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Families of the victims of the Whakaari/White Island volcanic eruption have been awarded $NZ10.2 million ($9.5 million) by a judge in New Zealand, who warned a company that profited off tours to the tourist destination that "the world is watching" its response to the sentence.
Judge Evangelos Thomas today sentenced four companies who either pleaded guilty or were found guilty for failing to meet obligations under the Health and Safety at Work Act over the tragedy.
Forty-seven people were on the volcanic crater when it erupted on December 9, 2019, with 22 – including two Australians – dying from extreme burns and blast injuries. Many more were seriously injured.
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Thomas spoke of the catastrophic impact the eruption had on the survivors and the 22 families who lost loved ones, including the two families whose loved ones were never recovered.
WorkSafe had been seeking reparation payments for the 25 people who were on the island and survived and the family members of the 22 who died.
White Island Tours was ordered to pay $NZ5 million in reparation and a fine of $NZ517,000.
Whakaari Management Ltd (WML) was fined $NZ1.045 million and ordered to pay $NZ4.8 million in reparation.
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Volcanic Air was fined $NZ506,000 and ordered to pay $NZ330,000 in reparation.
Kahu was fined $NZ196,000 and Aerius $NZ290,000.
White Island Tours, Volcanic Air, Aerius and Kahu all received various discounts off Thomas' starting fine for guilty pleas and expressing genuine remorse.
Volcanic Air, Aerius and Kahu also received discounts for previous good character.
Volcanic Air and Kahu also received discounts for the actions of staff who selflessly flew to the island in the aftermath of the eruption.
On Whakaari Management Ltd's fine and orders for reparation though, Thomas didn't shy away in his comments.
Whakaari has been privately owned by the Buttle family since 1936 and in 2008 they established Whakaari Management Ltd. It was found guilty of health and safety offences in a judge-alone trial last year, while the other businesses pleaded guilty before going to trial.
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Thomas said WML claimed to have no assets and has never had a bank account so never held funds.
"That must be difficult for survivors and families to stomach," he said.
WML was the contracting party under the licence agreements and the substantial amounts operators paid under the licence agreements should have gone to WML. WML's shareholders were Andrew, James and Peter Buttle.
"The Buttles therefore appear to have profited handsomely from tours to Whakaari," Thomas said.
"This case, like many others, sadly reveals how simply corporate structures can be used to thwart meaningful responses to safety breaches."
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While the judge said he cannot make orders against shareholders, he did not relieve WML from any of its reparation or fine obligations.
"There is nothing to stop the Buttles, as WML's shareholders, from advancing the necessary funds to cover that obligation," he said.
"There may be no commercial basis for doing so, but many would argue there is an inescapable moral one. Some defendants responded to the tragedy with a preparedness to put their lives at risk to help others.
"We wait to see what the Buttles will do. The world is watching."
Thomas said there's been no similar case on this scale and nature, and said "reparation can be no more than a token recognition of the emotional harm".
This coverage originally appeared on Stuff and has been reproduced with permission.
