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BUSH ENERGY POLICY: Messy trail of responsibility for oil disaster By Leslie Crawford and Toby Shelley Published: November 19 2002 22:43 Last Updated: November 19 2002 22:43 When a stricken tanker is registered in the Bahamas, owned by a Liberian company, managed by Greek administrators, chartered by a Swiss-based Russian oil trader and sails under the command of a Greek captain with an Asian crew, who is ultimately responsible for the environmental and economic damage caused by oil spills?
The sinking of the Prestige, an ageing, single-hulled ship, off the northern Spanish coast on Tuesday with 70,000 tonnes of industrial fuel, has rekindled debate over the inspection of sea-faring vessels and enforcement of international shipping laws.
The 26-year-old tanker developed a crack in its hull during a storm last week. It has already spilled 10,000 tonnes of its highly toxic cargo, causing a 130km oil slick that has contaminated much of Galicia's rich fisheries. More than 1,000 fishermen have been thrown out of work, seabirds have been coated in oil and lobster banks destroyed.
Maritime traffic is intense in the north Atlantic, and this is not the first time an oil spill has blackened Spain's north-west coast. France, too, has suffered ecological disasters caused by shipping accidents and on Tuesday, President Jacques Chirac called for 'draconian' maritime security measures to protect Europe's coastline.
In 1999, the Erika sank off the coast of Brittany, spilling 15,000 tonnes of fuel which contaminated more than 400km of coast. After the incident, France asked the European Union to set up a maritime safety organisation, but discussions got bogged down over where to locate it.
'We have made very firm propositions, notably after the Erika drama,' Mr Chirac said. 'It is now urgent to take measures that are a bit draconian, serious and severe, even if they conflict with the interests of certain companies.'
José Mara Aznar, Spain's prime minister, has threatened legal action to recoup the cost of the environmental clean-up.
But who could the prime minister sue? Lawyers say it has become increasingly difficult to enforce international maritime law at a time when companies and ship owners are cutting costs by registering their vessels in tax havens and hiring cheap, but often poorly trained, crews.
The Prestige was no exception. Registered in the Bahamas, it was owned by Mare Shipping, a Liberian company, managed by Universe Maritime, a Greek company, and had been chartered by Crown Resources, a Swiss-based Russian commodities trader.
So far, Spanish authorities have only been able to get hold of Apostolus Maguras, the Greek captain, who has been remanded in custody in the port of La Corun~a.
Politics also gets in the way. When the Prestige ran into trouble last week, the Spanish government jumped on the fact that the tanker was heading for Gibraltar - a territory claimed by Spain - to accuse the British colony of failing to comply with EU directives on the inspection of maritime vessels. Loyola de Palacio, a Spaniard and the EU's transport and energy commissioner, went further and blamed Gibraltar for the disaster.
Nonsense, replied the British government. In a letter to the European Commission, obtained by the Financial Times, Sir Nigel Sheinwald, permanent represen tative to the EU, says the Prestige was not operating to Gibraltar on its ill-fated last voyage.
'The only time in the last five years that the Prestige has stopped in Gibraltar was on June 13 2002, to refuel, without even entering the port,' the letter says.
The clean-up costs will fall under the remit of the International Maritime Organisation's Civil Liability Convention of 1975. Under this, the shipowner has strict liability for a tanker spill but it is capped, currently to a maximum of $80m.
In 95 per cent of cases, CLC compensation is sufficient to fund a clean-up, according to Intertanko, the trade association of independent tanker owners. Where it is not, the International Oil Pollution Compensation Fund, financed by the receivers of oil, comes into play. The maximum combined compensation under the two regimes is $180m.
The accident has also focused attention on the inspection of ageing vessels. Yesterday, the European Commission demanded governments move faster to enforce new inspection rules.
Under these rules, port authorities will be required to check at least 25 per cent of all ships coming into dock, starting with older, single-hull vessels. Ships flying flags of convenience are to be given priority, an EU spokesman said.
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