Course:ECON371/UBCO2011WT1/GROUP4/Article2
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Summary
Oil leaking from a container ship twelve kilometers off the coast of New Zealand has begun reaching shore. The 775 foot ship is stranded on the Astrolabe Reef. Thirty tonnes of oil or fuel is believed to have already poured into the sea. Another 1700 tonnes are in danger of leaking, should bad weather further damage the vessel. The bad weather is expected to continue in the coming days and has impeded clean up efforts. Deteriorating conditions have made this a round the clock clean up project. The military and salvage workers are first concerned with removing the oil. They then plan on lightening the vessel by removing the containers and finally moving the ship off the reef. Everyone involved is trying to mitigate damages to wildlife, a major concern for a country as protected as New Zealand.
The Department of Conservation has established two wildlife rescue centers in the affected region. They have also formed search teams who are looking for affected animals and birds. Little Blue Penguins have already been rescued in the area. Green Peace has expressed concern for whales and calves who swim in the region.
Manufacturer Costamare Inc has been cooperating with local authorities to attempt to resolve the issue as safe as possible. New Zealand Prime Minister, John Key stated two inquiries into the cause of the disaster are being reviewed.
Analysis
Impacts
The Rena oil spill is projected to be New Zealand's worst environmental marine disaster in the country's history. Oil spills always raise alarm to the devastating environmental impacts they produce, just look at BP last year. However, the immediate impact zone is located directly on a corral reef in this case. Corral Reefs, occupying less than one tenth of one percentage of the oceans surface are capable of producing and sustaining very diverse ecosystems. They can support a quarter of all marine life and are a productive asset to the economy. Coral reefs deliver ecosystem services to tourism, fisheries and coastline protection. They have already felt the impacts of climate change - through industrial runoff, changing water temperatures etc - and direct industrial impacts are increasingly more costly. The damage already caused by human activity is not only enough to threaten corral reefs long term, but in this case to immediately harm them and their surrounding ecosystems. In addition to their natural beauty, they house food sources for populations, and protect coastlines by absorbing energy produced by waves. They are a protected Public Good that help maintain economic growth, and are valued by society. A full cost benefit analysis after enough time has passed could quantify the costs to society this negligence has caused.
Liabilities
Someone must be liable for the costs associated with the events taking place on the Astrolabe Reef of New Zealand. As cleanup and recovery efforts begin, expect governing bodies to review evidence and lay penalties against those found guilty. The captain of the ship has already been charged with 'operating a vessel in a manner causing unnecessary danger or risk' after huge structural failings were discovered. However, according to Victoria University law of the sea expert Joanna Mossop "Unless they can prove there is a really bad recklessness involved in it, there is an upper limit on what the ship owner is liable for." This means tax payers are likely to cover some of the cost. New Zealander's affected economically will likely question how these events were allowed to impose such costs on their society, in an attempt to ensure it can be avoided in the future.
Prof's Comments
Good note, particularly on the liability. This is kind of a negligence case I suppose, as there seems to be an upper limit on what the company can be expected to pay. In fact, the upper limit is in part determined by the financial resources of the firm. If the costs are large enough, it will just declare bankruptcy.
8/10