§ Mr. PoundTo ask the Secretary of State for the Environment, Transport and the Regions what action the Government are taking to ensure the availability of adequate compensation to meet claims arising from the death of, or injury to, passengers on board ships. [60989]
§ Ms Glenda JacksonI have signed an order today which will triple the minimum amount of compensation available for passenger claims. The order will affect ferry operators, travel agents and tour operators whose principal place of business is in the UK. The new limit of liability of 300,000 Special Drawing Rights—SDR—(about £250,000) per passenger takes effect on 1 January 1999.
As soon as a suitable legislative opportunity presents itself, we wish to extend this protection more widely to include all passengers whose journey has a link with the UK. This would require the UK withdrawing from the 1974 Athens Convention. This Convention entitles foreign carriers to an outdated limit of liability of 46,666 SDR (about £38,000) per passenger. In the meantime, the UK will continue to press within the International Maritime Organisation for swift revision of the Athens Convention to provide for even higher compensation amounts, guaranteed by compulsory insurance cover.
5WI accept, and applaud, the fact that insurance and shipping companies have sometimes not bound themselves by the limits following accidents involving major loss of life. However, we must not be complacent. and this is why the Government intend to work towards better legal protection for all passengers.