Australia says Swire backing away from full oil spill payment
SYDNEY, July 5 (Reuters) - Australia on Sunday accused shipping firm Swire Shipping Ltd of trying to renege on a promise to cover the full cost of an oil spill around pristine tourist beaches earlier this year.
The spill from the ship Pacific Adventurer in March spread 270 tonnes of fuel oil onto beaches to the north of Brisbane, in Queensland state's picturesque Sunshine Coast.
A massive cleanup was mounted involving 2,500 people, which enabled the beaches to reopen within nine weeks.
At the time, Swire Shipping said it would pay the full cost, but Queensland's state government, backed by the federal government in Canberra, has accused it of trying to use a legal loophole to avoid full payment.
A spokesman for Swire Shipping could not immediately be contacted for comment.
According to a statement from state premier Anna Bligh, international maritime conventions refer to a cap on cleanup payments of $17 million, but the state estimates the total cost of the clean up at around A$34 million ($27 million).
Bligh said in the statement that Swire Shipping last week wrote to her government suggesting it would not pay the full bill. The company said it would "have regard to the limitation of liability available to them at law", Bligh's statement said.
Federal infrastructure minister Anthony Albanese said there was a precedent in Australia for a shipowner meeting costs in excess of legal liability, referring to a 1995 spillage involving a ship chartered by resources giant BHP.
He said the government expected Swire to pay the full cost, pointing out its own website (www.swireshipping.com) said environmental concern was an integral part of its business philosophy. (Editing by Valerie Lee)
