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#1 Posted : 26 August 2005 09:05:00(UTC)
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Posted By Cr8r Hi all I'm talking of course about the record £15m fine that Transco have received following the tragic loss of four members of the same family in a gas explosion. I wonder if you all think that such a large fine was justified and deserved, given that it is wildly higher to other fines where there was an even greater loss of life. I used to work for Transco, and I can honestly say it is the most safety conscious company I have ever worked for. Employees are rigourously trained and retrained, competencies are rigidly adhered to. There is a problem with old decrepid gas mains and because of that there is a huge mains replacement programme in place (and has been for many years) however, it is simply not possible to replace all the old mains over night. The mains were originally laid over the course of many years, and unfortunately it will take many years to come before they are all replaced, with the best of endeavours. So, what is the message here? Here is a company that takes safety extremely seriously, it had already identified this particular problem and was doing something about it. What is the lesson that a £15m fine is supposed to be teaching? Will there now be more pressure to get more pipe in the ground, leading to increased risk to the workforce as they try to speed up their work? Some contractors already pay their teams according to the amount of pipe laid - the faster you work - the more you earn. This is now surely going to worsen.
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#2 Posted : 26 August 2005 09:23:00(UTC)
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Posted By Cr8r PS - I should add that I'm waiting for more info to come out on this, the news channels don't tell you much. Also, don't get me wrong, it is right that Transco are found guilty, however usually it is annoying that companies with blatant disregard for safety get landed with measly little fines (probably less than it would have cost them to put in place risk control measures), so I'm interested to find out the logic on this one. I wonder if I'm just biaised cos I worked there, or has the precedent been set: You assess the risks, do what you can, have excellent systems in place at all levels throughout your company, then get a massive record breaking fine. Had they been rubbish with H & S I would have thought "good - serves you right". But they're not.
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#3 Posted : 26 August 2005 09:33:00(UTC)
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Posted By MichaelM Cr8r Was it not also a case of a failure of management systems or absence of decent management systems? A company can have as many people trained in safety but if the underlying culture is lacking, the H&S people like us will hardly make a dent. Many of us will have experienced the culture of "that will cost too much to do, so we will do it next year etc." regardless of the risk that this puts employees, public etc. in. This appears to have been a factor in Larkhall. Michael
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#4 Posted : 26 August 2005 09:39:00(UTC)
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Posted By Bill Bircham Cr8r I don’t know much about this except what I can glean from the news channels, but it would appear that Transco may well have excellent systems etc in place in your experience, but in this instance they seemed not to function. It would also seem that Transco tried to say that they were not responsible and their defence was rather vigorous in this area. Add to this the views expressed by Lord Carloway in his judgement:- "That aspect of the defence by the company serves only to demonstrate that the corporate mind of Transco has little or no remorse for this tragedy which, they ought at least now to accept, was exclusively their own creation” Given this approach by Transco and their very healthy financial situation, £390m profit for 05, the amount of £15m is perhaps very well justified, resenting as it does a very small amount of the above figure. Bill
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#5 Posted : 26 August 2005 09:50:00(UTC)
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Posted By Cr8r I wasn't based in the area where this accident happened, so I don't have direct experience of their systems and culture. However, the areas I have experience of (S East and London) the culture from management down is hard to fault and is not restricted to just safety people. Of course, nowhere is perfect and there will always be individuals who vary, at all levels. As an example though, I'v even had people refusing to put the kettle on because "they weren't competent". A silly excuse but that was how drummed in it was to them! The promise of an impending van search was usually sufficient to get my cup of tea! (After which I'd probably look in the van anyway - if they make a cup of tea that quick they must have something to hide! What a meany I am!). I wonder if as a result of this fine we can expect more realistic outcomes for other companies?
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#6 Posted : 26 August 2005 10:00:00(UTC)
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Posted By Cr8r Bill I agree it's probably linked to the profit level, but does this mean that if your company is just breaking even you won't get a fine? Hope not! I don't know any more than anyone else about the exact circumstances, and if it's true that they tried to wriggle out of it by saying it wasn't their responsibility, well shame on them and as a defence - pretty desperate. I'm not arguing at all that they are guilty, I just find it interesting that after years of pathetic fines we have suddenly gone to the other extreme. I look forward to finding out more of the reasoning for this and perhaps this is the dawning of a new era of real deterrents - after all, isn't that what a fine should be?
