Decision ID: 000746

In April 1997 the 1971 Fund Executive Committee considered a claim by a nationwide organisation offering a very basic standard of low price hostel accommodation for loss of income by eight hostels in the county affected by the oil spill due to a reduction in the number of overnight stays. The Committee took the view that the eight hostels satisfied the criterion of geographic proximity since they were located on or very near to the affected coast, that they were economically dependent on the affected resource and formed an integral part of the economic activity within the affected area. The Committee decided that the losses should be considered as damage caused by contamination and that the claim was admissible in principle, provided that account was taken, when assessing the quantum of the loss, of any increase in occupancy in the other 37 hostels in Wales as a result of people not staying at those in the affected area.