Media Release

18 December 2008

The Department of Labour welcomes a High Court decision to substantially increase fines for employers and others who breach the Health and Safety in Employment (HSE) Act.

“We are pleased that the Court has recognised the human and financial costs that workplace accidents impose on victims, their families and the community, and the need to motivate employers and others in the workplace to take action to keep people safe at work,” says Department of Labour National Support Manager, Andrew Kear.

In a decision issued today, the full bench of the High Court said a “substantial uplift in existing levels of fines is needed” to reflect the seriousness of workplace accidents, the need for deterrence, the effects of inflation and an increase in the maximum fines in 2003.

The Court’s decision relates to an appeal by the Department of Labour against the fines imposed on three companies prosecuted under the HSE Act following separate workplace accidents.

The Court ordered that the fine imposed on mining company Black Reef Mine Limited be increased to $20,000 from $10,000, and that additional reparation of $25,000 be paid to the widow of the victim, miner Robert McGowan.

Food manufacturer Cookie Time Limited had its fine increased to $40,000 from $15,000. The fine related to an accident in February 2007, when a female worker’s arm was badly broken when it became caught in the mechanism of a conveyor belt.
The fine imposed on commercial construction company Hanham & Philip Contractors Limited was increased to $50,000 from $5,000. This related to an accident in November 2007, when an employee of a contractor was seriously injured when he fell from a wooden platform. 

The court said starting points for fines under the HSE Act should generally be fixed at:

• Low culpability: a fine of up to $50,000
• Medium culpability: a fine of between $50,000 and $100,000
• High culpability: a fine of between $100,000 and $175,000.

The Court noted that higher levels of fines might be required in cases of extremely high culpability.

The objective of the HSE Act is to promote the prevention of harm to people at work and others in or near a place of work.

ENDS

Editor’ s Note
Please note that health and safety services, formerly referred to as Occupational Safety and Health (OSH) should now be referred to as the Department of Labour.

Media contact 0274 422141 or media@dol.govt.nz.