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3. Overcapacity.

By overcapacity it is generally meant: the capacity above that which is needed to make today's catch(6). Capacity is not a simple question of the number of vessels, nor of the number of people who are employed on board. As an example, a large factory trawler can fish far more than a small fishing vessel is able to. Nor can it be equated to the number of fishermen; it is a well known fact that the factory trawler fleet employees very few people per unit of fish caught compared to smaller vessels. Overcapacity relates to the amount of fish the sum of vessels is able to catch.

The global overcapacity is estimated by FAO to be more than 100%. This overcapacity, combined with either deficient or entirely lacking management plans and/or surveillance and control mechanisms, increase the pressure on fish stocks resulting in many being seriously depleted. The less a particular country has developed management regimes for their fisheries, including effective systems of control, the more serious will the consequences be of an export of capacity to their waters.

Overcapacity can easily be exported to other regions, particularly if the vessels in question belong to an international fleet with no roots in the local area. Factory ships are seldom attached to any particular community or geographical area and are usually not dependent on factories onshore to process their catch. Consequently they are well equipped to relocate to new areas on a short notice, especially if they are modern, large, fast ocean-going vessels.

In spite of the global overcapacity, the building of new and more efficient ships continues unabated. In this particular case, this is made possible by Norway, but other OECD countries provide extensive subsidies for building of new ships as well. In the period from 1970 to 1990 FAO registered a doubling of the global fishing fleet, from 585.000 to 1.2 million medium and large-sized fishing vessels, something which would have been impossible without large government subsidies.

Apart from the subsidies for building of new ships, the fishing industry is financially supported in a number of other ways in most countries in the world. According to FAO, the fishing industry receives approximately 54 billion USD in subsidies a year. Knowing that the collective value of the global fish catch is 70 billion USD, it is easy to conclude that subsidies have largely ciontributed to overfishing of the world's fish resources.

3.1. Factory trawlers versus coastal fishermen

Obviously, the capacity of local fishing fleets must also be counted into the total global overcapacity. However, due to both their impact on the resource, the lack of loyalty or connections of the factory trawlers to the local communities and the sheer proportion of world catches they get, factory trawlers must take a major share of the responsibility for the global overcapacity and, therefore, the burden required to reduce it.

The development of the factory trawler fleet has been made possible by a policy of subsidies combined with a belief in the economic advantages of the factory trawler fleet over the small scale coastal fishermen. This a contradicition in terms: if the factory trawler fleet was so economically efficient subsidies would have been unnecessary. Obvious as this may seem, recently studies have confirmed it.

For a number of years, Fiskeriforskning (Fisheries Research Department) in Tromsoe has carried out operational studies for the Norwegian fishery industry. A main conclusion is that conventional, locally-owned companies have been the most profitable. Other investigations show that typical big companies with large-scale streamlined assembly line production, have been unprofitable. The small companies have survived on their own, while the large ones have survived because of the subsidies(7).

Another important aspect of the overcapacity in the factory trawler versus local fishery debate is the social problems the factory trawler fleet often leads to. Too many examples exist where the introduction of factory trawlers has led to smaller catches by the local fishermen as well as lower prices for their catch. Conflicts - some of them armed - often follow in the wake.

A report by Greenpeace showed that in the last years, in no less than 26 areas, large conflicts over the right of access to marine resources have occurred. Of these, 19 have involved military vessels and 10 have involved exchange of fire(8).

3.2. American Monarch and Overcapacity

With RGI's new supertrawler American Monarch, the global overcapacity is increased another notch. American Monarch is proudly advertised by RGI as the world's most efficient trawler and has a capacity which indicates that it could fish the entire annual catch by the Icelandic fleet in the Smutthullet - in less than two months.

RGI justifies the American Monarch with the fact that the company has bought and decommisionned 3 trawlers with the equivalent capacity as that ship. RGI uses engine power as a measure of capacity. In Chile, this is an accepted way of comparing capacity. It is argued that the engine power of a vessel decides the size of the trawl the fishing vessel can be equipped with.

However, capacity can not be calculated this way. American Monarch is a vessel with all imaginable technology both on the catching as well as the processing side. The three ships, in spite of having the same overall engine power, did not have the same fishing capacity. Consequently the American Monarch can not be directly compared with the three vessels it replaces, and will only lead to an increase in fishing capacity in a country and region where it is already far too high and the regulation and control of the fishing activities is virtually non-existent(9).

3.3. Overcapacity Seen Through Norwegian Eyes

In Norway, the government has worked actively to reduce overcapacity in the Norwegian fishing fleet. Fishermen have received economic support to scrap their vessels thus reducing the total capacity, in theory without relocating it to other parts of the world. This has been a limited success: “success” because the Norwegian overcapacity has been reduced from 100 to 50-60%; “limited” because part of this capacity reduction has moved out of Norway to less regulated regions in other parts of the world.

Transfer of capacity is a considerable problem in international fisheries. It is known in our local waters, the Barents Sea: Icelandic fishermen and fishing vessels, operating under flags of convenience, often in vessels built with the help of Norwegian subsidies, conduct an extensive fishery in the international (and non-regulated) area of Smutthullet. Many of these vessels previously fished in the Icelandic Exclusive Economic Zone (EEZ). Other vessels found in this area have previously operated on the Grand Banks outside Canada - these ships were sold cheaply to Iceland and are now fishing in international waters.


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(6) A more correct definition would be: Overcapacity is the capacity above what is needed to mainatin an ecologically sustainable fishery. It is the sustainability in the harvest which should be decisive for the necessary capacity.
(7) Professor Jan Raa, Fishery Research in Tromsoe. Quoted in Fiskaren, 1 October 1996.
(8) Fighting Over Fish, Volatile Flashpoints. Greenpeace International, March 1996.
(9) In this context, RGI's view of overcapacity is interesting: In a meeting with Greenpeace, managing director Dag Wittusen acknowledged that overcapacity in a region where control was lacking could lead to overfishing. On a direct question, he could not say why this would not apply to RGI and the activities of American Monarch in Chile, but that the company simply felt that they would behave responsibly.