In Iceland's parliamentary election, some six weeks later, it was the Vinstri graenir (The Left-Green Party) who enjoyed the largest gains in terms of votes, progressing from 8.8% in 2003 to 14.3% in 2007, and from five seats to nine.
One reason for the party's progress is their opposition to the construction of more aluminium smelters in Iceland. On the other hand, it could have more to do with their strong 'environmental' stance in relation to the building of large dams and hydro-power stations. Or finally perhaps it could be that their support for democracy at the grass-roots level gained them votes from disillusioned voters moving from other parties.
There is, in other words, more than one theory to explain the growth of The Left-Green Party. This is also underlined by the fact that the new Íslandshreyfingin (the Iceland Party), who also fought for environmental protection, although on a right-wing platform, did not manage a breakthrough. They received 3.3% of the votes which was not enough, under the specific rules of the electoral system, to gain any seats in the parliament.
The most surprising thing about the election was perhaps however that the process of establishing a new government eventually ended up with a coalition of the two largest parties in the Parliament: Sjálfstaedisflokkur (The Independence Party also known as The Conservative Party) and Samfylkingin (The Social Democratic Alliance).
Together the two parties gained 63.4% of the votes and 43 of the 63 seats in Parliament. The Independence Party has 25 seats, an increase of three on the previous election. The Social Democratic Alliance, on the other hand, were reduced from 20 to 18 seats.
The new prime minister comes from the Independence Party, while the Social Democrats hold the posts of foreign minister, minister of industry and minister of environment.
Iceland's previous government was also a coalition though the Independence Party's partner there was Framsóknarflokkur (The Progressive Party). The Progressive Party were the big electoral losers however with the voters this time round. Their setback saw them fall from 12 to 7 seats and in percentage terms from 17.7% to 11.7%. As such they became a political liability for the governing Independence Party.
Energy and environment are important themes in Icelandic politics, as is regional development. At present, there is enthusiasm in Reydarfjördur for the new Alcoa aluminium smelter which opens there next year. Whether this will last, remains however to be seen. Discussion is currently taking place in a further two communities, namely Husavik and Helguvik, in respect of similar solutions. In Dyrafjördur a debate is also taking place in relation to the site of an oil-refinery.
The need to secure local jobs remains a major factor behind these types of initiatives. From an Icelandic environmental perspective both the additional smelter projects have a distinct chance of being realised. The major reason for this is that it will not be necessary to construct more large dams or hydro-power stations to supply the electricity needed to service them. New installations and construction will be on a smaller scale and in water systems which have already been exploited. In addition, in respect of the Husavik development, there are plans to produce the electricity needed through modern geothermal methods.
Greenland could also, in near future, join the club of countries supplying hydro-power electricity to the heavy energy consuming industries. On the 23rd of May a Memorandum of Understanding was signed between the international aluminium producer Alcoa and the Government of Greenland to this effect. Three communities in Greenland; Nuuk, Sisimiut and Maniitsoq will compete to secure the new industrial plant.
In total, there is talk of six hundred new jobs being packaged with the proposed aluminium smelter in Greenland. In Reydarfjördur on Iceland the figure of eight hundred jobs is mentioned. In terms of production volumes the two smelters are very similar in size.
Greenland has a population of 57 000. Iceland has 300 000. In both countries, and particularly in Greenland some immigration, internally or from abroad, is likely to be needed in order to secure the necessary workforce.
In Journal of Nordregio No 1 2007 we posed the question whether the power-intensive industries would leave Norden? Just a few days after our publication, it was announced that the Swedish paper company Rottneros planed to move their energy-consuming plants at Utansjö Bruk to South-Africa. Here, the company expects to be able to buy electricity at 0.15 SEK per kWh compared to the expected 0.40 SEK in the Nordic market, their spokesman says.
By Odd Iglebaek