2. 2 Iceland Fact Finding trip - January 2007

3. 3

4. 4 Population: Landed Quantity: Landed Value: Ministry Budget: Population: Landed Quantity: Landed Value: Ministry Budget: Iceland307,000 1.3M Mt (2005 Icelandic grounds ) $ 1.1 Billion (2005 Icelandic grounds) $52 Million (2007) Marine Research Institute $19.9 M Cdn +Directorate of Fisheries $11.8 Cdn +Ministry of Fisheries $6.3 Icelandic Fisheries Lab $3.9 Plus Special revenues $9.7 Marine Research Institute $19.9 M Cdn +Directorate of Fisheries $11.8 Cdn +Ministry of Fisheries $6.3 Icelandic Fisheries Lab $3.9 Plus Special revenues $9.7 Canada33,000,000 1.1M Mt ( 2005) $ 2.1 Billion $ 550 Million Sustainable Fisheries and Aquaculture ( 2005-2006) ( 2005-2006) Comparison

5. 5 Comparison Cont’d Gov’t FTEs: Employment: Contribution to GDP : Export Value: Gov’t FTEs: Employment: Contribution to GDP : Export Value: Iceland278 (158 (Marine Institute)+96 (Directorate)+24 ( Ministry of Fisheries) 4,500 Fishers ( 2005) 6,500 Processing ( 2005) 8% (Commercial 2005) $2.1 billion ( 2006) Canada 10,000 ( includes Coast Guard etc) 21,000 Fishers ( 2000) 20,000 Processing ( 2000).33 % Commercial Fisheries Mari culture ( 2000).33 % Commercial Fisheries Mari culture ( 2000) $4.3 billion ( 2005)

6. 6  Quotas are the only option except for the small boats  Fishing vessels are allocated a fixed quota share of the species TAC  No sunset clause in the legislation indicating a degree of permanence of fishing rights  The law states that the fish stocks are the common property of the Icelandic nation  Transferability of quota shares  Quotas are the only option except for the small boats  Fishing vessels are allocated a fixed quota share of the species TAC  No sunset clause in the legislation indicating a degree of permanence of fishing rights  The law states that the fish stocks are the common property of the Icelandic nation  Transferability of quota shares 1990: Fisheries Management Act

7. 7 Directorate of Fisheries Fisheries Marine Research Institute Institute Coast Guard Ministry of Justice Ports of landing landing Fisheries / Fishing industry Ministry of Fisheries Icelandic Fisheries Management

8. 8 Administration  The Ministry of Fisheries is responsible for the political policy making, issuing of regulations and long term planning of fisheries  The Directorate of Fisheries is entrusted with the day-to-day administration of fisheries and is responsible for the implementation of the legislation In addition, The Directorate is the responsible authority for the production and quality of fish and fishery products  Marine Research Institute undertakes stock assessments and sets catch limits  The Ministry of Fisheries is responsible for the political policy making, issuing of regulations and long term planning of fisheries  The Directorate of Fisheries is entrusted with the day-to-day administration of fisheries and is responsible for the implementation of the legislation In addition, The Directorate is the responsible authority for the production and quality of fish and fishery products  Marine Research Institute undertakes stock assessments and sets catch limits

9. 9 Director of Fisheries Þórður Ásgeirsson Director of Fisheries Þórður Ásgeirsson Department of Surveillance 8 + 31 pers Department of Surveillance 8 + 31 pers Department of Quota Allocations 6 pers Department of Quota Allocations 6 pers The Directorate of Fisheries Department of Seafood Safety 7 + 4 pers 7 + 4 pers Department of Seafood Safety 7 + 4 pers 7 + 4 pers Legal Department 4 + 3 pers Legal Department 4 + 3 pers Finance and administration 8 pers Finance and administration 8 pers Department of Information 7 pers Department of Information 7 pers ComputerDepartment 13 pers ComputerDepartment

