The Merchant Shipping (Liability of Shipowners and Others) (Rate of Interest) Order 1998

Made22nd July 1998

Laid before Parliament29th July 1998

Coming into force31st August 1998

The Secretary of State for the Environment, Transport and the Regions, in exercise of the powers conferred by paragraph 8(1) of Part II of Schedule 7 to the Merchant Shipping Act 19951 and of all other powers enabling him in that behalf, with the concurrence of the Treasury, hereby makes the following Order:

Citation and commencement1

This Order may be cited as the Merchant Shipping (Liability of Shipowners and Others) (Rate of Interest) Order 1998 and shall come into force on 31st August 1998.

Revocation2

The Merchant Shipping (Liability of Shipowners and Others) (Rate of Interest) Order 19942 is hereby revoked.

Rate of interest3

The rate of interest for the purposes of article 11(1) of the Convention on Limitation of Liability for Maritime Claims 19763 shall be–

a

where the occurrence takes place before 1st September 1998 but the fund is constituted on or after that date–

i

12 per cent from the date of the occurrence until 31st December 1994;

ii

6.75 per cent on and after 1st January 1995 until 31st August 1998; and

iii

8.5 per cent on and after 1st September 1998; or

b

where the occurrence takes place on or after 1st September 1998, 8.5 per cent.

Signed by authority of the Secretary of State for the Environment, Transport and the Regions

Glenda JacksonParliamentary Under-Secretary of StateDepartment of the Environment, Transport and the Regions16th July 1998

We concur with the making of this Order,

James DowdJon Owen JonesTwo of the Lords Commissioners of Her Majesty’s Treasury22nd July 1998

(This note is not part of the Order)

This Order revokes and replaces the Merchant Shipping (Liability of Shipowners and Others) (Rate of Interest) Order 1994.

The Order provides that the rate of interest to be included in the limitation fund constituted by a person seeking to his liability by virtue of the Convention on Limitation of Liability for Maritime Claims 1976 shall be increased from 6.75 per cent to 8.5 per cent in respect of any period on or after 1st September 1998.