Iceland Coast Guard warns it cannot maintain current operations

Iceland’s Coast Guard says it cannot maintain its current level of operations next year under the funding proposed in the government’s budget, mbl.is reports. Director General Georg Kr. Lárusson says the service expects a shortfall of 665 million krónur.

The Coast Guard plans to cut costs by postponing the dry-docking of a patrol vessel and urgent equipment renewals, according to Lárusson’s submission to the budget committee of Iceland’s parliament.

Funding would fall by 897.8 million krónur, or 9.6 per cent, from this year, excluding adjustments for wages and prices. The main reason is that a temporary allocation of 665 million krónur, provided in 2025 and 2026, is due to end. A separate austerity requirement accounts for a further 212.8 million krónur.

Meanwhile, the cost of maintaining current operations is rising. Global fuel prices have increased faster than general prices, and new helicopter lease agreements are expected to add around 150 million krónur to costs next year. Fewer assignments for Frontex have also reduced the Coast Guard’s own-source revenue. The service says its revenue target has not matched what it can realistically earn in recent years.

Lárusson’s submission says it has rarely been more important to maintain active surveillance of Iceland’s surrounding waters and telecommunications cables. The Coast Guard is asking for the 665 million krónur allocation to become permanent, for the separate austerity requirement to be dropped and for its own-source revenue target to be lowered to a realistic level.