Steinar Ingi Matthiasson,
Adviser, Ministry of Fisheries, Reykjavik, Iceland

The waters around Iceland, fed by the warm Gulf Stream, offer exceptional conditions for fish stocks to thrive making Iceland's exclusive fishing zone of 758,000 km² some of the richest fishing grounds in the world.

Understanding the marine ecosystem is the foundation of sensible and sustainable harvesting of the resources. A key role has therefore been assigned to marine research in Iceland.

Various forms of fisheries restrictions have been applied and there has been an intensive political debate on different systems of management. In 1983 effort limitations which had been in force since 1973 had proved unsuccessful and the cod stock was in decline. In 1983 the Althing, Iceland's national parliament, decided to adopt a management system of transferable quotas (ITQs) for individual vessels based on each vessel's catch performance from 1981-1983. The first year of allotting ITQs was 1984. However, until 1990 there was an effort option in the system that made it difficult to limit total fish catches. The present comprehensive Fisheries Management system is still based on ITQs. The objectives are to promote the conservation and efficient utilisation of the marine resources and thus to ensure stable employment and economic viability of fishing communities. Based on on-going research, the fisheries management system is continually under revision and development.

In 2004 the fisheries management system became a uniform quota system. All fishing ships and boats were then issued a catch quota in accordance with their fishing permit. The merging of the days at sea system and the quota systems resulted in a comprehensive system that ensures that fishing is in accordance with the decision of the Minister of Fisheries and supports sustainable utilisation of the natural resource. The management has three pillars, the general individual transferable quota system (ITQ), secondly the small vessels ITQ, where there are restrictions on use of gear and selling of quota is limited to that part. Thirdly there are regional policy instruments, where a limited quantity of quotas are allocated to vessels in communities that are dependent on fisheries and have been adversely affected by national fluctuations or other shocks. In addition to the ITQ (individual transferable quota) system which, together with the TAC (total allowable catch) allocation, is the cornerstone of Iceland's fisheries management, there are a number of other measures that are integral to the overall management system.

THE PRESENT QUOTA SYSTEM

The total allowable catch (TAC) is set by the Minister of Fisheries and based on the recommendation from the Marine Research Institute (MRI) Fishing vessels are allocated a fixed quota share of the species subject to TAC. The combined quota share for all vessels amounts to 100% of each species. All commercial fishing activities are subject to these quotas. The quotas were initially allocated on the basis of catch history prior to the establishment of the quota system. The quota share is multiplied by the TAC to give the quantity which each vessel is authorized to catch of the species concerned during the fishing year in question. This is referred to as the vessel's catch quota. Permanent quota shares and annual catch quotas are divisible and transferable to other fishing vessels.

Individual fishing enterprises may not control more than the equivalent of 12 % of the value of the total quotas allocated for all species, and 12 to 35% for individual species.

FISHING FEE

All owners of vessels holding harvesting rights are required to pay a fishing fee. The amount of the fee for each fishing year is based on the earnings of the fishing sector as well as the allocation of the catch permit. Revenue from the fishing fee accrues to the State Treasury.

THRIVING FISHERIES SECTOR

Fishing has been an important activity in Iceland since the country was settled, and during the past century the development of fisheries has provided the basis for the country's progress and economic growth. Marine life and its utilisation have to a large extent created the quality of life that Icelanders enjoy today.

The fisheries sector in Iceland provides over 60 % of the earnings of exported goods, and up to 40 % of all exports. It does not receive subsidies, but is the mainstay of the national economy. The Icelandic fishing industry is quite competitive and has expanded its operations to other countries. It has a stake in the sustainable use of the marine resources and is a responsible participant in policymaking in ocean affairs.

ECONOMIC EFFICIENCY

Among the main advantage of the Icelandic fisheries management is its economic efficiency. The whole sector, including processing and marketing, benefits from the fact that the catch can be organised in line with the market and the available labour force. Fishing companies have chosen to invest in quotas. Quotas have been transferred to those who exploit them most efficiently. Trading in quotas for different species has encouraged firms to specialise. In mixed fisheries the transfer of quotas has allowed vessels to adjust their quota composition to the actual species composition of the year's catch.

EFFECTIVE MANAGEMENT AND CONTROL

Weighing and registration of landing of catches takes place in all the country's harbours. After the catch has been weighed it is registered in the information and control database of the Fisheries Directorate. The database keeps track of the catch position of the entire fleet of Icelandic fishing vessels and boats. After the information about the catch has been entered into the database it is accessible to everyone on the Net. This arrangement provides a great deal of transparency and ensures better control and inspection of the fishing and catch position of Icelandic boats and vessels.

The quota system has served reasonably well in keeping the catch within previously determined limits. The actual total catch is very transparent since, with minor exceptions, all catches are landed in Iceland and some 97 % of the total catch is exported.

FISHERY IN NORTH ATLANTIC: REALITY AND PROSPECTS