Lerøy Seafood Group ASA : Short comment on Government proposal for changes in regulatory framework for cod trawlers
March 17 2017 - 7:14AM
The Government announced today a proposal that
would imply in part significant changes to the regulatory framework
for the fishing industry. Should the Storting adopt the proposed
changes, this will have an impact on operations for Lerøy Seafood
Group ASA's (Lerøy) subsidiaries, Havfisk AS and Norway Seafoods
Group AS. The proposal is the result of a consultation process in
which Lerøy also provided input. To date, the Lerøy Group has not
had the opportunity to gain in-depth knowledge of the proposal from
the Government, and is therefore taking all necessary
precautions.
The main elements in the proposal however seem to
be that the Government proposes to remove the so-called trawler
fleet land-lock obligation system parts in return for payment of
financial compensation and parts a reduction in the company's basic
quota. Forward-looking framework conditions, including
predictability and a long-term perspective, are central in the
effort to facilitate investments and create jobs in an industry
exposed to tough competition and with high demands for capital.
Lerøy is therefore not satisfied with the Government's proposal,
which implies a reduction of the Group's basic quota of 20 %. It is
our opinion that it is essential for the Group to sustain its raw
material basis in order to substantiate the Group's long-term
industrial investments both at sea and on land. The company plans
to study the proposal in detail and assess it in its entirety,
including the legal aspects. Lerøy is satisfied that the Government
has understood the need for modernisation of the framework
conditions, and hopes that the company's input to further political
discussions will be heard, so that the final resolution provides
the best possible grounds for the future development of our
sector.
Contact persons:
Chairman of the Board Helge Singelstad: +47 916
61 001
CEO Henning Beltestad +47 911 43 545
This information is subject
of the disclosure requirements pursuant to section 5-12 of the
Norwegian Securities Trading Act.
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Lerøy Seafood Group ASA via Globenewswire
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