Iceland poised to reveal huge cod cuts Published: 09 July, 2007 Borrowed from “Fish up date”
Einar Gudfinnsson
http://www.fishupdate.com/news/fullstory.php/aid/8023
ICELAND is poised to confirm a deep cut in cod fishing quotas this week in a move that is almost certain to send prices in the UK soaring this year.
Some forecasters are predicting that the size of the reduction could be closer to the 60,000 tonne cut back demanded by Iceland’s Marine Institute than the 30,000 tonne reduction suggested by financial and economic analysts just a couple of weeks ago.
The Institute’s report revealed the size of the cod stock in Icelandic waters has reached a historical low and the Institute does not expect the cod stock to grow quickly.
The Icelandic Central Bank said it expected a 17 per cent fall while Glitnir Bank thought a 20 percent reduction was likely. Either way, the cuts will be big and will impact on both prices in Britain and the Icelandic economy.
The Icelandic government signalled on Friday it would cut cod fishing quotas by 30 percent to restore dangerously low fish stocks. The current cod annual cod quota, which expires at the end of August, stands at 193,000 tonnes. Cuts in the haddock quota cannot be ruled out either although they will be much smaller.
Fisheries Minister Einar Gudfinnsson said: “This decision will be made with the long-term effect in mind. We are aware that the cod stock is very vulnerable and that we have to act now and cut the quota so that we can continue to fish cod in the future.”
Kaupthing economist Thorhallur Asbjornsson said the quota news would slow, but not derail, the economy. “It might be around one percent of GDP (gross domestic product) it will shave off. Of course it is significant, but we don’t believe it will be enough to cool down the economy.”
neil b.
