3. Modernization Programs 



Efforts to modernize the fleet first took place in 

 the early to mid-1970s. The high-seas fleet underwent 

 significant expansion between 1986 and 1992. 

 Icelandic shipyards are producing a number of 

 modem, fuel-efficient vessels and vessels are also 

 purchased from foreign shipyards or as second-hand 

 imports. 



Because of the unused capacity of the Icelandic 

 fishing fleet, the government regulates all purchases 

 and registrations of new vessels. Furthermore, there 

 are no subsidized programs to modernize the high- 

 seas fishing fleet." 



Icelandic fishermen continue to purchase modem 

 vessels from foreign shipyards; the Arnar, a 2,700- 

 GRT factory stem trawler was delivered to 

 Skagstrendingur H/H by the Mjellum & Karlsen 

 Verft A/S of Norway in 1992.-* Two 688-GRT 

 autoliners, the Tjaldur I and Tjaldur II, were also 

 delivered to Icelandic buyers by Norwegian shipyards 

 in 1992." An Icelandic buyer took delivery of a 

 factory stem trawler from the Spanish shipyard of 

 Santodomingo in Vigo, Spain in July 1993. The 

 vessel is ice-strengthened for bottom and mid-water 

 trawling in the Arctic.-' Other deliveries included the 

 Otto Whalde, Orftssey, Vigri, and Baldur 

 Thorsteinsson. 



4. Decommissioning Programs 



The catch of several important stocks, such as 

 cod, are at historic lows.^' The Icelandic 

 government, as a consequence, has prohibited any 

 increase in the number of vessels weighing 10 tons or 

 less.-"* The Government acted because many of these 

 small vessels are not cost-effective and because they 

 are difficult to regulate. 



The Government of Iceland created the Fisheries 

 Restructuring Fund in 1990 to promote fleet 

 reduction. Owners of decommissioned vessels may 

 apply for final cessation premiums or sell the renewal 

 rights for their vessels to other vessel owners, who 

 may then commission their own new vessel. The 

 Fisheries Restmcturing Fund is financed by 

 obligatory annual contributions from owners of 

 vessels weighing at least 10 tons (which in tum are 

 potential grant recipients).^' $3.6 million was paid to 



the owners of 27 fishing vessels who decommissioned 

 their vessels in 1992. These vessels had a total 

 capacity of 1,500 GRT. Up to 30-percent of a 

 vessel's insurance value can be paid by the 

 Government of Iceland to fishermen willing to 

 decommission their vessels. This can amount to a 

 maximum of $800,000 per ship.^^ 



5. Shipyards 



Historically, Icelandic shipyards have built 

 various types of fishing vessels. However, the over- 

 capacity of the current fleet and govemment- 

 subsidized shipyards in Norway, Poland and other 

 countries, have resulted in few vessels being built in 

 Iceland in the past decade. The largest shipyards are 

 the Slippstodin hf, Stalvik hf, and Skipasmidastod 

 Njardvikur hf. Most Icelandic shipyards focus on 

 ship repairs and various service with the fishing 

 industry and not on building new vessels" 



6. International Agreements 



Iceland has signed bilateral fishery agreements 

 with Norway, Belgium, and the Faroe Islands. The 

 agreement with Belgium was signed on November 

 28, 1975. The agreement initially allowed 12 Belgian 

 vessels to fish in Icelandic waters; it was reduced to 

 8 vessels in 1979 and 7 vessels in 1981, and was 

 allowed to expire in 1985. The agreement with the 

 Faroe Islands was signed on March 20, 1976, and 

 gave both parties allocations of fish in each country's 

 waters. Similar agreements were reached with 

 Norway on March 10, 1976; these agreements were 

 amended in May 1980 and June 1984. The 

 agreements permit only small amounts of cod, blue 

 whiting, herring, capelin, or other species to be 

 caught during specified times. The total catch by 

 Belgian, Faroese, and Norwegian fishermen in 

 Iceland's fisheries zone amounted to 25,400 tons in 

 1982, 19,600 tons in 1983, and 10,800 tons in 1984. 

 Iceland, Norway, and Greenland have an agreement 

 on the joint exploitation of the capelin stock around 

 Jan Mayen Island.^" 



Iceland and the United States concluded a 

 Governing Intemational Fisheries Agreement (GIFA) 

 on August 23, 1984. The agreement technically 

 allowed reciprocal access by fishermen of the United 

 States to Icelandic waters in exchange for access by 

 Icelandic fishermen to U.S. waters. Icelandic 

 officials stated that allocations were not available in 



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