Deferment of rental among possible measures to help businesses impacted by oil spill
SINGAPORE – Businesses affected by Singapore’s worst oil spill in over a decade may soon be able to get more help to cope with the financial impact.
- by autobot
- July 2, 2024
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SINGAPORE – Businesses affected by Singapore’s worst oil spill in over a decade may soon be able to get more help to cope with the financial impact. Government agencies are developing measures such as rental deferral to help businesses with their cash flow, on a case-by-case basis, Minister for Sustainability and the Environment Grace Fu said in Parliament on July 2. Ms Fu, Minister for National Development Desmond Lee and Minister for Transport Chee Hong Tat gave ministerial statements in response to 40 parliamentary questions filed on the oil spill, addressing issues such as the immediate response to the incident, cleanup operations, impact on biodiversity as well as food and water safety. Ms Fu, who is also Minister-in-charge of Trade Relations, said: “We understand the frustration and inconvenience that businesses have experienced due to the oil spill. “That is why Sentosa Development Corporation (SDC), which manages Sentosa and businesses on the Southern Islands, and other agencies such as NParks (National Parks Board) that collectively manage the beachfront along East Coast Park have been proactively reaching out to their tenants.” Ms Fu said the economic losses can also be assessed for insurance claims. British Marine, insurer of Marine Honour, the boat that leaked oil into the sea, has set up a contact to receive . The Straits Times previously reported that waterfront businesses after the oil spill on June 14 affected Singapore’s beaches. Vessel charter companies have also taken a beating. In response to a question by the Progress Singapore Party’s Non-Constituency MP Hazel Poa on whether the Government will provide additional help such as compensation or bridging loans, Ms Fu encouraged businesses that have been affected to start compiling their numbers to form the basis of their claims. Different businesses are affected to a different extent. Some are completely unable to operate because they offer sea-based activities, while others are operating on the back shore of the beaches and business has recovered to pre-spill levels, said Ms Fu. “I think we cannot take a standard approach for the businesses, and government agencies will be very prepared to listen to the plight of businesses and see how we can best help them,” she added. Ms Fu said NParks or SDC would have already reached out to tenants under them. “If you belong to a category that’s affected and doesn’t have a very strong land-based business on the affected beaches, I would suggest that you get in touch with SDC or Singapore Tourism Board so we can look at your cases individually,” she said. While the oil spill is not Singapore’s largest, it is considered quite serious, said Mr Chee. He added that it is too early to assess the cost of the cleanup, given that it has just progressed to its second phase. “After the operations are over, we will tally up the total cost of the cleanup, and we will submit these claims to the insurer of the bunker vessel,” he said. The Maritime and Port Authority of Singapore (MPA) and its contractors could not spot large oil patches in the sea in the first few hours after the spill because of bad weather. This was why oil skimmers to recover spilt oil from the water’s surface could be deployed only the morning after, Mr Chee said in his ministerial statement, addressing questions on the timeline of the response to the spill. As at June 30, more than 1,200 tonnes of oil-soaked sand and debris have been collected, said Ms Fu. The bulk of oil-soaked sand has been removed and sent to toxic waste treatment facilities for safe treatment and disposal. Booms have also been deployed to prevent oil from being washed ashore or into inland canals, she added. With oil slicks removed, affected areas have entered the second phase of the cleanup. This stage focuses on difficult-to-clean areas such as rock bunds and breakwaters, as well as oil trapped deeper in the sand. “The cleaning methods for the second phase have been decided jointly between the oil spill consultants and the cleaning contractors. These methods may be refined along the way as the shoreline of each affected area may be different. For ecologically sensitive locations, NParks is consulted on the methods to be deployed,” Ms Fu said. In the final phase of the cleanup, tar balls – small blobs of coagulated oil mixed in sand – will have to be removed from the beaches. Volunteers could be deployed after assessing that it is safe to do so, to relieve the cleaners and accelerate the reopening of the beaches. The Public Hygiene Council will help to train, equip and coordinate with volunteers. “This would be a safe and meaningful way for Singaporeans to contribute to the reopening of our beaches,” Ms Fu said. While the cleanup is expected to take around three months, Ms Fu said this timeline will vary for each area, depending on the extent it is affected. as cleanup efforts continue, while the cordoned-off areas of the beaches on Sentosa and at East Coast Park and the Southern Islands will progressively open for land-based activities. The washing of berths at Pasir Panjang Terminal is about 20 per cent done, with the work estimated to be completed by end-July. Port operations are not affected. Ms Fu said the air quality at the affected beaches in places like East Coast Park, Sentosa and Labrador Nature Reserve has been within safe levels. To date, the nation’s fish farms remain The Singapore Food Agency has been taking seafood samples from coastal fish farms in the East Johor Strait for food safety tests as a precautionary measure. There has been no impact on the Republic’s water supply. Oil slicks were spotted at sensitive habitats in Labrador Nature Reserve, on Sentosa and parts of the Southern Islands in the week after the incident. While no significant impact on marine biodiversity and wildlife has been seen so far, the authorities are keeping a close watch on longer-term implications, which may show up only weeks or months later, said Mr Lee.