The Merchant Shipping (Oil Pollution) (Supplementary Fund Protocol) Order 2006

Explanatory Note

(This note is not part of the Order)

This Order amends the Merchant Shipping Act 1995 to give legal effect in the United Kingdom to 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 Order amends section 20 (Admiralty jurisdiction of the High Court) of the Supreme Court Act 1981 (c. 54) to include a reference to the Supplementary Fund Protocol.

The Order gives effect to Council Decision 2004/246/EC (O.J. L78, 16.3.2004, p.22) authorising Member States to sign, ratify or accede to the Supplementary Fund Protocol and requiring them to take the necessary steps to consent to be bound by it.

The Order comes into force 3 months after the day on which the United Kingdom accedes to the Supplementary Fund Protocol. The date on which the Supplementary Fund Protocol enters into force in respect of the United Kingdom will be notified in the London, Edinburgh and Belfast Gazettes by the Secretary of State.

The purpose of the Supplementary Fund Protocol is to supplement the compensation available for oil pollution damage under the 1992 Civil Liability and Fund Conventions with an additional third tier of compensation.

The total amount of compensation payable for any one incident will be 750 million Special Drawing Rights, including the amount payable under the 1992 Civil Liability and Fund Conventions.

A Regulatory Impact Assessment has been prepared and copies can be obtained from the Department for Transport, 76 Marsham Street, London, SW1P 4DR or accessed via the OPSI website www.opsi.gov.uk. A copy has been placed in the library of each House of Parliament and on the DfT website http://www.dft.gov.uk.

The Supplementary Fund Protocol can be obtained from the International Maritime Organization, 4 Albert Embankment, London, SE1 7SR.