MercoPress. South Atlantic News Agency

Long term fishing rights for Falklands companies

Falkland Islands fishing companies could soon have the right to fish in Falklands waters for an extended period, if the new Fishing Policy is approved.

Following concerns expressed that the Falkland Islands Government (FIG) could be parting with a valuable resource, Penguin News asked the Councillor responsible for fisheries to explain the current and possible situations regarding fishing rights.

Councillor Cockwell said at present fishing companies obtain licenses on a short term basis with no guarantee that they will be able to renew when their licence runs out.

"This situation gives the company no security and thus they are not able to invest in long term projects and, to a certain extent, it also makes it hard to raise the capital to purchase new and more economic vessels. Further, from the FIG point of view it has become difficult to expand the income gained from the fishery through licensing."

The proposed new Bill (if passed) will give companies the right to fish the resource for a period of twenty-five years. These rights would be referred to as Individual

Councillor Cockwell continued, "The companies will still have to pay an annual fee to fish the resource (similar to the present license system) and the amount of effort will still be calculated annually by the Director of Fisheries as will the license fee. FIG will still retain the power to close a fishery for conservation reasons. It is intended that a successful company would be able to negotiate an extension of their ITQ before the twenty-five years expire."

Councillor Cockwell said the companies will gain the security of a long term fishery, "...which will hopefully enable them to invest in long term projects to the benefit of both themselves and the Falklands.

"Obvious examples are onshore-freezer storage, containerisation and on-shore value added processing, but extended marketing contracts and other marketing schemes would also be feasible.

"The fishing companies would also be able to trade in the property rights so that efficient and go-ahead businesses could expand by purchasing other companies ITQs (providing that there is a willing seller)."

The ITQs would only be owned by Falklands-registered companies which in turn are owned by people with Falkland Islands Status and who are normally resident in the Falklands.

A benefit to the Falklands other than that of increased commercial activity, says Councillor Cockwell, is that by "encouraging Falkland Island fishing companies to develop their industry", income from taxation should increase.

He added, "The process of producing this Bill has been very complex and time consuming but hopefully it will be agreed by ExCo that it can be published and referred to Legislative Council soon." (PN)