Minister to make MIFCO subsidy free in 3 years
He said he would also take steps to increase MIFCO's fish processing capacity.
By
Ahmed Naif
Fisheries Minister Ahmed Shiyam said on Tuesday that the government's fish company, Maldives Industrial Fisheries Company (MIFCO), will be made a subsidy-free company within the next three years.
Minister Shiyam was summoned to Parliament on Tuesday and MPs asked him questions on the long-standing non-payment of fishermen for fish bought by MIFCO. Some members asked:
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Since the fishing industry is also a business, how can the industry be run without constantly supplying subsidies?
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When will the government privatise MIFCO and get out of the fisheries business and be only a policy maker?
This government will not allow MIFCO to bleed. I will make changes. The fishermen want to reduce the huge costs there and make it a place where they can earn an income.
The minister said that in every country, the government subsidises important industries. However, there is a model where fisheries, one of the main industries in Maldives, can be operated without subsidies, he said. He plans to:
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MIFCO restructuring and cost reduction; especially Felivaru and Kooddoo need major changes
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If the costs of the two facilities are reduced and the operation is made efficient, MIFCO will become a breakeven company
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I will cut down on excess employees and high-paid consultants with MIFCO
"This government will not allow MIFCO to bleed. I will make changes. The fishermen want to reduce the huge costs there and make it a place where they can earn an income. The aim is to make MIFCO a non-subsidised company within the next three years. We will bring that change”, Shiyam explained.
He said the previous government had increased the price of fish by MVR 25 and MIFCO kept buying fish at a huge loss. Noting that even though the government has now decided to reduce the price of fish to MVR 20 per kg, it will still be purchased at a loss of MVR 6 by MIFCO.
However, he assured that the purchase price of fish would not be reduced anymore.
"Now the price is where we can manage it. As per President Muizzu's promise, we will not reduce the price of fish below MVR 20. We will stick to this price," he said.
He said MIFCO had received MVR 395 million in revenue since the government took over, and this government has paid MVR 435 million to the fishermen, he said. According to him:
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The previous government increased the price of fish based on bad calculations
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New markets were supposed to be found to increase the price of fish, but that has not happened yet
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6% of the fish exported from MIFCO is untreated or perishable; Reform changes will be made to reduce that part
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He said he is working to find more buyers of Maldivian fish
The minister assured that with the changes in the operation of MIFCO, the company will be able to operate without government assistance. He said he would take steps to increase MIFCO's fish processing capacity.
