Protection of the Sea Legislation Amendment Act 2008 - Proclamation

Overview

The Protection of the Sea Legislation Amendment Act 2008 was enacted to facilitate Australia's accession to the 2003 Protocol to the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1992 (the Supplementary Fund Protocol). The Act was introduced to address the need to update the compensation framework for oil spills from oil tankers, which was insufficient under the existing Protection of the Sea (Oil Pollution Compensation Fund) Act 1993. The policy objective of the Amendment Act is to increase the maximum compensation available from approximately AUD380 million to approximately AUD1,410 million, aligning the national legislation with the international obligations under the Supplementary Fund Protocol. The Act was passed by the Parliament of Australia and the Proclamation, issued under the authority of the Minister for Infrastructure, Transport, Regional Development and Local Government, sets the commencement date of the amendments in Schedule 1 to coincide with the entry into force of the Supplementary Fund Protocol in Australia on 13 October 2009. Extensive consultation with relevant industries and territories was conducted during the development of the Protocol and the preparation of the implementing legislation, with broad support from all parties.

Scope and Application

The Protection of the Sea Legislation Amendment Act 2008 applies to the amendments of the Protection of the Sea (Oil Pollution Compensation Fund) Act 1993, primarily affecting entities and persons involved in the shipping and oil industries. This legislative amendment is intended to align Australian law with the international Supplementary Fund Protocol of 2003 to the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1992. The Act's jurisdictional reach is federal, as it pertains to the implementation of an international agreement within Australian waters and aligns with Commonwealth legislative powers. The amendments, which came into effect on 13 October 2009, primarily increase the maximum compensation available for oil spills from oil tankers from approximately AUD380 million to approximately AUD1,410 million, ensuring that Australia meets its obligations under the Supplementary Fund Protocol. The Act does not specify exclusions or thresholds, but the scope of its application is confined to the implementation of the Supplementary Fund Protocol within Australia's maritime jurisdiction. The application of the Act may be further extended or clarified through subordinate instruments as necessary to ensure compliance with international obligations and domestic legal requirements.

Key Provisions

The Protection of the Sea Legislation Amendment Act 2008 (the Act) (s 2(1)) includes a schedule that amends the Protection of the Sea (Oil Pollution Compensation Fund) Act 1993 (the Fund Act) to implement the Protocol of 2003 to the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1992 (the Supplementary Fund Protocol). The schedule, which sets out the changes to the Fund Act, commences on 13 October 2009, the same day as the Supplementary Fund Protocol enters into force for Australia. This amendment significantly increases the maximum amount of compensation available in the case of an oil spill from an oil tanker, from approximately AUD380 million to approximately AUD1,410 million (Schedule 1, cl 3). The Act imposes obligations on the entities and individuals governed by it, primarily through the amendments it makes to the Fund Act. These obligations include the responsibility of the Commonwealth to ensure that the maximum compensation available under the Fund Act is increased in line with the Supplementary Fund Protocol. This change is intended to provide greater protection for the marine environment and the coastal communities affected by oil spills. The Act also requires that the Fund Act be administered in a manner that is consistent with the provisions of the Supplementary Fund Protocol, ensuring that the compensation process is fair, efficient, and in line with international standards. There are no explicit offences, penalties, or consequences for breach specified within the text of the Act itself. However, the effectiveness of the Act in achieving its objectives is contingent upon the adherence of all relevant parties to the increased compensation limits and the administrative processes outlined in the amended Fund Act. Non-compliance with the provisions of the Supplementary Fund Protocol or the amended Fund Act could potentially result in legal actions or disputes, particularly if the compensation provided does not meet the new limits or if the administration of the Fund is deemed to be non-compliant with international standards. The maximum penalties for any related breaches would be governed by the provisions of the Fund Act and any relevant international conventions or agreements.