Reykjavík Grapevine - 12.01.2007, Blaðsíða 5

REYKJAVÍK_GRAPEVINE_ISSUE 01_007_NEWS_05
In the year that passed, these news stories
stood out above others.
Heavy Industry to Increase
Despite Growing Opposition
The government’s plans for continued
heavy industrialization drew criticism from
the financial sector. Early in the year, Ágúst
Guðmundsson, CEO of Bakkavör Group,
said in a speech at the Icelandic Business
Forum that the government’s plans for
continued investment in aluminum smelt-
ers and power industry was crippling other
industries. He claimed that the continued
development was putting a lot of pressure
on the economical system, causing the ex-
change rate of the Icelandic Króna to go
up steadily, causing other export industries
to lose money. Guðmundsson also claimed
that the required rate of return from the
investment in heavy industry was too low.
If the same investment had been made in
dynamic start-up companies, the return
would have been much higher than could
be expected from heavy industry. Around
the same time, analysts from KB Bank is-
sued a report stating that the government’s
position on heavy industry was the main
factor pushing up the exchange rate, lead-
ing to losses in other export sectors.
According to a February Gallup poll,
most Icelanders felt that the government
should not focus on trying to build an alu-
minum smelter in Iceland within the next
five years. Over 60%, of the eight-hundred
people who responded, were against the
building of another aluminum plant - as has
been proposed for the north of Iceland -
while only 29.6% favoured the idea. While
more women than men were against the
construction of more heavy industry within
the next five years, respondents from all
age groups - from 16 to 75 years of age
- showed a large majority against recent
development proposals.
In May, government officials signed a
declaration of intent to explore the pos-
sibility of building an aluminum smelter
in Húsavík, while Alcan is hoping to more
than double the production capabili-
ties of the Straumsvík Aluminum smelter.
Meanwhile, Andri Snær Magnason’s book
against heavy industry, The Dreamland,
became a best seller, and protesters gath-
ered at an international protester’s camp
near Kárahnjúkar.
In September, the by-pass tunnel for
the Kárahnjúkar Dam was closed, effec-
tively starting the build up of the Hálsalón
Lagoon, which will provide the hydroelec-
tric dam with consistent water pressure.
Near the end of September, fifteen thou-
sand people marched in support of retir-
ing television reporter and nature enthu-
siast Ómar Ragnarsson and his call to the
Icelandic government to forego with the
Kárahnjúkar dam. Ragnarsson called for
Icelanders to protest, stating that when
an unjust execution is about to go forth
one should continue disputing it until
the last day. Protest walks took place on
Laugavegur in Reykjavík, in Akureyri, Eg-
ilsstaðir and Ísafjörður. In a conversation
with the Grapevine right before the march,
Ísafjörður organizer and scholar Ólína Þor-
varðardóttir reflected public opinion to the
latest developments in the dam spectacle.
“It was foremost Ómar’s call that sparked
our interest in marching here in Ísafjörður.
He has been very diligent in calling atten-
tion to the impending harm to nature and
the environment and people are finally
starting to realise that it is not too late to
do something about it. This is why we will
answer his call and march, expressing our
sorrow over what is happening.” When
asked about the effects the Kárahnjúkar
endeavour had on the people of Ísafjörður
Ólína replied that the scope and effect of
the projects is far greater than anyone en-
visioned. “In environmental and economi-
cal terms, the effects are alarming. Here
in the West Fjords, we have experienced
drawbacks due to the inflation caused by
the dam, where greatly needed projects
such as improving our dismal road system
have been postponed to accommodate it.
On another note, the country belongs to
all of us; Easterners do not ‘possess’ the
Eastern highlands any more than we pos-
sess the West Fjords peninsula. This is our
heritage and we have an obligation to pass
it on to future generations.”
U.S. Defense Forces Leave Kefla-
vík Air Base; Nationwide Scare of
Rampant Motorcycle Gangs
In March, word spread that the United
States military base in Keflavík was go-
ing to be closed, with all aircrafts leaving
permanently by September. The majority
of personnel stationed were to leave, and
relatively new radar installations would be
closed. Up to 500 Icelanders would loose
their job.
Since 1951, Iceland has had a bi-lateral
defense agreement with the USA, for the
nation’s defenses. The decision to close the
base was made uni-laterally by U.S govern-
ment officials. Although the decision had
been apparent for quite some time, the
decision caught much of the nation by sur-
prise – including the government and me-
dia.
Steingrímur J. Sigfússon, Left-Green MP
and long-time critic of the U.S. military’s
presence in Iceland, told the Grapevine
that this was a historic day. “The dream
has certainly been realized, but of course it
would have been better if our leaders had
shown a little forward thinking and taken
the initiative themselves. The way this came
about was rude, and ultimately humiliating
for the government and those parties that
have for over five decades supported for-
eign occupation of Iceland. When our na-
tion was signed up for the coalition of the
willing to invade Iraq, against its will, we
were told we had to support our closest
allies. Yet this is how they treat their so-
called friends, it’s a real slap in the face for
the government.”
