Australia Oil Spill ‘Tragedy’ for Sunshine Coast

By Candice Zachariahs

March 14 (Bloomberg) -- The Australian state of Queensland will “pull out all stops” to restore tourist traffic before the Easter holidays to areas including its Sunshine Coast tainted by an oil spill “substantially” larger than estimated.

Queensland Premier Anna Bligh declared parts of the Sunshine Coast, Moreton Island and Bribie Island disaster zones after a container ship leaked fuel oil in a storm, threatening populations of turtles, pelicans and other wildlife. The slick has contaminated about 60 kilometers (37 miles) of beach and mangroves, the Australian newspaper reported today.

“Preparations are ongoing to restore all beach areas as soon as possible, but there is no denying that this is a tragedy for the affected regions,” Tourism Minister Desley Boyle said. Tourism Queensland has begun work on a marketing campaign before the “crucial Easter holiday period,” she said today in a statement.

Tourism employs 103,000 people and contributes more than A$8 billion ($5.3 billion) to Queensland’s economy, according to data on the Tourism Queensland Web site. The state also produces commodities including coal, copper and zinc, and agricultural products such as sugar and cotton.

Swire Shipping, operator of the MV Pacific Adventurer said yesterday the vessel discharged “substantially more” heavy fuel oil than previously estimated.

230 Tons

Queensland’s Deputy Premier Paul Lucas said today the spill was about 230 tons, according to the Australian Broadcasting Corp. Initial estimates were that some 20 metric tons of heavy fuel oil had leaked from the vessel. Moreton Island -- about 40 kilometers off Brisbane -- is the worst affected spot, ABC said.

The accident occurred when 31 containers carrying ammonium nitrate washed overboard in rough seas whipped up by Tropical Cyclone Hamish, piercing the hull of the Pacific Adventurer.

More than 100 rescue workers have been deployed to help repair the damage north of the state capital, Brisbane, and more are on standby, the Queensland state government said.

Seventeen oiled birds have been recovered and a comprehensive oiled wildlife response plan is in place, Maritime Safety Queensland said.

Selected Sunshine Coast beaches will be closed for at least the next 24 hours, while four-wheel-drive access to Moreton Island will be closed until March 16, Boyle said. Beaches on the ocean side of Moreton Island and Ocean Beach on Bribie Island are closed to campers and vehicles till further notice, she said.

Election Issue

The oil spill may become an election issue for Premier Bligh, who is seeking a fifth straight term in office at polls March 21. Opposition leader Lawrence Springborg yesterday accused Bligh of not acting on warnings and then lying about the extent of the disaster, according to The Australian newspaper.

The global financial crisis has already wiped A$8 billion from state revenue, making likely a A$1.57 billion cash deficit in the year ending June 30, Treasurer Andrew Fraser said Feb. 20, given the Bligh government’s commitment to A$17 billion in infrastructure spending.

Standard & Poor’s cut Queensland state debt rating on Feb. 20 citing its large spending program and a “significant decline” in operating revenue.

The opposition Liberal National Party leads Bligh’s Labor Party with 51 percent of support, showed a Newspoll survey of 850 people published in the Australian newspaper on March 10.

To contact the reporters on this story: To contact the reporter on this story: Candice Zachariahs in Sydney at czachariahs2@bloomberg.net