Australia says Swire backs from full oil spill payment
05 Jul 2009 08:40:22 GMT Source: Reuters
(Adds Swire statement) SYDNEY, July 5 (Reuters) - Australia on Sunday accused shipping firm Swire Shipping Ltd of trying to renege on a promise to cover the cost of an oil spill around pristine tourist beaches earlier this year. The spill from the ship Pacific Adventurer in March spread 270 tonnes of fuel oil onto beaches to the north of Brisbane, in Queensland state's picturesque Sunshine Coast. [ID:nSYD487754] A massive cleanup was mounted involving 2,500 people, which enabled the beaches to reopen within nine weeks. At the time, Swire Shipping said it would pay for the damage, but Queensland's state government, backed by the federal government in Canberra, has accused it of trying to use a legal loophole to avoid full payment. Swire Shipping said in a statement it had asked to meet the state and federal governments to come a "mutually acceptable solution", and denied it had committed to paying the full cost. According to a statement from Queensland state Premier Anna Bligh, international maritime conventions refer to a cap on cleanup payments of $17 million, but the state estimates the total cost of the clean up at around A$34 million ($27 million). Bligh said in the statement that Swire Shipping last week wrote to her government suggesting it would not pay the full bill. The company said it would "have regard to the limitation of liability available to them at law", Bligh's statement said. Swire said on Sunday its insurer had already provided financial security for up to A$20 million. "From the beginning, the company has always promised to meet its full responsibilities under Australian law for the accident clean-up," the statement said. "The company has not stated it would cover all costs," Swire said, adding all costs were still not known and there was a limit to the amount of claims Swire and its insurers could accept. Federal infrastructure minister Anthony Albanese said there was a precedent in Australia for a shipowner meeting costs in excess of legal liability, referring to a 1995 spillage involving a ship chartered by resources giant BHP. He said the government expected Swire to pay the full cost, pointing out its own website (www.swireshipping.com) said environmental concern was an integral part of its business philosophy. Bligh has said the state is considering legal action against the company. (Editing by Valerie Lee) (A$1=$0.81)
Air conditioning units are seen attached to the wall of a run-down apartment block as a man stands on a ladder holding a hose in central Beijing July 3, 2009. Temperatures ...
