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Maritime New Zealand v KiwiRail Ltd [2024] NZDC 21771

Published 18 December 2024

Sentencing — exposing individuals to the risk of death or serious injury — Health and Safety at Work Act 2015 — Sentencing Act 2002 — Stumpmaster v WorkSafe New Zealand [2018] NZHC 2020. The defendant appeared for sentence after pleading guilty to a charge of exposing individuals to the risk of death or serious injury. A passenger ferry operated by the defendant had suffered an engine failure with some 850 passengers on board. Crew members of the ferry were able to drop anchor in time before the ferry ran aground, and after an hour the ship's engine regained power allowing it to safely reach its destination. Nobody on board the ferry was injured, but the Court recognised that the passengers were distressed and afraid. The cause of the incident was the defendant's failure to replace aging engine parts. The defendant was aware that the parts needed replacing and understood the dangers of failing to replace them. However the defendant had had systems and processes in place to properly maintain the ship; it simply failed to implement them. The Court found that there had been a high risk of serious injury or death, and that the defendant had significantly departed from industry standards. The start point for fine was $550,000, which was uplifted to $605,000 for the defendant's poor prior safety record. There were reductions for guilty plea, remedial steps and remorse, meaning a final fine of $432,500, which included $20,000 in costs. Judgment Date: 9 September 2024