Address by the Minister of Transport, Ms Dipuo Peters, MP, on the Merchant Shipping (Civil Liability Convention) Bill [B 20B-2013], in the National Assembly, Parliament, Cape Town

Honourable Speaker
Ministers and Deputy Ministers
Honourable Members

Let me once more thank the Chairperson and members of the Portfolio Committee on Transport for the work done in processing the Bills under consideration.

The objects of the Merchant Shipping (Civil Liability Convention) Bill, 2013 [B 20B- 2013] are:

  • to enact the International Maritime Organisation Protocol of 1992;
  • to amend the International Convention on Civil Liability for Oil Pollution Damage of 29 November 1969 into law; and
  • To provide for matters connected therewith.

Honourable Members,

The National Development Plan points out that and I quote: “market and policy failures have resulted in the global economy entering into a period of ecological deficit, as natural capital is being degraded, depleted faster than it can be replenished.”

This Bill provides one way of addressing such policy failures and also fulfils the objectives of Outcome 10 on the preservation of our environment. Output 4 seeks to preserve our biodiversity and protect ecosystems and species while increasing the number of species under formal protection. This Bill is key in protecting our marine biodiversity.

This legislation will not only protect our resources but will hold accountable those responsible for polluting and damaging our 3000 kilometres of world renowned and most beautiful coastline.

The Department of Transport has declared the year 2013 as the Year of Maritime and it is significant that these Bills are being presented at this time.

Also noteworthy is the fact that the Department of Transport and its agency, the South African Maritime Safety Authority (SAMSA), have sponsored 30 students to study Masters and Doctoral Programmes in Maritime Affairs at the World Maritime University in Sweden.

It is expected that the students will on completion of their studies become more knowledgeable in the area of maritime environmental protection amongst other fields. This is part of the ANC Government’s endeavour to create the necessary skills to grow the maritime sector as part of the broader Blue Economy drive.

The package of measures in the Bill is designed to give effect to the Republic of South Africa’s obligations under the Civil Liability Convention and the International Maritime Organisation Protocol of 1992 and to give effect to the amendments of the International Convention on Civil Liability for Oil Pollution Damage, 1969 (“the Civil Liability Convention”).

Accompanying the Merchant Shipping (Civil Liability Convention) Bill is:

  • The Merchant Shipping (International Oil Pollution Compensation Fund) Bill, 2013 [B 19-2013]
  • The Merchant Shipping (International Oil Pollution Compensation Fund) Contributions Bill, a money Bill as contemplated in Section 77 of the Constitution; and
  • The Merchant Shipping (International Oil Pollution Compensation Fund) Administration Bill, which deals with the administrative matters of the money Bill with regard to collection and management of levies.

The Bills deals with question of liability and compensation for loss or damage caused by contamination resulting from the escape or discharge of persistent oil from oil tankers.

Under the Civil Liability Convention, claimants are entitled to compensation from the registered ship owner or insurers for pollution damage suffered in the territory or exclusive economic zone of a Contracting State.

In the event that the financial security of the ship owner is insufficient to cover all the damages caused, the Victim is then entitled to recover the shortfall from the International Oil Pollution Compensation Fund.

Currently, vessel or ship owners are liable to pay for pollution damages up to R1.5 billion based on the Civil Liability Convention, whilst the Oil Pollution Compensation Fund provides for an additional amount of about R2.6 billion.

The passing of this Bill ensures that as South Africa, we would avoid instances such as the R31 million paid in 2011 for the clean-up of the pollution damages caused by the tanker, MV Phoenix.

Honourable Speaker, I hereby table the Bill to be passed by the National Assembly.

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