Cooperatives thriving in Fáskrúðsfjörður as locals push for new Icelandic legislation

In Fáskrúðsfjörður, the cooperative spirit is thriving, with residents claiming ownership of the local fishing operations. The chairman of Kaupfélag Fáskrúðsfirðinga expresses hope that a legislative proposal aimed at protecting cooperatives from being converted into private companies will pass in the Icelandic Parliament. This initiative is specifically designed to prevent such organizations from being dissolved for quick profits.

The sign of the Icelandic Cooperative Association still hangs at the local fish processing plant, having been rescued by locals after the association’s dissolution. The Kaupfélag, reflecting the cooperative model, is owned by over 350 members, which constitutes about half of the town’s population. Any resident who has lived in the fjord for the past two years is eligible to join. The cooperative shares profits with members derived from the success of the fishing plant, with funds also redirected to community projects, including sports clubs and local institutions.

The current proposal in Parliament includes measures requiring a three-quarters majority vote from cooperative members to agree to dissolution, and mandates a limit on profit distribution from their capital fund. The objective is to keep financial resources within the community and maintain the cooperative’s assets, ensuring they serve local interests.

Stein Jónasson, the cooperative’s chairman, emphasizes the importance of protecting their assets for local development. “As long as we own it, the wealth it generates will remain here,” he explains, highlighting a commitment to reinvesting resources in community projects and maintenance of local fishing vessels.