(This article is reprinted from the National Board Bulletin of 1996)
A New Partnership
Industry insiders believe the Canadian province of Alberta has privatized its boiler-
and pressure-vessel inspection program.
That's not exactly true. Alberta has changed the function considerably, bringing the
private and public sectors into much closer cooperation than is typical in the rest
of North America (but not uncommon overseas, especially in Western Europe) - thus
the common assumption that the province has outsourced its inspection program.
"A lot of people are trying to understand what is going on with us," admits Ken K.T.
Lau, Ph.D., Alberta's Administrator (a legal term defined in the legislation) of boiler
and pressure vessels.
What's going on is that Alberta's Labour Department has turned over it's boiler- and
pressure-vessel-inspection duties and the delivery of all associated pressure-equipment-safety
programs to the Alberta Boilers Safety Association, a not-for-profit "Delegated Administrative
Organization" reporting to an industry- and government-appointed Board of Directors
whose members are unpaid volunteers.
The Association administers and delivers safety programs. Regulations are still set
by the minister of labor, who also approves the Association's fee structure and audits
its work. (Association inspection records are the property of the provincial government
and are open to government inspection at any time. Government can withdraw the authorities
delegated and take the function back anytime an audit reveals that the Association
is not delivering the programs properly.)
What's more, most Labour Department employees concerned with boiler and pressure-vessel
safety became employees of the Association, including Dr. Lau, who is the technical
authority for both the province and the Association, and who continues to represent
the province on national and international pressure equipment jurisdictional and codes-and
standards- bodies.
Dr. Lau cites three motivations for the new arrangement:
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Alberta was looking for effective ways to reduce its government spending.
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industry wanted faster response from regulators and more input into the administration
of regulatory programs; and
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both industry and the provincial government believed the boiler and pressure-vessel
program could be run more efficiently and effectively.
So far, says Dr. Lau, the new arrangement is working. But, he cautions, it's important
for outsiders to remember that "I still have the necessary authority I had when I
was an employee of the Alberta Labour Department. The checks and balances are still
in place. I believe we've taken a step forward. We're independent of the government,
but like the government, we are public, third-party, and not-for-profit.
"This new effort is seen as a partnership with the industry. Industry now has direct
input into programs and the administration of the Association. The program can react
more quickly to industry's needs. The new arrangement has helped morale. By and large,
it's been very good so far."
Dr. Lau believes the Alberta experience may hold valuable lessons for the rest of
North America, where, as he sees it, the relationship between inspectors and industry
could be more cooperative and complementary to promote better understanding of each
other.
"Here we have industry helping us both set and enforce standards," Dr. Lau says. "We
are all concerned with safety. This amounts to resolving the issue for the success
of the family itself - rather than saying industry is there just to make profits,
and the government there just for safety. Our partnership arrangement with industry
is a very great departure from the way it used to be, but we think this will make
our boiler- and pressure- vessel-safety programs more efficient and more effective."
(This article was written based on an interview by National Board consultant Mr.
David Nichols and the original draft was reviewed by Alberta Labour Communications.
The article is reprinted from the National Board Bulletin of 1996 (Volume 51, Number
3). The National Board Bulletin is published quarterly with a circulation of
over 10,000 copies worldwide to libraries and pressure equipment jurisdictions, standards
writing bodies, manufacturers, users, inspectors and related corporations and individuals.)
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Updated Feb 18, 2010