1. This paper sets out HSE’s proposals to:
2. Since the introduction of the Adventure Activities Licensing Regulations (AALR) in 1996, providers of defined adventure activities to young people under the age of 18 have been required to hold a licence granted by the Adventure Activities Licensing Authority (AALA). The original fee structure changed when new regulations were introduced on 9 June 2004 and a flat fee of £620 per licence has applied since then.
3. Until 1 April this year a private company, Tourism Quality Services Ltd (TQS) was designated as the AALA and the former Department for Education and Skills (DfES) sponsored the legislation. Licence fees generated approximately 50% of TQS’ running costs and the remainder was made up of grant-in-aid channelled via DfES.
4. HSE took over as AALA on 1 April 2007, but retained TQS, on contract, to carry out most of the administration and inspection work on its behalf. The grant-in-aid is now channelled via DWP and HSE.
5. It is the Health and Safety Commission’s (HSC) policy that HSE should seek to recover the costs of permissioning schemes (which includes licensing) in line with HM Treasury guidance.
6. By October 2008 over 4 years will have elapsed since the licence fee was last reviewed. HSE proposes to increase the fee to take account of inflation since June 2004 plus an additional amount to start the move toward full cost recovery.
7. A licence fee of £680 would be required to take account of inflation between June 2004, when it was last changed, and October 2008 when the new fee will come into force. The proposal is to raise the fee to £715, a little above the rate of inflation.
8. HSE intends to carry out a review of the licence fee including consideration of whether a different fee structure would be more appropriate than the current flat-rate system. Any proposals for changes from October 2009 arising from this review will be the subject of further consultation.
9. The amounts involved in this proposal mean that a full regulatory impact assessment would be disproportionate.
10. Comments on these proposals should be sent to: aala.licence.fee.change@hse.gsi.gov.uk.
To arrive by: 29 February 2008.
All comments received will be carefully considered and reported to the HSC along with final proposals.