9 Dec 2011

Personal goods aboard Rena exempt from security charge

6:03 am on 9 December 2011

Salvors removing containers from the grounded ship Rena say personal belongings like household furniture and appliances will not be used as security to ensure payment for salvage work.

Some people were concerned they may have to pay 80% of the value of their goods to have them returned.

Salvage company Svitzer says it is standard practice to use cargo as security to ensure it receives payment.

It says salvors usually ask insurers of stricken ships and their cargo for a guarantee over a percentage of the property on board.

Svitzer says a letter about that was sent to everyone with property on the Rena as a matter of procedure, including the owners of personal belongings.

However, it says it was never going to use personal items as security.

The company says nine containers hold such property that has not been lost or destroyed and those items will be returned to owners regardless of whether they are insured.