I move:
That Dáil Éireann approves the terms of the International Convention on Civil Liability for Oil Pollution Damage, 1969, done at Brussels on the 29th day of November, 1969; the Protocol to that Convention done at London on the 19th day of November, 1976; the International Convention on the establishment of an International Fund for Compensation for Oil Pollution Damage, 1971, done at Brussels on the 18th day of December, 1971, and the Protocol to that Convention done at London on the 19th day of November, 1976, copies of which instruments were laid before Dáil Éireann on 18th May, 1988.
We are indebted to the International Maritime Organisation, or the IMO as it is commonly known, for the adoption of these multilateral treaties and instruments. As the only specialised agency of the United Nations wholly dedicated to maritime affairs, the IMO's twin objectives are cleaner oceans and safer seas. Although the control and prevention of marine pollution is IMO's primary concern the organisation have been instrumental in promoting the means by which adequate compensation is paid to those who suffer when pollution does occur. The cost of cleaning up oil spills and the economic loss suffered by various sections of the economy e.g. fisheries, wildlife and tourism, can run into millions of pounds. It was in response to the economic impact of a major oil spill that the IMO adopted the Convention on Civil Liability for Oil Pollution Damage in 1969. The IMO are, at this very time, in the process of considering a liability regime for pollution by harmful and noxious substances to complement the regime for pollution by oil.
The International Convention on Civil Liability for Oil Pollution Damage, 1969, commonly referred to as the Civil Liability Convention, obliges owners of tankers carrying more than 2,000 tonnes of persistent oil as cargo to or from a harbour, terminal installation or offshore terminal, to maintain insurance covering liability for oil pollution damage. Tankers must carry on board a certificate attesting the insurance cover of the ship. Liability may be limited to 113 Special Drawing Rights, SDR, of the International Monetary Fund per ton of the ship's tonnage, approximately IR£114 per ton, or 14 million SDR, approximately IR£12 million, whichever is the lesser.
Owners of tankers have strict liability, i.e. in the absence of fault, for oil pollution damage except in a few cases, namely, when the damage results from an act of war or a grave natural disaster; where the damage is wholly caused by sabotage by a third party or the damage is wholly caused by the failure of authorities to maintain navigational aids. If the oil pollution damage is proved to have been due to the personal fault of the tanker owner, he may not limit his liability.
Damage caused by spills of non-persistent oil, for example, gasoline, light diesel oil, kerosene, spills from a tanker during a ballast voyage or spills of bunker oil from ships other than tankers do not fall within the scope of the Civil Liability Convention. In 1971, the IMO recognised that the regime established by the Civil Liability Convention did not afford full compensation for victims of oil pollution damage in all cases, and that the financial burden of paying compensation should not exclusively be borne by the shipping industry but should in part be borne by the oil cargo interests, for example, the oil importers.
The International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1971, or the Fund Convention as it is commonly known, was adopted to supplement Civil Liability Convention compensation. The supplementary compensation or "top up" available under the Fund Convention becomes payable if claimants are unable to obtain full compensation under the Civil Liability Convention for one of the following reasons: no liability arises under the Civil Liability Convention; the owner is financially incapable of meeting his obligations under the Civil Liability Convention and his insurance is inadequate; and the damage exceeds the owner's liability under the Civil Liability Convention. However, the Fund Convention does not have to pay compensation if the pollution damage resulted from an act of war; if it cannot be proved that the damage resulted from an incident involving one or more laden tankers or was due to the wilful misconduct or personal fault of the tanker owner.
The Fund Convention set up in 1978 an international organisation, the International Oil Pollution Compensation Fund (IOPCF) to administer the system of compensation. The IOPCF is financed by contributions levied on receivers of crude oil and fuel oil exceeding 150,000 tonnes in a calendar year into a contracting state. Three Irish companies viz ESB, Irish National Petroleum Corporation and Aughinish Alumina will fall to pay a pro rata contribution of approximately £3,000 each per annum to the Fund on Ireland's accession to the Fund. The compensation payable to the IOPCF in respect of an incident is limited to an aggregate amount of 60 million SDR, approximately IR£51 million, including the sum payable under the Civil Liability Convention, which is up to approximately £12 million. It will be noted that this is a topping-up fund that allows for further compensation.
