This is very important legislation. It triples the compensation for fishermen, fish farmers, tourism interests, local authorities and other affected parties for damage caused by oil pollution. It provides for compensation under tough new rules up to £195 million. This compensation will be paid for spillages. Our 7,800 kilometres of coastline and our unique geographical position at the hub of the transatlantic shipping routes make us particularly vulnerable to accidents involving ships transporting oil in the seas around Ireland. Our waters and shoreline must be protected from the catastrophic effects of oil pollution and particularly from major spillages on the scale of the Braer or the Sea Empress. The maximum compensation which will be available in the case of an oil tanker spillage will be tripled from £58 million to £195 million, depending on the circumstances. It will apply to all incidents in the 200 mile exclusive economic zone which Ireland may establish under international law as opposed to the 12 mile limit which applies now. Measures taken to prepare for an anticipated oil spillage will also be eligible for compensation even where no actual spillage of oil occurs. Where the source of the pollution cannot be identified, funding for clean-up operations may be available from the international oil pollution compensation fund. Ship owners will be obliged to have adequate insurance to cover liability. Liability for making compensation will rest primarily with the ship owner and will be supplemented, where necessary, by payments from the IOPC fund. Compensation will be payable for spills from tankers not carrying cargo.
I am determined to provide strong safeguards against damage to our beaches and other precious shoreline amenities. The deterrent effect of a threshold increase in the amount of compensation available for clean-up operations and damage will ensure that the maximum protection for our seas and the livelihoods of our coastal communities is provided. The new provisions for preventive measures to avert an anticipated pollution incident are essential to defend our coasts from serious damage.
The fund is maintained by oil importers transporting 150 tonnes of heavy or crude oil by sea per annum. There are three contributors in Ireland, the ESB, Aughinish Alumina and the INPC. This legislation shows the Government's commitment to protecting the marine environment. The protection of our valuable marine resource must be achieved through tough laws and the provision of a dependable infrastructure which will be prepared for and handle emergencies both actual and potential.
I am particularly pleased that this Bill is being introduced in the Seanad and I welcome the opportunity to address the House on this important subject. I look forward to hearing Senators' contributions.
My aim in introducing this Bill is to strengthen the law in relation to oil pollution. This Bill will bring the law governing compensation for pollution dmage by oil carried in tankers into line with current international Conventions. The new legislation will provide for threefold increases in the compensation payable to affected parties such as fishermen, fish farmers, tourism interests, local authorities and others for damage caused by oil. It will also provide for an improved legal regime for dealing with oil spills.
Ireland's geographical location at the apex of some of the busiest shipping routes in the world, particularly for the transportation of oil, leaves us vulnerable to the threat of pollution incidents. It is vital that our waters and shoreline are protected from the devastating effects of oil pollution, particularly where large spillages occur.
Senators will recall the Braer incident in the Shetlands in 1993 when about 84,000 tonnes of oil were spilled. Closer to home, the Sea Empress incident in Milford Haven in 1996 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. These are massive releases of oil over a short period of time with serious implications for the marine environment.
As the Minister responsible for the marine resource I can assure the House of my commitment and that of the Government to a cleaner marine environment. This legislation will provide strong safeguards for our seas and coastal communities in the event of damage to our beaches and other shoreline amenities.
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 Marine 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 IMO 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 certain 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. Sea going vessels which are adapted for the carriage of oil 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 mile limit to a distance of 200 miles and compensation will be payable for pre-spill preventive measures taken to avert an imminent danger of pollution damage. This is a more frequent occurrence and preventive measures are essential.
The Civil Liability Convention obliges owners with an oil cargo capacity of more than 2,000 tonnes to maintain insurance cover for their liability for oil pollution damage.
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 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 tonnes. A new limit of about £2.9 million will apply to small ships of less than 5,000 tonnes and ships between 5,000 and 140,000 tonnes 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 IMO 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 really the application of the "polluter pays" principle, to which I am committed. The resources thus saved by the IOPC fund will provide for the increased levels of compensation for pollution damage which are proposed, 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. It is vitally important that Ireland is in a position to apply the new arrangements by 16 May and I ask for the co-operation of Senators in progressing this Bill as speedily as possible.
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 which, of course, 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. Three importers in Ireland are liable for contributions to the fund.
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 they will not be greatly exceeded.
I have examined the sections of the 1988 Act not being amended by the Bill and find that they are 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, 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.
Within the wider context of my programme for the protection of the marine environment, this Bill may be seen as one of a number of important measures 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. The Dumping at Sea Act, 1996 enabled Ireland to ratify the OSPAR Convention and put in place important provisions for the protection of the marine environment. Specifically, it extended the limit of Irish control in relation to dumping from 12 miles to 200 miles and in some areas up to 350 miles off the Irish coast, depending on the extent of our continental shelf. It also applied strict limitations on the types of substances which may be disposed of at sea and imposed a ban on incineration at sea and the dumping of radioactive wastes and toxic, harmful or noxious substances.
Last December I updated the regulations, made under the Sea Pollution Act, 1991, which give effect to the IMO's International 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.
The Government is committed to taking all possible steps to protect the public from dangers associated with the nuclear industry, and I wish to refer to two important initiatives I have undertaken since becoming Minister for the Marine and Natural Resources. Last November, I addressed the 20th Assembly of the IMO 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 member 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 will continue my efforts to bring about further improvements in this area.
Last year I also established a task force on radioactive dumping. The task force was set up 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 to say 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 to 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 reduce 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 radiological protection generally, on which my Department is represented by my colleague, the Minister of State, Deputy Hugh Byrne.
I will shortly introduce 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 emergencies 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, I am glad to say that 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 Irish 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.
This Bill introduces important new measures to deal with oil pollution. It will enable Ireland to be in a position to avail of the maximum levels of compensation for dealing with imminent threats of oil pollution damage and for recovering compensation where damage actually occurs. It is evidence of this Government's continuing commitment to protecting our marine environment, which all parties will support. I commend the Bill to the House.