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Swire Shipping may face ban after compensation rejected

Swire Shipping may face ban after compensation rejected

Sydney: Swire Shipping may face a ban on trade with Australian state Queensland following a rejection of its compensation offer made for environmental damage caused by oil spillage from its vessel the Pacific Adventurer (pictured) in March. The ship, which also lost 31 containers in the incident, was caught up in unfavourable weather conditions caued by Cyclone Hamish on the forementioned day, resulting in spillage of 250 tonnes of oil onto the nearby coast.

According to local paper the Australian, Bill Rothery, chairman of ship owners John Swire and Sons, said "We have put a proposal to the State Government - it's a substantial offer, which will exceed the $14.5 million in legal responsibilities that we have at this stage." The offer includes compensation for small businesses affected by the spill. Valid claims would be paid in full, Mr Rothery said.

However, Queensland Premier Anna Bligh has warned that the offer was "just not good enough" and has threatened Swire with a ban against its various interests unless it meet is its responsibilities for the incident - with estimated clean up costs in the region of $34m.  [22/07/09]