How will politicians deal with future fish farming

Speech held by Mr Svein Ludvigsen on the 11th of June at the AquaVision 2002 in Stavanger

Introduction

Mr. Ambassador, Mr. Major, Mr. Chairman, ladies and gentlemen.

It is a great pleasure for me to be here on the opening of Aqua Vision 2002. It is both an important event and conference in Norway, and a global forum with focus on the future challenges of the aquaculture sector. I would also like to thank the Chilean representative for taking this trip to Norway. I had a very interesting visit to Chile in March, where we established good political relations to the vice-minister of fisheries, Sandoval and many other representatives from the fish-farming sector, like Mr. Victor Pucci, chairman of the Fish-farming Association. It is seemingly more and more important to tie our two countries together, to cooperate for mutual interests in the seafood industry. We are both competing and co-operating, and so should it be, because fish-farming is an international business where Norway and Chile is strong actors, and we have both the ambitions to stay in the forefront.

Today, we have been given the topic "how will politicians deal with future fish farming". In this short address, I will focus on two challenges to our future as an aquaculture nation, and these are globalisation and food safety. I will also share with you one initiative the Norwegian government is pursuing to deal with the future.

But, first of all, only thirty years have gone by since two men from the island of Hitra west of Trondheim first tried to grow salmon in a net cage in the sea in an attempt to farm a new species. The story of the Grøntvedt brothers from Hitra is a good example of how entrepreneurs laid the foundation for the new aquaculture industry in Norway, which has since grown into a thriving modern industry.

Innovative thinking and creativity based on an exchange of expertise and on cooperation between actors in the industry, aquaculture organizations, research institutions and the public administration has been the hallmark of the aquaculture industry throughout its development. This also goes a long way towards explaining the success of the industry in our country.

Globalisation/market access

We all agree, the world appears smaller than ever. All of us are in different ways connected to people from places far away. Many of the products we buy come from other countries, and we hardly think about it.

The globalisation process that has taken place since the Second World War has resulted in a major liberalisation of international markets. This encompasses both investment and trade in goods and services. The merits of a global market are obvious and widely appreciated. Globalisation offers opportunities and a wide range of new possibilities, but can of course also represent new difficulties.

The globalisation has also affected the fisheries sector, resulting in a significant increase in trade with seafood products for the last decades. The production of seafood products has also increased, mainly as a result of growth in the productions of aquaculture products. On global basis, fisheries and aquaculture products are important as sources of food, employment and revenue in many countries and communities. The fact that the potential for growth in traditional fisheries is limited makes aquaculture increasingly important.

In my opinion there is a great potential for a further growth in seafood products worldwide. Despite of several rounds of negotiations in GATT and WTO, the average tariff rates on fish and fisheries products are still high, with tariff peaks and tariff escalations. The large amount of non-tariff barriers such as standards, licences and quotas are also restrictive when it comes to trade.

For Norway the trade in seafood is of great importance. In fact, it is our second biggest export industry. Norway’s position as a seafood exporter is exceptional. Due to a limited home marked, 95% of all seafood production goes to markets outside Norway, making the fisheries and aquaculture industry one of the most international sectors in Norway.

It goes without saying that it is a main goal for the Norwegian Government to ensure the best possible market access for Norwegian seafood by means of a stable and long-term, and thus predictable, regulatory framework in all markets. The ongoing round of negotiations in WTO is therefore of great importance to Norway.

Food safety

In recent years the consumers have become increasingly focused on the quality of the products they are eating.

Internationally, food safety has therefore become a focal point when it comes to seafood and food generally. This is particularly clear as the European Union recently has founded the European Food Safety Authority – EFSA. The Norwegian authorities will have close connections to the EFSA. Many of the risk assessments that the authority will perform will also serve as base for Norwegian legislation.

A healthy marine environment is an essential basis for harvesting marine resources. Coastal and marine environments are under increasing pressure throughout the world. Norway is no exception. In many cases, development is carried out with inadequate knowledge of the probable impact on ecosystems. A central goal of the Norwegian Government’s policy for the marine environment is to establish a framework that makes it possible to strike a balance between commercial interests – the fisheries, aquaculture and petroleum industries, for example – while adhering to the principles of sustainable development. The Government has therefore presented a pioneering policy for the marine environment in the form of a White Paper to the Parliament. We are focusing on different pollution’s leading to a deterioration of the environment, the spreading of foreign species and depletion of marine stocks. Efforts to prevent environmental damage from sectors such as industry and shipping are therefore of crucial importance. In the area of aquaculture the White Paper focuses inter alias on the need to reduce the number of escaping salmon from fish farms.

