Ministry says ferry fee exemption is not expropriation

The Ministry of Business Affairs says exempting the national ferry service from harbour dues would not amount to expropriation. The assessment was reported by KVF, the Faroese public broadcaster.

The proposal by Business Affairs Minister Jacob Vestergaard to scrap the dues has sparked a dispute. Municipalities could lose more than seven million kroner a year, and the Legal Service has questioned whether the proposal could violate the constitution.

In a legal memorandum dated 18 September and published today, the ministry argues that the ferry service performs an essential public service that cannot be run on ordinary commercial terms. It says the ships can be compared with rescue and patrol vessels, which also do not pay harbour dues.

The ministry considers the proposal a lawful restriction on municipalities’ right to charge fees, rather than an expropriation requiring compensation. It notes that municipalities would continue to own the harbours and could still charge for other services.

The ministry also acknowledges that the courts would ultimately decide whether the measure amounts to expropriation. Parliament is due to hold the proposal’s first reading today.