Chris Trevor (Flynn, Australian Labor Party) Share this | Hansard source

I rise to support the Protection of the Sea Legislation Amendment Bill 2008 and, might I say, what a great piece of legislation it is, not only for my electorate of Flynn but also for Australia generally. By way of a brief outline, the bill is intended to: implement the protocol of 2003 to the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, described as the supplementary fund protocol, schedule 1; introduce amendments to the Protection of the Sea (Prevention of Pollution from Ships) Act 1983, the MARPOL amendments, schedule 2; and amendments relating to shipping and marine navigation levies, schedule 3. The Protection of the Sea Legislation Amendment Bill 2008 will implement the supplementary fund protocol, introduce amendments to the Protection of the Sea (Prevention of Pollution from Ships) Act 1983 and amendments relating to shipping and marine navigation levies.

By way of background, Australia is currently part of a two-tier liability and compensation scheme applying to pollution damage resulting from oil spills from oil tankers. Under the International Convention on Civil Liability for Oil Pollution Damage 1992, the tanker owner is strictly liable to pay compensation to a maximum amount, which is determined by the size of the tanker. Owners of tankers registered in a contracting state carrying more than 2,000 tonnes of oil as cargo are required to maintain insurance to cover liability under the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage 1992. This tier is provided by the International Oil Pollution Compensation Funds, which provide compensation for substantiated claims in excess of the shipowner’s liability for the incident. The IOPC Funds are financed by levies imposed on receivers of oil in countries which are contracting parties to the given convention which established the funds.

Under this two-tier system the maximum amount of compensation available for a single incident is currently only about $350 million—not nearly enough. There have been several major international oil spills where the IOPC Funds proved to be insufficient to provide full compensation to all claimants. A supplementary fund protocol was adopted in 2003 by the International Maritime Organisation, the IMO, to create a further source of funds for compensation in the event of damage caused by an oil spill. The protocol entered into force internationally on 3 March 2005.

This bill under the consideration of the House implements the protocol of 2003 whereby the supplementary fund protocol creates a third tier of compensation for damage resulting from spills of oil from an oil tanker so that the maximum amount payable increases to approximately $1.3 billion per incident. The supplementary fund will be financed through levies on public or private entities in receipt of more than 150,000 tonnes of contributing oil per year in contracting states. Levies will only be collected after an oil spill occurs and after the first two tiers of compensation are exhausted.

Australia is also a party to the International Convention for the Prevention of Pollution from Ships. The legislation giving effect to this is the Protection of the Sea (Prevention of Pollution from Ships) Act 1983—the POTS act—and the Navigation Act of 1912. The amendments to the POTS act make miscellaneous amendments to the requirements for maintenance of garbage record books and allow regulations under the POTS act to prescribe penalties of up to 50 penalty units. The purpose of the amendments to the Marine Navigation Levy Collection Act 1989, the Marine Navigation (Regulatory Functions) Levy Collection Act 1991 and the Protection of the Sea (Shipping Levy Collection) Act 1981 is to make the definition of ‘Australian port’ consistent in these acts and to amend the definition of ‘collector’ in the Protection of the Sea (Shipping Levy Collection) Act 1981.

As I said at the commencement of my speech today, this is ‘great news’ legislation not only for the electorate of Flynn but also for Australia generally. The legislation is to ensure that if there is pollution damage resulting from an oil spill from an oil tanker then adequate, proper, just and reasonable compensation will be available. There have already been a number of high-profile, high-impact oil tanker incidents: the Nakhodka off the coast of Japan in 1997, the Erika off the coast of France in 1999 and the Prestige off the coast of Spain in 2002. The maximum compensation afforded by the two conventions to which Australia is currently a party has proven to be insufficient to provide full compensation for all claimants. The legislation before the House will increase the maximum amount of compensation available for a single incident from about $350 million to $1.3 billion. The passing of this bill will ensure that compensation to Australian victims following an oil spill from an oil tanker incident is maximised and that adequate financial resources are provided for clean-up and restoration of Australia’s marine environment.

In addition to providing for the payment of compensation costs, this bill will also play an important role in the protection of the marine environment. This is an absolutely critical piece of legislation for the electorate of Flynn and for Australia generally. Already, warning bells have been ringing very loudly in our ears and warning shots have been fired across our bows. To date, Australia has suffered a number of marine incidents involving oil tankers, including the Princess Anne-Marie off the Western Australian coast in July 1975 when approximately 15,000 tonnes of oil were spilt, and the Kirki off the Western Australian coast in July 1991 when approximately 18,000 tonnes of crude oil were released after the bow fell off the vessel. Serious pollution of the Western Australian coast was avoided due to the dual combination of severe weather conditions and the effects of the Leeuwin current in disbursing the 7,900 tonnes of oil lost during the initial stages of the spill off Cervantes and Jurien Bay.

