The logic behind the idea is that salvors, in preventing pollution, also prevent large claims against the funds. Hans van Rooij said, 'If the costs of the Exxon Valdez, Erika and Prestige disasters are added together, the total amounts to some $5bn. During 2004 alone, our members recovered 734,000 tonnes of pollutants from 266 casualties, including 452,000 tonnes of black oil. On the Exxon Valdez/Erika/Prestige scale of values, that oil recovery was worth up to $12.5bn.

By way of contrast, our entire 52-strong global membership earned just $100m from casualty salvage and pollution prevention in 2004. Clearly, this situation cannot continue.'

The ISU proposes a 'parallel remuneration' system, with Environmental Awards rewarding pollution prevention and the traditional Article 13 Salvage Awards rewarding the recovery of property. The ISU, in essence, wants to sever the centuries-old link between salvage remuneration and salved property value (the so-called 'property cap' on remuneration for salvage).

Hans van Rooij added, 'Many obstacles can be put in the path of our proposals, but Environmental Awards are the logical step forward. It has been argued, for example, that it is impossible to place a value on the prevention of pollution through salvage, but that is a nonsense. Salvage Arbitrators, after all, do this sort of thing all the time in relation to the recovery of property which would otherwise have been lost or severely damaged.

'The Environmental Awards system can be implemented by revising Lloyds Form.

The major issue, of course, is responsibility for paying Environmental Awards. We believe that governments, the ultimate beneficiaries of environmental salvage, should take the initial responsibility, then claim against the existing pollution compensation funds.

This could be done, if governments so desired, without embarking on wholesale revision of the existing conventions. After all, we are suggesting nothing different from current practice with regard to pollution clean-up costs.'

MJ Information No: 21631