Industry anger as Iceland fishing fees bill goes through

SFS says the claim by some politicians that the large increase will have no impact on companies was false and argues that it is already starting to have a negative effect.

The bill was passed in the Althing on Monday after the longest debate in the parliament’s history. It will result in much higher fees for fishing companies.

For farmed salmon and trout, the levy has almost doubled.

SFS said it was difficult to see why the government is so focused on harming hundreds of fishing companies, large and small, and thereby the welfare of thousands who base their livelihoods to a greater or lesser extent on fishing.

The organisation said: “There is no reasonable or economic justification for this. Our future prosperity and well-being depend on growing exports, including from the fishing industry. The proposed increase will, unfortunately, significantly reduce the competitiveness of the Icelandic fishing industry.

“It is anticipated that it will also greatly increase the likelihood that Icelandic fish will increasingly be exported unprocessed… when the state takes a much larger share of companies’ profits, it will naturally reduce investments in equipment, technology and innovation. Therefore, everyone will lose out due to an ill-considered increase.”

SFS added: “The fishing industry does not shy away from paying normal taxes and fees. But when the policy is to take more than 70% of fishing profits due to higher fishing fees, in addition to other fees, it is inevitable that something will have to be given up.

“For companies in foreign competition, passing on cost increases at home to the price of products is not an option. A number of companies in the fishing industry are therefore facing difficult decisions in the coming months.

“It is hoped that the governments that set the rules of the game will understand the pain they may cause.”