Maritime Transport Act 1994

Protection of marine environment from harmful substances - Powers of Director in relation to protection of marine environment from harmful substances

232: Director may require provision of financial security

You could also call this:

"The Director can ask a ship's owner for insurance to cover costs if the ship releases harmful substances illegally."

Illustration for Maritime Transport Act 1994

The Director can act if they think a ship has released a harmful substance illegally. You need to know this applies to the Maritime Transport Act 1994, the Resource Management Act 1991, and the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act 2012. The Director can ask the ship's owner to provide insurance or financial security to cover any costs. The Director can require the ship's owner to provide a contract of insurance or other financial security. This security must be enough to cover any amounts the owner or ship's master may have to pay under these acts. The security is for the payment of any amounts that may be payable in respect of the discharge or escape. The Director cannot use these powers if the ship has an insurance certificate under section 363 or the marine protection rules. This means the ship's owner has already provided insurance or security. You should be aware that this rule applies to ships with existing insurance certificates.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM337292.

This page was last updated on 4 January 2026 — View changes

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Part 19Protection of marine environment from harmful substances
Powers of Director in relation to protection of marine environment from harmful substances

232Director may require provision of financial security

This section applies if the Director has reasonable cause to believe that a harmful substance has been discharged or has escaped from a ship in breach of this Act, the Resource Management Act 1991, or the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act 2012.
The Director may require the owner of the ship to provide a contract of insurance or other financial security of a kind and for an amount that is sufficient security for the payment of any amounts that may be payable by the owner, or the master of the ship, under this Act, the Resource Management Act 1991, or the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act 2012 in respect of the discharge or escape.
The Director shall not exercise his or her powers under subsection (1A) in relation to a ship in respect of which an insurance certificate under section 363 or the marine protection rules has been issued, recognised, or accepted.

Notes

Section 232(1): replaced, on 31 October 2015, by section 47(1) of the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Amendment Act 2013 (2013 No 85).
Section 232(1): amended, on 23 December 2023, by section 6 of the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 (2023 No 68).
Section 232(1A): inserted, on 31 October 2015, by section 47(1) of the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Amendment Act 2013 (2013 No 85).
Section 232(1A): amended, on 23 December 2023, by section 6 of the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 (2023 No 68).
Section 232(2): amended, on 31 October 2015, by section 47(1) of the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Amendment Act 2013 (2013 No 85).