Two companies appeared in Magistrates' Court yesterday and pleaded guilty to dodging paying social security contributions for their staff worth around $255,000.

Health Tech Limited, which has premises at the Fairmont Southampton Princess, admitted not paying social insurance of $145,932 between July 1996 and August 2000, and Jeremy Johnson's Village Carpentry Ltd., pleaded guilty to not paying $111,721 between July 1997 and August 2000.

Under the 1970 Contributory Pensions Act, employers have to match the contributions deducted from their employees' wage packet and pay it to Government's insurance officer, said Crown counsel Graveney Bannister. Magistrate William Francis said employers failing to pay pension money for their staff was a major problem which left some workers' pensions short when they retired.

He told Health Tech director Victor Ruberry: "You know the terrible effect of non-payment on employees, particularly those approaching retirement, if half their social insurance is not paid with the company doing this. Why would someone take `X' amount of my pay, then not pick up on their share?"

Mr. Ruberry said the non-payment was "not a deliberate act" and that his firm had been badly hit by the downturn in tourism and renovations at the Southampton Princess. "During the winter months we've found it difficult even to make the payroll. I've tried to keep the company going and dug myself into deeper debt," he said.

"With the terrorist actions and the renovations, I've been forced to close down (sometimes)."

"I have an obligation to my staff and I wish to have the opportunity to fulfil it."

He asked to be given "several years" to pay back the $145,432. Mr. Francis ordered Health Tech to reach an agreement with the Government insurance officer to pay back the money and fined the company $250 for breaching the legislation.

He also fined Jeremy Johnson $250 and ruled that he, too, should reach agreement to repay the $111,721 he owes Government.