A Concerning Development for Greenland’s Fisheries
Carl Christensen, a well-known figure in Greenland’s fishing industry, is raising urgent concerns about recent changes to halibut quotas. At 60 years old, Christensen’s experience carries considerable weight; he is the chairman and co-owner of several fishing companies, including Qaleralik A/S, Sikuaq Trawl A/S, and Niisa Trawl ApS.
On June 26, the Naalakkersuisut announced the launch of two new tenders for halibut and cod quotas in both West and East Greenland. Christensen has vocalized sharp criticism of the second tender, arguing it seems particularly designed to benefit P49 A/S, a newly established company under the Polar Seafood Greenland umbrella.
“The most troubling aspect,” he explains, “is that P49 appears tailored to circumvent the quota ceiling rules set out in the Fisheries Act. This would enable them to claim substantial allocations from Naalakkersuisut.” Specifically, he points out that P49 could receive 2,468 tons of halibut from West Greenland and an additional 5,000 tons of cod from East Greenland. Based on current market rates, Qaleralik estimates that these quotas could rake in around DKK 325 million annually over the five-year allotment period.
The New Offering from Naalakkersuisut
The June 26 decision also involved the cancellation of last year’s tender for Udenskær quotas, which has resulted in the launch of new tenders including 4,268 tons of halibut and 5,000 tons of cod off West Greenland.
Key requirements for tender applicants stipulate they must be “new players” in the fishing industry, implying that while some owners may have prior offshore experience, fresh ownership is paramount. Additionally, applicants are required to secure a Greenlandic-flagged vessel by year’s end or to charter one in the interim. A comprehensive fishing plan is also necessary, alongside a commitment for the factory in Aasiaat to procure 25% of the halibut, translating to 628 tons by 2026.
Applications for this tender will be accepted until July 24 at 23:59, and the full submission must reach the Department for Fisheries, Catching, Agriculture, and Self-Sufficiency.
Allegations of Favoritism
Christensen suggests that the tendering process favors P49 by design. Founded in April during an organizational shift at Polar Seafood Greenland, P49 is controlled by the same shareholders as the main company. This setup raises questions about transparency and fairness in a system already complicated by political maneuvering.
Notably, Polar Seafood, the parent company, posted impressive revenues last year—DKK 1.7 billion—and experienced a profit of DKK 241 million. Under recent legislative changes, a third of halibut quotas, along with smaller amounts of cod, were initially set aside for new entrants to the market. However, the government recently backtracked, prompting the launch of a new bidding process that many believe tilts the scales in favor of established players like P49.
Christensen expresses bewilderment at how the political landscape has shifted: “We find the proceedings behind these tenders utterly astonishing,” he remarks.
Concerns Over Employment
The new quotas pose further complications, particularly their implications for job creation in Aasiaat. While 2,468 tons of halibut will obligate P49 to supply 628 tons to the local factory, Christensen argues that this figure merely translates to around ten full-time jobs—far less than the more than 100 positions that once existed at this critical facility.
He argues that the current political solution does not truly address the very real concerns about local employment. “Instead of reducing foreign labor to create more jobs, the government is bestowing P49 with quotas worth DKK 325 million annually for a mere ten full-time positions,” Christensen states, highlighting the stark disconnect between the fishing quotas and meaningful employment opportunities.
Looking at the broader implications, he asserts that the government should reconsider its recent offer entirely. “The best route forward would be to redo the allocation process. The 4,937 tons of halibut in these new tenders should be distributed among the existing players—Qaleralik, Royal Greenland, Polar Seafood, and Sigguk—to restore what they have lost and ensure a more significant local economic impact.”
Christensen emphasizes that this approach not only strengthens local employment but also creates a more equitable environment for all fishing companies involved.
Meanwhile, as inquiries about this situation were dispatched to Jens-Frederik Nielsen, the chairman of Naalakkersuisut, his department deferred comment to the Department of Fisheries, which has yet to respond. Polar Seafood has similarly opted not to provide any insights on the matter.
As the situation unfolds, it remains to be seen how these developments will affect the fishing landscape in Greenland and the livelihoods that depend on it.