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SONAPESCA has once more file a suit due to fishery auctions complaints.
SONAPESCA files suit against SUBPESCA for fishery auctions
CHILE
Wednesday, December 12, 2018, 02:20 (GMT + 9)
The National Fishing Society (SONAPESCA) filed a new lawsuit with the Free Competition Court (TDLC), against the auction of quotas for six fisheries (among which are those of hake and anchovy) initiated by the Undersecretariat of Fisheries and Aquaculture (SUBPESCA) in November.
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SONAPESCA files second lawsuit against SUBPESCA for fishery auctions.
In the text, the fishing association argues that these processes undermine free competition by illegally reserving between 50 per cent and 60 per cent of the tender quota to smaller companies.
SONAPESCA general manager Héctor Bacigalupo argues that the reserves of exclusive batches are not contained in the law and, in addition, they produce "a profitability for the speculator who, fulfilling the requirements, can allocate themselves a portion that can then be resold to the real interested in fishing, which are excluded from competing due to these artificial barriers".
SONAPESCA explains that it decided to resort to the filing of the lawsuit so that the Government complies with the provisions of the law, respects free competition and observes the normative recommendations of the TDLC in 2011, where it studied that market and the form of allocation of rights.
According to the president the organization, Osciel Velásquez, they have long insisted that quota auctions are a bad instrument to assign fishing rights, but despite having tried "by all means to establish a fluid agenda and discussions on this and on other issues that worry the industry," have not been heard by the Government.
SONAPESCA general manager Héctor Bacigalupo states the reserves of exclusive batches are not contained in the law.
"Our intention will always be to seek agreements but based on technical data and recognizing international experience. For example, it is not being considered that the vast majority of OECD countries do not use the bidding as a mechanism for allocating rights, but rather the historical captures," said the trade union leader in reference to ongoing bids.
Related article:
- Fisheries denounce illegality in jack mackerel auction
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