I move: "That the Bill be now read a Second Time."
The Bill is a major improvement in the law protecting the marine environment. It will significantly improve the compensation available for pollution caused by tanker spills. Specifically, it will increase the maximum compensation available for tanker spills threefold; extend the scope of application of existing international conventions to include unladen tankers and seagoing vessels which were adapted for the carriage of oil in bulk; provide for compensation for measures taken in anticipation of an oil spill; provide for compensation for clean-up operations where the source of pollution cannot be identified; oblige ship owners to have adequate insurance cover; extend our jurisdiction for oil pollution purposes from 12 miles to 200 miles; and ensure that liability for compensation rests primarily with ship owners.
Ireland's geographical location at the apex of some of the busiest shipping routes in the world leaves us vulnerable to the threat of serious pollution incidents. Deputies will recall the Sea Empress accident in Milford Haven in 1996 which led to a spillage of about 72,000 tonnes of oil, the effects of which were felt as far away as Wicklow, Wexford, Waterford and Cork. Our coastline, stretching for some 7,800 kilometres, is one of our great natural resources. It is vital that it is protected from the devastating effects that such massive releases of oil can cause.
The legislation will bring Irish law governing compensation for oil pollution damage into line with the highest international standards. It will provide strong safeguards for our seas and coastal communities in the event of damage to our beaches and other shoreline amenities. Its benefit will be felt by fishermen, fish farmers, tourism interests and all those who depend on the sea for their livelihoods. As Minister responsible for the marine resource, I am committed to a cleaner marine environment. The legislation is evidence of that commitment.
The Oil Pollution of the Sea (Civil Liability and Compensation) Act, 1988 gives effect in Irish law to two international conventions adopted by the International Maritime Organisation and to their 1976 protocols, namely, the International Convention on Civil Liability for Oil Pollution Damage, 1969, commonly known as the Civil Liability Convention, and the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1971, commonly known as the Fund Convention.
The purpose of this Bill is to amend the 1988 Act in order to give effect in Irish law to two further protocols amending these conventions, both of which were adopted by the International Maritime Organisation in 1992. The measures proposed provide for an increase in the maximum compensation payable in respect of any one incident from £58 million to £130.5 million and, in circumstances where there are at least three adherent states to the revised conventions with combined crude and fuel oil imports of at least 600 million tonnes, up to £195 million.
The new measures also provide for much wider scope in the application of the conventions. Seagoing vessels which are adapted for the carriage of oil in bulk as cargo will now be covered, whereas only vessels specifically constructed for this purpose are covered under existing measures. Pollution damage caused by spills of oil from unladen tankers will be covered, whereas only laden tankers are covered at present. The measures will extend our jurisdiction for oil pollution purposes from the present 12 miles limit to a distance of 200 miles. Also, compensation will be payable for pre-spill preventative measures taken to avert an imminent danger of pollution damage, which is important to this country.
The Civil Liability Convention obliges owners of tankers with an oil cargo capacity of more than 2,000 tonnes to maintain insurance cover for their liability for oil pollution damage. Tankers must carry on board a certificate issued by their flag administration attesting to the insurance cover of the ship. Under existing arrangements the limit of a shipowner's liability is about £13.6 million irrespective of the size of the ship; under the new measures proposed in the Bill this limit is being raised to £58 million for a ship exceeding 140,000 tons. A new limit of about £2.9 million will apply to small ships of less than 5,000 tons and ships between 5,000 and 140,000 tons will be liable for pollution damage for amounts between £2.9 million and £55 million, depending on their actual tonnage.
The International Oil Pollution Compensation Fund, known as the IOPC Fund, operates within the framework of the conventions, establishing a legal regime for supplementary compensation for pollution damage. The IOPC Fund was established by the International Maritime Organisation to supplement the level of compensation available from shipowners under the Civil Liability Convention. Under existing arrangements the shipowner can apply to the IOPC Fund for indemnification for part of his liability. This facility has proved to be a cause of delays and the cost of processing claims has taken a significant share of the fund's resources. Indemnification by the fund is now withdrawn, so that shipowners will have to pay their full liability as assessed in each case. This change is the application of the "polluter pays" principle to which I am fully committed. The resources thus saved by the IOPC Fund will provide for the proposed increased levels of compensation for pollution damage, while at the same time keeping the levels of payment of the fund contributors under control.