I am well qualified to speak on this bill, I believe. I have witnessed firsthand the damage and destruction an oil spill can inflict on a community, including its environment. In January 2006 in my electorate of Flynn a major oil spill occurred at the port of Gladstone. It was Queensland’s worst oil spill in more than 30 years. Authorities worked for days to contain the spill in Gladstone Harbour, on the central Queensland coast where I live, after 25,000 litres of heavy fuel poured from a coal carrier. The clean-up cost millions of dollars. It had the potential to be a tragedy for the area’s marine life. The area is frequented by dugongs, crocodiles, seabirds and turtles. That incident showed to Australia how easily these things can happen. According to reports, a tug accidentally rammed into a Korean bulk carrier in Gladstone Harbour and ruptured its fuel tank. Through the outstanding efforts of all concerned in the clean-up of that major oil spill, a major economic and environmental catastrophe was thankfully averted. But it just showed the community of Gladstone, in my electorate of Flynn, and Australia generally that, as we go about our business, things can quickly go horribly wrong.

I will leave that incident aside and return to the proposed bill. This bill will never prevent human error, failure to comply with safety standards, wanton disregard for the law or acts of terrorism. What it will do is provide a just, adequate and equitable compensation regime for those aggrieved and affected by an oil spill disaster.

My electorate of Flynn includes within its boundaries the magnificent Great Barrier Reef. The Great Barrier Reef is the only living organic collective visible from earth’s orbit. The Great Barrier Reef, which is off the east coast of Australia, is included in the electorates of Flynn, Capricornia, Dawson and Leichhardt—all represented, may I say, by fantastic Labor members: Trevor, Livermore, Bidgood and Turnour. It is one of the wonders of the natural world. It is the world’s largest coral reef ecosystem, and it was declared a World Heritage area in 1981.

The reef is scattered with beautiful islands and idyllic coral cays and covers more than 300,000 square kilometres. The Great Barrier Reef system consists of more than 3,000 reefs, which range in size from one hectare to over 10,000 hectares in area. I have spent much time on this reef. I have fished on it, I have snorkelled on it, I have scuba dived on it and I have holidayed on it. It is a beautiful place and every Australian should visit it. In recent years, I have gone out in September on a charter boat, the Gray Scout, owned by Kev Benn of Gladstone. He is a wonderful skipper. The trip is organised by Croc Thomas, and Hanso, Crossy, Rowy and a number of other great blokes. I have a great time on this reef fishing and swimming, and on occasions we see whales. The Swains Reef is a beautiful place on the Great Barrier Reef. I will not get there in September this year, because of parliament. But I wish them a safe and happy trip.

From being out there, I realise what a great disaster it would be if there was an oil tanker spill there. Corals make up the various reefs and cays. The coral has over the years brought many ships to grief, including Captain James Cook’s Endeavour. One of the most famous wrecks is that of HMS Pandora, which foundered in 1791. There are 30 shipwreck sites known in the marine park. Just imagine if we had 31 and it was an oil tanker.

The World Heritage area of the Great Barrier Reef hosts many habitats or native environments where animals and plants live. The Great Barrier Reef abounds with wildlife, including dugong, green turtles, varieties of dolphins and whales, more than 1,500 species of fish, 4,000 types of mollusc and more than 200 species of birdlife. More than two million people visit the reef each year, generating billions in tourism dollars and making tourism a major earner for the Australian economy. Just imagine if we were to wake up one morning to learn of a major spill of oil on the Great Barrier Reef. As a regular visitor to the reef and a fierce advocate of it, I say ‘perish the thought’. The cost of restoring the environment would be enormous. With the wind and the tides out there, it would be a catastrophe. I honestly shudder to think of the cost of an environmental clean-up, let alone the significant loss to tourist resorts, dive boat operators, commercial fishers, recreational fishers, tourism operators and charter fishing vessel operators.

I am proud to speak on this proposed legislation. It provides an economic and environmental safeguard—a safety net, so to speak, in economic terms—to those potentially affected. I pray deep down in my heart and from the very bottom of it that I never witness the need to use this legislation. I commend this bill to the House on behalf of the people of Flynn and the Australian public generally.

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