International Oil Pollution Compensation Funds Assembly

Friday, October 21, 2005

INTERTANKO and ICS restate their full support for the measures that have evolved from the Working Group of the IOPC Fund Assembly. Over the past five years the Assembly and its Working Group have been responsible for the successful development and bringing into effect of increased compensation levels for the victims of oil spills through the adoption of higher liability limits for owners and oil receivers, the introduction of a supplementary fund for those states that wish to avail themselves of further levels of compensation, and an increase in compensation funded by shipowners in those states. Industry also fully supports the extension of STOPIA to all CLC 1992 States which will be of particular benefit to developing States. Further they welcome the agreement reached at the Assembly to put in place mechanisms which will result in the maintenance of a balanced sharing of the compensation amounts paid by the shipping and oil receiving industries, backed by legally binding contracts. Noting the Assembly’s decision to terminate the work of the Working Group, INTERTANKO and ICS have confirmed their willingness to participate constructively in a new Working Group which may be set up to consider what further economic incentives may be developed to encourage quality shipping and/or discourage any substandard element in oil transportation. They note that these decisions will help to preserve and strengthen further a regime which, from 2006, will comprise some 95 member states - a truly universal regime for compensating the victims of oil spills.