MercoPress. South Atlantic News Agency

Chile reviews fishing companies “incentive” policy.

A Punta Arenas company Concar involved in toothfish fishing is demanding Chilean authorities the payment of approximately 300,000 US dollars in industry promotion funds allegedly pending since November 2002.

The case was presented in the Magallanes Appeals Court and the defendants are local authorities, the Chilean Fisheries Department and the Chilean Treasury.

The canceling of the incentive funds contemplated in the industry promotion Navarino Bill apparently was decided in November 2002 because catches are processed on board the vessel and not in the company's Punta Arenas plant.

However Concar attorneys argue that the company is only demanding subsidies for toothfish since the vessels involved operate in the Chilean Economic Exclusive Zone next to Navarino Island.

"Vessels are out in the sea between 40 and 60 days and it's essential to process toothfish accordingly to ensure they arrive in the best conditions to port", added Guillermo Ibacache who presented the appeal.

Mr. Ibacache further argues that the compensation was made effective without any objections from 1996 until 2002, "and then suddenly authorities changed the criteria".

Punta Arenas mayor Jaime Jelincic defended the decision to cancel benefits arguing that the "necessary integration steps in the productive process are not fulfilled", as required by the Navarino promotion Bill.

Furthermore Mr. Jelincic anticipated that the situation of two other local fishing companies which have benefited will also be reviewed and if considered appropriate, "we could even demand reimbursements".