(1)

If:

(a) the Secretary gives:
(i) a control direction to a regulated foreign ship (see Division 3 of Part 5); or
(ii) a ship enforcement order to a regulated Australian ship (see Division 4 of Part 11); and
(b) the ship is delayed because the ship complies with the direction or order; and
(c) the delay is unreasonable in the circumstances;

the Commonwealth is liable to pay compensation of a reasonable amount to the ship operator for the ship in respect of the delay.

(2)

If the Commonwealth and the ship operator do not agree on the amount of the compensation, the ship operator may take proceedings in the Federal Court for the recovery from the Commonwealth of such reasonable amount of compensation as the Court determines.

(3)

Compensation is payable out of money appropriated by the Parliament.