PENALTY LEVELS
178. Maximum penalty levels are set out
in the section 33 of the HSWA In England and Wales, most prosecutions
take place in the magistrates court where there is a maximum penalty
of £20,000 for a breach of sections 2-6 of the Health and
Safety at Work Act and £5,000 for other breaches of the Act
or relevant statutory provisions. In the higher courts, an unlimited
fine can be imposed for such offences and imprisonment is available
for offences such as failure to comply with an improvement notice.[299]
179. A range of organisations giving evidence
to the Committee, particularly trade unions, considered penalty
levels to be too low .[300]
The average fine per case fell from £11,141 in 2001/02 to
£8,828 in 2002/03.[301]
In fact, there has been no substantial change in the general level
of fines since the Court of Appeal said they were too low in November
1998.[302] HSC/E point
out that 'large company health and safety fines [are] up to ten
times lower than the general level of financial services fines
for larger companies.'[303]
In oral evidence, they highlighted higher fines as one of the
changes they thought would most help them perform their functions
more effectively.[304]
180. In oral evidence, Dr Janet Asherson
said that the CBI had 'no problem with the health and safety fines
being aligned with the sort of penalties we find in other areas',
although she also commented that further training might be more
of a motivator for improving performance and preventing recurrence.[305]
EEF, the manufacturer's organisation, commented that the case
for higher fines would be won only if a correlation with improved
workplace health and safety could be made. [306]
EEF supports hypothecating fines so that the money would be
reinvested in HSC/E to facilitate their driving greater improvement.
181. Another development HSC identified
as being helpful was innovative penalties. Mr Bill Callaghan said
that, for example, disqualification of directors, forms of community
service orders or training could have as big an impact on companies
as a fine.[307] Revitalising
committed HSC to advising Ministers on the feasibility of
consultees' proposals in this respect. RoSPA commented that this
had not been taken forward and has put forward proposals, (as
has the Institute of Occupational Safety and Health[308])
for a new regime of remedial sentencing under which the courts
could appoint experts to oversee remedial action, with successful
completion linked to the lifting of a suspended sentence.[309]
182. The Committee recommends that maximum
penalties should be increased by means of a Bill in the next session
of Parliament and further recommends that proposals to introduce
alternative and innovative penalties in addition to those already
available to the courts should be examined and the reasoned conclusions
thereof published by 1 May 2005.
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