New push to tackle corporate crime

Activists want to take on companies responsible for train crashes

Tuesday, 26, Aug 2008 12:30

Courts should be given the power to order reports into companies' financial records and order those onvicted of corporate crimes to issue a set of new shares to pay fines, under new Scottish National party (SNP) proposals.

Currently, companies found guilty of criminal offences, even those which result in death or injury to their employees, are allowed to give their own version of their financial status.

Activists are also concerned monetary fines can punish the victim, rather than the perpetrator, of the crime, with companies "offsetting" fines by worsening employees' pay and conditions.

The new proposals would impose an 'equity fine', which would ensure shares are sold and the proceeds paid directly to the court, imposing a fine on the value of the firm rather than its running costs.

The plans, which were launched for consultation by member's bill author Dr Bill Wilson, found instant support from activists.

Kathy Jenkins of the Scottish Hazards Campaign said: "We know that straight fines are often paid for by workers through wage freezes, cuts, redundancies and worse working conditions or by consumers and members of the public.

"These proposals for equity fines will ensure that those most responsible for corporate offending bear the cost."

Louise Adamson of Families Against Corporate Killers (FACK) said: "An annual work-related death toll in excess of 1,600 is tragic testimony to the fact that the current system of fining companies for health and safety offences has not served as strict enough punishment or strong enough deterrent.

"FACK welcomes these proposals for equity fines which will lay the punishment for corporate offending at the feet of those who are ultimately responsible - those running the business."

If approved, the new system of fining companies could be expanded to environmental crime, as well as health and safety offences.