01 September 2008
Jocelyn Dorrell

A member of the Scottish Parliament is consulting on proposals to introduce "equity fines" for firms found guilty of causing death or injury.

Under the Criminal Sentencing (Equity Fines) Bill, a private member's Bill put forward by MSP Dr Bill Wilson (pictured below), Scottish courts would be able to order convicted public companies to issue a set number of new shares. These shares would then be sold and the proceeds paid to the court.

Dr Wilson said, "At present companies found guilty of criminal offences, and most notably those resulting in deaths and injuries, often appear to have only trivial penalties imposed. For example, the fine for criminally causing the death of a worker or member of the public is less than £12,500 in 50% of cases. There are two main reasons for this. 

"Firstly, judges are concerned to avoid putting companies out of business, as in so doing they might possibly be punishing the very employees who were the innocent victims of the companies' offences in the first place.
 
"Secondly, companies are allowed to give their own versions of their financial status. This is equivalent to a judge saying to a housebreaker, 'You are a very naughty boy. Now, if you can just tell me what level of fine you can pay.'"

Wilson said his Bill would allow courts to order reports into firms' financial circumstances to help them set more effective sentences.

"In effect, an equity fine is a fine which is imposed upon the value of the firm, rather than being imposed upon its running costs," he explained.

Wilson said health and safety breaches are the main focus of the Bill, but the legislation could be used in other areas, such as for environmental crime.

The proposals are supported by the Centre for Corporate Accountability, Families Against Corporate Killers, the Fire Brigades Union Scotland and the Hazards Campaign.

Categories: News, Enforcement (prosecutions), Enforcement (prosecutions)



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