Jill Hall (Shortland, Australian Labor Party) Share this | Hansard source

It is with great pleasure that I rise to speak on the Protection of the Sea (Civil Liability for Bunker Oil Pollution Damage) Bill 2008 and the Protection of the Sea (Civil Liability for Bunker Oil Pollution Damage) (Consequential Amendments) Bill 2008. I would firstly like to acknowledge the comments of the member for Kalgoorlie, who recognised the enormous contribution that my predecessor, Peter Morris, has made to shipping not only within Australia but internationally. He was involved with the Ships of shame report as well as ICONS, who prepared a report into shipping from an international perspective called Ships, slaves and competition, which dealt with all those issues that have been important to shipping. I must note and would like to put on the record the fact that the current minister has given terms of reference to the Standing Committee on Infrastructure, Transport, Regional Development and Local Government to look at shipping—to look at some of the issues that Peter Morris raised in the past when he was chair of the transport committee and transport minister. Those issues relate to the impact that the continuing and the single permit visas have; the plight of those people that serve on ships, which over the years has contributed to the lowering of standards on ships; and the fact that we have ships of convenience sailing around our coastline here in Australia.

The purpose of this legislation is to implement in Australia the International Convention on Civil Liability for Bunker Oil Pollution Damage 2001—the bunker oil convention. In accordance with the bunker oil convention, the legislation will establish a liability and compensation regime to apply in cases of a spill of bunker oil from a ship other than an oil tanker to ensure that, if there is a spill, victims of pollution damage are able to obtain prompt, adequate and effective compensation.

In accordance with the bunker oil convention, the proposed legislation will provide that shipowners are strictly liable for pollution damage resulting from the escape or discharge of bunker oil from ships. Shipowners can limit their liability depending on the size of their ship. Ships with a gross tonnage greater than 1,000 will be required to be insured to cover the owner’s liability for pollution damage resulting from the escape or discharge of bunker oil and will be required to carry evidence of that insurance. Persons suffering pollution damage will have a right of direct action against the insurer. That is, they can seek compensation directly from the shipowner’s insurer rather than be required to submit the claim to the shipowner, who in some cases may have no asset other than the ship.

This is good legislation, and it is good legislation for the environment. The electorate that I represent in this parliament is a coastal electorate, and I understand only too well the impact that pollution can have on our vulnerable, precious coastline, the impact that pollution can have on our environment. You only have to look to the June storms last year in Newcastle to see just how vulnerable we are to maritime incidents. The Pasha Bulker was grounded during those storms in Newcastle, and at any time there could have been pollution damage resulting from the leakage of fuel oil. But because of the assistance that was available at the time—and good luck, to a large extent—that did not happen.

If there had been a major incident associated with the grounding of the Pasha Bulker, this legislation would have ensured that there would be compensation. The other side to that is that having legislation like this in place makes shipowners very much aware of the fact that they must ensure, and are liable to make sure, that they take account of our environment. Shipowners will be strictly liable for the pollution damage resulting from a spill of fuel oil, which will mean that, even if a spill is an accident, the shipowner is liable. That goes to what I just said a moment ago. To ensure that shipowners are able to pay compensation for pollution damage, there is a requirement that ships over 1,000 gross tonnes be insured, and every ship entering an Australian port will be required to have evidence that it is insured. This legislation will ensure that, if again there is an incident like that of the Pasha Bulker, the ship owner is liable. Imagine if what happened with the Pasha Bulker had been worse. If ships that travel up and down our coastline, including the coastline in the Shortland electorate, do have a major incident, if they do pollute our coastline, if there is an environmental issue, then they will be liable.

This legislation will ensure that Australian ships entering the ports of overseas countries are subject to the same insurance requirements as when they enter ports in Australia. The very important thing for us here in Australia is that foreign ships entering our ports will also be liable. The system that exists in Australia involves single voyage permits and continuing voyage permits and that means that those shipowners will be liable. I refer again to the legislation. This is good legislation and I am very pleased to support it.

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