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A VIEW FROM THE CHAIR COMPLEX CHALLENGES AND 'ELEGANT SOLUTIONS' BY DAVID LEDSON David Ledson, the chairman of the Maritime New Zealand Authority, adds his perspective to the changes taking place at Maritime NZ A week or so ago I received the Maritime Operator Safety System public consultation documents in the mail. I was particularly struck by the pamphlet, MOSS Getting Started, and especially by one sentence which says, "As an operator, you know your own operation – the risks and problem areas – better than anyone else." This idea is one of the key pillars on which the design and success, or failure, of MOSS is based. As I thought about this, I was very aware of the recent news about the loss of the Easy Rider, the results of the investigation into the plane crash in South Westland, and the court decisions around a number of serious accidents to passengers in high speed craft in the Bay of Islands. When considering this key pillar, one of the factors we need to take into account is the risk appetite that different operators may have in relation to the dangers associated with their operation. In my own professional and private experience, the main drivers that define someone's risk appetite, are their own personal experience and experiences. And it is sad but true, that while many people would like safety limits to be discretionary and a matter for their own judgement, when things go terribly wrong the default response seems to be to look over their shoulder at 'the regulator', as a convenient hook to 'hang the blame' on. I have seen evidence too, that the larger the risk appetite, the lower the investment made to mitigate the risk, particularly in the areas of training and infrastructure. So, I was tossing these ideas around in when I saw some research that had been put together as part of the development of the 'Fishing Sector Action Plan'. The plan is being developed by Maritime New Zealand in partnership with FishSafe, with support from the ACC and the Department of Labour. What I found especially interesting, in the context of MOSS and the safety outcomes we are after, was the research undertaken on the sector profile including: • Fishing contributes about 0.7 percent annually to our GDP and employs around 7,000 people (just under one percent of the total workforce). • There are around 1300 certified New Zealand commercial fishing vessels. • Over 90 percent of the fleet is less than 24 metres in length. • Fishing is one of the most dangerous occupations. Between 2001 and 2009 commercial fishing had the highest combined fatality and injury rate of any employment sector, 7.39 percent of the workforce reported injuries compared with 4.51 percent for the second rated industry 'Mining and Quarrying'. • A study done in 2000 by the International Labour Organisation concluded that with regard to fishing: 'denial of danger, independence, fatalism, the belief that safety is a problem that primarily requires a technological solution, are common themes'. • When the number of injuries and fatalities is assessed against the number of vessels in SSM over the period 2002 to 2010, there 28 Professional Skipper July/August 2012 has been an increase in the rate of fatalities and little change in the rate of serious harm incidents. • A study of injuries suffered by fishermen in Australia found that most could be attributed to rough weather, non-seaworthy vessels, inadequate use of personal flotation devices and inexperience. In New Zealand the three leading causes are 'failure of vessel structure or equipment' at 26 percent, 'impact with other object or other vessel' at 25 percent, and 'foundering/grounding' at 18 percent. Thinking about this list I drew the following conclusions and associated challenges for Maritime New Zealand: • While the GDP and employment figures are small, we are a 'small country' and so fishing's contribution to the economy is an important one. Challenge: To ensure that while we drive for safety outcomes we also work to ensure that our regulatory approach enables economic activity in the industry. • The working environment is a dangerous one, there are a lot of vessels, a lot of small operators, and a large risk appetite that is likely to pervade segments of the industry. Challenge: To ensure that the risk appetite of all operators is 'right' for the nature of the operation, the nature of the environment, and that it is supported by the 'right' mitigation strategies, investment in managing the risk, and that we have a clear and early view of where this is not the case. • There is evidence that SSM is not delivering the results or improvements that we would all want. Challenge: To ensure that SSM works as well as possible until MOSS is implemented, and that MOSS then quickly reduces the risk profile of the industry and delivers the best possible safety outcomes. These are all pretty big challenges. Wrapped around them all, are the expectations of both government and the industry, that we in Maritime NZ will be effective in achieving our mandated safety, security and environmental outcomes, and be efficient in demonstrating and sustaining the delivery of value for money. These realities reminded me of a book I read a few years ago by an American author Matthew May, based, as are quite a number of business books in recent years, on the Toyota Production System. It is about a concept called 'the elegant solution'. The concept refers to a solution to a problem in which the optimum effect is achieved with the least amount of effort. May's view is that elegant solutions are based on three guiding principles. The first is 'the art of ingenuity'. This in my view is largely about creating what I call an 'inquisitive culture', which encourages the 'why' and 'so what' questions to be asked. The second is 'the pursuit of perfection' and 'the rhythm of fit'. That is, the solution that fits with the internal culture, with external cultures, and is sensitive to context. May also believes that 'elegant solutions come from customers', and I believe that customers are also often part of 'the elegant solution'. So all in all, this is a very complex space for Maritime NZ as we work together to develop 'elegant solutions' to not inconsiderable challenges if we wish to provide a safe and financially sustainable environment for the maritime industry in New Zealand.