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Posted By J Knight
Hi Folks,
Neetwork Rail has just been fined 2.4 million for late delivery on a construction contract. Given the size of, say, the Paddington fine, are we approaching perverse incentives here, where the certainty of a multi-million fine for contract over-run is ste against the possibility of a fine for causing a couple of deaths?
John
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Posted By Raymond Rapp
John
I agree that the aforementioned fine is perverse considering the level of fines generally metered out to organisations or h&s violations. There are unfortunately too many other examples, some from financial penalties. The recent Health and Safety (Offences) Bill 2007 was passed over because less than 40 MPs were in attendance. What does this say about h&s?
I could go on but I despair, Lord Robens would turn in his grave, bless him (hero).
Ray
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Posted By Robert K Lewis
JK
Nothing compared to the BA fine of £132m in UK alone with US fine to come. Is possible price fixing so much more serious than a fatality? Can we really expect a fine of this order or greater for Corporate manslaughter?
I think this fine has to set a benchmark in some way or the families of victims will quickly come to realise that the act is a toothless piece of spin by the government. Having said that any failure by a public body is going to be paid by the taxpayer and merely go into the treasury coffers of a government that may itself have a responsibility via its Minister for the breakdown in the first place!
Bob
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Posted By J Knight
Hi Bob,
Agree entirely. There has to be some sanction for financial shenanigans or contract failure, but it has to be set against that feeling I get that life is cheaper than it ought to be,
John
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Posted By John J
But are we comparing apples with apples.
Surely BA have been fined as they have made additional profit through an illegal action. The fine has some bearing on the profit they made due to this.
Don't get me wrong I don't think the penalties for workplace deaths is anything like enough to be called a deterrent to a lot of people,
John
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Rank: Guest
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Posted By J Knight
Hi John,
But you could certainly make a case for saying that e.g. Railtrack/Balfour Beatty made an additional profit through an illegal action, since the full cost of proper maintenance and inspection fell off their ledgers. Companies will scrimp on H&S to improve profit; this can involve committing illegalities, but this sort of market rigging (and that's what it is) is somehow seen as less significant than, say, acting in a less than competitive way,
John
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