Archived press release

Prestige Victims Short Changed One Year On

13 November 2003

Victims of oil pollution from the Prestige disaster may never receive full compensation for the losses they have suffered, warned Friends of the Earth today, one year on from when the tanker was first reported to be in trouble. Governments, such as Spain, who have paid out compensation may lose hundreds of millions of pounds because the international body set up to compensate oil pollution victims hasn't funds to pay their claims.

The Executive Committee of the London-based International Oil Pollution Compensation Fund decided in May 2003 to limit payments in respect of the Prestige to 15 per cent of their value because claims are likely to exceed the amount of compensation available [1]. Fund rules limit payments to €171.5 million (108m) while losses could total €1,100 m (780m). The Committee reaffirmed this position at a meeting two weeks ago [2].

Governments who are members of the Fund have changed the rules to increase ship owners' liability, but this will only apply to disasters after 1 November 2003 [3]. As a result, victims of the Prestige may never get full compensation for the losses they have suffered. There are at least 4,500 fishermen affected by the disaster [4].

Friends of the Earth pollution campaigner Roger Higman said:

"Once again the regime that governs international shipping has been shown to be completely inadequate. Innocent victims of the Prestige disaster may never be fully compensated for the losses they have suffered. Governments who have themselves compensated their people may never recover their costs. We desperately need new laws, in Britain and internationally, to ensure companies are held directly liable for the damage they cause - so victims and taxpayers in the countries affected don't have to pick up the bill."

The International Oil Pollution Compensation Funds (IOPC Funds) were set up through the 1969 International Convention on Civil Liability for Oil Pollution Damage and the 1971 International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage. The Conventions limit the liability of ship-owners for the losses caused by oil pollution incidents but provide compensation for victims in countries who have joined the Fund. Compensation is paid by importers of oil in Member States in proportion to the amount of oil they import.

Notes

[3] International Oil Pollution Compensation Funds (1 November 2003) "Increase in limits of compensation for oil pollution damage under the 1992 Civil Liability and Fund Conventions" www.iopcfund.org/news.htm

[4] www.planetark.org/dailynewsstory.cfm/newsid/19190/story.htm

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Published by Friends of the Earth Trust