10. 10 Main responsibilities: The Directorate’s main responsibilities are: u Issuing of fishing licenses u Allocation of fishing rights (quotas) u Supervision of transfers of quotas u Collection of data on landings of individual vessels u Monitoring the quota status of individual vessels u Surveillance on board fishing vessels and in ports of landing The Directorate’s main responsibilities for Food Monitoring are: u Approval of establishments u Issue of operating licenses for inspection bodies which inspect establishments u Import control u Issue of health certificates for export of fish and fishery products u International communication and co-operation u Maintains production records The Directorate’s main responsibilities are: u Issuing of fishing licenses u Allocation of fishing rights (quotas) u Supervision of transfers of quotas u Collection of data on landings of individual vessels u Monitoring the quota status of individual vessels u Surveillance on board fishing vessels and in ports of landing The Directorate’s main responsibilities for Food Monitoring are: u Approval of establishments u Issue of operating licenses for inspection bodies which inspect establishments u Import control u Issue of health certificates for export of fish and fishery products u International communication and co-operation u Maintains production records

11. 11 Icelandic Fisheries Management Tools  Individual Transferable Quota system (ITQ). u All major commercial stocks are now subject to quotas (25 species) and they represent approx. 95-97% of the total annual catch value. u All major commercial stocks are now subject to quotas (25 species) and they represent approx. 95-97% of the total annual catch value.  Temporary and permanent closure of fishing grounds to protect juvenile fish  Closure of fishing grounds during the spawning season  Regulation on fishing gear aimed at protecting undersized fish  Use of VMS (Vessel Monitoring Systems)  There are also strict requirements for the keeping of logbooks on-board all fishing vessels.  Individual Transferable Quota system (ITQ). u All major commercial stocks are now subject to quotas (25 species) and they represent approx. 95-97% of the total annual catch value. u All major commercial stocks are now subject to quotas (25 species) and they represent approx. 95-97% of the total annual catch value.  Temporary and permanent closure of fishing grounds to protect juvenile fish  Closure of fishing grounds during the spawning season  Regulation on fishing gear aimed at protecting undersized fish  Use of VMS (Vessel Monitoring Systems)  There are also strict requirements for the keeping of logbooks on-board all fishing vessels.

12. 12 Specific features of the Icelandic ITQ system  There are no particular penalties regarding “by catches”  Vessels are obliged to have catch quota for each species caught subject to the ITQ system  If vessels don’t have sufficient catch quota for their “by catches” it is required that sufficient by catch quota is transferred to them from other vessels  Vessels are not allowed to commence a fishing trip unless they have sufficient catch quota for their probable catches  There are no particular penalties regarding “by catches”  Vessels are obliged to have catch quota for each species caught subject to the ITQ system  If vessels don’t have sufficient catch quota for their “by catches” it is required that sufficient by catch quota is transferred to them from other vessels  Vessels are not allowed to commence a fishing trip unless they have sufficient catch quota for their probable catches

13. 13  A separate quota regime for the hook and line boats (15 tons or less) This system evolved from an effort based system  Full transferability between the small boats  It is not possible to transfer from the small boats to larger vessels however the reverse is possible  Long line quota discount (16%) for manually baited trawl  A separate quota regime for the hook and line boats (15 tons or less) This system evolved from an effort based system  Full transferability between the small boats  It is not possible to transfer from the small boats to larger vessels however the reverse is possible  Long line quota discount (16%) for manually baited trawl Small Boats separate

14. 14  Discarding at sea is prohibited by law  It is possible to land up to 5% of allocated quota without charging it against the quota allocation.  It is also possible to land undersize fish (<10% of each landing) and charge only half the landed weight against the quota u This catch is sold at auction u 20% of the proceeds go to the fishing company u 80% of the proceeds are used to fund a Marine Research/Development Fund which is administered by the Minister  Discarding at sea is prohibited by law  It is possible to land up to 5% of allocated quota without charging it against the quota allocation.  It is also possible to land undersize fish (<10% of each landing) and charge only half the landed weight against the quota u This catch is sold at auction u 20% of the proceeds go to the fishing company u 80% of the proceeds are used to fund a Marine Research/Development Fund which is administered by the Minister Anti Discard Strategy

