2. Fleet Background 



The Danish high-seas fleet consisted of fewer 

 than 20 vessels during the decade between 1975 and 

 1984. Danish statistics show that the high-seas fleet 

 declined to 14 vessels in 1987 and has remained at 

 that level through 1992 (table 3). Lloyd's Register, 

 however, reports that the number of high-seas vessels 

 increased to 28 ships in 1985 and that the number 

 increased to 36 vessels in 1986.'* In 1987, Lloyd's 

 Register included high-seas vessels from the Faroe 

 Islands in the Danish fleet statistics, which has, 

 unfortunately, complicated reporting on the high-seas 

 fleets of the Faroe Islands, Greenland and Denmark 

 (table 1). 



Danish fishermen fish inside their own national 

 boundaries, in EC waters, in grounds shared with 

 other Nordic countries (the Skagerrak between 

 Denmark and Norway and the Kattegat between 

 Denmark and Sweden), in the Baltic Sea, in waters 

 off the Faroe Islands and Greenland, and in other 

 distant waters (tables 5 and 6). Danish fishermen 

 operating outside the North Sea and Baltic Sea report 

 catches averaging 65,000 tons for the years 1982-90.^ 

 Denmark's high-seas catch was 47,685 tons in 1991.* 

 The bulk of the distantwater catch consists of 

 mackerel species. 



The outlook for Denmark's fleet is not good. 

 The EC is continually reducing the Danish quota for 

 important species, such as Atlantic cod,' and is 

 demanding further reductions in the size of the 

 Danish fleet.'" In 1990, for example, the EC reduced 

 the Danish catch by 30,000 tons as part of the EC 

 quota allocation process. The EC in recent years has 

 announced that a reduction of fleet capacity is needed 

 to save some stocks, which is certain to hurt the 

 Danish fishing fleet in the coming years. The Danish 

 fleet declined from 2,749 vessels (111,500-GRT) in 

 1991 to 2,574 vessels (104,014-GRT) in 1992." 



3. Modernization Programs 



The Danish fishing fleet is dominated by small 

 side trawlers under 25-GRT'" with an average age of 

 30 years, giving Denmark one of the oldest fishing 

 fleets in Europe." Financial assistance is granted to 

 Danish fishermen seeking to modernize their fishing 

 vessels. The amount of assistance can vary from 10 

 to 25 percent of the cost of improvements. The 



Royal Danish Fisheries Bank offers loans up to 70 

 percent of the construction cost of new fishing vessels 

 and up to 60 percent of the cost of second hand 

 vessels. Interest rates for the loans correspond to the 

 market rate of interest and repayment is scheduled 

 over 10 to 20 years. In 1990, the Royal Danish 

 Fisheries Bank issued $34 million worth of loans for 

 upgrading fishing vessels. ''' Denmark provides 

 financial aid for exploratory fishing, with the goal of 

 developing alternative fishing or of discovering new 

 fishing grounds. In some instances, the Goverrmient 

 also encourages fishermen to invest in fish farming. 



4. Decommissioning Programs 



The Govenmient of Denmark provides financial 

 assistance to fishermen seeking to permanently 

 withdraw vessels from Dermiark's fishing fleet. The 

 payment of assistance is subject to controls enacted 

 by the European Community pursuant to Council 

 Regulation (EEC) No. 4028/86 and No. 3944/90. 

 The Government of Denmark supports withdrawal 

 programs because it contributes to improving the 

 profitability of the fishing industry and to the 

 reduction of overfishing. There are too many boats 

 chasing too few fish.'^ This is especially true for 

 cod, which has been overfished in recent years. 

 There are regulations in Denmark which control the 

 construction of new fishing vessels to restrict the 

 growth of the fishing fleet. Denmark also seeks to 

 ensure a geographic spread of fishing vessels, by size 

 and location, to avoid concentrations in any one area. 



The main elements of the Danish program to 

 reduce the size of its fishing fleet are EC regulations 

 which allow entry of vessels of the same capacity to 

 replace vessels withdrawn from the fleet and which 

 call for the gradual reduction of the Danish fishing 

 fleet. In implementing the EC directives, grants are 

 available for the permanent withdrawal of vessels 

 from fisheries within EC waters. Denmark 

 appropriated a total of $6 million between 1984 and 

 1986 and $45 million for the years 1987-91. The 

 Danish fishing fleet has been reduced by 

 approximately 7 percent, from 136,000-GRT in 1987 

 to 1 19,000-GRT in 1990.'" The authors attribute this 

 reduction to the EC fleet reduction program." 

 Danish officials report spending $64.3 million to 

 scrap 436 vessels (21,306-GRT) between 1987 and 

 1991 as part of Denmark's decommissioning program 

 (table 4).'" 



58 



