Ben Arabo calls for overhaul of labour market subsidies

Several subsidy schemes in the Faroese labour market are outdated and should either be abolished or updated, Ben Arabo, a Social Democratic MP and chair of the parliamentary business committee, told KVF.

Arabo largely supports comments by Atli Gregersen, chief executive of fish farming company Hiddenfjord, who told Frihedsbrevet that several schemes should be scrapped because they distort both the labour market and business.

One example is the fish processing scheme administered by ALS. Another is the special tax deduction for seafarers.

Arabo said the initiative to update or potentially abolish subsidy schemes should come from the government. He cautioned against publicly dismantling schemes before they had been properly reviewed, but said he did not expect the seafarers’ deduction to continue indefinitely.

In general, Arabo said all subsidy schemes should be reviewed at regular intervals.