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#7 Posted : 26 August 2005 10:09:00(UTC)
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Posted By MichaelM Cr8r I have read of companies escaping fines as they were going into liquidation. Judges will use their own "judgement" and if they think that a "fine" such as Transco received could be higher then they can apply that logic. However all Judges have different views. I believe that the fines handed down to most companies especially in the event of a death are far too small. If the fines were bigger then it might make our job a bit easier as companies etc. might actually start to practice what they preach. I do agree that there can be areas of excellence but sadly one area that is lacking will bring the whole company into the spotlight. Michael
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#8 Posted : 26 August 2005 10:23:00(UTC)
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Posted By Soter Daimones One has to agree with Michael. Fines imoposed on companies where a fatality has occured are often an insult to the bereaved families left behind. The directors of Transco should count their blessings that this tragedy did not happen here in Ireland after September 1st next week when the new SHWW Act becomes law. Under the new Act the directors could have been fined up to (only) €3 million, but faced a term of imprisonment of up to two years on each breach of the Act for such a serious occurance. Salem
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#9 Posted : 26 August 2005 10:37:00(UTC)
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Posted By Cr8r I certainly agree with Michael, and with you Soter, although in theory at least the Transco Directors could have faced jail. It will be interesting to see how the Irish courts interprete the new law. Perhaps we have turned a corner and families of the bereaved will not any longer be insulted with meaningless fines. You can never place a price on a human life, but if it was my family, I'd want to feel that the fine would "hurt" the company sufficiently to truly be a deterrent to them and other companies.
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#10 Posted : 26 August 2005 10:54:00(UTC)
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Posted By MichaelM It would also be good if the Scottish Executive would get their finger out and stop sitting on the fence until something is put into place under English Law. This sends out the wrong H&S message. Michael
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#11 Posted : 26 August 2005 11:22:00(UTC)
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Posted By Arran Linton - Smith £15m is still a significant sum of money which alone will have to be accounted for by the Directors in their Annual Report Judges do have to consider the interest of the shareholder of large public companies, (which we all indirectly are). So I think the message here is that the Judge, may now wish to make Directors of public companies more accountable in an indirect way.
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#12 Posted : 26 August 2005 12:08:00(UTC)
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Posted By John Webster Getting a finger out on the corporate manslaughter issue is long overdue, however even the Law Society of Scotland supports a common UK wide approach, as I quote from their May journal "it is vital, as a matter of public policy, in this important area involving fatalities, that the laws of Scotland and England are identical, particularly given the fact that the HSWA is identical across the UK and was reserved to Westminster under the Scotland Act. It would clearly be absurd if those responsible for a train crash which occurred in Scotland were prosecuted differently to those responsible had the crash occurred south of the border". Meanwhile the unlimited fines and/or imprisonment provisions of the HSWA ought to be sufficient, if correctly prosecuted. On the issue of the £15m Transco fine, I accept from earlier posts that the workforce safety culture may have been excellent. But we are talking about a company's failure to adequately deal with a known corrosion problem with certain types of pipe in certain soils, putting the public at risk. The Court appears to have carefully studied Transco's response to the problem and concluded that they could have and should have spent far more on tackling the problem, but instead chose to return a higher profit. The Judge would also appear to have considered a much higher fine, but took into account the fact that Transco had subsequently spent some £350 million in replacing dodgy gas mains. And we should not ignore that Transco continued to blame the householder's own gas fittings for the tradgedy, despite overwhelming evidence to the contrary, and still do not appear to have accepted that it was their fault. Given the size and profit of Transco, £15m will still be but a slap on the wrist, and lets see if they manage to get it knocked down to 1 or 2 million on appeal.
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#13 Posted : 26 August 2005 12:09:00(UTC)
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Posted By peter gotch Quote from CITB.... The average rate of mains replacement over the past five years has been 1,840 km/year. This is well below the highest annual rate of 3,300 km/year achieved in the 1980s and the 'historic' average rate of 2,650 km/year attained over the period since 1977. At this historic rate, it would take 35 years to replace all 'at risk' metal mains (HSE 2001). What this means is that following privatisation, Transco reduced investment in replacement of gas mains throughout the U.K. That is perhaps reflected in the level of fine imposed on the company. Failure of culpable homicide case against Transco following Larkhall means that the historic view that we did not need a corporate killing bill in Scotland [because of existing offences] is being reviewed by Scottish Executive. Regards, Peter
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#14 Posted : 26 August 2005 12:18:00(UTC)
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Posted By Salus Do all know where the fines for breaches of H & S go to? H & S Training for SME's The HSE Help putting the H & S message over No they do not.
