Shipowner agrees to pay $25 million spill bill
Swire Shipping has agreed to pay $25 million compensation after its ship the Pacific Adventurer spilled 270 tonnes of oil into Moreton Bay in March.
It had previously argued that it was liable only for a maximum of $17.5 million under the International Convention on Civil Liability for Bunker Oil Pollution Damage.
Now it has agreed to pay $25 million in addition to an initial $2 million contribution.
Under a deal agreed with the Federal and Queensland governments last week, Swire will pay the $25 million into a specially established “marine protection and safety trust”.
The accidental spill occurred in rough seas whipped up by Cyclone Hamish. The Pacific Adventurer lost 31 containers overboard and its fuel tank was gouged in the process, causing the oil spill.
The compensation arrangement is intended to ensure all valid private claimants are given priority for compensation from a court-administered limitation fund.
“It has always been our aim to ensure that small businesses with valid claims are fully compensated,” Swire Australia CEO Bill Rothery said.
Queensland Premier Anna Bligh had earlier pressured the company to pay the full clean-up cost of more than $30 million, threatening a tax on shipping at Queensland ports.
Under a national oil spill plan, any shortfall in compensation for clean-up costs will be reimbursed by the Australian Maritime Safety Authority.
“Queensland will not be out of pocket for the reasonable costs of this incident,” Ms Bligh said at the weekend. “This deal delivers what I was determined to deliver – no cost the Queensland taxpayer.”
The Federal Government has announced it will seek higher limits to shipowners’ liability through the International Maritime Organisation.
It had previously argued that it was liable only for a maximum of $17.5 million under the International Convention on Civil Liability for Bunker Oil Pollution Damage.
Now it has agreed to pay $25 million in addition to an initial $2 million contribution.
Under a deal agreed with the Federal and Queensland governments last week, Swire will pay the $25 million into a specially established “marine protection and safety trust”.
The accidental spill occurred in rough seas whipped up by Cyclone Hamish. The Pacific Adventurer lost 31 containers overboard and its fuel tank was gouged in the process, causing the oil spill.
The compensation arrangement is intended to ensure all valid private claimants are given priority for compensation from a court-administered limitation fund.
“It has always been our aim to ensure that small businesses with valid claims are fully compensated,” Swire Australia CEO Bill Rothery said.
Queensland Premier Anna Bligh had earlier pressured the company to pay the full clean-up cost of more than $30 million, threatening a tax on shipping at Queensland ports.
Under a national oil spill plan, any shortfall in compensation for clean-up costs will be reimbursed by the Australian Maritime Safety Authority.
“Queensland will not be out of pocket for the reasonable costs of this incident,” Ms Bligh said at the weekend. “This deal delivers what I was determined to deliver – no cost the Queensland taxpayer.”
The Federal Government has announced it will seek higher limits to shipowners’ liability through the International Maritime Organisation.