'The Prestige spill disaster will cost over ? 1 billion, perhaps as much as ? 5 billion according to World Wildlife Fund estimates.

The Prestige could have been saved, but only following a tow to a place of refuge. The cost of salvage and pollution damage on a much smaller scale would have been in the region of ? 50 million at most.

'In practical terms, a demand for a huge financial guarantee amounts to a blanket ban on shelter along the Spanish coast.

This could contribute to a re-run of the Prestige, in Spanish waters or in the waters of neighbouring coastal states.

It places neighbouring coastal states at risk.'

Timmermans contrasted the Spanish position with the British approach to the place of refuge issue. Robin Middleton, the UK SOSREP, recently told a European Parliament committee concerned with maritime safety that neighbouring coastal states should cooperate in identifying the best refuge for casualties. He maintained that governments should be prepared to accept a casualty if the best refuge is in their jurisdiction, even if the accident happens in a neighbouring jurisdiction.

'The SOSREP clearly recognises the common interest of coastal states, said Timmermans.

"In contrast, the Spanish Government's Decree appears to be designed to deter requests for shelter. It also leaves no room for constructive cooperation with neighbouring states.'

MJ Information No: 19202