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Australia calls for heftier maritime pollution compensation

Baird Maritime

The Australian Government has called for greater compensation in the event of a merchant vessel spilling its bunker oil and causing environmental damage.

The Australian Government was represented by the Hon Anthony Albanese, Minister for Infrastructure, Transport, Regional Development and Local Government. Minister Albanese spoke at the International Maritime Organisation's (IMO) General Assembly in London.

"It is important that the polluter pay for the damage they cause," said Minister Albanese.

"The inadequacy of the existing compensation regime was exposed by the 'Pacific Adventurer' accident off the Queensland coast earlier this year. In that incident the shipowner was not legally required to pay all the clean-up and compensation costs."

Oil spill of Moreton Island in the wake of the 'Pacific Adventurer' accident on March 11, 2009

He added that the IMO would consider the Australian proposal next year.

The current bunker oil compensation regime, established in 1996, is set out in the IMO's Convention on the Limitation of Liability for Maritime Claims.

The maximum amount of compensation available depends on the size of the ship involved. For example, for a typical container ship with a gross tonnage of 35,000GT, the maximum compensation payable is about US$22.2 million.