The importance of fisheries and of the politics of fisheries in Iceland makes the breeding of skilled ministers of fisheries a necessity. Einar Kristinn Guðfinnsson (51) is one of the most obvious choices. Growing up in the West Fjords of the island, he was soon involved in the local fish industry.
Guðfinnson's grandfather had founded the local company, and Einar K. Guðfinnsson was the CEO before he was elected to Parliament in 1991. His positions since then have included group chairman of the Independence party, chairman of the fisheries committee and of the economics and trade committee.
In September 2005 the former Minister of Fisheries, Arni Mathisen, was appointed Minister of Finance, and Guðfinnsson was asked to take care of Icelandic fishing. He has now led the ministry for seven months and if he manage to stay in the job for six years, like his predecessor, we will probably all risk getting a pointed letter from Reykjavik.
World Fishing - What would you say you have achieved since you took over?
Einar Kristinn Guðfinnsson - In order to evaluate the period, one has to have a perspective. In recent years Iceland has been through fierce debate concerning fishery politics. The government has dealt with and attempted to meet different kinds of criticism. The ITQ' management has been blamed for a decline in some of the small fishing communities. We have also discussed the idea of free entry to other fisheries in Iceland which one can rightly say that has been abolished under the present management scheme. If we return to my role, the period since September has not been the right time for dramatic changes in fisheries policy. My aim has been to organize within the legal framework we have been establishing. Still the seafood business is dynamic, and we should be prepared to some changes all the time.
WF - You say you have put all your effort into keeping a steady course?
EKG - In addition to what I have said I would like to add some other aspects. The last few years we have seen a huge build up of a fleet of small boats less than 15 tons. These vessels have been favoured by legislative changes. In order to guarantee a positive development of that fleet I have proposed a maximum level of quotas among these small boats. I have also tried to facilitate alternative ways to procure the data we need to conduct the fisheries policy. Steps have been taken to create competition within the marine research on Iceland. This I believe is necessary. I think we need competiton in the fields of science as in other fields.
WF - You have earlier argued for replacing fish quotas with effort days. Should you be working for this now?
EKG - No, we have had our share of that debate. The controversy is still there, and in my point of view effort days could be used in Iceland just as they are in other countries. But it would be harmful to start that debate again. Transferable quotes is the basis of our management and if an effort based ideology was to be introduced it would require a transferability. The transferability is the essence of any credible and economically viable fisheries policy scheme.
WF - What is the strength of Icelandic fisheries and the seafood industry?
EKG – First we should mention the economic strength, and the fact that the fish industry is conducted in a businesslike manner. There are no subsidies in the Icelandic fishing or fisheries industry; we have a real industry, which pays relatively good wages, particularly the fishing part of it. The business is based on responsible management of marine resources. In addition the education level is high. Though it has to be mentioned that the strong Icelandic currency has had a damaging effect on the export industry. The devaluation earlier this year was therefore fortunate. Now we have a better condition for the industry and good reasons to be optimistic. And the political controversies which surrounded the industry has calmed down.
WF - Do the Icelandic fish stocks also make you optimistic?
EKG - Our overreaching ambition is to restore the fish stocks. We are disappointed about the size of the cod stock. That particular stock has weakened, and we have not been able to allocate more than 200,000 tons of quota. The stock is far from any extinction and many other stocks such as the haddock tell a different story, as they have recovered rapidly.
WF - But fish stocks will always be in fluctuation.
EKG - Yes, it is a complicated matter. It is related to the food chains in the ocean and for sure very difficult to control. But the mission of any fish management is to try to optimise, and this is something we take seriously.
WF - The competitors in the market are not easy to control either. Is the Chinese fish industry still a challenge?
EKG - Iceland is used to competition in the international market – and unfair competition resulting from subsidies in other countries as well. Competition from low cost areas like Asia and Eastern Europe should be taken seriously and will have an impact on the international seafood trade. Our answer is to increase the level of automatation and to try to meet the growing demand for fresh products. Being close to both EU and USA is an advantage. But the low cost industry is a great challenge, and we should always be on alert.
WF – A spokesman for the Danish Bank has stated that the Icelandic economy is moving close to a serious economic decline. What are your comments?
EKG - It's utterly wrong. There is no substance in the analysis, and I regard it as a completely rubbish. Iceland has had a high level of growth and our GNP next year will continue to rise. The banks are stable and well managed. The devaluation this spring is not surprising to anyone at Iceland; it's a surprise that the Danish Bank hasn't realized this.
WF - Could choosing Euro as the Icelandic currency be an alternative?
EKG - Every time there is a change in the exchange rate , we experience a discussion about the currency. But in order to change to Euro, we would need to join the EU, and that's not on the agenda.
WF - Has the ambition of the Icelandic financial institutions been beneficial for the fish industry?
EKG - Yes. They have paved the ground and made very favourable jobs accessible to Icelanders. This has created both wealth and exciting experiences for the new, young and well-educated generation. This has also created better opportunities for the fishing industry which has invested in the UK, France, Germany and Denmark. Gaining knowledge about foreign matters is in itself a good thing and has as such been beneficial to the fishing industry.
WF - Which countries today are Iceland's allies?
EKG - Most other nations with fish industries. We have so much in common. It is our common interest to increase the consumption of seafood, the utilisation of nature or reacting to the critics of fisheries. The fishing nations in Europe and North America are thus both allies and competitors.
WF - What about the role of the United Kingdom?
EKG – UK is by far the most important market for Iceland. Our market share in value is increasing, and we are the largest single exporter. I have recently visited the Humberside area where this was clearly demonstrated to me.
WF - What roles will aquaculture play in the future of Iceland?
EKG - Generally a favourable one. Fish farming has had its ups and downs, especially the salmon farming. But the future seems positive, indeed for trout, and we also believe that farmed cod will become an important part of our industry.
WF - What do you think about the Svalbard zone?
EKG - In general I disagree with the Norwegian policies in the Svalbard zone. We study the possibilities of bringing the controversy to The Hague, but have not yet made the final decision.
WF - I suppose you disagree with Norway on the matter of herring as well?
EKG - That's right. I am very disappointed that they didn't stick to the 1996 agreement. I find the quotas they have unilaterally issued irresponsible and hence the TAC too high. Iceland and Norway should be responsible and reach a conclusion. I also think we should emphasize that according to all research, the herring will migrate towards the West, and we will be able to fish these stocks outside the Norwegian zone.
WF - Is illegal fishing a problem for Iceland's fisheries today?
EKG - Yes certainly, and I find the events in the Irminger sea South West of Iceland very disappointing. I have discussed them with colleagues in Germany, Norway, Denmark and EU in general. The illegal vessels have no doubt got their oil and gear from European harbours. That is a disappointment. I have written over a thousand letters in order to draw peoples attention to this problem. That certainly has helped but obviously not deterred the ships from breaking the laws., says Einar K. Guðfinnsson, Minister of Fisheries of Iceland.
