Norwegian Fisheries policy – with main focus on the promotion of sustainability

Lecture by the Norwegian Minister of Fisheries and Coastal Affairs Svein Ludvigsen, at the University of Washington, Seattle, October 20th 2004

Before I start, allow me to say, that it is a special pleasure to be here in the University of Washington. There are very strong, and close, links between this university and the Institute of Marine Research Norway, which lies under my responsibility.

The valuable links, and activities you conduct together, bring both our nations forward. Seattle as such, is one of the most important areas where we conduct our international research and development (R&D) cooperation.

The fishing industry is the backbone of coastal Norway. And here are some facts and figures to stress this picture. Norway has 6 times as large “blue field” as inland all together. This gives our country huge opportunities in the future – opportunities that we can’t even imagine today.

Norway ranks as number 10 of the worlds largest fishing nations, with a production of approximately 3.3 million tons. Of this 2.7 million tons are from the fishing sector – our wild catch. And we farm 507.000 tons of Atlantic salmon and 70.000 tons of trout.

A clear characteristic of the industry is its international orientation. Norway is exporting fish and fish products with a value exceeding 3.5 billion USD. 40% of the total export value or 1.4 billion USD arrives from our high value farmed salmon and trout.

Norway export to over 150 countries. This makes us the 3 ^rd> largest export nation.

More than 95 % of our production is exported. Without any export, every Norwegian would have had to eat 800 kilos of fish per year, or close to 2.5 kilos per day.

The trade in seafood is our second largest export industry after oil and gas.

The Government has put priority to our marine sector. Our vision is to develop an efficient, competitive, sustainable sector attracting a competent workforce. We expect the sector to contribute substantially to our economy in a 10 to 20 years perspective.

The vision is reflected in the Ministry’s strategy for the sector including;

• traditional fishing,
• ocean ranging,
• food processing industry
• suppliers, as well as
• new industries based on bio-prospecting and biotechnology.

The vision is reflected in the Ministry’s strategy for the sector including;

• traditional fishing,
• ocean ranging,
• food processing industry
• suppliers, as well as
• new industries based on bio-prospecting and biotechnology.

We firmly believe that research will be the main tool to further develop our marine sector. As a matter of fact, I as a minister spend around 70% of my marine budget on R&D issues.

Our firm belief in a further growth in the marine sector has to do with a number of issues:

• We predict a substantial future market pull based on the global need for marine food proteins
• We can provide good conditions for both fishing and fish farming.
• FAO predicts that global aquaculture production will increase from 40 million tons today, up to 70 million tons in the year 2020

So if we maintain our relative market share, this gives room for a substantial growth.

Furthermore we know that bio-analysts predict that a very high proportion (70-80%) of the global industrial economy will contain biotechnology. We consider blue biotech, to be the area where Norway should focus. On my part, this sure fascinates me on the number of new products emerging from marine raw materials.

The oceans are the most unexplored environments on earth. I’m convinced that it holds the key to substances to be utilized in medicine, and a large variety of products that we really can not imagine today. We can see them emerging as materials and biomaterials from marine substances used in satellites, cellular phones, TV screens, in pharmaceutical products, cosmetics and health food, just to mention a few.

During the last years, both Norwegian and international analyst have conducted a number of foresights, analysis and scenarios, indicating the potential economic growth and contribution from marine sector to the Norwegian economy.

The sector all in all accounts for approximately 35 billion Norwegian krone in 2000, and is estimated to contribute with 150-300 billion Norwegian krone in a 20 to 30 years perspective.

The question in my view, is not whether there is a large potential or not. There is a great potential!

Norway has a global marine comparative advantage. It is just a question of how we can tailor-make surroundings to harvest from these enormous values in the future.

In my view, we must therefore make and stimulate for:

• a dynamic innovation system, attractive to entrepreneurial enterprises
• an excellent and focused research community and not least
• attracting the best brains

An actual example that in reality, investigations of marine life have just begun is the international research project MAR-ECO.

Exploring life in the mid-Atlantic at various depths down to 4 km (2.5 miles), 60 scientists from 16 countries the US as a major on a two-month expedition summer 2004 have surfaced a wealth of new information and insights, stunning images and marine life specimens.

Several thought to be species never before known to science. August 5th, the highlights and preliminary results from the MAR-ECO expedition 2004 was made public. Norway participates with our newest research vessel, the “G.O.Sars ”.

