Lerøy Seafood Group ASA : Short comment on Government proposal for changes in regulatory framework for cod trawlers

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| Source: Leroey Seafood Group ASA
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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.