One specific initiative from this White Paper will be to establish guidelines for environmental testing of medicine used in the aquaculture industry. Medicine that is used in fish farming is released in the marine environment and may affect other organisms in the sea. The guidelines will ensure that the medicines used in future fish farming will be adjusted to the marine environment at the same time as one gets comparable results from different medicines.

We want the consumers to perceive Norwegian seafood as both safe and delicious to eat. We must therefore ensure that the marine environment is clean, and we must have systems that ensure that products are safe to eat. These basic requirements can only be met by means of active efforts from both the authorities and actors in the industry.

If the consumers in the different markets do not choose Norwegian seafood, the huge potential that lie in the development of marine resources will not be triggered.

Targeting of public resources

So, how does the Norwegian government intend to meet the future ? Norway has a special advantage as a fisheries and aquaculture nation. The maritime and marine sectors in Norway are based on complete, economically strong and innovative clusters. Our vision is therefore to have a large marine sector in the future. And our ambition is to see a marine sector, which is in the forefront when it comes to acquisition of knowledge and expertise.

The industry is international, and on the same time technical development, information technology and free movement of capital reduce the distances and knit the world closer together. As a result of this we aim for Norway to have companies operating in the global arena. To get there, we are facing many challenges.

In this government’s political statement – the Sem-declaration – we state that the development of the aquaculture industry creates huge possibilities for added value and employment, especially in rural areas. This government will initiate development of infrastructure and to lead a innovative and research policy which makes it possible to harvest from the considerable potential for wealth creation that lie in the marine sector.

At the same time, most of us acknowledge the fact that governmental resources are limited, and this means that we need to target our effort. I am leading a panel/committee where 7 of the Ministers of the Cabinet are focusing on further development of Norwegian marine industries. Our main goal is for public effort to stimulate further growth in the sector in a long term perspective. Key areas of interest are: research and development and co-operation and co-ordination between the different public regulators. In this work we take seriously the possibilities and threats for a great development of an international and profitable marine sector. We ask the questions: If we believe in a wealth creation of "many times more" in 20-30 years time, what will the "landscape" look like? Which changes will the global development rise? How can we meet the need for governmental organisation in this "landscape".

These questions demand that we clarify the line between public and private responsibility when it comes to developing the aquaculture industry. In my opinion, the industry itself has the responsibility to trigger its own potential for wealth creation. This is also in accordance with the general policy of this Government that all industry should be at the head of it’s own development. The authorities responsibility should mainly be to safeguard specific social considerations, for instance within the use of the coastal areas, the environment, health, ethics etc. But the authorities should also play a part in the prolonging of the industries own effort to develop by providing stable framework to operate within. These are central elements for the Cabinet’s Committee on Marin Development and hopefully we can find the answers to some of the questions raised.

When it comes to government aquaculture regulations in Norway, licences will continue to be an important instrument in the development of the industry. The coalition government states this in the Sem-declaration. Fish farming of new marine species and new forms of production are examples of unexploited possibilities that lies within the aquaculture industry. Licences for new species will be allocated to applicants that satisfy the necessary veterinary and environmental requirements. We will, however, continue the policy of quantitative regulation of trout and salmon, and new licences will be allocated according to the market development.

Closing

One of the sub-questions from the organisers of this opening session is: "are the governments fast enough in decision making and to get appropriate legislation in place". As a politician I would have wanted that answer to be a roaring "yes!". But I realize that the answer will differ according to who’s responding. The purpose of the Norwegian Cabinet Committee on Marine Development is to establish a policy and strategy that can enable us stay ahead of the challenges in stead of having to perform "damage-control" or "fire-fighting" when sudden unforeseen challenges arise.

Norwegian salmon farmers have pioneered modern aquaculture since the late 1960, bringing commercial activity, and employment to remote areas along our coast. It is my ambition that the industry shall develop and grow in the future, and that environment and marine production shall walk along hand in hand.

In closing, I wish for all of you to have both informative and inspiring days during this conference.