CIVIL LIABILITY (OIL POLLUTION) BILL

Order for Second Reading read.

5.15 p.m.

The Minister of State for Communications (Dr Ang Kok Peng): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

In the recent oil pollution incidents the experience of the Port of Singapore Authority shows that the existing laws are inadequate to ensure that the Port and the Government are fully reimbursed for the expenditure arising from the damage caused by oil pollution. The purpose of this Bill, therefore, is to enable us to impose strict liability for oil pollution damage.

The Civil Liability (Oil Pollution) Bill, 1973, is based on the principles embodied in the 1969 International Convention on Civil Liability for Oil Pollution Damage. This Convention imposes strict liability but entitles a shipowner to limit his liability for oil pollution damage in any one incident. It also provides three exceptions to liability.

I shall now summarise briefly the main provisions of the Bill. Clause 3 provides that where oil is discharged or escapes from any ship or off-shore or on-shore facility, the owner or operator shall be liable for any damage caused, for the cost of any measures taken to prevent the damage, and for any damage caused by the measures so taken. However, a shipowner's liability for oil pollution damage is limited to S$375 for each ton of the ship's tonnage or S$50 million (when the tonnage results in a greater amount).

The Bill provides for three exceptions to liability. The owner or operator will not be liable if he proves that the oil escaped as a result of: -

(i) an act of war or an act of God;

(ii) wilful act of a third party;

(iii) negligence of the Government or the Port of Singapore Authority (PSA) in maintaining navigational aids.

It is only equitable that exception (iii) is included, for the PSA must be held responsible for proper maintenance of navigational aids in the Port. In cases where liability is not based on clause 3 but on common law, the Bill gives the right to recover costs of measures taken to prevent oil pollution damage.

The Director of Marine and the Port Master are empowered to detain a ship suspected of polluting the sea and to require the owner to make a cash deposit or other security before the ship is released. The Bill, however, does not apply to warships and government vessels not used for commercial purposes.

The Schedule of the Bill will amend the Prevention of Pollution of the Sea Act, 1971, and will raise the maximum penalty for oil pollution offences from S$20,000 to S$500,000. Mr Speaker, Sir, if this provision of the Bill would appear to be severe, it is because we regard the problem of pollution of the sea as a major problem requiring strong measures for effective control. As our Port is a fairly busy one, it is vital that adequate measures are adopted to discourage the pollution of our harbour, territorial waters and shore-lines by ships and shore establishments.

Mr Speaker, Sir, I beg to move.

Question proposed.

5.20 p.m.

Mr Hwang Soo Jin: Mr Speaker, Sir, on a matter of interest, I wonder whether the Minister of State can enlighten the House as to whether most of the major maritime nations have now adopted the agreement reached at the International Convention at Brussels on the question of limits of liability.

Dr Ang Kok Peng: Sir, I have not got the information with me. But if the hon. Member will give me notice of a question, I will be able to give him an answer.

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. -[Dr Ang Kok Peng].

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