THE fish processing industry on the Humber is nervously watching deteriorating relations between Britain and Iceland after the Icelandic president blocked a Parliamentary Bill to repay up to £3.4 billion to British and Dutch Icesave depositors.
It is seen as the worst crisis between the two countries since the Cod Wars in the 1970s. Last week more than a quarter of Iceland's adult population petitioned the president to block the bill, fearing it would bankrupt the country.
Last night Lord Myners for the British Government warned that the move could lead to Iceland's bid to join the European Union and the euro being blocked. Icelanders are still sore at Gordon Brown's use of anti-terrorist legislation to freeze Icelandic deposits in Britain after the big three Reykjavik Banks collapsed in October 2008.
But at the time the crisis also had the effect of almost halting shipments of fish between Iceland and the Humber when the clearing banks mistakenly thought the decision to freeze Icelandic banking interests in the UK applied to normal business transactions. In the end intervention by the Bank of England and the Grimsby FMA succeeded in settling the situation. More than 5,000 Grimsby and Hull fish processing jobs depend on fish supplies from Iceland.
Such a repeat is not thought likely, but on the Humber both personal and business relations between the fishing industry and Iceland are excellent and the worry is that souring relations at inter-Government level could affect those.
Meanwhile, the Icelandic fish catching industry remains steadfastly opposed to EU membership, fearing it could open its fishing grounds to powerful fishing fleets from several European countries.
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