There is a growing concern in the world community about the state of fish stocks, ocean habitats and marine biological diversity. This concern centers not least on the issue of over-fishing. This apprehension is understandable in the light of the importance of the oceans for the world community.

It is, however, important to caution against broad statements and oversimplifications. For instance, it is not uncommon to see assertions such as that over-fishing and unsustainable fishing practices are endemic all over the world, necessitating urgent global action to regulate fishing.

The state of fisheries is certainly alarming in certain areas, but it is equally far from being so in other areas. Indeed, sustainable fisheries are possible and there are already countries that do implement effective sustainable fisheries management. It is important that these cases be recognized and that they be allowed to mature so they can provide positive examples for others to follow.

In Iceland we have a substantial experience of fisheries management. We know from experience that sustainable resource management is the prerequisite of our prosperity and welfare. It has been said that "We simply can not afford to get it wrong".

Through trial and error we have developed a sustainable fisheries management system which by international standards must be considered at once advanced, innovative and successful. In the following presentation I will briefly illustrate the main elements of this system and the reasons for why it works.

Iceland is located near the Arctic Circle between Greenland in the West and the Scandinavian Peninsula in the East. The island is situated on the northern part of the Mid Atlantic Ridge, which is the source of the volcanic activity the country is famous for.

By applying modern technology, science and management, we have been able to make use of our remarkably rich fishing grounds in a sustainable manner. This has allowed us to build up a prosperous society with modern standards of housing, health care and education, despite the harsh and hostile natural environment.

The fishing industry's direct contribution to Iceland's GDP is about 15%, but its total contribution (direct and indirect) is estimated to be as high as 45% of GDP. Export of fish products account for around 75% of the commodity exports in Iceland and 50% of the foreign exchange earnings.