Plain language law

New Zealand law explained for everyone

Maritime Transport Act 1994

Civil liability for pollution of marine environment - Liability for pollution from ships

347: Limits of liability of CLC shipowners for oil pollution damage

You could also call this:

"How much ship owners must pay for oil spill damage"

Illustration for Maritime Transport Act 1994

If oil spills from a ship, the owner's liability is limited. You need to know the ship's tonnage to calculate this limit. The limit is set by the Governor-General. If the ship's tonnage is not over 5,000 units, the limit is 3 million units of account. For bigger ships, the limit is 3 million units plus 420 units for each extra unit of tonnage. The maximum limit is 59.7 million units of account. You are liable for the costs of any court proceedings against you. The limit of liability applies to all pollution damage from one incident. If the maximum amount is paid into court, changes to currency calculations do not affect the limit. The limits for other types of pollution damage are specified in Part 7. An order to fix the maximum amount is secondary legislation, which has its own publication requirements, see Part 3 of the Legislation Act 2019.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM338115.

This page was last updated on — View changes

Topics:
Environment and resources > ConservationTransport and travel > BoatingMoney and consumer rights > Consumer protection

Part 25Civil liability for pollution of marine environment
Liability for pollution from ships

347Limits of liability of CLC shipowners for oil pollution damage

  1. If—

  2. oil is discharged or escapes, or there is a grave and imminent threat of discharge or escape of oil, from a CLC ship; and
    1. the discharge or escape is not the result of the personal act or omission of the owner of the CLC ship, committed with intent to cause pollution damage or recklessly as to whether pollution damage would probably occur,—
        1. the maximum amount for which the owner is liable under section 345 or section 346 must be determined under this section; but, in the case of any other event, the owner’s liability under section 345 or section 346 is not limited by this section.

      1. The maximum amount for which an owner of a ship is liable in the circumstances specified in subsection (1) may be fixed from time to time by the Governor-General by Order in Council and, until the time that the maximum amount is so fixed, is—

      2. 3 million units of account for a ship not exceeding 5 000 units of tonnage; and
        1. for a ship with a tonnage exceeding 5 000 units, 3 million units of account plus 420 units of account for each additional unit of tonnage, up to a maximum aggregate amount of 59.7 million units of account.

          1. The owner of a ship shall be liable for the costs of any proceedings that may be awarded against that owner in addition to any other liabilities which are subject to a maximum amount determined under this section.

          2. The maximum amount of liability of an owner of a ship determined under this section shall relate to all pollution damage that arises on any one occasion and whether or not the pollution damage arising from that occasion is sustained by more than 1 person.

          3. If the maximum amount for which the owner of a ship may be liable under this section is paid into court, no subsequent variation of the method of calculating the liability in New Zealand currency under any marine protection rules will affect the maximum amount of liability.

          4. The liability limits for pollution damage, other than oil pollution damage from CLC ships, are specified in Part 7.

          5. An order under subsection (2) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

          Compare
          • 1974 No 14 ss 31(3), (4), 32(3), (4)
          Notes
          • Section 347 heading: replaced, on , by section 55(1) of the Maritime Transport Amendment Act 2013 (2013 No 84).
          • Section 347(1): substituted, on , by section 4(1) of the Maritime Transport Amendment Act 1998 (1998 No 53).
          • Section 347(1)(a): replaced, on , by section 55(2) of the Maritime Transport Amendment Act 2013 (2013 No 84).
          • Section 347(1)(b): amended, on , by section 55(3) of the Maritime Transport Amendment Act 2013 (2013 No 84).
          • Section 347(1)(b): amended, on , by section 6(2) of the Maritime Transport Amendment Act 2005 (2005 No 59).
          • Section 347(2): substituted, on , by section 4(1) of the Maritime Transport Amendment Act 1998 (1998 No 53).
          • Section 347(5): substituted, on , by section 4(2) of the Maritime Transport Amendment Act 1998 (1998 No 53).
          • Section 347(5): amended, on , by section 55(4) of the Maritime Transport Amendment Act 2013 (2013 No 84).
          • Section 347(6): replaced, on , by section 55(5) of the Maritime Transport Amendment Act 2013 (2013 No 84).
          • Section 347(7): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).