1971 Fund to be dissolved at the end of 2014

Posted: 24/10/2014
Categories: News – Policy

The 1971 Fund Administrative Council has approved and adopted a resolution that the 1971 Fund be dissolved and its legal personality cease to exist with effect from 31 December 2014. A clear majority of members of the 1971 Fund’s Administrative Council voted in favour of the resolution at its 33rd and final session.
Before the closing of the last session of the 1971 Fund Administrative Council, in reference to the recent legal proceedings in connection with the Nissos Amorgos incident, the Director stated that it was with great regret that the IOPC Funds’ relationship with the P&I Clubs had been damaged. He expressed his sincere hope that the difficult situation in which they found themselves was temporary and that the IOPC Funds and the P&I Clubs would ultimately reach an agreement which would enable them to continue to work together successfully to compensate victims of oil pollution damage in the years to come.
Commenting on the landmark decision to dissolve the 1971 Fund, he referred to the success of the Organisation over its 36 years of existence with the Fund having paid some £330 million in compensation and having laid the foundations for the new regime which exists today. The Director confirmed that he was glad that the Administrative Council had taken the decision to close the prestigious and innovative organisation in an organised and efficient manner and thanked the Chairman of the 1971 Fund Administrative Council for guiding the Secretariat and delegations through the difficult discussions this week and also in all previous sessions leading to this moment since 2008.
The Chairman of the 1971 Fund Administrative Council stated that it had been an honour to be Chairman of the Council since 2008. He thanked Member States for their support and pragmatic approach to help resolve the outstanding issues since the Convention ceased to be in force and particularly in the last few years when some difficult decisions had had to be taken.
He also thanked the Chairmen of the other governing bodies, those who were involved in the Consultation Group on the winding up of the 1971 Fund and the Director and his Secretariat upon whom he had relied for advice and support during his chairmanship.
He stated that he looked forward to watching how the compensation regime would develop under the 1992 Fund and Supplementary Fund and expressed his hope that it would be possible to once again have a strong and positive relationship with the P&I Clubs since he considered that at heart both parties wanted the regime to benefit victims of oil spills.

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