The Civil Liability Convention entered into force in 1975 and the Fund Convention in 1978. The Civil Liability Convention has 68 contracting states, the Fund Convention has 46 contracting states. Only states which are party to the Civil Liability Convention may become party to the Fund Convention. A state has to be part of the Civil Liability Convention and be contributing towards that to become part of the topping-up convention.
Both Conventions have been amended by Protocols in 1976 and 1984. The 1976 amendments were of a technical nature. The 1984 Protocols made more fundamental amendments. Ireland gives effect in domestic law to the Civil Liability Convention, the Fund Convention and their respective 1976 Protocals by way of the Oil Pollution of the Sea (Civil Liability and Compensation) Act, 1988. The Oil Pollution of the Sea (Civil Liability and Compensation) Act, 1988, does not encompass the terms of the 1984 Protocols to the two Conventions. These Protocols provide for higher limits of compensation and a wider scope of application. The Protocols are not likely to come into force internationally in the foreseeable future because the minimum tonnage requirements for ratification (or accession) would necessitate the inclusion of the US fleet. The United States introduced its own Oil Pollution Act in 1990, which Act imposes strict liability, jointly and severally, upon each responsible party for a spill of oil of any kind or in any form.
A diplomatic conference to consider modification of the 1984 Protocols will be held in IMO Headquarters in London in November this year. I hope that officials of my Department will take an active part in that conference.
I consider Ireland's accession to the Civil Liability and Fund Conventions and their 1976 Protocols of paramount importance. Ireland's geographical location on the periphery of Europe with the Atlantic Ocean lying to the west, south-west and south and at the apex of one of the busiest ocean-trading routes in the world, in particular for the transport of oil, leaves her vulnerable to threats of pollution. Marine disasters like the Torrey Canyon, 1967, the Amoco Cadiz, 1978, the Exxon Valdez, 1989, and the Rose Bay, 1990, serve as vivid reminders of the implications for the marine environment of a massive release of oil over a short period of time in coastal waters. There is no reason that Ireland should escape a disaster of their magnitude.
At the meeting of the IMO's Marine Environment Protection Committee next month the committee will seek to decide upon measures to improve the level of protection of the marine environment against accidents involving oil tankers. In particular, measures to prevent or reduce oil spills in the case of collisions and groundings are envisaged. A proposal to require new oil tankers to have double bottoms and double skins or to have alternative construction features providing a level of protection at least equal to double skins will be on the table.
As the Minister holding responsibility for the marine resource, I am committed to protection of the marine environment. Accession to the Civil Liability and Compensation Fund Conventions will enhance the measures which have been taken within my Department in recent times to protect that environment. These include the setting up of a new marine emergency service — Slanú — which has assumed responsibility for the operational aspects of search, rescue, sea and coastal pollution and shipwreck; and the passage of the Sea Pollution Act, 1991, which will give effect to the MARPOL 73/78 Convention prohibiting or regulating the discharge into the sea of harmful substances and ships' wastes and to a Protocol on Intervention on the High Seas in cases of maritime casualties involving harmful substances. A wreck and salvage Bill which will provide a mechanism for removal of wrecks that are a blight on the environment will be presented to Government in the near future.
Arising from a recent joint UK-Ireland study group report on the state of the Irish Sea two important initiatives have been undertaken. First, a joint co-ordination group is being set up to carry out further research and monitoring of the Irish Sea. It is expected that the candidate selected for a three-year appointment as scientific co-ordinator working under the co-ordination group will take up appointment within the next few weeks. Second, discussions on a joint UK-Ireland maritime contingency plan covering pollution incidents and maritime casualties in the Irish Sea are in progress.
