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International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea – Regulation Impact Statement – Department of Infrastructure and Transport

Australia is proposing to become a party to the International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances (HNS) by Sea (the HNS Convention). On 1 November 2012 the HNS treaty documents, including the Regulation Impact Statement (RIS) and National Interest Analysis, were tabled in the House of Representatives. The HNS Convention will establish a liability and compensation regime covering damage arising from the carriage of HNS by ship as cargo.  A similar scheme operates for the transport of crude oil.  The kinds of damage covered are death or injury to persons, loss or damage to property, and costs of cleaning up pollution, preventing the spread of pollution and undertaking environmental remediation.   As at 20 September 2012, eight countries have signed the Protocol on the HNS Convention and are undertaking the process of ratification.  The Convention will come into force 18 months after 12 countries have agreed to be bound by the Convention and a threshold tonnage of HNS carriage by sea has been reached.  Therefore the HNS Convention has not yet entered into force. The RIS was prepared by the Department of Infrastructure and Transport and assessed as adequate by the Office of Best Practice Regulation.