We cannot, however, ever be content with what we have done, as there will always be new challenges ahead of us, new knowledge that has to be revealed.

The Norwegian management regime

Let me now turn to our management regime for marine living resources. Over the past 30 years the Norwegian fishing industry has developed from unregulated fishing to a thoroughly regulated industry subject to quotas and licensing systems. As most of our stocks are shared with other nations, there is both an international and domestic component to our decision-making process.

The Norwegian resource management rests on the principles of long-term sustainable harvesting. Based on the best scientific advise available, taking into account the principle of precautionary approach. The International Council for Exploration of the Sea (ICES) is the key institution for providing the scientific advice and quota recommendations. Before the negotiations between Norway and other states takes place, scientists from different countries have carried out research and studies.

These results are discussed in Working Groups within the ICES system. For many years Norway has given high priority to marine research. Our Institute of Marine Research is one of the largest research institutes in the world in this respect.

After ICES has given its quota recommendations (for some species in June and for others in October), the quota negotiations between Norway and other states take place. The most important of these negotiations are the ones between Norway and Russia on cod and other white fish species in the Barents Sea, and the negotiations between Norway and the European Commission on the white fish in the North Sea. These negotiations take place in the fall every year. During the negotiations, the Parties agree upon the Total Allowable Catch (TAC) for each fish stock, for the coming year. The Parties also agree upon how the TAC should be shared between them. When deciding the TAC, the Parties, in addition to biological sustainability, also take into account economic considerations as stable conditions for the industry and other socio-economic aspects. The Parties also discuss and agree upon other related issues, for instance surveillance and monitoring of the fisheries. It is probably no surprise to you, that these negotiations often are very difficult and demanding.

After the international negotiations are finalized, our domestic regulation process for the quota allocation begins. The Directorate of Fisheries first makes a proposal regarding how the Norwegian part of the TAC should be shared between various vessel groups, the vessels within each group, group and period quotas, and when to start and stop the fishing. These proposals then go to the “Advisory Board for Fisheries Regulations”, which review the proposals and give their recommendations to the Ministry of Fisheries.

This Advisory Board is our main tool to secure involvement and participation of the stakeholders. It involves altogether twelve participants from fishermens association, the fishing Industries, Food and Allied Worker’s Union, the Sami Parliament and the Director General of Fisheries. As a final step in this process, I as the Minister then decide how the quotas should be shared between the vessels, and how the fishing should be carried out the following year.

This consultation process may seem complicated. However, I believe that the cooperation between authorities and different stakeholders is essential, in order to establish a quota allocation system that has credibility both with the industry and in the community as a whole.

Ocean Governance

Let me know turn to an issue that currently is receiving a lot of attention internationally – The need for strengthened Ocean Governance.

The issues range from difficulties in enforcing good practice and fisheries management beyond the economic zones, IUU-fishing (Illegal, Unregulated and Unreported fishing). The treatment of deep seas resources, discrete stocks and protection of especially vulnerable ecosystems or habitats. I believe that these are some of the key issues, fisheries authorities worldwide have to deal with in the years to come.

Broadly speaking, I believe we have in our possession the necessary legal tools to address these challenges. The most important ones are the UN law of the Sea Convention (LOS), UN Fish Stocks agreement and the FAO Code of Conduct.

The main problem is not as much flaws in the current legal framework, but rather lack of political commitment and weak enforcement on the part of many states. This does however not rule out that there might be a need to consider some improvements in the legal framework.

UN- Fish stock agreement

As you might know, there is scheduled a revision conference for the UN Fish Stock Agreement in 2006. Norway hope for a strengthening of the Agreement, where we plan to focus especially on IUU-fishing (Illegal, Unregulated and Unreported fishing).

Protection of vulnerable areas and Marine Protected Areas (MPAs)

As you probably have noticed, the need for protection of vulnerable areas, like coral reefs and seamounts features high on the agenda of many international marine environmental processes.

In my belief it is important to protect sensitive areas and habitats from harmful effects of fisheries – particularly bottom trawling - both in waters within, and beyond national jurisdiction. In our own waters we have extended special protection to a number of coral reefs. Furthermore, it is generally prohibited to intentionally destroy coral reefs in Norwegian waters. For the high seas - in waters beyond national jurisdiction, I believe that Regional Fisheries Management Organizations are the key to the solution.

