Ladies and Gentlemen.

It is a great pleasure for me to be with you at this conference. Nor-Shipping has become one of the world’s leading maritime events. Many countries and different parts of the industry are represented here today. This reflects the global and diversified nature of the maritime industry and is a good opportunity to share views and perspectives on pressing challenges. After disasters like Erika and Prestige it is important to focus on the lessons learned and take necessary action. At the same time it should be our ambition that the development of rules and regulations are less accident driven, but have a systematic approach.

Norway has a long and vulnerable coastline. Our marine resources are among the richest in the world. The sea has also been very important for settlements, transportation and industry.

The traffic along the Norwegian coast is increasing. We see a growing export of crude oil from Russia. This increases the possibility of accidents and oil spills. This is also part of the reason why we have expanded the limits og Norwegian territorial waters from 4 to 12 nautical miles.

Last year over 200 vessels carrying oil from Russia passed along our coast. This is four times the amount expected. We estimate that by the year 2010 almost three oil tankers will pass the coast every day. We therefore face a new challenge as a coastal state. As a leading maritime nation we are nevertheless compelled to seek a balanced approach.

Norway has consistently advocated quality shipping and improved safety standards. We have always been in favour of establishing international rules because this is the most effective way of dealing with global challenges, and ensure a level playing field. Consequently, we actively participate in the work of the IMO and shall contribute to do so in the future. I also think the experience from IMO´s handling of the new demands after September 11 is a promising one in terms of expedience of the process.

Even though IMO decided on a new timetable for phasing-out single-hull tankers after Erika, we accept that there is more to be done. The Norwegian Government supports the initiative by the European Union to speed up the phase-out of single hull tankers. We also firmly believe that this must be done through the IMO. It is also our view that the primary focus should be on the overall condition of the vessel. We therefore emphasize increased inspection and control of ships. It is important that the phase-out of single-hull tankers is carried out in a way that ensures sufficient oil supplies to the world market.

We should not overestimate the effects of replacing single-hulled tankers. Even modern constructions can quickly fall to a low standard of safety due to poor maintenance. We all know that some flag states neglect their responsibilities. That is why we welcome the IMO initiatives to focus on flag state implementation by introducing a flag-state auditing scheme. The development of more effective port state control systems is another important means to ensure high standards. Classification societies, insurance agencies and the cargo owners are all responsible for screening and rejecting sub-standard vessels.

In my opinion the most important lesson learned from Prestige is the need to focus on issues relating to places of refuge. Whatever requirements we put in place on safety standards for ships, equipment as well as crew training, accidents will occur. All coastal states may at some point receive a request for a place of refuge from a ship in distress. Nobody wants a polluted coastline but denying a ship a place of refuge does not necessarily solve the problem.

Norway is now revising and mapping places of refuge by using the expertise of pilots and local knowledge. There will be prepared places of refuge along the entire Norwegian coast. We are also revising our procedures and co-operation systems between local counties and the Norwegian Costal Directorate. These have been set up to maintain a clear chain of command and responsibility.

IMO is currently developing guidelines concerning places of refuge. We hope that this will assist governments in providing places of refuge and improve the decision-making process.

Both the Erika and the Prestige disasters have demonstrated the need to look into liability and compensation for oil spills. It is our view that the main problem is that the compensatory limits of the already established Civil Liability Convention and Fund convention have not been high enough to compensate the victims. From the 1 ^st> of November this year a 50 percent increase of the limits of the CLC and Fund convention comes into force. We are also very pleased with the outcome of the recent IMO Diplomatic Conference establishing a Supplementary Fund increasing available funds for compensating oil spill pollution to more than 1 billion US dollars. This is an excellent example of what can be achieved through the IMO in a very short time.

In view of new challenges to world trade, it is important to maintain shipping as a competitive mode of transportation. Increased safety and security will be key factors in increasing the shipping industry´s competitive position. We must ensure that all players follow the rules. This is part of our campaign for quality shipping. But still, we have to accept that even if all those involved reach a high quality level, accidents may still occur. We must make sure that we are prepared when accidents do happen.

Thank you for your attention.