A ‘chaotic situation’ created by the Norwegian government’s salmon tax proposals is to blame for the job losses says the seafood group’s chief executive.
Redundancy notices have been sent out for 339 employees at four of the Lerøy Group’s processing operations.
Read more: Salmon tax hits more firms
“This is primarily an absolutely terrible situation for our skilled employees who are being made redundant and their families, but also for all the rest of us in Lerøy,” said chief executive of Lerøy Seafood Group, Henning Beltestad.
“The market opportunities for processed Norwegian salmon are more or less completely gone after the government’s tax proposal. The result is that we do not have work to offer many of our employees and then we have no other choice but to notify layoffs,” he added.
The government’s proposal for ground rent will apply from 1 January 2023, while a final tax model will not be decided by the Storting until the summer of 2023. Only then will companies know what tax they must pay for the past six months and what details form the basis of a possibly new tax base.
‘Chaotic situation’
Henning Beltestad said the government’s decision had inflicted a ‘chaotic situation’ on the industry whilst Bjarne Kristiansen, who heads the cooperation committee for the Norwegian Business and Leisure Workers’ Union said the consequences will be greater than feared.
“There is only one way to correct this, and that is to postpone introduction until 1st of January 2024 at the earliest, after the consultation and after the Storting has made its decision in the spring of 2023.
“Then we can hopefully get a broad settlement that ensures framework conditions for aquaculture and a tax scheme that neither destroys the industry, the coastal districts nor our employees,” said Bjarne Kristiansen.
