Mid-Point Review of the Oil Pollution Levy
The purpose of the review was to seek feedback on three options covering the amount of revenue sought and how the levy is applied for the second-half of the six year Oil Pollution Levy period.
The Government has approved the revised Oil Pollution Levy rates, which take effect from 1 July 2019.
New fee lists
New fees effective from 1 July 2019:
New Zealand needs effective, ready capability to manage the likelihood and consequences of marine oil spills. Although the likelihood of a major marine oil spill is low, the environmental, financial and cultural impacts of such an incident could be significant. Maritime New Zealand sets the overall strategy for New Zealand’s marine oil spill readiness and response supported by a Capability Plan detailing the capabilities needed to deliver the strategy.
The Oil Pollution Levy goes into the Oil Pollution Fund, which is required to cover:
- the costs of the Oil Pollution Advisory Committee
- the purchase of equipment or anything else required to implement or assist in implementing a response to marine oil spills
- the reasonable costs Maritime New Zealand or a regional council incurs in investigating a suspected marine oil spill and in controlling, dispersing and cleaning up any marine oil spill
- the costs of services associated with planning and responding to marine oil spills that are services provided for under a contract
- the costs to Maritime New Zealand or a regional council of taking measures to avoid marine oil spills.
Maritime NZ was seeking feedback on three options for the second-half of the six year levy period covering the amount of revenue sought and how the levy is applied.
How the Oil Pollution Levy (OPL) is calculated
The OPL applies to all commercial vessels over 100 gross tons and more than 24 metres in length (except those operating in fresh water) that use oil as fuel and/or carry oil as cargo, offshore oil installations, exploration wells and oil pipelines.
The OPL is based on an assessment of the risks related to marine oil spills around New Zealand calculated on a sector share basis.
The sectors are:
- foreign tankers,
- domestic tankers,
- foreign cargo and passenger vessels,
- domestic cargo and passenger vessels,
- domestic fishing vessels, and
- offshore oil and gas.
Several pieces of work provided input into this review of the Levy. These include:
- a refresh of the New Zealand Marine Oil Spill Readiness and Response Strategy to the 2018 – 2022 version
- a refresh of the Marine Oil Spill Risk Assessment (MOSRA 18) incorporating the latest data on accidents and incidents (internationally and nationally) and national data on vessel routing, activity levels and amounts of oil carried as cargo, and improvements in modelling capabilities to re-assess risk matters and consequently sector shares of risk
- a review of the Capability Plan, to ensure it remains valid and appropriate
- a re-forecast of expected activity levels (projecting the latest data available) for the period from July 2019 to June 2022.
Supporting documents / related information
Review of the Oil Pollution Levy Consultation Document - 2016[PDF: 886kB, 63 pages] Marine Oil Spill Risk Assessment (MOSRA) summary report 2018[PDF: 359kB, 4 pages] Marine Oil Spill Risk Assessment (MOSRA) report 2015[PDF: 7Mb, 397 page] Capability Plan for Marine Oil Spill Readiness and Response 2016/17–2018/19[PDF: 2.11MB, 117 pages] New Zealand Marine Oil Spill Readiness and Response Strategy 2018–2022
Read the Mid-Point Review of the Oil Pollution Levy consultation document
[PDF: 1.07MB, 33 pages]
Summary of submissions
Mid-Point Review of the Oil Pollution Levy consultation - summary of submissions
[PDF: 59kB, 9 pages]
Mid-Point Review of the Oil Pollution Levy consultation - full submissions
[PDF: 1MB, 21 pages]