Anthony Albanese (Grayndler, Australian Labor Party, Leader of the House) Share this | Hansard source

I move:

That this bill be now read a second time.

The Protection of the Sea (Civil Liability for Bunker Oil Pollution Damage) Bill 2008 will give effect to Australia’s commitment to ratify the International Convention on Civil Liability for Bunker Oil Pollution Damage, generally known as the ‘bunkers convention’.

The bunkers convention will come into force internationally on 21November 2008.

It ensures that compensation will be available for anybody who suffers damage or loss as a result of the leaking of bunker oil from a ship, other than an oil tanker.

Oil tankers will continue to be dealt with under separate legislation.

I will be introducing the Protection of the Sea Legislation Amendment Bill shortly to increase compensation payable from an oil spill from an oil tanker.

Bunker oil is a heavy fuel oil that creates significant pollution impacts and is difficult to clean up.

Some large cargo ships carry several thousand tonnes of bunker oil which, in the event of a spill, risk causing serious harm to wildlife, particularly sea birds, and coastal communities.

This legislation requires ships carrying bunker oil to be adequately insured and changes the onus of proof in regard to compensation bids relating to oil spills.

It complements the high safety standards applied to ships trading on the Australian coast and entering Australian ports.

This legislation is good news for people concerned about the risk to the environment of oil spills.

The previous government signed up to the convention, subject to ratification, on 23 September 2002, but did not introduce legislation to give effect to this commitment.

In 2006, the Joint Standing Committee on Treaties recommended that ‘Australia take binding treaty action’ in relation to the convention.

I am pleased to today be introducing this important legislation, joining the 20 countries that have already legislated to ratify the convention.

These countries include the United Kingdom, Singapore, Germany, Greece and Spain.

This legislation will mean that victims of bunker oil pollution will no longer have to prove that the shipowner was at fault in order to receive compensation.

Until now, shipowners have only been liable for payment of compensation if it can be shown that the owner was at fault.

This bill will ensure that compensation is available even if the oil spill was accidental.

This provides certainty to those involved in the clean up, as well as affected industries, such as tourism, aquaculture and fishing.

At the same time, the liability of shipowners will not be unlimited.

Liability will be based on the size of the ship. The larger the ship, the more bunker oil they carry; hence their greater liability.

To ensure that shipowners are able to meet compensation costs, the bill requires owners of ships with a gross tonnage greater than 1,000 to be insured.

Compliance will be enforced through the checking of documentation at ports to ensure that they have adequate insurance.

If a ship is found to not have adequate insurance, it may be detained and may not be permitted to leave the port until it has obtained the required evidence of insurance.

Significant penalties will apply to the registered owner and master if a ship leaves port prior to being released from detention.

This bill also provides persons suffering pollution damage with a right of ‘direct action’ against the insurer.

That is, they can seek compensation directly from the shipowner’s insurer rather than being required to submit the claim to the shipowner who, in some cases, may have no assets other than the ship.

This provides greater certainty to victims of bunker oil pollution damage that they will receive prompt, adequate and effective compensation.

Let me give an example of a recent instance in which the convention would apply.

The most significant bunker oil spill in Australia in recent years occurred on 24 January 2006, when approximately 25 tonnes of bunker oil was spilt from the bulk carrier Global Peace while it was approaching its berth at the coal loading facility at Gladstone in Queensland.

The spill occurred as a result of the collision between the Global Peace and one of its attending tugs after the tug suffered an engine failure.

Fortunately in this case damage was limited to several mangrove areas and only one bird died as a result of the spill.

However, had damage been more widespread, those impacted would have, under this bill, been able to access compensation without having to prove that the Global Peace was at fault.

Under existing legislation, they would have faced a lengthy legal process to attempt to establish that the shipowner was at fault.

For the sake of Australia’s environment, those that rely on the sea to make a living and those that live in coastal towns, this is important legislation.

It is also important from a global perspective because our participation will add to support of the convention and will encourage more countries to participate.

This is a good reform of the Rudd Labor government, and I commend the bill to the House.

Debate (on motion by Mr Haase) adjourned.

See this speech in context