Fulton Hogan to pay reparation for death

A contracting company has been ordered to pay reparation and fines totalling $180,000 after the death of a Greymouth welder.

Kieran John Hudson, 22, died when a bitumen silo exploded at Fulton Hogan's Greymouth site on September 4 last year.

He had been welding a handrail on top of the tank, unaware flammable cut-back bitumen had been placed in the silo two days before.

Fulton Hogan pleaded guilty to failing to ensure the health and safety of a contractor's employee in July.

In the Greymouth District Court yesterday, Judge Phil Moran ordered Fulton Hogan to pay Hudson's parents and four sisters $100,000 for emotional harm and economic loss.

The judge also fined Fulton Hogan $80,000, which he told the court was a "proportionate response" to the company's offence and its "tragic consequences".

Judge Moran said over two days two Fulton Hogan managers had seen the risk of Hudson welding but failed to act.

One manager had noticed fumes venting from the silo, but had stuffed a rag in the vent and allowed Hudson to continue working.

"That was a lamentable failure," Judge Moran said.

Another manager saw Hudson welding the next day and saw the rag, and also allowed Hudson to continue working.

The manager knew cut-back bitumen had been placed in the tank.

The judge said the bitumen was being heated to 165 degrees Celsius, creating flammable vapours which were ignited by Hudson's welding.

Hudson's own employer, E-Quip, was not told by Fulton Hogan the silo contained cut-back bitumen, denying E-Quip the "opportunity to protect its own employee", he said.

Fulton Hogan knew the risk of the bitumen tanks exploding and had suffered a similar explosion at its Lyttelton site in 2005, Judge Moran said.

"The company ... especially those responsible for managing bitumen plants should have been acutely aware of the danger," he said.

Fulton Hogan chief executive Bill Perry attended the hearing and later told The Press he accepted the judge's decision.

The death of a young man while going about his work was unacceptable, he said.

After Hudson's death the company had reviewed its safety procedures, particularly in the area of "hot work".

"What we learned was that we had safety procedures that varied from business to business across New Zealand and we've taken steps to make these consistent." Perry said.

Outside court yesterday the Hudson family did not wish to comment on the ruling.

The family will mark the first anniversary of Kieran Hudson's death today with the unveiling ceremony for his headstone.

- © Fairfax NZ News