XN000022-1997-04-30 — Page 32

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The main purpose of the Bill is to give effect to the two IMO Protocols of 1992 which amend two Conventions, namely, the International Convention on Civil Liability for Oil Pollution Damage, 1969 and the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1971. To ensure that the two Protocols will be extended to Hong Kong and continue to apply after 30 June 1997, we needed to consult the Chinese side before the Bill is introduced into LegCo for consideration and the consultation has recently been completed.

Liability and compensation for oil pollution damage caused in the areas of Contracting States by vessels are governed by the above two International Conventions. As the two Conventions are essential for international marine safety and management, they have been extended to Hong Kong by the U. K. and have been given effect in Hong Kong by the Merchant Shipping (Liability and Compensation for Oil Pollution) Ordinance. While the 1969 Liability Convention makes shipowners liable for damage from oil spills from their tankers up to a limit linked to the size of the ship and requires them to insure this liability, the 1971 Fund Convention sets up the International Oil Pollution Compensation Fund which pays compensation for oil pollution damage above the shipowner's liability under the 1969 Liability Convention up to a certain level.

The objective of this Bill is to implement the amendments made by the 1992 Protocols to the two Conventions. Clause 4 of the Bill adds a new section to provide that in addition to the compensation for pollution damage, the owner of the ship involved will also be liable for compensation for the cost of preventive measures taken to deal with a threat of contamination and any further loss or damage caused by those preventive measures. According to the major amendments made by the 1992 Protocols, clauses 7 and 25 set out respectively the increased liability limit of the shipowners and the increased limit of compensation payable by the International Oil Pollution Compensation Fund in respect of any one incident. The objective of these provisions is to provide better protection to Hong Kong as well as the interest of the owners of Hong Kong registered ships in the event of serious oil pollution incidents.

As a major international maritime centre, it is essential for Hong Kong to be in line with the international conventions relating to the compensation for pollution at

sea.

Mr Deputy President, with these words I commend the Bill to this Council.

End