Mr. Sigfússon further commented that
Iceland’s need for armed forces was prac-
tically non-existent, and that civilian insti-
tutions such as the police and coastguard
should be organized in order to provide the
needed protection – in the unlikely event of
a major disturbance. ”I mean, who is going
to bomb us? Who is going to invade us?
We are not talking about being defense-
less. If, for example, a crazed motorcycle
gang came here and ran amok, we need to
have an organized force that can deal with
that. What we don’t need is an air force
and a base full of soldiers,” said Sigfússon.
“A long and humiliating chapter in our his-
tory is over, we’re not a feeble nation and
we can and should take responsibility for
our own security.”
In May, Social Democratic MP Össur
Skarphéðinsson, accused the ruling coali-
tion of “hiding from the parliament and
the people” the fact that the NATO base
was going to leave. Pointing to an article
by Valur Ingimundarson for the Icelandic
Literary Society, Skarphéðinsson pointed
out that US authorities had told the Ice-
landic government in December 2002 that
they intended to leave the country. This an-
nouncement was repeated formally about
a week before parliamentary elections in
2003, when the US ambassador met with
Icelandic government officials.
On September 30, the American flag
was lowered at the now former US military
base at Keflavík. After a small ceremony,
the Icelandic flag was raised alone and the
closure of the base and the withdrawal of
the Navy’s presence in Iceland became of-
ficial.
Many locals celebrated the turning
point by throwing their own little fare-
well parties and a large group cheered
the Navy’s departure at a meeting held at
Nasa the following day. “I’m still celebrat-
ing,” Stefán Pálsson, spokesperson for The
Campaign Against Military Bases told the
Grapevine. Pálsson and a bus full of anti-
war protestors went on a guided trip to
Reykjanes to explore the area now desolat-
ed, but the area is closed for public traffic.
“It was all very informative and very unreal
to walk around such a ghost village and
think about all the waist that strings along
such military bases. To think about all the
money spent in constructing the buildings,
which now are empty. Money, which could
have been used for something very differ-
ent.”
U.S have stated that the defense agree-
ment will be honored, although Iceland’s
air defenses will be orchestrated from
other NATO bases in Europe. The Icelandic
government has explored other options in
cooperation with Norway and Denmark.
What will become of the air base left be-
hind in Reykjanes remains uncertain.
Whaling Resumes;
World Not Amused
In October, the Icelandic government lift-
ed the ban on commercial whaling. The
whaler Hvalur 9 was promptly prepared
for its first journey in seventeen years. In
accordance with the International Whal-
ing Commission’s moratorium, Iceland
gave up commercial whaling in 1986, al-
though scientific whaling was practiced up
until 1989. In 2003, Icelanders returned
to whaling for scientific purposes, when a
program designed to research the effect of
minke whale on commercial fish stock was
launched. A press release from the Ministry
of Fisheries states that the quota would be
nine fin whales and 30 minke whales dur-
ing the 2006-2007 Icelandic fishing year,
in addition to 39 minke whales that will
be caught as part of the scientific whaling
plan, started in 2003.
“The position of Iceland has always
been that whale stocks should be utilised
in a sustainable manner like any other liv-
ing marine resource,” stated a press release
on the Ministry for Fisheries website. “Ice-
landic policy on ocean issues is based on
maintaining the future health, biodiversity
and sustainability of the ocean surrounding
Iceland, in order that it may continue to be
a resource that supports and promotes the
nation’s wellbeing. This involves conser-
vation and management of the resources
based on scientific knowledge and guided
by respect for the marine ecosystem as a
whole.” The Ministry stated that Iceland
had the legal right to resume sustainable
whaling and that whale products would
likely be consumed both in Iceland as well
as internationally. British authorities ques-
tioned Iceland’s decision.
In an interview with the Grapevine at
the time, Magnús Þór Hafsteinsson, Liberal
Party MP, stated, “I think we Icelanders
should start whaling again, but we have to
be sure there is a market for the products.”
According to a Gallup poll conducted in
Iceland in June and July last year, very few
Icelanders eat whale meet on regular basis
and the market is very limited both locally,
as well as globally. Only 1.1% of Iceland-
ers eat whale meat once a week or more,
while 82.4% of 16 to 24-year olds never
eat whale meat. An international morato-
rium on commercial trading of whale meat
is still in effect.
Icelandic tourist companies, especially
in whale-watching industry feared back-
lash from travellers. A December Gallup
poll confirmed that nearly half of Iceland-
ers agreed that commercial whaling would
harm Iceland’s tourist industry.
The Stories That Shaped the Year
Text by Sveinn Birkir Björnsson with reporting from Gunnar Hrafn Jónsson, Haukur S. Magnússson, Paul F. Nikolov and Steinunn Jakobsdóttir.