MERCHANT SHIPPING (OIL POLLUTION) (AMENDMENT) BILL

Order for Second Reading read.

The Minister for Communications (Mr Mah Bow Tan): Sir, I beg to move, "That the Bill be now read a Second time."

Sir, Singapore is a party to the International Convention on Civil Liability for Oil Pollution Damage, 1969, otherwise known as CLC 69. This Convention seeks to unify the legal regime in respect of shipowners' liability with regard to oil pollution damage. It imposes a strict liability on an owner for any damage caused by the discharge or escape of oil from a ship which is carrying oil in bulk. It also allows the owner of a ship to limit his liability if the discharge or escape occurred without his actual fault or privity. The owner can limit his liability to an upper limit of 14 million SDR (which is equivalent to about S$30 million). The owner of the ship which carries more than 2,000 tons of oil in bulk is also required to have insurance coverage for his liability under this Convention. The Merchant Shipping (Oil Pollution) Act (Cap. 180 of the 1985 Revised Edition) gives effect to this Convention.

Under the rules of private international law, it is possible for a judgement creditor to have a foreign judgement recognised and enforced in Singapore courts. In such a case, the limits of the Merchant Shipping (Oil Pollution) Act do not apply. The Merchant Shipping (Oil Pollution) (Amendment) Bill is intended to remedy this lacuna in our law.

In order to develop and promote Singapore as an international maritime centre, we need to provide a stable and predictable environment for shipowners to operate from. Otherwise, it sets back our effort to encourage shipowners to relocate to Singapore. It might also encourage existing owners to look elsewhere for a more conducive base for their operations.

The Merchant Shipping (Oil Pollution) Act is amended by inserting a new section immediately after section 16 to provide that any judgement given against any shipowner for any oil pollution damage by a Court in a country which is not a party to the International Convention on Civil Liability for Oil Pollution Damage (or CLC 69), which was signed in Brussels in 1969, may be recognised and enforced by a court in Singapore only up to the limit of liability prescribed by section 6 of the Act which are the limits prescribed under the CLC 69.

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. - [Mr Mah Bow Tan].

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