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Historical archive

More wealth creation desired from the aquaculture industry

Historical archive

Published under: Stoltenberg's 2nd Government

Publisher Ministry of Fisheries and Coastal Affairs

The Ministry of Fisheries and Coastal Affairs proposes to change the rules of ownership control of the aquaculture industry. There will be more distinct requirements to ensure that the largest companies continue to contribute to growth and activity in coastal areas, and companies will be allowed to own more than 25% of production capacity in the salmon farming industry.

The Ministry of Fisheries and Coastal Affairs proposes to change the rules of ownership control of the aquaculture industry. There will be more distinct requirements to ensure that the largest companies continue to contribute to growth and activity in coastal areas, and companies will be allowed to own more than 25% of production capacity in the salmon farming industry.

In July the Ministry of Fisheries and Coastal Affairs received letter of formal notice from the EFTA Surveillance Authority, who holds that the Norwegian rules on ownership control of production capacity in the salmon and trout farming are contrary to EEA rules. The letter was answered on 11 October.

“We maintain our view of aquaculture in relation to the EEA Agreement, and have been in dialogue with ESA during the autumn. The government has nevertheless decided that we will take the initiative to change the rules, as we recognize that we can ensure stronger growth in outlying regions through clearer requirements toward the companies,” says Minister of Fisheries and Coastal Affairs, Lisbeth Berg-Hansen.

“The government is concerned with maintaining diversity in ownership of the aquaculture industry. We need both small and large companies. These proposals do not affect the small companies, but the greater the part of common resources a company takes advantage of, the more it should return to the coastal districts,” Berg-Hansen says.

In a short time the Ministry will circulate proposed amendments to the Aquaculture Act for consultation to obtain authority to amend the ownership control regulations.

The proposed revised ownership control regulations will emphasize clear and predictable terms and conditions, based on the following elements:

Draft of possible future scheme

Share of total MAB

Terms and conditions

  15-20%

  20-25%

  25-30%

  30-35%

  35-40%

  >40% under certain   conditions

Average amount of processing over 5 years in Norwegian coastal districts

  25%

  30%

  36%

  38%

  40%

Progressively stricter terms and conditions

Research and development – average investment over 5 years

  30 mill NOK

  50 mill       NOK

  70 mill       NOK

  80 mill       NOK

  100 mill     NOK

Progressively stricter terms and conditions

Minimum amount of available apprenticeships/trainees in Norwegian coastal districts

  20

  30

  50

  60

  70

Progressively stricter terms and conditions

Providing activity centres in each region the company has aquaculture activity

  Equal terms regardless of share of total MAB: activity centres in each region