Subsidy for entrepreneurs

Subsidies for electricity and water supply to fish factories on land are financed through other revenues in Nukissiorfiit, and this scheme will cost Nukissiorfiit 43.3 million kroner in lost revenue in 2024. If similar subsidies are to be introduced for entrepreneurs and small businesses, another form of financing must therefore be found.

The writes Naalakkersuisoq for Business, Raw Materials, Energy, Justice and Equality Naaja H. Nathanielsen, (IA) among other things in a section 37 reply to member of Inatsisartut Napaartoq Petrussen, the Democrats.

The Naalakkersuisoq writes for Business, Raw Materials, Energy, Justice and Equality Naaja H. Nathanielsen, (IA) among other things in a section 37 reply to member of Inatsisartut Napaartoq Petrussen, the Democrats.

Investigation of alternative options

Large companies like Royal Greenland with their fish factories on land receive subsidies for their electricity and water bills, while small private companies do not, which is a big financial burden, says Napaartoq Petrussen. He therefore believes that subsidies for electricity and water bills should be introduced for entrepreneurs and small businesses so that conditions for small businesses with production on land improve.

According to Naaja H. Nathanielsen, the Greenland Government generally supports all those who promote growth and development in the private business sector, including entrepreneurs and small businesses.

- It is important to note that the current rebate scheme for land-based fish factories is currently financed by other revenues from Nukissiorfiit.

- In 2024, the discount is 43.3 million kroner and in addition there is a loss of income for Nukissiorfiit. This means that the costs are ultimately paid by all other customers and thus burden Nukissiorfiit's finances, says Naaja H. Nathanielsen.

Therefore, naalakkersuisoq emphasizes that such a new scheme should include an alternative financing model for entrepreneurs and small businesses that will not worsen Nukissiorfiit's finances or affect the prices of other customers.

New initiatives

The Government of Greenland is currently preparing a strategy for promoting business, which will assess a number of new initiatives to benefit entrepreneurs, including the possibilities for reforms, administrative relief and commercial measures.

According to information from the Ministry of Fisheries, Hunting, Agriculture and Self-Sustainability, in connection with the preparation of the self-sufficiency strategy 2025-2030, the possibilities of targeting and organizing food production and self-sufficiency with a view to establishing new businesses have been examined.

- At the same time, 1 million kroner has been allocated annually in the Finance Act for 2026 to promote business promotion in the period 2026-2029, focusing on self-sufficiency. These funds can form the basis for strategies that can be used outside Nukissiorfiit and thus create a more efficient and cost-effective structure.

- It is important that the fishing industry, including large coastal fisheries and land-based factories, is given stable and predictable framework conditions. The fishing industry must still be a supporting economy and therefore it is important that it functions in a stable manner, says Naaja H. Nathanielsen in her response.

Growth needs to be strengthened

Naaja H. Nathanielsen emphasizes that the political goal is to strengthen the growth of new industries, such as those that produce for self-sufficiency in food.

- Several industries can develop side by side. Naalakkersuisut has difficulty seeing how some industries can be replaced by others to make room for development. In our strategy for growth and industry, we will, among other things, focus on new initiatives that support entrepreneurship, including renovation, administrative simplification and marketing initiatives, he says.

Naaja H. Nathanielsen concludes his paragraph 37 response by saying that Naalakkersuisut works to continuously strengthen the framework for new business operators and entrepreneurs as well as collect knowledge.

An encouraging development

Napaartoq Petrussen believes that it is important to understand how to develop a business program.

Today, large companies in the fishing industry get half of their electricity and water costs paid, but this is not the case for entrepreneurs and small businesses. And that should change.

- More companies need good working conditions if they are to be sustainable, environmentally friendly and economically profitable.

- Therefore, he says, innovative companies that want to create jobs need a temporary halving of their electricity and water bills.

Napaartoq Petrussen believes that the answers that Naalakkersuisut has given on this topic provide a positive view of the future.