There are at present 76 member states, including Ireland, participating under the Civil Liability and Fund Conventions. On 16 May next, 24 of these states, including Ireland, will become members of the new regime to which the 1992 protocols give effect and which is commonly referred to as the 1992 fund. I regard it as vitally important that Ireland is in a position to apply the new arrangements by 16 May and ask for the co-operation of Deputies in progressing this Bill as speedily as possible. I thank those Deputies who have given assurances in this regard.
The 1992 fund will be viable and able to meet all obligations of the new measures because the membership, while still small, includes most of the large industrial states of the world, who are the largest contributors to the IOPC Fund. Annual contributions to the international compensation fund are levied by the fund administration on oil importers in member states who have imported, by sea, more than 150,000 tonnes of oil in the previous calendar year. There will be no change in this system under the new regime.
There are three importers in Ireland liable for contributions to the fund: the ESB, the Irish National Petroleum Corporation and Aughinish Alumina. The size of annual contributions will vary according to the amount of oil eligible for levy and the number and size of claims settled in any one year. The total annual contribution made by the Irish importers up to now is in the region of £80,000. While it is not possible to estimate accurately the effects of the new regime on current levels of contributions, it is likely that current levels will not be greatly exceeded.
I have examined the sections of the 1988 Act not being amended by the Bill and found them adequate and operating satisfactorily. Two sets of regulations are in force under sections 16 and 19 relating to insurance certification for Irish registered ships and returns and contributions by Irish contributors to the IOPC Fund, respectively. Since the 1992 protocols do not amend these sections substantially, amending the regulations will involve little more than a change in title. Likewise, section 40, which provides for penalties for offences with regard to these regulations, as well as the provisions for the detention of ships under section 13 and the powers of inspectors and harbour masters under sections 32 and 33, are adequate and in no need of change.
I do not propose to table any amendments on Committee Stage. I will, however, ask the Clerk of the Dáil under the direction of the Ceann Comhairle to make a correction of a verbal nature to sections 2 and 9 in accordance with Standing Order 126. In section 2, line 23, there should be no reference to section 3(2) and the reference to section 3(1) in lines 27 and 32 respectively, all on page 3 of the Bill, should refer instead to section 3. In section 3, line 4 of page 4, the number "(1)" should be deleted. Section 9(b) refers to the "International Regulations of the Fund"— this should be the "Internal Regulations of the Fund". The error arose during the drafting of a Committee Stage amendment introduced in the Seanad. The text of the Bill as initiated refers correctly to the "Internal Regulations of the Fund".
Proper management and protection of our marine environment must be achieved through a blend of strong legislative control, comprehensive research and the provision of a solid infrastructure to deal with potential emergencies. This Bill is only one of a number of important measures for the protection of the marine environment which have been introduced recently or are currently in preparation. Last month the Convention for the Protection of the Marine Environment of the north-east Atlantic, known as the OSPAR Convention, came into operation. Fifteen European states, including Ireland, are party to this convention, which consolidates the original Oslo and Paris conventions and takes account of developments since they were signed in the early 1970s. The new convention places particular emphasis on the need to increase our knowledge of the state of the marine environment. To this end Ireland is actively participating in the preparation of a quality status report for the north-east Atlantic which will be completed in the year 2000.
In July I will be representing Ireland at the ministerial meeting of the OSPAR Commission in Lisbon. This will be the first ministerial meeting of the commission to take place under the new convention and will provide the political impetus for future action to ensure a sustainable marine environment in the north-east Atlantic.
Last December I updated the regulations made under the Sea Pollution Act, 1991, which give effect to the International Maritime Organisation's Convention for the Prevention of Pollution from Ships, known as the MARPOL Convention. The updated regulations provide for the control and prevention of pollution by oil, noxious liquid substances carried by tankers and garbage. At the same time I introduced a new set of MARPOL regulations for the control of the carriage at sea of harmful substances in packaged form. I have also signed new port state control regulations providing for systematic inspections of a minimum of 25 per cent of all vessels calling at our ports with a view to confirming that they comply with the various internationally agreed conventions in relation to safety and pollution prevention.
