3.2 



FAROE ISLANDS 



The Faroese fishing fleet in 1 992 consisted of 2 1 7 wooden and steel vessels (59 , 539-GRT) , including 25 modem 

 high-seas trawlers that normally fish the rough waters of the North Atlantic. The Faroe Islands have been buffeted 

 by economic dislocation and the decline in lucrative whitefish stocks. Many ultra-modem Faroese trawlers are for 

 sale at "bargain" prices and many have been sold to customers around the world. Additional Faroese high-seas 

 trawlers are expected to be sold in the next 2-3 years. The Faroe Islands remain dependent upon distant-water 

 fishing grounds, primarily off Labrador, Greenland, and Norway, for approximately half of their catch. Although 

 one distant-water venture off South Africa was attempted (which failed) and one venture in New Zealand began in 

 1990, the Faroese are not expected to seek distant fishing grounds outside of the North Atlantic in the near future. 



CONTENTS 



1. General Background 171 



2. Fleet Background 172 



3. Modernization Programs 173 



4. Decommissioning Programs 173 



5. Shipyards 174 



6. Intemational Agreements 174 



7. Fleet Dispersal Plans 175 



Sources 175 



Endnotes 183 



1. General Background 



The Faroe Islands, a remote group of 18 islands 

 situated between Scotland and Iceland, have a long 

 tradition of fishing. The Faroes' 200-mile Exclusive 

 Economic Zone (EEZ) includes 274,000 square 

 kilometers of fishing grounds. This area is 

 influenced by the mixing of the warm Gulf Stream 

 and cold northem currents; this confluence generates 

 large quantities of plankton and results in excellent 

 feeding conditions for many species of fish. The 

 basis of the Faroese economy is fishing. Exports of 

 fishery products account for over 90 percent of the 

 nation's total foreign exchange earnings. In recent 

 years, the catch of "traditional" species, cod, 

 haddock, and whiting, declined as the loss of distant 

 fishing grounds, biological fluctuations, and 

 overfishing have slowly taken their toll. The Faroese 



Government responded to the loss of distant fishing 

 grounds and the decline in lucrative local species by 

 providing massive subsidies to both the fishing fleet 

 and onshore processing industries. The subsidy 

 program, although well intentioned, added further 

 pressure on overfished local stocks and eventually 

 undermined the economic efficiency of the industry, 

 leading to bankruptcies in the 1990s. Despite 

 massive subsidies, the Faroese catch declined from 

 390,000 tons in 1987 to 251,000 tons in 1992.' 



In early 1993, the Faroese Home Rule 

 Government, in agreement with the Danish 

 Government, established a Faroese/Danish working 

 group, called the "Structural Committee" to review 

 the short-term and long-term consequences of the 

 Faroese fishing fleet. The study, which was released 

 on July 1, 1993, deals with the "fresh fish" (coastal) 



181 