International conventions on fisheries are mostly concerned with specific stocks and have to a much lesser degree been involved in habitat and biodiversity protection. Generally, I believe that conventions could play a much more profound role in addressing these issues. In line with this, Norway has submitted a proposal to the annual meeting of Northeast Atlantic Fisheries Convention (NEAFC), in November this year, to close four particularly vulnerable areas in the regulatory area for all trawling activities. And we hope for the support of the other parties to the convention for this proposal. We also work with these issues at a global level. Norway could also support a UN-moratorium on bottom trawling - as a temporary measure, in areas not yet covered by a Regional Fisheries Management Organization - until such organizations or similar arrangement is established.

IUU-Fishing (Illegal, Unregulated and Unreported fishing)

The problem of fishing activity that is regarded as illegal is not new. We have recordings of Pirate fishing in Athenian waters, which triggered regional conflicts already in year 260 BC.

These days IUU-fishing still remains a huge problem, despite our efforts.

I believe the key word in the struggle to combat IUU fishing is international cooperation. Vessels engaged in IUU fishing move in and out of areas under jurisdiction of multiple States, and operate within areas of competence of several Regional Fisheries Management Organizations. Companies and individuals, typically have nationalities that differ from those of the vessels themselves and fish deriving from IUU activities are traded internationally. It is therefore absolutely necessary that agencies, international organizations and States establish ways for cooperation - both formal and informal.

In order to counteract IUU-fishing more attention needs to be paid to tracing and blacklisting the vessels participating, owners and crew of such vessels, and tracing of fish products deriving from IUU-fishing. Furthermore, minimum standards for port state measures should be developed.

Aquaculture - Norway’s history/current situation

In an international aquaculture context, Norway is small in terms of total geographical area and population and our history in fish farming is relatively short. But nevertheless, Norwegian fish farming has been a fairy tale.

Only thirty years has gone by, since a couple of Norwegians did their first attempts to farm salmon in a net cage in the sea. Today’s salmon industry started mostly out as secondary source of income for farmers situated along our coast. Today the Norwegian aquaculture has grown into a thriving modern industry, being the worlds largest producer of Atlantic salmon

For Norway this success is due to many factors. The most important ones are:

• A long and clean coastline
• Predictable and stable regulation regime
• Globally competitive expertise and innovative thinking

In the following I will present to you these important factors for our success:

Long and clean coastline

The national advantage with a long and clean coastline has given Norway excellent opportunities to develop the aquaculture sector. The coastline represents a large potential for marine production. This is an advantage that our two countries share.

Even though our coastal zone represents a great advantage, and an “ocean” of opportunities, they also give us some challenges.

The resent years we have experienced an increase in the number of user conflicts in the coastal zone. And I know that these issues are familiar problems to you as well. We must therefore develop the aquaculture industry side by side with other interests in the coastal zone.

We have also learnt that it is of great importance that both local authorities, fishing authorities and the different user groups - participate and acts responsible in the numerous coastal zone planning processes which takes place. The only way we can develop the aquaculture industry further, is to take matters like this seriously.For example: Escapes from fish farming cages into the sea have achieved a great deal of negative attention in Norway. To solve this problem we have recently introduced a technical standard for installations that are used in fish farming activities.

The purpose is to limit escapes from marine fish farms by ensuring an adequate technical standard of the installations.

Regulatory framework

The Ministry of Fisheries has always played an active role on the regulatory side.We see it as important to arrange for the aquaculture sector, so that the industry can operate under circumstances, which gives them at all times predictable and stable working conditions.

Side by side with the growth and progress within the industry, it has always been a goal to develop a suitable and appropriate regulatory framework.The Norwegian aquaculture industry is regulated both by law and administrative regulation. Our first regulation entered into force in 1973 and our current act came in 1985. We are now in the process of fully revising the law to make it a modern tool for administering the industry. The new aquaculture law will enter into force in 2006.

The principal objective in the legal framework for aquaculture states that the fish farming industry shall have a balanced and sustainable development, and be a profitable and viable regional industry.

In Norway you need a licence from the authorities to start fish and shellfish farming. To obtain this licence, the farmer must ensure that his or her fish farm will not pollute or disseminate fish diseases. Also, the installations cannot be in conflict with local interests. The licences are granted or rejected by the regional offices of the Directorate of Fisheries. This is coordinated with other government bodies such as the veterinary, environmental, harbour and port authorities.

