Smaller ships which spill engine oil will now be liable for clean-up costs after MPs passed a bill to include Bermuda under an international convention.

Previous rules didn't cover spills from engine bunker oil from any ships smaller than tankers but the new law will affect any ship over 1,000 gross tonnes.

The Merchant Shipping Amendment Act 2008 establishes a liability and compensation regime for oil spills.

It puts Bermuda under the auspices of the International Convention of Civil Liability for Bunker Oil Pollution Damage 2001 after Britain left the overseas territories out of it when it signed up two years ago.

Ship owners must have compulsory insurance cover issued by the flag state – and failure to show proof can make the master of the ship liable to a $5,000 fine.

And if the master or ship owner does not have insurance the fine can hit $10,000.

Introducing the legislation, Premier Ewart Brown said it would result in greater protection for Bermuda and its waters should a spill occur.

The Bill was welcomed by the Opposition but United Bermuda Party Environment spokesman Cole Simons said the penalties weren't sufficient.

He said: "We must send a message to our international communities that we take our environment seriously."

Mr. Simons said in Australian waters individual ship owners without a licence or certificate could be charged up to $275,000 while corporations could be liable for sanctions of up to $1.5 million.

The Premier said the ultimate sanction was not the fines but being removed from the shipping register. "That is something you really don't want to do, it doesn't allow for much flexibility with other registers when you are removed."

Opposition Legislation spokesman John Barritt wondered how the law would be policed.

He said tar washing up on Bermuda's beaches had long been associated with ships unleashing engine oil, often deliberately.

The bill will not only make ship owners liable for damage but also any preventative measures taken to reduce damage.