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Fisheries Management Services in Iceland: Costs and Arrangements

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  • To run the ITQ system as well as other components of the fisheries management system, the Icelandic government conducts a number of activities which may be regarded as fisheries management services. The most important of these are performed by (i) the Fisheries Directorate which maintains the quota registry and enforces ITQ and other fisheries management rules, (ii) the Marine Research Institute which carries out biological research on which TAC decisions and other fisheries management measures are based and (iii) the Coast Guard which assists in the fisheries management enforcement activity. In addition to this, a substantial proportion of the activities of the Ministry of Fisheries is devoted to what may be called fisheries management services. There is a long tradition of the Icelandic fishing industry paying fees toward the costs of fisheries management services. More recently, following the economic success of the ITQ system, these charges have been greatly increased and currently substantially exceed these management costs. Thus, on top of standard company taxation, the Icelandic fishing industry, one of very few in the world, is currently paying a significant extra tax. This paper reviews these developments and provides quantitative information about fisheries management costs and the extent to which the fishing industry refunds them by special charges. It further considers the advisability of the way in which this provision of and payment for fisheries management services is arranged and suggests a more efficient arrangement.
  • Keywords: Fisheries Economics, Cost-Recovery Principles for Fisheries and Biosecurity, Special Topics
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  • Arnason, Ragnar. 2014. Fisheries Management Services in Iceland: Costs and Arrangements. In: Towards ecosystem based management of fisheries: what role can economics play?: Proceedings of the Seventeenth Biennial Conference of the International Institute of Fisheries Economics and Trade, July 7-11, 2014, Brisbane, Australia. Complied by Ann L. Shriver & Melissa Errend. Corvallis, OR: International Institute of Fisheries.
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  • Fisheries Research & Development Corporation, World Wildlife Fund, MG Kailis Group, AquaFish Innovation Lab, NOAA Fisheries, The European Association of Fisheries Economists, Japan International Fisheries Research Society, United Nations University, NORAD
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