To try to control the total production of salmon and trout, the Ministry of Fisheries has restricted the number of licences for fish farming. Today, we have 859 licences for salmon and trout. For other species, including shellfish, there are no limits regarding the number of licences. Most licences are given free of charge except for new licences for salmon and trout. These are subject for a $ 70.000 charge. All applications for new licences are also subject to a handling fee of $ 1700.

As I mentioned we are working on a new law. Our aim is to help improve the aquaculture industry. Environmental concerns are key factors in administrating the aquaculture sector, and the new system will safeguard this. In this way, environmental considerations will become an integrated part of the system of regulating the production in the future. The system will be set into force in 2005.

The last contribution within the broader term of aquaculture is the establishment of a new regulation within sea ranching, of shellfish, lobster and other species. The objective is to arrange for a whole new sector within aquaculture, which we believe, has the potential to grow substantially in the coming years. But as we are talking about regulations – I must emphasize the importance of promoting the industry rather than restraining it. The key role for the Government is to play the role as an organiser and a promoter. “Wealth creation” is our main objective.

Globally competitive expertise and innovative thinking

The last point, which has played an important role in the success of the Norwegian aqua culture, is the Norwegian tradition of openness and willingness to share information.

This goes to and from all key players within and outside the industry. In its first 30 years, the aquaculture industry in Norway has been recognised by innovative thinking and creativity. Both based on an exchange of expertise and on cooperation between actors in the industry, aquaculture organizations, research institutions and the public administration. Over the years we have generated a substantial expertise within many fields relevant for establishing and develop a sustainable aquaculture industry for the future.

Tremendous resources and a lot of effort put into research, has resulted in a lower mortality rate, more efficient breeding, faster growth and better vaccines. One example to pinpoint this even further is the dramatic reduction of use of antibiotics within our fish farming. Today the use is less than 0.5 % of what is was ten years ago. Vaccines have brought about great reductions in the use of antibiotics and other chemicals. Salmon and trout are the healthiest farmed animals in Norway!

Our Government has focused on making a policy oriented towards innovation- and research. A policy, which makes it possible to obtain the value added potential within the marine sector.

New market demands and food safety

Due to globalisation production and marketing of goods meets new demands. The change in power with respect to who sets the demands has been drastic over the past couple of decades. The power of the consumer is growing!

Strengthened consumer focus will therefore play a key role as a success factor for seafood production in the future.

An increasing number of consumers, are asking the following questions:

• Is it safe for me to eat this product?
• May I harm the environment by buying this product?
• And now, more and more customers are asking if this product is good for my health.
• If we take care of these consumer concerns, the potential for future aquaculture production is bright.

A fundamental element of the food policy is that the food shall be safe and that it shall be presented in a non-deceptive way. The products available have to conform to consumer preferences. These preferences can be linked to aspects of animal health, environmental issues, culture, religion or ethics and represent an important challenge for the producers of foods.

I can assure you that The Norwegian Industry recognizes this new trend, and that both the industry and authorities in Norway also in the future will seek to provide the consumer with the information they request.The authorities have to provide the consumers with correct information and to respond quickly when misleading information is spread in the marked.

Norway also believe that all seafood consuming and producing nations have common interests in providing balanced information to the consumer on health benefits from eating fish and seafood.

Seafood is an excellent source of some of the most health promoting nutrients we know. Eating seafood will:

• Reduce the cardio- vascular diseases, due to the Omega 3 fatty acids.
• Reduce obesity
• And some shellfish…like oyster will help men perform better…

But, most populations do not eat enough seafood. Instead, agricultural products dominate diets in the western world. This gross dietary imbalance is presumably the basis of many lifestyle diseases in the west. By including more seafood in our diets, we get a more balanced diet. As friends of seafood we must therefore join forces to focus on the overall health benefits of seafood.

Fish health and welfare

During the build-up of Norwegian aquaculture we had several outbreaks of diseases affecting the fish. Development of effective vaccines, veterinary regulations, and preventive husbandry such as fallowing and year-class stocking have reduced these problems to a minimum.

These measures have reduced the use of antibiotic dramatically. The use of antibiotics in Norwegian aquaculture is less than 10 % compared to agriculture production, even though we produce over twice as many kilos of salmon than red and white meat all together. Strict prescription and control measures by the competent authority ensure that there are no residues of veterinary drugs in Norwegian seafood. And, just to mention – In Norway GMO is illegal.

