Maximum fines for some breaches of Western Australia's Dangerous Goods Safety Act and other legislation could be doubled to reflect "community expectations", while resources employers that have had a serious safety incident in the last three years are being advised to prepare for a visit from the prosecutor.
On Friday, the State Department of Mines and Petroleum (DMP) released for feedback an October review of the penalty structures under the Dangerous Goods Safety Act 2004, Mining Act 1978, Offshore Minerals Act 2003, Petroleum (Submerged Lands) Act 1982, Petroleum and Geothermal Energy Resources Act 1967 and Petroleum Pipelines Act 1969.
The review found maximum fines for corporations should be 10 times higher than maximum fines for individuals, while penalties need to "be high where the offences/incidents result from the corporation as a whole having an inappropriate culture towards safety and the environment".
In an accompanying report, Options for Penalty Changes, the DMP proposes increasing the maximum fine for corporations that fail to take all reasonably practicable steps to minimise risks from storing, handling or transporting dangerous goods from $500,000 to $1 million.
It also recommends introducing imprisonment options for individuals who breach the equivalent provision of the petroleum and geothermal Act, if gross negligence is a factor.
But some penalties could be reduced, with the DMP proposing replacing the maximum $50,000 fine for failing to report a notifiable dangerous goods incident, for example, with a demerit-points system and infringement notices, which can't be higher than 20 per cent of a statutory penalty.
"It is important the penalties reflect government and community expectations... and send a strong, consistent message to companies that are found to have done the wrong thing," DMP deputy director-general Michelle Andrews says.
Feedback on the proposals must be submitted by 14 February 2014. The final report is due in March.
Prosecution rates could increase next year
In related news, lawyers are advising employers in Western Australia's energy and resources sector that have had a major safety incident since mid-2011 to ensure their internal investigation files are in order, with the DMP investigation branch's third birthday approaching.
Corrs Chambers Westgarth partner Simon Billing and senior associate David Paton say in a new report that the highly-experienced specialist investigation team was established in July 2011 and has reviewed all investigations into serious and potentially serious safety incidents in the mines, petroleum and dangerous goods sectors.
"This means that decisions will soon be taken as to whether prosecutions in relation to these investigations will be launched," they say.
"It seems likely the energy and resources industries will see a far greater rate of prosecutions commenced in 2014 than before."
According to Billing and Paton, employers should prepare for a visit from a prosecutor by:
- checking internal investigation files are easily accessible and in a "logical and useable form";
- ensuring actions to improve safety recommended by investigations have been closed out;
- identifying whether employees involved in an incident can be contacted; and
- ensuring the company's HSE and legal functions have a clear understanding of how to deal with the matter.
