Facing potential forfeiture of his waste oil recycling business as proceeds of crime and with restraining orders freezing his properties, Ron Salter went to the High Court for an order holding police liable for financial losses should their case fail.
For the first time, police have used the proceeds of crime regime against an ordinary commercial business convicted of health and safety offences. Salter and his south Auckland business Salters Cartage Ltd were convicted of multiple offences after an explosion in 2015 at its Wiri site killed a contractor installing a catwalk next to a waste oil tank; petrol, kerosene and oil vapours in a tank containing about 3000 litres of liquid exploded, ignited by sparks either from a welding torch or a grinder. Salter and Salters Cartage were collectively ordered to pay $128,000 compensation to the victim’s family and Salters Cartage fined $202,500. Further prosecutions followed when Salter ignored ‘make safe’ demands by WorkSafe, continuing to operate the Wiri site in breach of health and safety rules. Salters Cartage was fined a further $56,250 and Salter sentenced to four and half months’ home detention with a fine of $25,000.
Police say Salter systematically operated his business in breach of health and safety and hazardous substance laws for at least seven years. Revenue earned was unlawfully derived, police allege, and should be forfeit under the Criminal Proceeds (Recovery) Act. With a full court hearing years away, police obtained a restraining order over properties owned by Salter either personally or through family trusts: two houses in Paerata, a property on Waiheke Island and the business premises occupied by Salters Cartage in Wiri. The court was told market value of all four properties is $9.675 million. They are used as security for BNZ funding; working capital for Salters Cartage.
Salters Cartage has over 3000 customers. Salter says the restraining orders are hampering business operations; they prevent debt being increased and currently none of the restrained properties can be sold as part of any business sale. He demanded an indemnity from police; they should pay damages for Salter Cartage financial losses if the proceeds of crime case fails. It can be up to three or four years before a proceeds of crime case gets to court. The Act gives to judges a discretion to order an indemnity.
Justice Palmer ordered police pay damages if unsuccessful. The longer it takes to get to trial the greater the possibility of financial complications for Salter’s business.
Commissioner of Police v. Salter – High Court (25.06.21)
21.107