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Shipping to pay for Pacific Adventurer spill

by toevais last modified Feb 22, 2010 12:27 PM

Shipping companies will pick up part of the tab for the Pacific Adventurer oil spill off the Queensland coast almost a year ago.

Shipping to pay for Pacific Adventurer spill

Added cost: Levy to help pay for Pacific Adventurer clean-up

The Federal Government announced on Friday that it would temporarily lift the Protection of the Sea Levy to recover the clean up costs of the 23,737 dwt general cargo ship, which leaked oil into the sea in March last year.

The levy would increase by three cents from April to 14.25 cents per net registered tonne, federal transport minister Anthony Albanese said.

The levy plan was flagged last August when the Federal and Queensland Governments announced that Pacific Adventurer’s owner, Swire Shipping, had agreed to pay $25m in compensation for the oil spill.

“Although the payment agreed was in excess of the company’s legal obligations, it was below the actual cost of the clean-up, estimated to be $31m,” Mr Albanese said.

The Protection of the Sea Levy is charged against ships based on the "potential polluter pays" principle and applies to vessels longer than 24 metres with 10 tonnes or more oil as fuel or cargo.

The Australian Maritime Safety Authority would reimburse the Queensland Government for the shortfall, Mr Albanese said. 

A court administered limitation fund had been set up to provide compensation for valid private claims and some of the clean-up expenses. 

“We have taken this step because the current liability limit set out in the International Maritime Organisation’s (IMO) 1996 Convention on the Limitation of Liability for Maritime Claims is too low to cover the actual costs of the clean- up,” Mr Albanese said.

Mr Albanese said the international liability limit on merchant vessels, which the government believed should be lifted, would be on its IMO agenda this year.

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