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Jens-Frederik Nielsen Faces Pressing Challenges Over Halibut Quotas
At 34, Jens-Frederik Nielsen, the chairman of Naalakkersuisut and a member of the Demokraatit party, is grappling with significant pressures surrounding halibut quotas valued in the hundreds of millions of kroner.
Growing Tensions in the Fishing Industry
The fishing sector is pressing for prompt clarity regarding the self-government’s offer of halibut, cod, and saithe quotas for new entrants. These quotas were announced on February 7 of this year. However, as the summer draws to a close, anticipation has turned into frustration; the fishing community expected a decision on which companies would receive the 4,600 tonnes of halibut and the corresponding quotas for the two other species months ago.
As the delay stretches on, Sermitsiaq reached out to Nielsen for insights into the ongoing situation.
“In our government, we need to arrive at a consensus, which I will present,” Nielsen stated. “That process is currently underway, and we are aware that time is running short. We are committed to finding a solution.”
Nielsen accepted full responsibility for the delay in decisions regarding the quotas. “As the leader of Naalakkersuisut, it falls on me to ensure that this decision is made, and I recognize that we have yet to accomplish that,” he admitted.
Navigating Election Pressures
Questions have arisen regarding potential disagreements within Naalakkersuisut that could be contributing to the holdup. Nielsen acknowledged the reality:
“It’s no secret that during the recent election campaign, we did not reach consensus on certain aspects of fishing policy. I take responsibility for the impasse. We are actively working towards a resolution, but for various reasons, I can’t divulge the specific direction we’re heading.”
Quotas at Stake
Curiosity looms over whether established entities like Royal Greenland and Polar Seafood will receive the coveted quotas, or if newer players will emerge victorious.
“At this moment, I cannot comment on who the recipients may be,” said Nielsen, asserting the need for prompt decision-making.
Last December, the former Naalakkersuisut, led by Múte B. Egede, decided to put the 4,600 tonnes of halibut, along with 1,950 tonnes of cod and 166.6 tonnes of saithe, up for tender as a means of diversifying the industry and granting opportunities to emerging players. A total of 12 applicants—comprised largely of new companies—submitted their bids when the quotas were tendered in February.
In mid-June, the Department of Fisheries and Fisheries assured journalists that a decision would be forthcoming by the month’s end.
Urgent Need for Action
The urgency of the situation is palpable as halibut fishing companies, including Royal Greenland, Qaleralik, Polar Seafood Greenland, and Sigguk, face the prospect of their current quotas being exhausted over the next few weeks. Without new allocations, operations could come to a halt.
“We understand this is a pressing issue,” Nielsen confirmed. “We are working diligently to find a resolution. The government must reach a unified decision, and I will be taking the lead in that process.”
Economic Implications
The stakes extend far beyond the fishing industry. The delay in quota distribution poses a financial risk to the self-government, threatening to leave its coffers bereft of expected income from taxes and fees. Christian Keldsen, director of Greenland’s Chamber of Commerce, expressed his concerns:
“If these quotas aren’t allocated soon, we’re likely to see fishing companies forced to dock their ships and lay off employees. It’s a situation that demands urgent attention.”
According to reports, if the 4,600 tonnes of halibut go unallocated this year, Landskassen could lose between 40 and 50 million kroner in tax revenues, not to mention the significant turnover for the fishing companies that could benefit from these quotas.
The Impact on Established Companies
Royal Greenland, a significant player in the sector, has received notice from the self-government that it stands to lose 2,700 tonnes of halibut this year—a situation exacerbated by the new fisheries law. CEO Preben Sunke acknowledged the potential consequences:
“A loss of this magnitude not only impacts us financially but could also affect local facilities and the broader Greenlandic community. This development is indeed deeply concerning.”
Looking Ahead
The Greenland Economic Council too has raised alarms over the uncertainty surrounding halibut quotas and the implications of reserving a third of this year’s total for new entrants, further complicating matters for existing companies.
As the window for fishing this year’s quotas closes, the issue cannot be resolved by new players, industry insiders agree; the existing stakeholders may soon find themselves bearing the brunt of this ongoing dilemma.
Meanwhile, the appetite for Greenlandic halibut in markets like China continues to grow, yet new companies face protracted delays—sometimes up to a year—in obtaining the necessary export permits. If distribution of quotas occurs this year, some new entrants may have to rely on established companies for they may not have time to secure permits independently.
In these uncertain times, all eyes are on Jens-Frederik Nielsen and his administration as they navigate a complex web of industry expectations, political pressures, and economic ramifications.
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