Tour operators fined $8M over volcano eruption

Tour operators and managers on a New Zealand island where a volcanic eruption killed 22 people in 2019 must pay nearly $8 million in fines and compensation

Tour operators and managers on a New Zealand island where a volcanic eruption claimed 22 lives in 2019 have been instructed to pay nearly 13 million New Zealand dollars ($7.9 million) in fines and compensatory payments. The holding company of the island’s proprietors, a boat tour provider, and three firms offering helicopter tours were found guilty of breaching safety regulations after a trial lasting three months last year. 

White Island, also known as Whakaari in Maori, was a favored spot for tourists prior to the eruption. On Dec. 9, 2019, a steam eruption caused the deaths of several individuals and left survivors with severe burns among the 47 tourists and guides present on the island. 

During the sentencing in a Wellington court on Friday, Judge Evangelos Thomas remarked, “The emotional suffering of survivors and affected families cannot be quantified and will likely persist.” He added, “In a case such as this, compensation can only serve as a symbolic acknowledgment of that suffering. No existing compensation standards consider emotional harm of this magnitude and type. Larger compensations are warranted.” 

In a prior trial lasting three months involving 13 entities, six pleaded guilty, and six had charges dismissed by regulators. The last remaining defendant in the trial, Whakaari Management (WML), was found guilty of one charge in October last year. 

Judge Thomas criticized Andrew, James, and Peter Buttle, the shareholders of WML, the holding company for the island’s proprietors, stating that they seemed to have profited significantly from island tours, despite the company claiming to have no assets or bank account to hold funds. He stated, “This case, like many others, unfortunately demonstrates how corporate structures can be exploited to evade meaningful responses to safety violations.” 

The specific compensation amounts granted to victims and the families of the deceased were not disclosed by the court for publication. The penalty for the last defendant, New Zealand scientific agency GNS Science, will be declared later on Friday. 

Source: AP