15. 15  Flexibility in annual quotas.  For ground fish species other than cod it is possible to exceed the annual quota and have quotas in other species reduced correspondingly...ie Cod Equivalence Cod EquivalenceCod Equivalence  Limits for each species: 2% of total quota holdings  Limit for total interspecies transfers: 5% of total quota holdings  For most species it is possible to transfer up to 20% of the current annual quota to the next fishing year or transfer 5% from the next year to the current year.  Flexibility in annual quotas.  For ground fish species other than cod it is possible to exceed the annual quota and have quotas in other species reduced correspondingly...ie Cod Equivalence Cod EquivalenceCod Equivalence  Limits for each species: 2% of total quota holdings  Limit for total interspecies transfers: 5% of total quota holdings  For most species it is possible to transfer up to 20% of the current annual quota to the next fishing year or transfer 5% from the next year to the current year. Flexibility

16. 16  Single or related companies can’t hold more than 12% of the total annual quota (on cod equivalent basis)  The maximum share for each species is 20%. Exceptions are 12% for cod and 35% for redfish  If a vessel doesn’t catch at least 50% of its annual catch quota for more than 2 consecutive years it could forfeit quota  It is possible to transfer up to 50% of the annual catch quota  Single or related companies can’t hold more than 12% of the total annual quota (on cod equivalent basis)  The maximum share for each species is 20%. Exceptions are 12% for cod and 35% for redfish  If a vessel doesn’t catch at least 50% of its annual catch quota for more than 2 consecutive years it could forfeit quota  It is possible to transfer up to 50% of the annual catch quota Limits on Concentration and Transfers

17. 17  A Resource Tax was approved in 2002 and is intended to cover the costs of management  The tax rate will be phased in between 2004 and 2009. The initial tax was 6% which will increase to 9.5%  The Resource Tax is calculated on the value of the landings minus the estimated costs including labor, fuel and other operating costs  A Resource Tax was approved in 2002 and is intended to cover the costs of management  The tax rate will be phased in between 2004 and 2009. The initial tax was 6% which will increase to 9.5%  The Resource Tax is calculated on the value of the landings minus the estimated costs including labor, fuel and other operating costs Resource Tax

18. 18 Are There Any Concerns?  Estimations of the stocks are subject to uncertainty  Ecosystem based approach underdeveloped  Pressures from stakeholders with competing interests  General limitations of the rules  The “HOW to Manage question” has generally been answered  Flexible ITQs  Estimations of the stocks are subject to uncertainty  Ecosystem based approach underdeveloped  Pressures from stakeholders with competing interests  General limitations of the rules  The “HOW to Manage question” has generally been answered  Flexible ITQs

19. 19 Contentious Issues  Methods and management advice prepared by the Marine Research Institute  Political preferrence of small boats  Resistance to change  Pricing of fish in vertically integrated companies ( true value?)  Pricing of fish when quota is rented  The Resource Tax  Methods and management advice prepared by the Marine Research Institute  Political preferrence of small boats  Resistance to change  Pricing of fish in vertically integrated companies ( true value?)  Pricing of fish when quota is rented  The Resource Tax

20. 20 Effective Management  Decisions on the total allowable catch are followed relatively closely  No “holes” in the system any more. All vessels are subject to quotas  Genarally speaking the industry is content with the system.  The quota / transfer status of individual vessels is available on a web based data system that is open and available to the public  http://www.fiskistofa.is/en/ http://www.fiskistofa.is/en/  Decisions on the total allowable catch are followed relatively closely  No “holes” in the system any more. All vessels are subject to quotas  Genarally speaking the industry is content with the system.  The quota / transfer status of individual vessels is available on a web based data system that is open and available to the public  http://www.fiskistofa.is/en/ http://www.fiskistofa.is/en/

