Who Will Pay the Fines?

Who Will Pay the Fines?

By Perry Gardner, East Canaan

As I looked through the Wednesday morning papers on June 26, I saw the usual array of depressing news. The "good" news is that I found two articles that told of how our government is really putting business in its place. But are things really as they seem?

The first article noted that Terminix paid a $1 million fine to the state after settling a case brought by the State Attorney General’s office. The State of Connecticut’s position is that Terminix used improperly trained people to dispense pesticides; Terminix contends that all the charges are related to improper paperwork filing. In addition to the fine, Terminix will shut down one of its offices for 90 days and cannot open any new offices in the state for a couple of years.

My question is whether Terminix will pay this fine, or will its customers pay the fine? Since 100% of the money Terminix has or will get comes from its customers, I guess this is a fine all future Connecticut customers will have to pay. If I had to guess, older homes with people of lower income have more insect and varmint problems than people with newer homes and higher income. It seems that only the people who are forced to use an exterminator will pay this fine.

You, of course, do have the option of doing your own exterminating work for most problems. Just don’t forget that the state may require the posting of signs warning the public and neighbors before pesticides are used on your property. And don’t forget to check your local zoning regulations before you put up any sign—you’ll want to be sure you are OK with those requirements. But do-it-yourself does seem to be a surefire way to avoid the inevitable upcoming price increases in extermination costs.

The second article in the day’s paper says that Cumberland Farms has reached a settlement for $2.1 million with the federal EPA regarding their gas-dispensing equipment. The allegations by the EPA said that Cumberland Farms lacked the proper vapor recovery systems in seven states in the Northeast, resulting in excessive vapor releases, and that they have also failed to do the necessary testing, record-keeping and employee training.

My question is whether Cumberland Farms will pay this fine, or will its customers pay the fine? Since 100% of the money Cumberland Farms gets comes from its customers, I guess this is a fine all future customers will have to pay. Again, who are the customers who most often buy their gasoline from Cumberland Farms? My observation is that it is the common, everyday person with the common, everyday car—not the more well-to-do with the more expensive vehicles. After all, Cumberland Farms usually has the lowest gas price in town, or at least that used to be true.

My question is whether we are governing ourselves in a manner that makes sense, given the fact that all fines against business will eventually be paid for by the consumer, and the costs to meet all mandates regarding methods and procedures for doing business are ultimately paid for by the customers. In the two cases above, we know the cost of the settlements, which is $3.1 million, and we can only guess at the additional cost of future compliance—but it no doubt has to be very significant.

No doubt the consumer will pay every penny of this cost, whether it is a fine or future expense. What will the public get for this extra cost? We definitely will get a small reduction in emissions and probably get a more secure feeling because there are more regulations and reports out there related to the activities in which these two companies are involved. My question still remains: Are governing ourselves in a manner that makes sense?

We are a democracy, fortunately, and the majority of people should set the standards—and I expect they have. Have you thought about the above situations and the implications? Have you voiced your opinion? In the paper? At the voting booth?