Defence has been fined $210,000 over a boat accident that nearly killed the son of a former Liberal senator, Nick Minchin, with the Federal Court criticising its ''fundamental systemic failure'' to react to a string of almost identical incidents in the past.
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Oliver Minchin, then a 19-year-old cadet at the Australian Defence Force Academy, fell from a fast-moving inflatable boat during a water insertion training exercise on Lake Burrinjuck in February 2010.
He was struck by an unguarded propeller.
The blades inflicted him with deep cuts to his lower back, multiple fractures and major blood loss.
The propeller blades passed just millimetres from his spinal cord.
He spent an extended period of time in hospital and underwent numerous operations.
Oliver Minchin was lucky to escape death, according to the Federal Court, and the incident was a key factor in Senator Minchin's decision to quit politics after nearly 18 years.
The Federal Court fined Defence $210,000 for breaching work safety laws, close to the maximum penalty of $242,000.
In his judgment, Justice John Griffiths slammed Defence for its failure to react to six similar incidents involving unprotected propellers in the six years before Officer Cadet Minchin's accident.
Three of those incidents were almost identical.
All involved ADFA, the same type of rigid hull inflatable boat, and similar high-speed water insertion training exercises.
Yet, despite what the court described as a ''very high foreseeable risk'' of death or injury, Defence failed to act appropriately.
''The Commonwealth's failure to take appropriate steps to address that highly foreseeable risk involved a fundamental systemic failure on the part of the Commonwealth,'' Justice Griffiths wrote.
The court found ''serious deficiencies'' in the sharing of potentially vital information on work safety issues between the three major services and ADFA.
ADFA was not even made aware of Comcare reports into three of the previous incidents involving unguarded propellers.
A Defence spokesman said it deeply regretted the injuries sustained by Officer Cadet Minchin, and that it had acted to reduce the chances of similar accidents.
Full propeller guards have been fitted to all of the ADFA-operated inflatable boats, an ADFA work health and safety manager has been recruited and work safety procedures have now been strengthened.
Defence has also boosted training for cadets and staff in identifying, recording and treating risks.
The Federal Court found Defence had a ''particularly acute'' responsibility to protect young and inexperienced cadets such as Officer Cadet Minchin while they were put through dangerous activities.
Officer Cadet Minchin has now mostly recovered, and is finishing his training at ADFA. He has now finished his academic subjects .
The incident was a major factor in the resignation of his father, the nation's longest-serving finance minister, from federal politics.
Mr Minchin was critical of Defence's role in the incident. Last year he said he was ''staggered'' there were no propeller guards fitted to the boats.