21. 21 Mgmt Performance Comparison

22. 22 Quality is the key to economic success Aboard Vessel  Fish are treated like food!  Fish are handled gently and processed rapidly  Fish are efficiently bled, gutted and iced in insulated containers  Many vessels have onboard slurry ice making machines Aboard Vessel  Fish are treated like food!  Fish are handled gently and processed rapidly  Fish are efficiently bled, gutted and iced in insulated containers  Many vessels have onboard slurry ice making machines

23. 23 Quality is the Key In Processing Plants  Fish are held near the freezing point to maintain quality  Sanitation is paramount  The physiology of fish spoilage has been studied and processes have been developed to maintain quality In Processing Plants  Fish are held near the freezing point to maintain quality  Sanitation is paramount  The physiology of fish spoilage has been studied and processes have been developed to maintain quality

24. 24 Specific features of the Management System  There are no particular penalties regarding “by catches”  Vessels are obliged to have quota for each species caught subject to the ITQ system  If vessels don’t have sufficient quota for their “by catches” …They must obtain sufficient “by catch” quota from other vessels  Vessels are not allowed to commence a fishing trip unless they have sufficient quota for their probable catches TTTThere are no particular penalties regarding “by catches” VVVVessels are obliged to have quota for each species caught subject to the ITQ system IIIIf vessels don’t have sufficient quota for their “by catches” …They must obtain sufficient “by catch” quota from other vessels VVVVessels are not allowed to commence a fishing trip unless they have sufficient quota for their probable catches

25. 25 Specific features of the Management System  The TACs are determined in law. They are not negotiated  A single industry advisory committee was established to develop a set of common management rules  Individual quotas are “flexible”  The common philosophy is that this industry must be managed as a business with a profit motive.  All catch, transfers and quota information is public and accessible on the web…..the citizens are the owners of the resource.  The TACs are determined in law. They are not negotiated  A single industry advisory committee was established to develop a set of common management rules  Individual quotas are “flexible”  The common philosophy is that this industry must be managed as a business with a profit motive.  All catch, transfers and quota information is public and accessible on the web…..the citizens are the owners of the resource.

26. 26 Innovation ( some of the things we saw)  Web based Auction System and open access to catch data and transfers Iceland Trip 047.jpg http://www.islmark.is/ Iceland Trip 047.jpghttp://www.islmark.is Iceland Trip 047.jpghttp://www.islmark.is  Containerized Fish holds  High Speed 38-42’ long liners with containerized holds Cleo-38.JPG Cleo-38.JPG  On board slurry ice machines Optimar.JPG Optimar.JPG  Computer controlled filleting machines Iceland Trip 041.jpg Iceland Trip 041.jpg Iceland Trip 041.jpg  Computer controlled Water jet cutting machines Iceland Trip 066.jpg Iceland Trip 066.jpg Iceland Trip 066.jpg  Innovative processing systems resulting in 3 – 4 day shelf life extension Plant Layout.JPG Plant Layout.JPG Plant Layout.JPG  Blue Lagoon Iceland Trip 001.jpg Iceland Trip 001.jpg Iceland Trip 001.jpg  Web based Auction System and open access to catch data and transfers Iceland Trip 047.jpg http://www.islmark.is/ Iceland Trip 047.jpghttp://www.islmark.is Iceland Trip 047.jpghttp://www.islmark.is  Containerized Fish holds  High Speed 38-42’ long liners with containerized holds Cleo-38.JPG Cleo-38.JPG  On board slurry ice machines Optimar.JPG Optimar.JPG  Computer controlled filleting machines Iceland Trip 041.jpg Iceland Trip 041.jpg Iceland Trip 041.jpg  Computer controlled Water jet cutting machines Iceland Trip 066.jpg Iceland Trip 066.jpg Iceland Trip 066.jpg  Innovative processing systems resulting in 3 – 4 day shelf life extension Plant Layout.JPG Plant Layout.JPG Plant Layout.JPG  Blue Lagoon Iceland Trip 001.jpg Iceland Trip 001.jpg Iceland Trip 001.jpg

27. 27 Thank you Any Questions ? Thank you Any Questions ?