[Greens-Media] Iemma must make owners of Pasha Bulker pay full cost of clean up and rescue

[Lee Rhiannon]

Media release
9 June 2007


Iemma must make owners of Pasha Bulker pay full cost of clean up and rescue

Greens MP and transport spokesperson Lee Rhiannon today called on the
NSW government to issue directives to the owners of the Panamanian
flagged Pasha Bulker to pay the full cost of any clean up and to cover
the rescue operation.

Pasha Bulker is flagged in Panama by 'Wealth Line Inc' for Japanese
shipping line Sansho Kaiun Co Ltd.

"Damage from the wreck of the Pasha Bulker could run into hundreds of
millions of dollars. It is essential that the real owners, those that
profit from the cost cutting of flag of convenience operations, pay
the full cost of this operation," Ms Rhiannon said.

"Overseas experience shows that owners of flag of convenience ships
regularly refuse to pay clean up costs. Premier Morris Iemma must make
it quite clear to the Japanese owners of the Pasha Bulker that they
have to pay the full cost of this operation regardless of where the
ship is registered .

"The Pasha Bulker incident will have already done massive damage to
the reefs off Newcastle and the ship could break up and spill fuel
this afternoon when another storm front rolls in.

"If the 3,000 tonnes of fuel oil on aboard the Pasha Bulker is spilt
the owners of Sansho Kaiun Co Ltd must bear the full cost for the
environmental damage and the clean up.

"Flag of convenience ships register in nations like Panama so they can
maximise profits for their owners by avoiding local labour, safety and
environmental laws. Interestingly the Panama company this ship is
flagged to is called the 'Wealth Line Inc'.

"Overseas experience with flag of convenience ships shows a history of
the owners of these ships refusing to take financial responsibility
for clean up operations.

"The cost of the clean up when two oil tankers sank off the European
coast - the Erika in 1999 and the Prestige in 2002 – ran into billions
of dollars. Earlier this year a French court started hearing criminal
charges against the companies linked with the Erika disaster.

"The clean up from the Pasha Bulker would not be so expensive but
these European examples illustrate the lengths these ship owners will
go to avoid their responsibility.

"The Greens are also calling for the inquiry into the incidents
surrounding the Pasha Bulker and the other ships that have run into
problems to also cover how their flag of convenience status impacts on
the response in these crisises," Ms Rhiannon said.


For more information – Lee Rhiannon 0427861568