Judicial review upholds Director's decision

The High Court has upheld the decision by the Director of Maritime New Zealand (the Director) to withdraw approval for a Nelson company to operate within the Safe Ship Management (SSM) system.

Under the SSM system, all domestic commercial vessels must be routinely inspected by SSM companies approved by Maritime New Zealand (MNZ) to ensure that the vessel, its equipment and safety systems meet the necessary maritime safety standards.

In November 2009, the Director withdrew approval for Survey Nelson Limited (SNL) to operate as an SSM company, following ongoing concerns over the company’s application of safety standards.

SNL sought a judicial review of this decision and in November 2009 it was granted an interim order allowing the company to continue operating until the review was heard.

Following that review, in a decision released last week, Justice Simon France upheld the Director’s decision, saying that SNL had been treated with “considerable fairness” – also noting it had been given ample opportunity to address concerns raised by MNZ prior to the approval being withdrawn.

This decision confirms that SNL can no longer operate as an SSM company.

The Director, Catherine Taylor, said the decision to withdraw SNL's approval to operate as an SSM company had not been made lightly, but was in the best interests of maritime safety.

“SSM companies stand in the shoes of the Director. It is through these companies that MNZ regulates the safety of domestic commercial shipping operators and it is vital we can trust them to do their job properly.”

Ms Taylor said prior to her decision, MNZ had worked with the company for 12 months to help it meet its obligations under SSM. However, SNL was unable to demonstrate it was capable of reaching the high safety standards required by MNZ.

“I am pleased my decision has been upheld. This course of action was made on the basis of public safety and the judge’s decision reflects that.”

Ms Taylor said MNZ had been closely monitoring vessels under SNL’s supervision over the past 12 months to ensure they met the required safety standards. It was now in the process of contacting all 609 affected vessel owners to ensure that any vessels not recently checked by MNZ meet the required standards, through a robust programme of inspections over the next 6 months.