In the event of Ireland not becoming party to the Civil Liability and Fund Conventions and a major oil spill from a tanker carrying oil in bulk as cargo occurring, the State would be dependent on two measures: (1) the shipowner responsible for any loss or damage limiting his liability for compensation up to a maximum of £8 per ton of the ship's gross tonnage in accordance with section 503 of the Merchant Shipping Act, 1894. Payment of the compensation would be subject to the offending ship having been identified, the shipowner not having absconded and his having sufficient assets to meet his legal limit of liability. Deputies will realise that that would not be desirable for Ireland; and (2) a certain degree of cover by the Tanker Owners' Voluntary Agreement concerning Liablity for Oil Pollution, TOVALOP, and by the Contracts Regarding an Interim Supplement to Tanker Liability for Oil Pollution, CRISTAL.
These are two voluntary commercial schemes. The TOVALOP scheme is covered by shipowners' insurance whereas CRISTAL is financed by the cargo owners. The schemes are complementary to the regime established by the Civil Liability and Fund Conventions since they come into play to the extent that compensation is not obtainable under the Conventions. While the scope of TOVALOP and CRISTAL is similar to that of the international conventions, it is not possible to incorporate their terms into national law. One has to rely on the bona fides of the commercial bodies.
At the international conference which adopted the IMO Convention on Oil Pollution Preparedness, Response and Co-operation, 1990, it was stressed that an efficient system of compensation was of great importance to ensure rapid response and assistance between States since such a system would make it easier for the States involved to recover costs incurred in the assistance given. In the preamble to that convention the conference inserted a reference to the importance of the Civil Liability and Fund Conventions.
Many Deputies will recall the damage done to the Irish coastline in counties Cork and Waterford following the sinking of the Kowloon Bridge off the Stags Rocks in November 1986. They will also be aware of the initiation of civil proceedings for the recovery of the State's claim for £1.75 million to cover oil and paint removal and clean-up operations. They will wish to know the extent to which Ireland's earlier accession to the Civil Liability and Fund Conventions might have assisted the State. The conventions would not have applied in this case as the Kowloon Bridge was a 169,080 deadweight ton bulk carrier, not a tanker and it was carrying 159,420 tonnes of iron ore as cargo, not oil in bulk as cargo. These conventions relate to tankers carrying oil in bulk. I am satisfied that my Department would now be in a better position to handle a pollution disaster than in 1986.
The Marine Pollution Response Team which comes under the aegis of Slanú — the Irish Marine Emergency Service — has been very successful in preventing or minimising pollution from ship casualties in the past few years. Slanú itself has available to it the services of a Marine Emergency Advisory Group. This group is made up of senior officers of the maritime and land-based emergency services and assembles as a task force during major emergencies to advise me and the director of Slanú on the appropriate response. The State's powers of intervention with a ship for the purpose of preventing, mitigating or eliminating danger from pollution or a threat of pollution arising from a maritime casualty have also been broadened under the Sea Pollution Act, 1991. That Act provides for the recoupment of expenses incurred in removing pollution or making good any damage done out of fines imposed by the court. The Act also provides for the payment of the costs and expenses of the Minister in relation to the investigation, detection and prosecution of an offence under the Act including costs incurred in the taking of samples, the carrying out of tests, examinations and analyses and in respect of the remuneration and other expenses of employees, consultants and advisers. These provisions were included in the Act to take account of the lessons learnt from the Kowloon Bridge incident. Penalties for breach of any of the requirements of the Sea Pollution Act, 1991, are a fine not exceeding £10 million and/or up to five years imprisonment for conviction on indictment.
Following approval of this Motion and Government approval of: (i) an Order under the Diplomatic Relations and Immunities Act, 1967; (ii) Ireland's accession to the Conventions and Protocols; and (iii) a period of 90 days after deposit of instrument of accession with the IOPCF in London; the Conventions and Protocols will come into force in this country.
I commend adoption of the motion to the House.