Government’s Ideas for Fishing Quota Lapse Criticized Skip to content

Government’s Ideas for Fishing Quota Lapse Criticized

Ideas by the government parties, the Social Democrats and the Left-Greens, on an annual five percent lapse on fishing allowances in an effort to reorganize the quota system, have come under fire among companies involved in the fishing industry.

Fishing in Iceland. Copyright: Icelandic Photo Agency.

“The country’s fishing companies would suffer payment difficulties and insolvency in a matter of years,” argued Sigurgeir Brynjar Kristgeirsson, managing director of Vinnslustödin in the Westman Islands, in an article published in Fiskifréttir, the fishing supplement of Vidskiptabladid business weekly.

“The entire debt of the fishing industry, ISK 400 to 500 billion [USD 3.3 to 4.1 billion, EUR 2.4 to 3.0 billion], would fall on the banks because the fishing industry would be unable to pay off their debt. At the same time the country’s recently reconstructed banking system would go bankrupt and the debt of the fishing industry would fall on the nation,” Kristgeirsson predicted.

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