Paper presented at History of Nordic Computing, Throndheim, June 2003 10 Sept 2003 –ob 1 Computerisation of the Icelandic State and Municipalities: 1964 to 1985 Oddur Benediktsson University of Iceland oddur@hi.is Jóhann Gunnarsson Ministry of Finance johann.gunnarsson@fjr.stjr.is Egill B. Hreinsson University of Iceland egill@hi.is Jakob Jakobsson 1 Marine Research Institute jak-mar@xnet.is Örn Kaldalóns Nýherji kaldalon@nyherji.is Óttar Kjartansson 1 Skýrr ottar@heima.is Ólafur Rósmundsson Reiknistofa bankanna olafur.rosmundsson@rb.is Helgi Sigvaldason Consultant helgis@hi.is Gunnar Stefánsson University of Iceland gunnar@hi.is Jón Zophoniasson Internal Revenue Directorate jon.zophoniasson@rsk.is Abstract. The paper relates how some key IT applications were developed in Iceland following the introduction of the first computers in 1964. The key applications treated are the National Reg- ister of Persons, real estate assessment, financial systems, centralised processing of bank checks, fish stock abundance computations, IT in fish processing plants, the control of hydroelectric power stations, and the challenge of adopting the Icelandic alphabet to the use of computers. Introduction The history of electronic data processing in Iceland began in 1949 when Hagstofa Íslands (Statistical Bureau of Iceland) obtained the first numerical Unit Record (punched card) equipment to facilitate the processing of import and export transactions. The National Register of Persons was established in 1952. It was based on the 1950 census and a special nationwide census taken in 1952. Skýrr (Skýrsluvélar ríkisins og Reykjavíkurborgar - The Icelandic State and Municipal Data Center) was established 1952 by an initiative from Hagstofa Íslands, Rafmagnsveita Reykjavíkur (Reykjavík Electric Power Utility), and the Practitioner General of Iceland. The existing data processing equip- ment was enhanced to handle alphabetic data and then used to mechanise the National Register of Persons amongst other applications. IBM Unit Record equipment was used for the first twelve years (Kjartansson 2002.) The first electronic computers came to Iceland in 1964 as Skýrr obtained an IBM 1401 computer and the University of Iceland an IBM 1620 computer. In the 1960s the unofficial policy of the government was that all administrative computation should be centralized at Skýrr and that the scientific, engineer- ing, and educational computing should take place at the newly established Computing Centre of Uni- versity of Iceland. In the early days computers were quite costly and difficult to operate and maintain. Furthermore only few persons had the know-how to develop and maintain computer applications. The advent of “inexpensive” minicomputers in the 1970s changed all this. The monopoly was broken and many larger concerns obtained their own computers such as DEC PDP-8, PDP-11, and IBM System/3. IT system development became common knowledge. In 1980 the University of Iceland acquired a VAX 11/750 system and the usage of interactive system development was realized there. Aside from the equipment already mentioned electronic office equipment or computers from Olivetti, Kienzle, Burroughs, Wang, and others was imported and fierce competition existed amongst the importers. 1 Retired