substances summit and Francois Barton of the Business Leaders’ Health and Safety Forum and Chris Jones at the Department of Corrections will chair the Safety ll discussion.

Join the discussion with those leading the shift at Safety 360 26 & 27 March in Auckland.

For more info see www.conferenz.co.nz/Safety360