Noel Dempsey (Meath West, Fianna Fail)

I indicated on Committee Stage that I would consider for Report Stage the inclusion of the formula of 10% of annual turnover as a factor in determining the maximum monetary fine a court could levy. The Deputy mentioned on Committee Stage that a penalty based on a percentage of annual turnover features in some judgments and law. As the Deputy correctly stated, we both have experience of passing such legislation.

Having considered the matter, all of the advice is that while there is no objection in principle to this, it would have to be done in a careful and measured manner. When taking actions, we would have to consider issues such as it being feasible to accurately assess relevant annual turnovers in all cases arising in this sector, that a court would be in a position to use the annual turnover formula to determine in a timely manner the maximum monetary penalty available to it and to ensure the introduction of the annual turnover factor would not result in unintended consequences or inequitable or inadequate penalties. Also, it would be necessary to put in place new legislative and court administration procedures to quantify the annual turnover of a company and, where applicable, of individuals including masters and owners who are convicted on indictment.

The appropriate accounting period or periods would need to be identified in the legislation and the courts would need access to audited accounts. A problem could arise due to different accounting and certification practices in different jurisdictions. The introduction of the measure in this Bill would mean the annual turnover factor would only apply to a small number of offences provisions, while other offences provisions which are provided through the Merchant Shipping Acts will continue to provide for a specified maximum monetary fine for which a person will be liable. We would introduce an anomaly into the Act.

As a result of the complications, more time will be needed to inform the policy making process to assert if any ramifications could arise in other areas. I propose to wait until the consolidation of the merchant shipping legislation has been undertaken in my Department and then try to apply, as appropriate, uniform measures across the new statute. In that context, we would consider this. I propose to maintain the provisions as published and ask the Deputy to withdraw the amendments.

See this speech in context