Queensland spill bill rage continues
The shipping company responsible for the Moreton Bay oil spill has met with the Federal Government to discuss payment for the clean-up. Canberra must pick up the tab for additional costs.
The meeting with Federal Transport Minister Anthony Albanese came just a week after the Queensland Government rejected an offer by Swire Shipping, sparking a threat by Premier Anna Bligh to impose a tax on port charges if the company doesn’t pay the full clean-up cost of $34 million.
The International Convention on Civil Liability for Bunker Oil Pollution Damage, ratified by Australia in 2001, imposes a strict liability on the shipowner – in this case $14.5 million, with no proof of fault required.
A spokesman for Mr Albanese told insuranceNEWS.com.au an intergovernmental agreement between the Commonwealth and the states says any additional cost will be borne by the Federal Government. But he suggested Swire is being asked to pay the extra cost anyway.
“In saying that, there is a precedent where there was a spill caused by BHP off Tasmania several years ago and BHP paid the full cost over and above its liability,” he said.
“We believe Swire should pay the full cost of the clean-up. There was a good constructive conversation and now we’re waiting for Swire to come back to us.”
A Swire Shipping spokesman told insuranceNEWS.com.au discussions are continuing.
Despite media speculation about impending legal actions, there is little chance the Federal Government would consider legal action against Swire. Informed sources say the international agreement is very clear and it is unlikely the case would hold up in court.
The meeting with Federal Transport Minister Anthony Albanese came just a week after the Queensland Government rejected an offer by Swire Shipping, sparking a threat by Premier Anna Bligh to impose a tax on port charges if the company doesn’t pay the full clean-up cost of $34 million.
The International Convention on Civil Liability for Bunker Oil Pollution Damage, ratified by Australia in 2001, imposes a strict liability on the shipowner – in this case $14.5 million, with no proof of fault required.
A spokesman for Mr Albanese told insuranceNEWS.com.au an intergovernmental agreement between the Commonwealth and the states says any additional cost will be borne by the Federal Government. But he suggested Swire is being asked to pay the extra cost anyway.
“In saying that, there is a precedent where there was a spill caused by BHP off Tasmania several years ago and BHP paid the full cost over and above its liability,” he said.
“We believe Swire should pay the full cost of the clean-up. There was a good constructive conversation and now we’re waiting for Swire to come back to us.”
A Swire Shipping spokesman told insuranceNEWS.com.au discussions are continuing.
Despite media speculation about impending legal actions, there is little chance the Federal Government would consider legal action against Swire. Informed sources say the international agreement is very clear and it is unlikely the case would hold up in court.