Marc MacSharry (Fianna Fail)

As always, it is a pleasure to welcome the Minister of State at the Department of Communications, Marine and Natural Resources, Deputy Gallagher, to the House and I also welcome the opportunity to comment on the Bill. I do not want to be repetitious, but there are a few points I would like to reiterate.

The Bill is designed to enable Ireland to implement the International Convention on Liability and Compensation for Damage in connection with the carriage of Noxious Substances by Sea 1996, agreed by the International Maritime Organisation. It is most appropriate that compensation payment arrangements are on the same lines as those currently applicable to compensation for oil pollution damage. Some of the materials that we heard about earlier include those which are explosive in nature such as liquefied gases, corrosive acids, volatile chemicals, aromatic liquids and certain solids which generate dangerous gases. These, carried in bulk, are by internationally agreed codes to which Ireland is party, classified as hazardous or noxious.

I noted from the Minister of State's comments and from a briefing note I saw, that this legislation does not apply to radioactive material. Such material is referred to in other conventions, namely, Vienna and Paris. I also note that at this stage, Ireland has acceded to neither convention. I am interested in hearing from the Minister of State what are our plans in pursuance of this because in terms of radioactive waste it is an issue of the utmost importance to Ireland, given the busy shipping lanes near us, not least our proximity to Sellafield.

I welcome the establishment of an international compensation fund which will be financed by the companies trading in substantial amounts of the materials covered by the convention. It is most appropriate that these companies should deal with that. They should be paying generous amounts into these funds because there are great risks involved. In terms of incidental waste at sea or objects that fall overboard from cargo ships or otherwise, there should be some method of traceability for all cargo carried by ships. We see such material washed up on beaches throughout the world, not least in Ireland, which is an island nation. If there was traceability, it would be possible to go back to the people responsible and perhaps gain access to funds that they pay into, to help clean up beaches which are subject to incidental litter or pollution from the sea from vessels such as container ships or pleasure craft.

The Minister of State mentioned that the fund would pay any compensation necessary over and above what the shipowner is liable for up to a limit of 250 million standard drawing rights, which he indicated were approximately €350 million. The Bill will give effect to the 1996 Protocol to the International Convention on Limitation of Liability for Maritime Claims 1976, which provides for the higher levels of compensation in individual cases, now available under the hazardous and noxious substances convention. The Bill, when enacted, will ensure that Ireland is fully aligned with international standards of protection against damage in connection with carriage of hazardous and noxious substances. This is to be welcomed. I am pleased that despite the fact that it has taken a number of years, Ireland is moving forward and acceding to this convention. The Minister of State and his officials have made great strides in their endeavours to ensure the protection of our coastline and waters and they have played their part in ensuring the sea, which is an important resource, is protected.

I refer to liability and compensation. The arrangements for payment of compensation are similar to those applicable to payment of compensation for oil pollution, which is appropriate. Ship owners will be liable to pay compensation in the first instance. Depending on the size of their ship, this could amount to a maximum of €130 million. Under the convention, ship owners are obliged to carry compulsory insurance, which will vary on a sliding scale according to the tonnage of their vessels. This protects against potential damage but also protects the ship owners. A standard will be laid down with which they must comply. A compensation fund will be established into which people trading in these substances will pay and that is welcome.

The Protocol to the Convention on Limitation of Liability for Maritime Claims 1976 establishes the basis on which claims may be made on foot of the various risks incidental to maritime transport and how they may be prosecuted and it sets maximum aggregate limits, depending on the tonnage of the vessel involved for claims arising from an incident. The hazardous and noxious substances conference considered, however, that these limits would not be sufficient to provide adequate compensation for claims likely to arise under the new hazardous and noxious substances convention and contemporaneously agreed the proposed protocol would increase the limits.

The effect on domestic shipping is to require Irish vessels everywhere, and non-Irish vessels within the 200 nautical mile limit in accordance with the terms of the convention, which are carrying hazardous and noxious substances to carry compulsory insurance for the amount they may be liable to pay in compensation for loss or damage caused by such substances. These are listed in the convention but radioactive material is not included. When will Ireland accede to the Paris and Vienna conventions? What proposals are being put in place to protect Ireland in this regard?

The deliberate discharge of these materials into the sea is a criminal offence under the Sea Pollution Acts 1991 to 1999. The legislation provides for enforcement by the Garda, Defence Forces and harbour masters. Are the penalties for non-compliance strong enough? For example, a summary conviction attracts a fine not exceeding €3,000 or 12 months in prison but imprisonment has rarely, if ever, occurred. The production, trade and transport of hazardous substances is a big money industry. Are fines of €3,000 significant enough to ensure those in the industry operate to the highest safety standards without cutting corners? On conviction on indictment, one is liable to a fine of €1.27 million and five years in prison. Perhaps these penalties should be re-examined because they may not be strong enough. I wish the Minister of State and his officials well in their endeavours on our behalf. They have done a fantastic job to date and will continue to do the Oireachtas proud.