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Icelandic trawler return to port in protest
Published:  25 January, 2010

VIRTUALLY all Iceland trawlers in the Westman Islands region of the country have been returning to port in the past few days to protest over a Government plan  to take away one of their few income tax"perks". The Westman islands is one of the largest fishing regions in Iceland.

It has also had the unusual step of uniting the two sides in the industry - the fishing unions and the country's trawler owners association.

They are also angry over proposals to re-distribute fishing quotas and to impose a levy on exports of unprocessed fish.

Called the fishermen's rebate, the  tax scheme, which is causing the most concern,  is the only one of its kind in the country and has been running for more than 50 years. The current rebate is around 5.5 euros (£4.50) for every one day spent at sea. Both the owners and the fishermen say it is a modest compensation fort a fisherman's long absence from their home and families.

A Spokesman for the Iceland Fishing Vessel Owners Association told Fishupdate: "These talks breaks have been in place since 1954 when fishing vessels were difficult to man. Those who want them eliminated cite that vessels are now not what they were etc - i.e working conditions are now much better.

"Things have certainly moved on - also in the private and public sector where people receive tax free travel expenses to cover food and accommodation when staying away from their natural habitat. Fishermen look at their tax breaks as a somewhat similar thing.

He said he could not see the proposal going through the Althing (Iceland's Parliament) without a major political fight. It was also being suggested that the tax breaks should be fitted into a 'one system fits all' day allowance system.

In a separate move all Icelanders (including fishermen) face a big increase in income tax, VAT and alcohol duties as the government tries to get the economy back on its feet.




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