The Government is committed to taking all possible steps to protect the public from dangers associated with the nuclear industry, and I will refer to two important initiatives I have taken since becoming Minister for the Marine and Natural Resources. Last November, I travelled to London to address the 20th Assembly of the International Maritime Organisation on the subject of the INF code, which governs the transport by sea of irradiated nuclear fuels. I pressed the assembly to agree that the code be adopted as a mandatory binding code by all IMO states and I am pleased that agreement was reached on making the code mandatory. I regard this as a significant step forward in improving the conditions under which nuclear materials are transported by sea, but I assure the House that I will continue my efforts to bring about further improvements in this area.
Last year, I established a Task Force on Radioactive Dumping in the wake of revelations by the UK authorities that nuclear waste had been dumped in the Beaufort Dyke, between Scotland and Northern Ireland, and at a number of other locations around the coast of the UK during the 1950s, 1960s and 1970s. The Government viewed these revelations with great concern and I immediately travelled to London to discuss the matter with the UK Secretary of State for Agriculture, Fisheries and Food, Dr. Jack Cunningham, MP. I am pleased that I have received the fullest co-operation from the UK authorities on this matter.
The task force was asked to review and assess the information becoming available on the dumping of radioactive materials and, based on this review, to advise on survey, monitoring and management measures to ensure maximum protection for our marine resources and restore public confidence in the quality of the marine environment. I expect to receive the report of the task force shortly and I intend to publish it in due course.
In relation to Sellafield, I welcome the commitment given by the UK Government to cut discharges into the Irish Sea. The risks to the Irish public and to the environment posed by discharges from Sellafield are wholly unacceptable. The Government is committed to continuing its campaign against Sellafield and has established a ministerial committee on Sellafield and on radio-logical protection generally, on which my Department is represented by my colleague, the Minister of State, Deputy Hugh Byrne.
I will shortly implement another measure which is closely related to the measures proposed in this Bill. This is the Oil Pollution Preparedness, Response and Co-operation Convention, 1990, known as the OPRC convention, which is designed to ensure that proper arrangements are in place in each member state to deal with emergency situations arising from spillages of oil at sea. It calls for member states to have a major national emergency plan ready to deal with major spillages and to co-operate with IMO and adjoining states in planning for and dealing with oil pollution incidents. Amendment of the Sea Pollution Act, 1991, which is required to provide for this measure in Irish law, is already in hand. In the meantime, while waiting for our accession to the OPRC convention, the Irish Marine Emergency Service of my Department is already implementing its important features.
I also intend to give effect in law to the International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea, 1996, which is commonly known as the HNS convention. This is along similar lines to the regime for oil pollution damage, which is the object of this Bill, and will be a welcome addition to our marine environment protection measures. Primary legislation, which is required for our accession to the HNS convention, is in the course of being drafted and I expect to be in a position to introduce a Bill later this year.
Deputies will no doubt be struck by the range of international agreements in the area of environmental protection. The protection of our marine environment is an international issue and it is only through international agreement that real progress can be achieved. Ireland is committed to participating in the work of organisations such as the International Maritime Organisation, OSPAR and the European Union to ensure that the highest possible standards of environmental protection are agreed and implemented.
I have ordered a thorough assessment of the risk from large tankers approaching or passing our coast which become disabled. The danger of massive pollution damage in these cases can be reduced or eliminated by using sufficiently powerful specialised towing vessels which keep potential pollutants in a disabled vessel, and the vessel, afloat. Vessels which are a danger to our marine and coastal environment can be stopped in their tracks and diverted from our coasts and valuable fishing grounds.
I have mandated the marine advisory emergency group, under the chairmanship of the Irish Marine Emergency Service, to investigate the need for emergency towing vessels as a potent force for pollution prevention in marine emergencies. Currently we rely solely on the availability and capability of commercial vessels. We should at least have one of these vessels under our own control, even in the interim, and use the commercial facilities in addition to that vessel. That is another aspect of the approach we are taking.
The Bill is an important new measure to deal with oil pollution. It will bring Ireland into line with the highest international standards. It will substantially increase the protection of our marine resource. I commend the Bill to the House.