THE Falkland Islands Government may find it necessary to legislate that directors and shareholders of ITQ-B quota companies are ‘ordinarily resident’ in the country for 183 day of every year.
A discussion paper was placed before Thursday’s Fisheries Committee asking members to consider whether the current definition of “ordinarily resident” for those holding interests in ITQ-B fishing quota companies needs clearer interpretation or possible changes.
Chief Executive Andrea Clausen noted that the guidance was “…effectively not being adhered to so there is a need for us to look at it in more detail. But if the guidance is not being adhered to then we might have to legislate.”
She acknowledged that, “the guidance although reasonably clear can always do with improvement… and the world’s changing and there might be other exemptions that people want to be considered.”
When the ITQ-B system was introduced, policymakers emphasised the importance of local ownership of fishing quota, reflecting longstanding concerns in the Falklands about absentee ownership in key industries. As a result, ITQ-B companies must have directors and shareholders who hold Falkland Islands Status and are ordinarily resident in the Islands.
Current guidance generally interprets this as spending at least 183 days in the Falkland Islands each year, although the Director of Natural Resources can exercise discretion in certain circumstances. In the past, exemptions have typically been granted for medical or compassionate reasons, or where travel disruptions prevented people from returning to the Islands.
The issue has been raised again after an ITQ-B company director argued in 2025 that business travel should also be considered a mitigating reason for not meeting the 183-day guideline. The committee paper asks members to consider how the requirement is understood, what absences should be considered acceptable, and whether the definition of “ordinarily resident” should be clarified through additional guidance or legislative change.
At the meeting, several committee members gave their views including suggesting additional exemptions such as education and training, and ‘ordinarily resident’ being viewed over a longer period, for example five-years to reflect where someone’s real home is rather than judging only a single year.
It is felt by fishing industry members that guidance is preferable, and legislation could become too rigid because once rules are fixed in law there will always be cases where someone will ask for reasonable exemptions.
MLA Roger Spink emphasised the fishing industry should be run by people who live and work in the Falklands, that the point of ITQ-B is to ensure local control and local benefit and that without such rules there would be little distinction from allowing quota or control to sit overseas.
Members of the fishing industry essentially argued that the fishing industry is now in a different position from when these rules were first introduced, that local companies are now majority shareholders and actively manage the fishery and also that businesses have diversified, including outside the Falklands. One industry member explained that business activity may require key people to spend time overseas for legitimate operational reasons.
Initial feedback following the discussion is being sought by April 3, with the possibility of wider consultation should any changes to the framework be proposed.
