Work-related accidents and ill health cost the economy up to €3.6 billion a year, according to a report to be published today. It also finds, however, that an increasing number of employers see implementation of health and safety measures as an investment rather than a cost.
The report, by consultancy firm Indecon, was commissioned by the Department of Enterprise, Trade and Employment to examine the economic impact of health and safety legislation.
It concludes that while estimates are uncertain, occupational injury and illness cost the economy between €3.3 billion and €3.6 billion a year, or about 2.5 per cent of national income.
But the "common perception" that health and safety measures are a cost for companies rather than an investment has "shifted somewhat", the report says.
"On the whole, employers believe that the benefits of regulations equal or outweigh the costs of compliance and a KPMG survey in Australia found that 70 per cent of CEOs [ chief executive officers] and 85 per cent of supervisors agreed that improving health and safety reduces costs."
Surveys of Irish employers by the report's authors also found that a majority - albeit a less sizeable one than in Australia - believed health and safety laws saved them money.
In the construction sector, 53.8 per cent of employers surveyed believed that health and safety legislation had led to a reduction in accident-related costs.
A sizeable minority, 39.6 per cent, also believed such legislation had led to a reduction in insurance costs, while just 5 per cent felt it had led to an increase.
A majority of those surveyed in industry generally also believed that health and safety legislation had reduced accident-related costs.
Minister of State for Labour Affairs Tony Killeen said the surveys showed that firms could identify where good health and safety practice was making a difference to their business.
"I am very encouraged by this shift in perception and it shows that business is taking the big picture into account by having worker-safety strategies," he said.
Reviewing the impact of health and safety legislation since 1989, the report said there had been a reduction in work-related accidents and injuries since the enactment that year of the Safety, Health and Welfare at Work Act.
This had brought about an increase in health and safety activity, such as a rise in the number of inspections carried out each year by the Health and Safety Authority.
The report said it would be over-simplistic to assume that this increase in activity had led to the fall in worker injury and fatality rates.
"However, there are some econometric results suggesting a link between improved accident rates and health and safety activity. This suggests that the legislation has been effective at increasing health and safety awareness and reducing accident rates."
Mr Killeen said it was clear that the costs of occupational injury and illness were significant, and everybody concerned should redouble their efforts to make workplaces safer.
A new Safety, Health and Welfare at Work Act came into effect last year. In 2005, 64 people were killed in workplace incidents, an increase from 48 in 2004.
