The prosecution
In what is the highest penalty handed down yet in Queensland for a workplace health and safety breach, Queensland Rail (QR) has been fined $650,000 in the Mackay Industrial Magistrates Court for a breach of the Workplace Health and Safety Act 1995 (Qld) causing multiple deaths.
QR was prosecuted after two of its employees were fatally injured when struck by a track machine in December 2007 at Mindi, south west of Mackay.
Following its investigation, the regulator concluded that:
- QR’s safety management systems were inadequate for managing the separation of workers and plant, particularly when both were within the same section of track between signals, and
- QR knew the systems were inadequate and not working because it had been highlighted to management in a series of audits.
The regulator initially brought three charges against QR and one against an executive general manager, which was dropped earlier this month. By the time the matter was heard on 26 November 2009, the number of charges had been reduced to a single charge against QR of failing to discharge its workplace health and safety obligations under section 24 of the Act. QR pleaded guilty.
In addition to the penalty, QR was ordered to pay more than $130,000 in legal and investigation costs and a conviction was recorded.
Implications
The maximum penalty for the breach was $750,000. The QR penalty is 87 per cent of that maximum.
In the 2008-2009 financial year, the penalties handed down for single fatalities were, on average, 20 per cent of the maximum penalty.
The penalty against QR sets a new sentencing benchmark for penalties for repeat offenders. Prior to this decision, the Abigroup decision was the guiding case on penalty in Queensland for second offences. Abigroup received a fine of $125,000 which was 33 per cent of the maximum penalty for that type of offence.
This serves as a reminder to obligation holders to avoid any breach because the range of penalties if there are subsequent prosecutions could be significant.
We will report again if the penalty is appealed.
This article was written by Harold Downes, Partner, Simon Dewberry, Senior Associate and Fiona Forrest, Solicitor, Brisbane.
More information
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