CoR in the spotlight

Following the support given by transport ministers in May to carry out a number of reforms to the Chain of Responsibility (CoR) legislation laid out in the Heavy Vehicle National Law, the National Transport Commission has released a discussion paper on the matter and is now seeking industry feedback.

Proposed reforms to CoR would seek to deliver "a more outcomes-based approach focused on primary duties", says the NTC, detailing the specific requirements of supply chain participants.

The NTC's CEO, Paul Retter, says the reforms will also give operators the flexibility to determine the best approach for their company.

"This reform will provide an opportunity to consolidate or remove more prescriptive obligations in the law, helping industry remain compliant while potentially reducing costs," he says.

"In May, ministers acknowledged the reforms were an opportunity to better clarify roles and obligations of all chain of responsibility parties, and executive officers.

"This discussion paper provides stakeholders with an opportunity to comment on draft proposals that are planned to be considered by ministers later this year, and is one of the final stages of consultation."

The NTC says the release of the discussion paper, titled Primary Duties for Chain of Responsibility Parties and Executive Officer Liability, follows the formation of a taskforce in 2012, the release of an 'options paper' in 2013, and the release of a high-level discussion paper late last year.

The body says this latest discussion paper contains draft proposals and canvasses options relating to:

>> How a primary duty on operators, prime contractors and employers could be structured to ensure the safety of their transport operations
>> How role-specific duties of other parties could be structured
>> The standard of care to be applied
>> The relationship of primary duties to existing chain of responsibility offences
>> Penalties
>> How the reforms could be applied to executive officers of corporations

The paper examines the specific roles carried out by schedulers, consignors and consignees, loading managers, loaders and packers, and unloaders, and how those roles relate to Chain of Responsibility legislation.

In relation to the application of Chain of Responsibility legislation to executive officers, the discussion paper examines how the primary duties concept could also be applied here, with the NTC favouring an extension of the existing liability provisions rather than the introduction of a new 'due diligence' approach.

The latter would "hold officers and senior managers accountable for managing and influencing behaviour without the corporation first having to commit an offence, as is the current requirement under the HVNL", states the paper.

"The NTC proposes that the existing executive officer liability regime be retained and that the introduction of a due diligence obligation for executive officers is an issue that be separately considered."

Submissions relating to the discussion paper close on Friday, August 7, 2015, with the feedback to inform a policy position paper to be reviewed by transport ministers in November.

Click here to view the discussion paper.