Norway, Japan prop up whaling industry with taxpayer money

WWF 19 Jun 09;

Gland, Switzerland: The governments of Norway and Japan are using taxpayer money to subsidize their unprofitable whaling industries, according to a first-time analysis of the economics of whaling.

Economics and Subsidies to Whaling found that Norway and Japan provide commercial whalers with huge government subsidies—even though killing whales is unlikely to ever be profitable without taxpayer support.

“In this time of global economic crisis, the use of valuable tax dollars to prop up what is basically an economically unviable industry, is neither strategic, sustainable, nor an appropriate use of limited government funds,” said Dr Susan Lieberman, Species Programme Director, WWF International.

The analysis considers a range of direct and indirect costs associated with whaling and the processing and marketing of whale products, such as whale meat. Researchers conclude that these costs, combined with declining demand for whale meat and the risk of negative impacts such as trade or tourism boycotts, make commercial whaling unlikely to produce benefits for either country’s economies or taxpayers.

In Norway, for example, the government since 1992 has spent more than US$4.9 million on public information, public relations, and lobbying campaigns to garner support for its whaling and seal hunting industries, according to the report. In addition, government subsidies for the whaling industry have equalled almost half of the gross value of all whale meat landings made through the Rafisklaget, the Norwegian Fishermen’s Sales Organisation.

The report notes similar use of taxpayer funds by Japan. During the 2008-09 season, the Japanese whaling industry, for example, needed US$12 million in taxpayer money just to break even. Overall, Japanese subsidies for whaling amount to US$164 million since 1988.

Other major findings in the report include:

• Wholesale prices of whale meat per kg in Japan have been falling since 1994, starting at just over $30/kg in 1994, and declining to $16.40 in 2006.
• Norway has spent an additional US$10.5 million covering the costs of an inspection programme from 1993 until 2006, when it was scrapped due to the losses it was causing the country’s whalers.

Japan and Norway, in defiance of the International Whaling Commission’s moratorium on commercial whaling, kill up to 2,000 whales a year, exploiting loopholes in the IWC’s founding treaty that allow whaling under ‘objection’ to management decisions (Norway) and “scientific” whaling for research purposes (Japan).

Ahead of the 61st IWC meeting next week, researchers point out that killing more whales likely would hurt whale-watching and tourism, trade, and the international image of Norway and Japan – impacts which would far outweigh any economic benefits of whaling.

“It is clear that whaling is heavily subsidised at present,” the report states. “In both Japan and Norway, substantial funds are made available to prop up an operation which would otherwise be commercially marginal at best, and most likely loss making.”

“Norway and Japan are hurting tourism, a potential growth industry in both countries in order to spend millions of dollars obtaining whale meat, the sale of which makes no profit,” said Sue Fisher, WDCS US Policy Director. “How much longer are they going to keep wasting their taxpayer’s money?”

The analysis was conducted by independent economists eftec and commissioned by WWF and the Whale and Dolphin Conservation Society.

IWC 61 is being held in Madeira, Portugal, from 22-26 June.

Japan, Norway subsidizing unprofitable whaling: WWF
Shrikesh Laxmidas, Reuters 18 Jun 09;

LISBON (Reuters) - Japan and Norway are giving large subsidies to their whaling industries, which have become unprofitable due to rising costs and declining demand for whale meat, the WWF said Friday.

Conservation group the World Wildlife Fund (WWF) said a report it commissioned on the economics of whaling shows Japan has spent $164 million supporting its whaling industry since 1988 and Norway's subsidies add up to more than $15 million since 1992.

"In this time of global economic crisis, the use of valuable tax dollars to prop up what is basically an economically unviable industry is neither strategic, sustainable, nor an appropriate use of limited government funds," said Susan Lieberman, WWF's Species Director Program.

Lieberman's comments come just days ahead of the International Whaling Commission's (IWC) annual meeting in Madeira next week, where Japan and Norway are likely to come under pressure from anti-whaling nations including Britain and the United States to end their hunts.

Japan officially observes a 1986 global moratorium on whaling -- unlike Norway and Iceland, which ignore it and carry out commercial whaling -- but still catches about 900 whales a year in Antarctic waters for what it calls research purposes.

Most of the meat from the scientific catches ends up on the dinner table, angering animal welfare groups around the world who argue that many species face extinction and that explosive harpoons used by whalers can cause horrific suffering.

The report commissioned by the WWF said the Japanese whaling industry needed $12 million to break even in the 2009-season and that whale meat vendors have had to cut their margins due to waning demand.

Margins are also tight in the Norwegian whaling industry with low fixed prices and falling meat demand, a situation illustrated by the fact that the country has only taken around 70 percent of its self-assigned 885-whale quota in recent years.

The Norwegian government supports its whaling sector through fuel, transport and storage cost subsidies, as well as financing information campaigns, it added.

(Editing by Axel Bugge and Jon Hemming)