Phil GOFF
Labour Leader

17 October 2011

Govt incompetence may see taxpayers picking up Rena tab

National has been forced to get out the begging bowl to try and pay for the Rena disaster because it failed to increase liability cover for an oil disaster despite official recommendations, says Labour Leader Phil Goff.

“John Key and Steven Joyce are scrambling around begging the shipping company that leased the Rena for money because of their own failure to protect Kiwi taxpayers from financial exposure.

“The Mediterranean Shipping Company has said it is not liable but may help with recovery costs, according to reports. But National should never have put taxpayers in the position where they’re relying on their Transport Minister to essentially run around with a begging bowl or to take court action to recover costs.

“National was told when it came to power that it should sign up to the International Convention on Civil Liability for Bunker Oil Pollution Damage, which came into force in late 2008. That would have increased our financial protection against oil pollution.

“Other countries like Canada and Australia ratified the convention in 2009. National failed to do the same despite official recommendations.

“National’s incompetence has left taxpayers and Bay of Plenty businesses exposed and means they may have to pick up the tab.”

ENDS

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