There has been a storm in coastal Norway after the government wants to demand billions from the farming industry in a so-called ground rent tax. Farming giants Lerøy, Cermaq, Nordlaks, Salmar and Nova Sea say they are halting developments and investments following the government’s tax proposal. According to Sjømat Norge, the deferred or canceled investments amount to NOK 12 billion in total so far. – This increases with each passing day and shows exactly the opposite of what the government is asking us for: increased value creation along the coast, says communications manager Øyvind André Haram to news. That worries parliamentary representative Bård Ludvig Thorheim in the Conservative Party. – It is not just about billions, but thousands of jobs that are at risk, he says. He says that in recent days he has been belittled – not only by people in the aquaculture industry, but also by local politicians from both the Center Party and the Labor Party. – These are politicians in Nordland who have begged me that the Conservative Party must do something. They say that investments in hundreds of jobs they had been looking forward to have been put on hold. This affects the municipality and the local community. It’s quite powerful to hear. Uprising The government’s income from the new basic rent tax on the farming industry is estimated at up to NOK 4 billion annually. The industry can handle it, according to Fisheries and Oceans Minister Bjørnar Skjæran (Ap). – Throughout the last decade, profits and returns have been 3-4 times as high as in the industry. In the economic situation Norway is in now, those with the highest incomes and large assets must contribute a bit more, Skjæran told news on the same day that the proposal was submitted. But the aquaculture industry has not allowed itself to be reassured. Today, the farming company Nova Sea on the Helgeland coast raised the purchase of permits to increase its production. Nova Sea now believes that the price they paid in June no longer corresponds to the value of the volume they bought. – We have built up our company over 50 years in order to be able to create more jobs, local ripple effects and build strong local communities. Now this is being put at risk, which is very dramatic, says managing director Tom Eirik Aasjord in Nova Sea. Photo: Lars-Petter Kalkenberg / news Salmar, one of the world’s largest farming companies, has also raised a purchase for further growth. Last week they withdrew the purchase of a license for increased production at a price of NOK 245 million, writes E24. And Cermaq cuts investments in northern Norway. It is the ground rent tax that causes Cermaq, which has 680 employees in Nordland and Finnmark, to freeze investments. Farming giant Lerøy says it is stopping the construction of a planned salmon slaughterhouse on Skjervøy in Nord-Troms. They also draw a purchase of license capacity. Right: – Have to pay more tax Thorheim believes that the tax model the government has put forward has a number of negative consequences. In addition, wealth tax also creates uncertainty. – We see that there are investments in what happens on land that are being dropped, such as slaughterhouses, fillet factories and smolt plants. – The Conservative Party sees that there may be grounds for the aquaculture industry to contribute more than today, says Linda Hofstad Helleland. Photo: Terje Bendiksby Nevertheless, he and the Conservative Party are clear that the aquaculture industry must pay more tax than it does today. Now the Conservative Party will challenge the aquaculture industry on alternatives to the government’s proposal on ground rent tax – Can we imagine a smarter and better model that brings in more money from aquaculture than today. Which at the same time better facilitates more investment in more activity and especially jobs on land. When the Conservatives were in government, they advocated a system of production tax instead of increased tax pressure. In addition to the current production tax, concessions are sold at auction, which is also a form of ground rent taxation, according to the party. – The Conservative Party had expected that this type of tax change would be considered in connection with the tax committee’s report. It had provided the basis for a good consultation process, says Helge Orten. Photo: Remi Sagen / news – The measures that have been used so far have provided greater predictability, Thorheim believes. And gets support from Conservative colleagues Linda Hofstad Helleland and Helge Orten. Helleland is a business policy spokesperson. She believes that the great uncertainty experienced by many companies contributes to putting jobs at risk. – It is felt to be directly harmful to many local communities in District Norway, she believes. Tax policy spokesperson in the Conservative Party Helge Orten reacts to the fact that the proposal from the government comes before the government-appointed tax committee has presented its recommendation and without dialogue with the industry. – The Conservative Party had expected that this type of tax change would be considered in connection with the tax committee’s report. It had provided the basis for a good consultation process and opportunities for constructive adaptations, while any changes were made based on an overall assessment, says Orten.
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The Conservative Party wants to tax the farming industry more heavily – news Nordland
