---

UK-based Swire Shipping has announced that it has reached an agreement with Queensland Premier Anna Bligh to make a payment of $A25 million ($21 million) as a compensation payment for a 270-tonne bunker spill off Australia's Moreton Island [pictured] earlier this year.

In a statement, the company said "Swire Shipping offered to make a payment substantially above the $14.5 million limit of liability that applies to the Pacific Adventurer oil spill, and in addition to the $2 million it has already spent itself in assisting the clean up."

"The Queensland and Federal governments have accepted that a substantial donation from Swire Shipping to a specially established Marine Protection and Safety Trust will resolve issues arising from the accidental oil spill from the Pacific Adventurer during Cyclone Hamish earlier this year," Swire Shipping added.

The company said the donation was part of an arrangement that will ensure that all valid private claimants will be given full priority for compensation from a court administered limitation fund also constituted by Swire Shipping.

The arrangement includes administrative assistance with processing valid claims as rapidly as possible.

Swire Shipping will contribute a total of $25 million to the Trust and limitation fund. This is in addition to the $2 million it has made to the clean-up and compares with the company's legal obligation of between approximately $14.5 million and $17.5 million under Australia's Limitation of Liability for Maritime Claims Act. The Act places a limit on shipowners' liability for a fuel oil spill.

Chairman and Chief Executive Officer of Swire in Australia, Mr. Bill Rothery said Swire was very pleased that the arrangement will see private interests with valid compensation claims paid quickly and in full.

"It has always been our aim to ensure that small businesses with valid claims are fully compensated. We are also concerned that the safety of the fishing industry is maintained," Mr Rothery said.

"We very much regret the accident, caused by Cyclone Hamish, which resulted in the oil spill - and also the effect of the spill on the Queensland coastal environment and the people of Queensland."