Offshore drilling and their subsequent unavoidable oil spills have continuously been a topic of much controversy and debate. Often times though, we do not raise the question of who exactly holds responsibility of paying the multi-billion dollar cleanup. The answer comes in the form of you and I, the Canadian taxpayer. The Canadian government having decided to maintain our current system of liability needs to adopt the polluter pays principle. Currently, the company responsible has to pay damages of up to $40 million of absolute liability (despite who’s fault/negligence). The rest is up to Canadian taxpayers or the company (dependent on blame). Recent Gulf of Mexico spill in 2010 alone raised $40 billion in damages. Now this pulls into question the existence of public insurance. Does this not create a dangerous dependency on oil drilling companies for them to simply be less prudent in their drilling activities? One option would include raising the strict liability cap but this would discourage competition from smaller independent firms. Another idea proposes that a rainy day fund (collectively built from oil taxes) will provide incentives for oil companies to eliminate more hazards yet not drain the public’s pockets. Though part of Canadian law, the polluter pays principle is not included in current offshore drilling regulations. In moving forward to Arctic territory, the risk is too great to not let the industry hold complete responsibility for drilling activity.  Not only does this make more sense financially but ethically, the government should stop insuring those guilty of future oil spills through public taxation thus relieving firms of any complacency.

References from: http://www.huffingtonpost.ca/bud-sambasivam/canadians-pay-oil-spill_b_1869416.html?utm_hp_ref=canada-business&ir=Canada%20Business