The Merchant Shipping (Liability of Shipowners and Others) (New Rate of Interest) Order 2003

Made4th December 2003

Laid before Parliament10th December 2003

Coming into force31st December 2003

The Secretary of State, in exercise of the powers conferred upon him by paragraph 8(1) of Part II of Schedule 7 to the Merchant Shipping Act 19951, with the concurrence of the Treasury, hereby makes the following Order:

Citation, commencement and interpretation1

1

This Order may be cited as the Merchant Shipping (Liability of Shipowners and Others) (New Rate of Interest) Order 2003 and shall come into force on 31st December 2003.

2

In this Order “the prescribed rate” means one per cent more than the base rate quoted from time to time by the Bank of England or the rate set by any body which may supersede it and where there is more than one such rate, the lowest of them.

Rate of interest2

The rate of interest for the purposes of article 11(1) of the Convention on Limitation of Liability for Maritime Claims 1976 2shall be the prescribed rate—

a

where the occurrence takes place before 31st December 2003, but the fund is constituted on or after that date; and

b

where the occurrence takes place on or after 31st December 2003.

Signed by authority of the Secretary of State for Transport

David JamiesonParliamentary Under Secretary of State,Department for Transport4th December 2003

We concur with the making of this Order.

Nick AingerDerek TwiggTwo of the Lords Commissioners of Her Majesty’s Treasury1st December 2003

(This note is not part of the Order)

This Order provides that the rate of interest to be included in the limitation fund constituted by a person seeking to limit his liability by virtue of the Convention on Limitation of Liability for Maritime Claims 1976 shall from 31st December 2003 be calculated by reference to a formula.

A full regulatory impact assessment has not been produced for this instrument as it has no impact on the costs of business.