Björgvin G. Sigurðsson has resigned as Minister of Commerce in the cabinet of PM Geir H. Haarde
Press Release
Björgvin G. Sigurðsson has today resigned as Minister of Commerce
in the cabinet of PM Geir H. Haarde
The following is his notice of resignation to the PM:
Rt. Honourable Prime Minister:
I submit to you today my resignation from the post of Minister of Commerce in your second cabinet. Furthermore, I have notified my decision to the Chairman of the Board of the Financial Supervisory Authority (FME), who will subsequently tender his resignation. I have also requested that the Board of Directors of FME reach an agreement with the Director General of FME on termination of his employment and thereafter that the Directors themselves tender their resignations.
My appointment as Minister in your cabinet meant I was entrusted with major responsibility, and I accepted this assignment with full confidence that this government could take advantage of its large majority in the Althingi to achieve important reforms. I take my leave of the cabinet much the richer from this experience and express my appreciation of the cordial personal relations between us.
Since the international credit crisis struck Iceland, the government has taken a wide variety of measures to mitigate the damage to households and businesses. These steps were undertaken out of urgent necessity, in order to ensure that an emergency situation would not develop in Iceland which would have resulted in even greater disaster for the entire society.
In addition to these emergency measures, it was clear that a new social consensus had to be achieved, supported by public confidence in the playing rules and democratic procedures, and that a new framework had to be laid for both the Icelandic economy and governmental structure. This the government has failed to do. By taking this decision today I wish to shoulder my portion of the responsibility.
The decision is prompted by my conviction that it is necessary to clear the way for a settlement and reconstruction based on the trust of the general public. In order to create the reconciliation and consensus needed to rebuild our society, politicians and the heads of public institutions will have to accept their responsibility.
In my opinion, the Board of Directors of FME and its employees have successfully carried out a difficult task in managing the administration of the former banks and laying the foundation for new banking activities in Iceland. Doubts concerning the part played by the FME Board and by the Authority itself in the events leading up to the collapse of the banks, however, will not be eradicated until the final results are in; for the moment it is clear that neither reconciliation nor confidence prevails concerning FME's activities.
I am therefore of the opinion that the Minister responsible for banking affairs and the Board of Directors of FME should step down in an effort to create the premises for its effective operations.
May I wish you success in the future, in particular in your struggle with serious illness, and express the hope that the government and the Althingi will manage to resolve the nation's pressing problems effectively.
Respectfully yours,
Björgvin G. Sigurðsson
The Minister of Commerce has also notified his Permanent Under-Secretary at the Ministry that he declines to accept the severance allowance to which Ministers are entitled.
Ministry of Business Affairs, 25. January 2009