SA acts to secure billions for oil spills

Cape Town - Legislation aimed at giving South Africa access to billions of rand in compensation in the event of a major oil tanker disaster was approved by the National Assembly on Thursday.

The merchant shipping (International Oil Pollution Compensation Fund) bill and the merchant shipping (Civil Liability Convention) bill will now go to the National Council of Provinces for concurrence.

The bills are part of a package of legislation which, once enacted, will allow South Africa access to the International Oil Pollution Compensation Fund (IOPC).

According to a memorandum attached to the legislation, the compensation payable by the IOPC, in the event of a major oil spill, is about R3bn per incident (at current exchange rates).

The fund is financed by cargo owners.

Maritime experts consider the legislation long overdue, and are calling for urgent action to get it passed, while warning of the cost of a major oil spill clean-up.