Obama calls on BP to create compensation fund

The US president yesterday used a televised speech from the Oval Office to throw his weight behind the idea, as BP’s CEO, Tony Hayward, prepared to face allegations the firm took shortcuts with safety.

Added to the fines of $4,300 per barrel of spilt oil under environmental law, the independently controlled fund, first suggested by US senators earlier this week, could increase the company’s bill from the US government to $34bn.

‘I will meet the chairman of BP and inform him that he is to set aside whatever resources are required to compensate the workers and business owners who have been harmed as a result of his company’s recklessness,’ said Obama.

A statement from BP said: ‘BP notes the comments made by president Obama last night. It confirms that the company will be meeting with the president this morning, US Eastern Standard Time, to discuss his proposal for arrangements to ensure that all legitimate claims in respect in the Gulf of Mexico oil spill are paid out in a fair and timely manner.’