MERCHANT SHIPPING (CIVIL LIABILITY AND COMPENSATION FOR BUNKER OIL POLLUTION) BILL

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MERCHANT SHIPPING (CIVIL LIABILITY AND COMPENSATION FOR BUNKER OIL POLLUTION) BILL: Order for Second Reading read.

The Senior Minister of State for Transport (Mrs Lim Hwee Hua): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

This Bill seeks to give effect to the International Convention on Civil Liability for Bunker Oil Pollution Damage 2001, or the Bunker Convention in short. This Convention was adopted by the International Conference on Liability and Compensation for Bunker Oil Pollution Damage in London on 23rd March 2001. Singapore acceded to the Bunker Convention in 2006.

The Bunker Convention

The Bunker Convention is an international treaty that provides a liability

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and compensation regime for losses and damages arising from bunker oil pollution from ships that are not tankers. Claimants will be guaranteed compensation for pollution damage arising from bunker oil spills from ships such as container and passenger ships as well as bulk carriers. This is significant as some large container and passenger ships carry bunker oil in much larger quantities than small oil tankers. Current compensation regimes covering oil spills do not include bunker oil spills from vessels other than tankers.

Giving effect to the Bunker Convention

In accordance with the Bunker Convention, this Bill seeks to enact the Merchant Shipping (Civil Liability and Compensation for Bunker Oil Pollution) Act with the following key provisions. First, shipowners are strictly liable for pollution damage resulting from the escape or discharge of bunker oil from ships covered by the Bunker Convention. Second, persons suffering pollution damage have a right of "direct action" against the ship's insurers. This means that they can seek compensation directly from the insurers rather than the shipowner who, in some cases, may have no assets other than the ship. Third, shipowners can limit their liability, contingent on the size of the ship. Finally, ships over 1,000 gross tonnes that wish to enter the Singapore port will be required to have a contract of insurance or other forms of financial security to cover liabilities arising from pollution damage. They will also be required to carry certificates of evidence of that insurance. These certificates will be issued by the Maritime and Port Authority of Singapore (or MPA) for all qualifying Singapore-registered ships. MPA will also issue the required certificates to qualifying foreign-flagged ships of States not party to the Bunker Convention calling at the port of

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Singapore. The shipping community will be notified of the detailed administrative procedures on how to obtain these certificates through MPA's Shipping Circulars.

Amendments to the Prevention of Pollution of the Sea Act (Chapter 243) and the Merchant Shipping (Civil Liability and Compensation for Oil Pollution) Act (Chapter 180)

Sir, the Bill also makes related amendments to the Prevention of Pollution of the Sea Act (Chapter 243) and the Merchant Shipping (Civil Liability and Compensation for Oil Pollution) Act (Chapter 180) for consistency.

Mr Speaker, Sir, as Singapore has acceded to the Bunker Convention, the Convention will apply to Singapore when it enters into force on 21st November 2008. As a State party to the Bunker Convention, it is necessary for us to pass this Bill so that Singapore can comply with her international treaty obligations under the Bunker Convention when it enters into force.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. – [Mrs Lim Hwee Hua].

Bill considered in Committee; reported without amendment; read a Third time and passed.