STRASBOURG, France (Reuters) - Distressed ships must be guided to sanctuary by a specially-appointed authority, European Union lawmakers have agreed, seeking to avoid a repeat of a 1999 oil tanker disaster that caused widespread damage off France.

The European Parliament's vote ended a years-long stand-off over the "Erika III" package of laws, which also bolstered regimes for blacklisting unsafe vessels, investigating accidents at sea and compensating passengers caught up in them.

Port authorities often aggravate maritime emergencies by refusing sanctuary to crippled ships, fearing they might leak fuel oil and damage local fishing and tourism earnings.

But lawmakers sought to avoid that conflict of interest by forcing EU member states to appoint a permanent independent body for handling disasters at sea. They also demanded fairer treatment for seafarers, sometimes imprisoned after disasters.

The EU moved to tighten maritime safety after the rusting oil tanker Erika broke apart in heavy seas off the coast of France in 1999, spilling 20,000 tonnes of toxic fuel oil into the sea and decimating local fishing.

But EU member states and the powerful shipping industry have fought hard against tougher laws.

Slow progress was highlighted three years later when the Prestige, carrying 77,000 tonnes of fuel oil, sank off Spain's Galician coast, six days after running into trouble.

"The Prestige showed the system wasn't sufficient," said Belgian liberal politician Dirk Sterckx who guided the legislation through parliament. "The political authorities didn't listen to the views of the specialists. They lost time. They didn't have the equipment ready."

He told Reuters the new system had been modelled on that of Britain, which appointed a powerful authority after suffering huge oil spills from the Sea Empress in Wales in 1996 and the Braer off Scotland's Shetland Islands in 1993.

Substandard ships visiting EU ports and anchorages can be permanently blacklisted for repeatedly breaking EU safety rules, and EU countries must harmonise the inspection of ships flying their national flags.

The legislation also regulates cruise ships and ferries.

Cruise ship operators will have to pay compensation of up to 460,000 euros ($586,700) for passengers injured or killed in disasters caused by negligence. By 2018 the laws will cover the smaller ferries typically used between Mediterranean islands.

All six proposals were approved with over 600 votes in favour and less than 20 against.