Iemma must make owners of Pasha Bulker pay full cost of clean up and rescue

Pasha Bulker is flagged in Panama by 'Wealth Line Inc' for Japanese shipping line Sansho Kaiun Co Ltd.

"Damage from the wreck of the Pasha Bulker could run into hundreds of millions of dollars. It is essential that the real owners, those that profit from the cost cutting of flag of convenience operations, pay the full cost of this operation," Ms Rhiannon said.

"Overseas experience shows that owners of flag of convenience ships regularly refuse to pay clean up costs. Premier Morris Iemma must make it quite clear to the Japanese owners of the Pasha Bulker that they have to pay the full cost of this operation regardless of where the ship is registered .

"The Pasha Bulker incident will have already done massive damage to the reefs off Newcastle and the ship could break up and spill fuel this afternoon when another storm front rolls in.

"If the 3,000 tonnes of fuel oil on aboard the Pasha Bulker is spilt the owners of Sansho Kaiun Co Ltd must bear the full cost for the environmental damage and the clean up.

"Flag of convenience ships register in nations like Panama so they can maximise profits for their owners by avoiding local labour, safety and environmental laws. Interestingly the Panama company this ship is flagged to is called the 'Wealth Line Inc'.

"Overseas experience with flag of convenience ships shows a history of the owners of these ships refusing to take financial responsibility for clean up operations.

"The cost of the clean up when two oil tankers sank off the European coast - the Erika in 1999 and the Prestige in 2002 – ran into billions of dollars. Earlier this year a French court started hearing criminal charges against the companies linked with the Erika disaster.

"The clean up from the Pasha Bulker would not be so expensive but these European examples illustrate the lengths these ship owners will go to avoid their responsibility.

"The Greens are also calling for the inquiry into the incidents surrounding the Pasha Bulker and the other ships that have run into problems to also cover how their flag of convenience status impacts on the response in these crisises," Ms Rhiannon said.

For more information – Lee Rhiannon 0427861568