1. 1 Approach to regulation in the oil tanker sector Athens Tanker Event 10-13 April 2005

2. 2 EU Maritime Safety Policy Part I:The recent past Part II:The agenda of the new Commission Part III:Improving the industry’s image

3. 3 Overarching Tenets “Safe, secure and efficient shipping on clean oceans” – full support to IMO efforts Effective implementation and enforcement of existing rules by all concerned parties Preference for international regulation wherever possible Use of EC Law instruments to ensure effective compliance with basic safety standards Promotion of EU re-flagging – positive approach to incentives for the EU shipping sector (State aid guidelines)

4. 4 The recent past Maritime safety has dominated the agenda of the EU priorities over the recent years The losses of the Erika (Brittany, 2000) and the Prestige (Galicia, 2002) created wide social alarm and affected negatively the image of the shipping sector The state of affairs in the shipping sector was considered as serious as to require discussion at the level of the EU Heads of State and Government themselves.

5. 5 The recent past – cont. The European Parliament set up a temporary committee for examining the perceived shortcomings in the regulatory framework of the shipping sector. As a result, in the course of a few years time, the European Commission proposed, and the European Parliament and Council approved, a great deal legislation.

6. 6 The recent past – cont. Inter alia…  Stricter port state control measures  VTMIS & places of refuge  European Maritime Safety Agency  Banning of single hull tankers carrying HGO in EU ports  Accelerated phase-in of double hull tankers  Subsequent proposal to amend Annex I of MARPOL  Sanctions for ship-source pollution

7. 7 Prevention of ‘illegal’ ship source pollution Objective: to provide an effective dissuasive system - for any actor in the shipping chain. MARPOL illegal discharges resulting from “intent or recklessly or with serious negligence” to be subject to Court proceedings Courts may impose « proportionate and dissuasive sanctions, which may include criminal or administrative sanctions » Beyond territorial sea «a discharge shall not be regarded as an infringement for the owner, the master or the crew if it satisfies the conditions set out in MARPOL»

8. 8 Prevention of ‘illegal’ ship source pollution Member States shall apply the provisions of this Directive “without any discrimination in form or in fact among foreign ships and in accordance with applicable international law, including Section 7 of Part XII of the 1982 United Nations Convention on the Law of the Sea”. The future EU regime will be adopted probably in June 2005

9. 9 The agenda of the new Commission (2004-2009) Efforts to be concentrated on implementation of what it has been legislated Proposal of a new legislative package in 2005 to address still missing safety instruments Enlarged tasks and means for the European Maritime Safety Agency Measures to make the EU industry – including the shipping sector - more competitive (Lisbon agenda) Wide-consultation (« Green book ») in 2006 for an EU holistic approach to maritime and ocean affairs

10. 10 New legislative package now in preparation The European Commission launched a consultation exercise in May 2004, which is still on going. The Administrations of all the EEA Member States and all the relevant industry associations have been associated. Some of the proposals are of particular interest for the oil tanker sector  complete the existing image of the shipping sector  Heads of State and Government themselves.

11. 11 New legislative package now in preparation ( mesures still under consideration) 1.A new Regulation on flag state compliance This proposal aims to ensure that all the Member States fulfil their obligations as flag States in accordance with the IMO Conventions; It establishes also harmonised interpretations of issues left to the discretion of the Administrations in the IMO Conventions.

12. 12 2.An amendment of the Port State Control Directive Aimed to improve practical implementation of existing PS rules in EU ports Better targeting of ships More effective refusal of access or banning of ships with multiple detentions Better monitoring of flag state performance

13. 13 3.An amendment of the Traffic Monitoring Directive Secure practical outcomes on places of refuge and PSSAs in accordance with international law of the sea; Increased requirements for places of refuge Carriage requirements of certain equipments - Satellite Position Fixing Systems, AIS, etc (SOLAS Chapter V) Proposals on harmonised ice standards

14. 14 4.A new Directive on marine casualty investigations Systematic investigation of all serious casualties, as required by the IMO Code Investigations not aimed to determine responsibility or blame - Conducted by impartial, competent investigators Facilitate effective cooperation between coastal and flag states Efficient feed-back instrument for promoting new or revising existing regulations

15. 15 5.An amendment of the Directive on Classification Societies Clearer separation of responsibilities between Flag States and Recognised Organisations (statutory work) Better ex-ante control of Class performance System of sanctions for preventing poor performance of ROs Possibility for limited recognition

16. 16 6.A proposal on oil pollution liability Current situation not satisfactory: International conventions and protocols already agreed are not implemented:  LLMC Protocol of 1996  HNS Convention  Bunkers Convention  Oil Pollution Compensation Supplementary Fund There is a clear case for improvement of the CLC and IOPCF regime

17. 17 Oil Pollution Liability The Member States are encouraged to participate in the planned IMO workshop on this subject, currently anticipated for late June this year Significant progress should be achieved - keeping track of the current status of Conventions and setting dates for ratification of the instruments agreed is essential Ship entering EU ports should have effective compulsory insurance covering third party liability

18. 18 7.A proposal on the liability of carriers of passengers by sea in the event of accidents “Athens Convention” Easier access to compensation for victims; a uniform approach to maritime liability and compensation throughout the EU; significantly higher limitation amounts for maritime claims not specifically covered by liability regimes.

19. 19 Improving the Industry’s Image The oil tanker sector is of vital importance for the EU: 90% of the EU oil trade is seaborne It is a cost-efficient, high productivity sector (tons-miles performed per dwt) Constant progress in preventing accidents and reducing operational pollution Huge investments over the recent years in maintenance and renewal of the fleet Increasing corporate social responsibility in all major players

20. 20 Improving the Industry’s Image - cont There are strategic implications about the control of the tanker fleet Industry’ effort is crucial to ensure a predictable, global, regulatory environment :  adapted to the requirements of the oil seaborne transport of the 21st century (« sustainable growth »)  contributing to the stability of the sector  guaranteeing the oil supply capacity required by the world economy Efficient « self-regulation » is key for achieving a sound regulatory environment

21. 21 Thanks to Intertanko for the constructive dialogue with the European Commission and for its continued efforts to improve oil tanker safety at world-wide level.