Norwegian fish carrier misses the subsidy boat
Fish farming wellboat operator, Norsk Fisketransport AS (NFT), has missed out on millions of kroner after forgetting to apply for a government subsidy.
Like other Norwegian companies whose vessels are registered on the Norwegian Ordinary Ship Register (NOR), NFT is eligible for the net wage scheme, which reimburses the amount its seafarers pay in taxes. It means that in reality shipping companies only pay the net salary.
Norway is a high wage and high tax economy, and the scheme is designed to help ship operators compete with cheaper foreign competition and employ Norwegian seafarers, who are regarded as an important national skills resource.
Months late
But shipping companies must apply for the subsidy regularly, and NFT was months late in applying for the fifth term last year, reports Norwegian shipping website Skipsrevyen, part of the same media group that owns Fish Farming Expert. The refusal means NFT misses out on support for 10 vessels: Veidnes, Novatrans, Viknatrans, Dønnland, Namsos, Viktoria Lady, Steigen, Reisa, Kristiansund, and Havtrans.
The application deadline for submission was 25 November, but the application was not submitted until 17 February 2022.
An email from NFT to the Norwegian Maritime Directorate states that all documents were ready for submission in November, but due to a human error, they were not sent within the deadline.
First mistake
In all previous years, Norsk Fisketransport has been punctual in submitting all documentation within the deadlines, the company adds.
The Maritime Directorate turned down NFT’s late application for subsidy, and an appeal against the decision has been rejected by the Ministry of Trade and Industry.
“Norsk Fisketransport AS will suffer a disproportionately large loss if the application is rejected solely due to the deadline, and this will have major consequences for the shipping company,” lawyer Berit Solseth wrote in the company’s appeal.
“The consideration for the shipping company must in this case outweigh the consideration for efficient management of the subsidy scheme. The administration of the scheme will not be significantly more resource-intensive if serious players who exceed the deadline once still receive compensation that they are otherwise entitled to.”
Millions of NOK
She also pointed out that they are aware that other actors who have been late in submitting an application have had their applications granted following an appeal.
It is not known exactly how much money the company has lost due to the error, but Skipsrevyen said it has reason to believe that it is several million kroner.
NFT is owned by Frøy AS, a subsidiary of salmon farming and shipping company NTS ASA, which is in the process of being acquired by SalMar, a move that will cement SalMar’s position as the world’s second-largest salmon farmer.
