Employers hit out at potential fines hike

EMPLOYERS have reacted angrily to the prospect of increased fines for law breaking companies.

According to the Law Reform Commission, maximum fines should be increased from €3,000 to €9,000 to provide a real deterrent to companies who flout health and safety, environmental and competition laws.

At the launch of its report on Penalties for Minor Offences yesterday, it warned that “the money to be made from evading regulations is greater than anything the company is likely to be fined if caught.”

The Irish Business and Employers Confederation said the vast majority of businesses comply fully with the law and criticised the proposals as “not friendly towards business.” “Businesses already have a growing body of legislation to comply with and it’s costing companies a lot of money. There is a need to balance legislation with the needs of business. We will not be welcoming these proposals, ” Director of Enterprise Brendan Butler said. “If there are abuses, it must be an absolute tiny minority of companies and they will receive no support from IBEC.”

The Law Reform Commission said companies convicted in the district courts in relation to workplace fatalities paid an average fine of €2,306.

The Law Reform Commission said the fines should reflect the size of the company. It referred to the case taken against the Sean Quinn group as an example of “the token nature of the fines.” The Quinn group was fined €1,270 in February, 2001, after a worker was buried alive while working in a six foot deep trench.

The report said: “There can be little doubt that a €1,270 fine made little impact on a group which employs over 2,000 people nationwide and has an annual turnover of IR£275m.

No Quinn Group spokesperson was available for comment yesterday.

The Law Reform Commission also recommended bigger fines for wealthier offenders. It said the €3,000 maximum fine was too low and “does not properly reflect the changes wrought by inflation.”

The report said district court judges should not impose prison sentences of more than six months for minor offences. Minor offences are defined as offences for which the penalty does not exceed 12 months’ imprisonment and/or a fine of €3,000. It said sentences of more than six months should be passed only after a jury trial, a practice which is present in Irish law.