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Clampdown on foreign firms avoiding fines
16:51 13 Apr 2005
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Foreign contractors that try and avoid paying fines for breaking
health and safety regulations in the UK can now be chased across
the Continent and brought to book under changes to a European
Commission directive.
The controversial directive on services in the internal market, originally contained wording meaning that firms formally established in a foreign country may not necessarily be bound by the laws of another country in which they are working.
CJ warned last year (CJ 9 June) that this would allow companies to flout health and safety laws in the UK but escape punishment.
However, following a meeting of the European Council - the EU's main decision-making body and approver of legislation - the directive will now be tweaked to see a clampdown on offending firms. This will prevent UK or overseas contractors, not based in the country where the offence has occurred, from avoiding fines or criminal prosecution.
EU member states will now be legally bound to follow up unpaid fines, if requested by another member, when the directive comes into force in 2007.
Changes to the directive have been forced through after pressure from unions, trade associations and the UK government following a number of high-profile construction accidents caused by overseas companies that escaped punishment.
Swedish contractor Fartys-konstrukioner escaped a £500,000 fine after it closed down its UK operations following the deaths of six people when a ferry walkway it had constructed collapsed at Ramsgate in 1994.
Austrian tunneling consultant Geoconsult also avoided a £500,000 fine for its involvement in the 1994 Heathrow Express tunnel collapse. Both firms could now be pursued by the UK government to pay the fines following the changes.
The Construction Confed-eration welcomed the news. "We have been lobbying hard to get this change introduced as it is not acceptable that firms can flout health and safety laws and get away with it," said a spokesman.
And the Major Contractors Group also gave its "full support" .
The controversial directive on services in the internal market, originally contained wording meaning that firms formally established in a foreign country may not necessarily be bound by the laws of another country in which they are working.
CJ warned last year (CJ 9 June) that this would allow companies to flout health and safety laws in the UK but escape punishment.
However, following a meeting of the European Council - the EU's main decision-making body and approver of legislation - the directive will now be tweaked to see a clampdown on offending firms. This will prevent UK or overseas contractors, not based in the country where the offence has occurred, from avoiding fines or criminal prosecution.
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EU member states will now be legally bound to follow up unpaid fines, if requested by another member, when the directive comes into force in 2007.
Changes to the directive have been forced through after pressure from unions, trade associations and the UK government following a number of high-profile construction accidents caused by overseas companies that escaped punishment.
Swedish contractor Fartys-konstrukioner escaped a £500,000 fine after it closed down its UK operations following the deaths of six people when a ferry walkway it had constructed collapsed at Ramsgate in 1994.
Austrian tunneling consultant Geoconsult also avoided a £500,000 fine for its involvement in the 1994 Heathrow Express tunnel collapse. Both firms could now be pursued by the UK government to pay the fines following the changes.
The Construction Confed-eration welcomed the news. "We have been lobbying hard to get this change introduced as it is not acceptable that firms can flout health and safety laws and get away with it," said a spokesman.
And the Major Contractors Group also gave its "full support" .
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