School principals plan to put their homes into trust to avoid losing them if they are held personally liable for playground injuries – just one of the unintended consequences emerging from a dramatic health and safety law change coming into force next month.

The law, a response to the Pike River mine tragedy, was intended to hold big business to account for lax worker safety protections, but has sprawled into a massive regime encompassing everyone from community sports events to charities.

Principals – who are effectively the chief executives of state-owned organisations with responsibility for hundreds of staff and thousands of children – could be fined up to $600,000 if someone is hurt.

SCOTT HAMMOND / FAIRFAX NZ Principal Aaron Vercoe says confusion over the new Health and Safety at Work Act is taking its toll on the wellbeing of principals.

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Shirley Boys' High School principal John Laurenson, of Christchurch, said he was aware of principals talking to each other about putting their houses into trusts.

They fear they will otherwise be forced to sell their homes if they can't pay the fines.

"We're moving towards a more litigious environment, like in the United States, so you're protecting your assets if something goes pear-shaped."

And preying on their fears, he says, are "cowboy" health and safety consultants hoping to secure more business.

Under the new Health and Safety at Work Act, which comes into effect on April 4, principals can be held personally liable if they fail to exercise due diligence in making sure the school meets its health and safety obligations. Ignorance of the risks or hazards is no excuse under the law.

Those concerns over personal liability have led the Secondary Principals' Association to seek legal advice for its members.

It wanted to know if transferring assets was necessary, but lawyers could not give them a definitive response.

Association president Sandy Pasley, of Auckland's Baradene College, admitted there were "massive concerns" over the increased liability.

Schools were "screaming out for advice" about the Act and there was a void of information being filled by consultants.

"Everybody is a little in the dark, which makes them quite vulnerable," she said.

WorkSafe communications general manager John Tulloch said putting homes into trusts was an over-reaction based on scaremongering.

The likelihood of prosecution, including possible jail time in extreme cases, was rare and only for serious breach of duties, he said. "It's all about managing risk as far as reasonably practicable."

But Redwoodtown School principal Aaron Vercoe, of Blenheim, said the fact principals were considering putting their homes into trusts showed there was a lack of information about the act.

"I'm concerned for principals' mental health and wellbeing, that they are so worried about the act they would consider putting their assets into trusts."

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Frank Taylor, of health and safety consultancy Securo, said he knew of "cowboy consultants" using scare tactics to secure business. "It disappoints me greatly," he said. "There is no need for scare tactics and all organisations need to enter into this with the correct objectives and a good consulting partner."

Minister for Workplace Relations and Safety Michael Woodhouse said it was not his place to advise principals about their assets, but said there was a lot of fear being peddled about the act.

"The snake oil salesmen are getting in the ear of people who have been spooked by this," he said.

"There's been a lot of arm-waving about how they could be fined up to $600,000 for the most serious breaches of the act.

"The current fine is $500,000, so they already have these responsibilities."

Ministry of Education spokeswoman Katrina Casey said workshops had been held around the country to inform schools about the act.

The ministry was working on a practical guide for school boards and leaders to be released on Monday.

"For the majority of schools that already have good policies and practices in place, they should have no cause for anxiety," she said.

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