Protection of the Sea (Oil Pollution Compensation Fund) Regulations (Amendment) 1996 No. 221
EXPLANATORY STATEMENT
STATUTORY RULES 1996 No. 221
Issued by the Authority of the Minister for Transport and Regional Development
Protection of the Sea (Oil Pollution Compensation Fund) Ad 1993
Protection of the Sea (Oil Pollution Compensation Fund) Regulations (Amendment)
The Protection of the Sea (Oil Pollution Compensation Fund) Act 1993 (the Act) received Royal Assent on 15 October 1993. The purpose of that Act is to give effect to the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage 1971 (the 1971 Fund Convention) and to the 1976 and 1992 Protocols.
The 1971 Fund Convention entered into force in Australia on 8 January 1995 and was implemented from that date through the proclamation of Chapters 1, 2 and 4 of the Act and the making of the Protection of the Sea (Oil Pollution Fund) Regulations (the Regulations).
The 1971 Fund Convention established a regime for compensating victims of oil pollution damage. This is achieved by applying an annual levy on any person who receives after carriage by ship more than 150,000 tonnes of 'contributing oil' in a calendar year. In Australia's case, this refers top Australian oil importers. 'Contributing oil', for the purposes of the Convention includes mainly crude oil and heavy fuel oil. Non-persistent oil such as gasoline light diesel and kerosene do not fall within the scope of the Convention.
The Protocol of 1992 (the 1992 Fund Convention) to amend the International Convention on the establishment of an International Fund for Compensation for Oil Pollution Damage 1971, provides for an increase in the amount of compensation available to a person who suffers loss as a result of pollution damage from oil tankers.
Section 47 of the Act provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed or matters necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Australia acceded to the 1992 Fund Convention on 9 October 1996. The Protection of the Sea (Oil Pollution Compensation Fund) regulations (Amendment) prescribes certain additional matters provided in Chapter 3 of the Act in relation to the 1992 Fund Convention.
These amending regulations are required to enable the introduction of the 1992 Fund Convention through the Protection of the Sea (Oil Pollution Compensation Fund) Act 1993. The regulations prescribe certain additional matters including interpretation, the jurisdiction of Australian courts in relation to an action, conditions under which foreign judgements may be considered, define certain terms to be used. payments that are required and records to be maintained.
Details of the amending Regulations are:
Regulation 1 of the regulations provides for the commencement of the amending regulations.
Regulation 2 of the regulations provides for the amendment of the existing Fund Regulations as act out in regulations 3 to 12 inclusive.
Regulation 3 of the regulations amends regulation 3 to provide for interpretation of the regulations taking into account the provisions of the 1992 Fund Convention in addition to the 1971 Fund Convention.
Regulations 4, 5. 6, 7 and 8 of the regulations provides for an amendment to Part 2 of the regulations to extend the jurisdiction of Australian Courts in relation to claims for compensation or indemnification and the registration by an Australian Court of foreign judgments against the International Oil Pollution Fund under the 1992 Fund Convention.
Regulations 9, 10 and 11 of the regulations amends Part 3 of the regulations in relation to the parallel requirements of the 1992 Fund Convention for the payment of subscriptions and late payments, and the related records to be maintained.
Regulation 12 of the regulations amend the schedule of the regulations to provide for the 1992 Fund Convention requirements.
Overview
The Protection of the Sea (Oil Pollution Compensation Fund) Act 1993 was enacted to give effect to the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage 1971, and the 1976 and 1992 Protocols. The Act aims to establish a regime for compensating victims of oil pollution damage by imposing an annual levy on Australian oil importers who receive over 150,000 tonnes of 'contributing oil' in a calendar year, which primarily includes crude oil and heavy fuel oil. The 1992 Fund Convention, to which Australia acceded on 9 October 1996, enhances the compensation available to those affected by oil pollution from tankers. The Protection of the Sea (Oil Pollution Compensation Fund) Regulations (Amendment) 1996, issued by the Minister for Transport and Regional Development, were introduced to align Australian law with the 1992 Fund Convention, including provisions on interpretation, jurisdiction, and payments. The objective of these regulations is to facilitate the implementation of the 1992 Fund Convention and ensure compliance with its requirements.
Scope and Application
The Protection of the Sea (Oil Pollution Compensation Fund) Act 1993 applies to any person who receives, after carriage by ship, more than 150,000 tonnes of contributing oil in a calendar year, specifically targeting Australian oil importers. This Act was designed to give effect to the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage 1971 and its subsequent protocols, and it came into force in Australia on 8 January 1995. The Act primarily targets oil importers by imposing an annual levy on them, with the funds collected used to compensate victims of oil pollution damage. Notably, the Act does not cover non-persistent oils such as gasoline, light diesel, or kerosene, focusing instead on crude oil and heavy fuel oil. The Act applies throughout the Commonwealth of Australia, with its regulations extending its reach to provide a structured framework for compensation and to enable Australian courts to handle claims and register foreign judgments related to pollution damage. The Act’s scope is further extended and clarified through subordinate instruments, particularly the Protection of the Sea (Oil Pollution Compensation Fund) Regulations (Amendment) 1996, which were made to incorporate the 1992 Protocol and to amend existing regulations to reflect the updated compensation framework.
Key Provisions
The Protection of the Sea (Oil Pollution Compensation Fund) Regulations (Amendment) 1996 No. 221 amend the original regulations to incorporate the provisions of the 1992 Fund Convention, which seeks to increase the compensation available to victims of oil pollution damage from oil tankers. These regulations make several significant changes to the existing framework established by the Protection of the Sea (Oil Pollution Compensation Fund) Ad 1993. They introduce new requirements and adjustments necessary to align the Australian legal system with the updated international standards set forth by the 1992 Fund Convention. The regulations address various aspects, including the interpretation of existing provisions, the jurisdiction of Australian courts, conditions for considering foreign judgments, definitions of key terms, and the payment and record-keeping requirements under the amended Convention.
The amending regulations impose specific obligations on parties and entities governed by the Protection of the Sea (Oil Pollution Compensation Fund) Act 1993. Firstly, they require Australian oil importers to consider the provisions of both the 1971 and 1992 Fund Conventions when interpreting the Act and the regulations. This includes understanding the expanded jurisdiction of Australian courts to handle claims and register foreign judgments related to oil pollution compensation under the 1992 Fund Convention. Furthermore, entities involved in oil imports must adhere to the new subscription and late payment requirements as specified in the amended regulations. They are also obligated to maintain accurate records as prescribed by the regulations to ensure compliance with the increased compensation framework established by the 1992 Fund Convention.
The regulations also outline the potential consequences and penalties for non-compliance. Any entity or individual failing to adhere to the new requirements and obligations stipulated in the amending regulations may face civil or criminal consequences. While the specific penalties are not detailed within the explanatory statement, the overarching legal framework suggests that breaches could result in fines, legal action, or other sanctions as deemed appropriate by the courts. The seriousness of oil pollution damage and the need for adequate compensation underscore the importance of strict adherence to these provisions to protect victims and maintain the integrity of the compensation fund.