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#15 Posted : 26 August 2005 12:41:00(UTC)
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Posted By Cr8r Peter I saw the same report a couple of years ago with the 35 years to replace the dodgy mains - and if my memory serves me right, that was only the mains very near to properties. This could go into the arguments over privatisations. Personally, I've been against the idea from the start. I knew people in the rail industry years ago who told me there were accidents waiting to happen as there wasn't the money for proper maintenance. The workforce in Transco has been slashed several times in the last ten years, with endless rounds of mergers, demergers, closures, redundancies and reorganisation. In the first round of voluntary redundancies, loads of good people left to walk into other good jobs while most of the "deadwood" remained. There are of course a lot of really good people still in Transco, but to continually cut a company down year after year just isn't sustainable in the long term. In my opinion, a round of voluntary redundancies is without doubt the best way of getting rid of your best people, whilst not affecting the ones that wouldn't be able to get a job anywhere else! Of course, a lot of these people still work for Transco indirectly via the many utilities contractors, but it is an ageing workforce, a problem that has not been properly addressed from what I've seen, so the 35 year guestimate may well prove to be a little optimistic.
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#16 Posted : 26 August 2005 14:34:00(UTC)
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Posted By Steve Wood Could someone post a link to some information - I can't find ANY on the net!! (call me techno-incompetent!)
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#17 Posted : 26 August 2005 14:36:00(UTC)
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Posted By Steve Wood oops, now found something on the BBC news.
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#18 Posted : 26 August 2005 14:42:00(UTC)
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Posted By MichaelM Steve You could got to thenewsagents.downthestreet.andpickupanewspaper.com This is a good site for technophobes!
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#19 Posted : 26 August 2005 14:54:00(UTC)
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Posted By Steve Wood i'm restricted by... haveyouseentherainoutside.cloudy.uk
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#20 Posted : 26 August 2005 15:03:00(UTC)
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Posted By MichaelM I'm restricted by Iliveinscotlandanditisalwaysraining.com and IfIgooutsidethemidgeswilleatmealive.co.uk However there is always turnonthetelly24hournews.com
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#21 Posted : 26 August 2005 15:18:00(UTC)
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Posted By Cr8r What have you done to my link? I don't know, take a contraversial stance and end up with comedy website links. Oh well. itsfridayisuppose.com haveagoodweekendeveryone.co.uk
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#22 Posted : 26 August 2005 16:39:00(UTC)
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Posted By Robert K Lewis wotwhenthetouristsareabouttodescend.rain.uk
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#23 Posted : 26 August 2005 21:01:00(UTC)
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Posted By Barry Cooper I have not seen the details of the Transco case, but in the past, where there have been fatalities, it is usually were there is a risk. e.g. at work, whilst travelling by car, plane or train. In this case were the family not in their own home, where they thought they would be safe. About time large corporations were hit in the in the pocket. But when profits are in the region of £390m, £15m isn't a great deal. £15m is nothing compared to the lives of family.
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#24 Posted : 29 August 2005 09:15:00(UTC)
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Posted By MichaelM Now it is Monday I will be serious again. I read in the Sunday Mail yesterday(and I know we are all agreed that newspapers and journalists tell us nothing but the truth) that Transco were made aware that the pipeline was too near the houses. Their lawyer supposedly tried to stop the engineer, who was giving this evidence, from giving this information! It appears that they have been trying to cover up this information, allegedly.
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#25 Posted : 29 August 2005 15:06:00(UTC)
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Posted By John Webster I would like to add a footnote to this sorry saga. The lives of a family were destroyed, as were those of their relatives and friends. And for the past 6 years, the local builders who built the row of houses have had to live with the guilt of maybe being responsible for that. Because throughout, Transco tried to blame them by suggesting a faulty domestic installation, or maintaining that the house was built too close to their pipeline. Lets hope this judgement also gives some comfort to the Dunsmores.
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