MercoPress. South Atlantic News Agency

Falklands' fisheries dispute and Vigo's industry stance

Spanish fishing companies operating in the South Atlantic and with direct or indirect interests on both fisheries, --Argentina and the Falkland Islands-- are bound to suffer strong financial losses according to Vigoemrpesa.com, an internet information agency linked to the Galicia fishing industry.

Under the title of "Problems in Malvinas", Vigoempresas points out that companies such as Pescapuerta, Pereira, Pescanova, Freiremar and Chymar, among others will have to choose between operating in Malvinas rich Loligo and Illex squid fisheries, or continue extracting shrimp and hake, and also squid in Argentina's rich fisheries.

This follows the Argentine Fisheries Federal Council recent change of policy and the Senate approval of legislation reviewing the Argentine Federal Fisheries Bill which now must be considered by the Lower House.

According to the bill any company with fishing interests, direct or indirect, in the Falkland Islands will be forced to cease activities in Argentina.

Buenos Aires strong stance is in response to the Falkland Islands' elected government decision to award long term fishing licenses, 25 years, as of last July first, thus putting an end to the annual awards.

According to Vigoempresas this also helps to understand why in a recent Fisheries ministers gathering in Baiona organized by the Spanish cluster of Mixed fishing companies, a Falkland Islands delegation was present but "no Argentine representative".

Vigoempresas points out that almost forty foreign companies operate in the Falklands (Spain, South Korea, Japan, Taiwan and other countries), but only those from Spain "have significant interests in Argentina".

"For Pescanova the decision is clear since activities in Argentina are far more important, while those in Malvinas are minimal given the company's turnover".

However for some of the others the situation is far more complicated and companies such as Pescapuerta and Armadora Pereira will finally opt to leave Malvinas instead of abandoning Argentina. Some of the smaller companies, and with a lesser presence in Argentina, "will remain in the Falkland".

Anyhow, practically in all cases, "economic losses for these Vigo companies that have been operating in Malvinas for years, financial losses will be plentiful".

"Obviously there are alternatives, but they are dangerous and will be most irritating for the Argentine government which will not hesitate on adopting reprisals", is the enigmatic conclusion of the article.

Not so enigmatic but surprising is the Vigoempresas description of the "inhospitable Islands", swept by polar winds and inhabited by 3.000 residents called "kelpers" and taken as settlers to the Islands from "other British territories".

"Until 1987 these settlers lived from sheep farming and Her Majesty government's subsidies, but all changed when the 200 miles economic exclusion zone was imposed in 1987 and the local government begun extending fishing licenses to joint companies made up of locals and foreign companies".

Squid catches range quite a bit from season to season but average "50.000 tons annually" Another profitable match is hoki.

Finally, "many of the sheep farmers have become millionaires by simply figuring as partners in the joint companies while the Falklands' government revenue from the sale of fishing licenses is on average 50 million US dollars spent in public health, education, social services, with an abundant surplus invested in an overseas fund".

"A buoyant current economic situation, which much has to do with the Vigo fishing industry".