NZOAD January Update, Plus Industry News
Happy New Year to all.
Below is a brief update from NZOAD, along with some industry news:
MBIE New Ruling on Definition of an Amusement Device
A recent legal case has determined that go-karts are not classified as amusement devices under the current regulations. This ruling may impact operators using go-kart equipment, regardless of their registration status.
Many NZOAD members may have received letters from WorkSafe concerning this matter. Their devices may no longer require registration as an AD, potentially falling into a regulatory grey area between AD and AAO.
RSE (Recreational Safety Engineers) and ENZ (Engineering New Zealand) are set to meet to determine a stance and will coordinate with NZOAD. MBIE suggests that up to 40% of current amusement devices may be deregistered. MBIE must clarify their position so that we can respond appropriately, potentially engaging with the media.
If you have any questions or queries regarding this matter, please do not hesitate to contact the NZOAD Committee.
Requirement to Notify WorkSafe of Significant Alterations or Repairs to an Amusement Device
Section 21A (10) of the Machinery Act 1950 states that owners must notify an Inspector of Machinery of any significant alterations or repairs. Regulation 12 of the Amusement Devices Regulations requires such notifications to be made using Form 6.
Where an amusement device is materially altered or is repaired after suffering damage necessitating repair by welding or by the replacement of a load bearing part other than a bolt, the owner shall notify the Inspector, who may require the owner, before operating the device, to produce evidence that the device can be safely operated.
Form 6 must be accompanied by a certificate of examination from an engineer. The Inspector of Machinery may request additional evidence to ensure the device can be safely operated.
If an operator is unsure about what alterations or repairs require notification, it is recommended to seek advice from their certifying engineer.
Issues on Insurance
Since the onset of COVID-19, obtaining public liability insurance for amusement device operators in Australia and New Zealand has become increasingly challenging and costly. Contributing factors include:
· High-risk perception due to recent incidents
· Regulatory changes surrounding liability and manslaughter laws
· The impact of COVID-19 leading insurance companies to focus on more lucrative policies
· Increased premiums from the reinsurance market, dominated by a few organizations affected by global events
As of May 2022, the Showman's Guild of Australia reported a rise of over 300% in insurance premiums for public and statutory liability within 12 months, mainly due to an oligloply market.
Attempts by AALARA (Australian Amusement, Leisure and Recreation Association) and the SGA to establish a mutual fund providing self-insurance were dismissed, leading to operators striking at various shows across Queensland and NSW.
Minimum liability requirements to operate at shows or on crown land in Australia have increased. Average requirements now range from $5 million to $10 million, with major state shows like the 2024 Royal Easter Show requiring $20 million in liability cover. As New Zealand and Australian are tightly knit economies, sharing similar laws, cultures, best practices and operations, we would likely experience similar requirements and issues in the near term.
Overseas Investment
On a positive note, FJF Amusements in Australia debuted "The Warrior," one of the tallest portable rides in the southern hemisphere, standing at 55 meters tall.
Moreover, at the Royal Melbourne Show this September and October, FJF Amusements showcased another new ride, "The Sky Flyer," a giant swing chair tower standing at 60 meters high.
In the UK, a new portable drop tower called the Nuclear Freefall, standing at 80 meters tall, is set to debut at a Christmas show in Glasgow. More details can be found on their Facebook page here: Nuclear Freefall | Facebook.
All the best,
NZOAD Team