Seanad debates

Wednesday, 26 October 2016

Corporate Manslaughter (No. 2) Bill 2016: Second Stage

 

10:30 am

Photo of Alice-Mary HigginsAlice-Mary Higgins (Independent) | Oireachtas source

I welcome the Minister. I also welcome what is a constructive and important Bill, which I would love to see move forward today and which am happy to support. It is an important Bill in the context of Ireland having made commitments in respect of the area of business and human rights in its business and human rights strategy. It fits very much within that space. It is an important principle that companies which are legal entities and undertakings for the purposes of the protections offered under our statutes should be also appropriately liable under those statutes for the very real consequences of their actions.

One reason the Bill is needed is because there is a gap which civil cases alone cannot fill. Previously, in holding corporations to account, we have relied to a large extent on cases taken by individuals which are often settled and may look to some form of economic compensation but which do not do enough to challenge the culture and the complacency within corporations around actions that have a detrimental impact. The Bill gives the Director of Public Prosecutions a power not reliant on an individual taking a case because their health and safety considerations have been breached but rightly being able to represent the public concern and the public good and demand action in that regard.

The form of penalty set out in the Bill will act as a genuine deterrent because, on a global level, there can be a calculated cost for some companies in terms of certain compensation that they are willing to pay. That moves it out of the space of calculated cost into a space whereby, appropriately, there is genuine reputational damage in terms of companies in breach of their appropriate human rights, safety and other considerations. In that regard, I am sure the Minister is aware of the progress we have made on equality legislation where we have moved past a situation where an individual might seek redress because their equality rights have been breached and looking to a positive public duty in terms of trying to ensure a culture of responsibility. This Bill is in the spirit of that also. I welcome the two-pronged approach. It is very important that the Bill sets out penalties for both companies and for those in high managerial positions. That is a vital and welcome aspect.

There are parts of the Bill that could be strengthened. The definition of "high managerial position", as highlighted by Senator Noone, needs to be examined - we could do that on Committee Stage - because the Bill refers to those with delegated managerial roles with or without contract. Having worked previously on the volunteer charter, I believe it is important that we make sure that, for example, interns and volunteers would not be in a position to hold a company to liability. That aspect might need some work done on it. I believe it is possible to identify those in high managerial position. We have identified named personages in other spaces with particular responsibilities. That is appropriate.

It is also important that we monitor and look to address the concern which has arisen in the United Kingdom about managers who are rotated through or scapegoated. It is important because we do not want a situation to arise where we do not notice a pattern developing by which corporations seek either to scapegoat or rotate managers through so that nobody is ever culpable. The two-pronged approach is important in that regard.

The Minister might clarify a point on gross negligence. I understand that in the UK gross negligence relates not just to intent but to intent or recklessness. In terms of the language in the Bill, I am not sure whether it refers to intent or intent and recklessness. That is important because a choice not to consider consequences in that regard must be challenged.

There are economic costs in bringing this through but the State is currently carrying the costs for the huge impact of cases of gross negligence against corporates. It is a huge cost, not just to individuals but to the State in terms of addressing some of the consequences of environmental health and other areas that would be covered by this Bill.

At a time when the Government is actively supporting the introduction of new investor courts that will operate outside our national legal system, which would allow corporations to seek compensation for unearned future profits if they are affected by regulations, it would be appropriate that we would take action in the more appropriate national legal space to ensure that citizens also are able to address the impact of the very real and concrete costs which come to them arising from the negligent actions of corporations. It would be very unfortunate if we were to move forward with further additional compensation for corporations at a time when we still do not have adequate protection for citizens, be they workers or members of the public.

I will pass over to my colleague at this point. I commend the Bill to the House.

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