Wilkinson Kate: Antarctica (Environmental Protection: Liability Annex) Amendment Bill — Second Reading Third ReadingText is incorporated into the Bound VolumeWilkinson Kate: Antarctica (Environmental Protection: Liability Annex) Amendment Bill — Second Reading Third Reading[Sitting date: 04 December 2012. Volume:686;Page:7081. Text is incorporated into the Bound Volume.]Hon KATE WILKINSON (Minister of Conservation)on behalf of theMinister of Foreign Affairs: I moveThat the Antarctica (Environmental Protection: Liability Annex) Amendment Bill be now read a second time. This bill was introduced to the House on 20 August 2009. The bill implements a liability framework for environmental emergencies that occur in the Antarctic Treaty area. This framework is set forth in annex VI to the Protocol on Environmental Protection to the Antarctic Treaty which was adopted in 2005 following 13 years of negotiations.Antarctica faces some serious challenges. There is a trend of increased human activity in the area both governmental and non-governmental. The risks of detrimental environmental impact caused by this human activity in Antarctica have increased. Over recent years we have witnessed several incidents involving vessels in the Antarctic Treaty area. In the Ross Sea region alone three vessels have sunk over the last two summer seasons.Under the bill vessel operators not including fishing vessels pursuing activities in this fragile part of the world will be held accountable for their actions that give rise to environmental emergencies incentivised to improve their operating standards and required to take appropriate preventative measures.Under the bill any New Zealand operator whose activities give rise to an environmental emergency in the Antarctic Treaty area will be required to notify the Ministry of Foreign Affairs and Trade of that emergency and to take prompt and effective response action to the emergency. To support and reinforce these requirements the bill introduces new offences of failing to take appropriate action.Where a New Zealand operator fails to take prompt and effective action in response to an emergency caused by its activities the bill imposes liability for the costs incurred by another annex party where that party has taken action that should have been taken by the New Zealand operator. Where no other annex party has taken any action in response to an environmental emergency arising from the activities of a New Zealand operator an order from the High Court can be sought directing the New Zealand operator to pay the cost of the response action that should have been taken into an environmental protection fund administered by the Antarctic Treaty secretariat.Liability is strict and attaches to both State and non-State operators. As such proof that the operator was negligent or otherwise at fault is not required. Liability is limited under the bill. The current limit set under the annex amounts to approximately US$1.5 million for environmental emergencies involving a ship of 2000 tonnes or less and additional liability based on an incremental scale for ships of more than 2000 tonnes.For environmental emergencies not involving a ship the maximum liability is approximately US$4.5 million. Liability cannot however be limited where an operator commits an act with intention of causing an emergency or with recklessness with knowledge that an emergency would probably result. The liability limits set in the annex can be amended by the Antarctic Treaty Consultative Meeting which meets once a year.The strict liability approach is designed to incentivise operators to reduce the risk of their activities causing environmental emergencies. In this regard the annex alsoobliges parties to take preventative measures to reduce the risk of environmental emergencies to establish contingency plans for these and to carry insurance or a financial guarantee to cover the prescribed liability limits. These requirements will be implemented through conditions or ministerial directions which will be attached to notifications by the Minister of Foreign Affairs in respect of required environmental impact assessments.The bill was considered by the Foreign Affairs Defence and Trade Committee which reported to the House on 26 November 2009. The committee received four written submissions on the bill and heard one oral submission. The submissions that the committee received emphasised the importance of environmental protection in the Antarctic and were broadly in support of the bill. The committee recommended unanimously that the bill be passed without amendment.Annex VI will enter into force once it has been approved by all 28 Antarctic Treaty consultative parties including New Zealand. The bill and the annex that it implements will play an important role in promoting and improving the operating and safety standards in Antarctica and in protecting the fragile Antarctic environment at a time when it faces increased risks from human activities.New Zealand an original signatory of the Antarctic Treaty has been a leader when it comes to the protection of the Antarctic environment. We played a leading role in chairing the negotiations leading to the adoption of the liability annex in 2005. The adoption of this bill is consistent with that leadership and our longstanding support for environmental protection in Antarctica. I commend this bill to the House.