The strategy for control of fish diseases now focuses on preventive measures related to farming and transport of fish. This also includes continuous surveillance of health status and strict control measures when disease occurs. Both farmed and wild stocks are subject to regulations, as well as related activities that may pose a risk to the fish.

We are also concerned with the welfare of fish, both because animal welfare is an objective on its own, but also because a sustainable aquaculture production is closely related to good welfare conditions. Animal welfare is also an important issue for the consumers. Food has to be produced in a way acceptable to the consumers.

Healthy and tasty seafood:

Various questions related to food safety and health comes up regularly and the safety of our seafood is of major concern to Norway.

Independent research is the basis for presenting thorough and independent documentation. In Norway, The National Institute of Nutrition and Seafood Research, has run a surveillance scheme on contaminants in wild and farmed fish since 1994.

The information challenges we face today are enlarged by the fact that Internet makes information spread widely, within only a few hours. As an example, in January this year there was an incorrect article in the US magazine the Science, concluding that the consumption of farmed Atlantic salmon may pose health risks. This had a short-term impact on the consumers shopping for dinner, especially in Spain and in France.

Research institutes and food authorities in various countries were able to respond rapidly by presenting thorough and independent documentation, proving that the content of the article was misleading. Fish, farmed or wild, has its natural place in a well balanced diet to ensure safe and healthy food for us all.

I believe that all seafood producing nations along with importing nations have common interests in providing balanced information to the consumer on safety and health benefits from eating fish and seafood. When performing a risk assessment of all food it is of vital importance that this assessment is balanced, that is to take into account both risks and benefits related to consumption of the food.

On my initiative an international round table conference for politicians and policy-makers on consumer information concerning seafood as safe and healthy food was arranged in June this year. The meeting agreed upon the importance of scientifically based facts and figures when dealing with challenges of knowledge and information in the future. It was also agreed to establish a network across borders between relevant authorities and research institutions.

Furthermore, US authorities are arranging an international conference in Washington D.C. in 2006 on seafood with the aim to further advance public knowledge and understanding of the role seafood plays in human health. Norway strongly supports this initiative and are taking active part in the planning of the conference. I think that we have to work together, in order to increase the demand for safe, healthy and tasty seafood.

Research and development

Norway and the US have long and strong traditions in R&D co-operation. A number of Norwegian researchers have their PhD from the US, and many have been involved in US/Norwegian bilateral research.

In general Norwegian international R&D cooperation has increased strongly during the last years, mainly due to the European Framework program for research. This is positive. Even though the cooperation with the US is substantial, we haven’t seen the same growth as the one in Europe. We also see a quite dramatic decline in the number of students in North-America. We believe that it is of tremendous importance to stimulate mobility between our researchers across the Atlantics. Being aware of the importance of close links on a researcher to researcher basis, we are afraid that the reduction in mobility we have been witnessing, will result in a long-term negative trend in our bilateral cooperation.

The Norwegian government has decided to turn the trends. We have therefore just revised our strategy on research with the US. The strategy includes a focus on academic institutions, technology and R&D based industrial development. Norwegian industry has extensive contact with US academic institutions. This stimulates innovation and learning both in Norway and the US. I would believe that both within the marine field: the field of aquaculture as well as blue biotech, the synergies and gearing effect of cooperation, would be of substantial benefit to both our nations.The goal of our new strategy and accordingly actions will be towards, researcher, recruitment, R&D institutions and companies.

Naturally therefore, implementation of the strategy needs to be done in cooperation with these and based on their conditions and priorities not least for the reason of funding. The government’s role is primarily to facilitate this sort of activity.

As I mentioned at the beginning of my presentation, I spend a vast sum of my budget on R&D. I can assure you, that I also want to see a substantial part of this sum spent and conducted within the framework of international cooperation. We share waters and resources, and we are mutually interdependent.

The agreement between your NOAA and our Norwegian institute of Marine research (which is the biggest institute in North Europe with its 500 employees) is a good example in my view on how we can implement this international R&D-policy in a practical way. Likewise there are a number of agreements between US and Norwegian Universities. The good thing about these agreements are that they are market driven and bottom up and they are tailor-made to win-win situations for all parties involved.

I would like to conclude by stating that whatever we do, being on the farming or the fishing side, the focus on the consumer needs to be a key issue. We are always competing with other protein products for stomach space. Only through sound management and harvesting practises, will we be able to achieve the consumer’s confidence, and furthermore ensure that the consumer can enjoy delicacies from our clean waters and productive oceans in the unforeseeable future.