Organisers of the 'Icelanders are NOT Terrorists' campaign presented their four 500-page petitions to the British-Icelandic All-Party Parliamentary Group on Tuesday.

The delegation included a woman wearing a traditional and symbolic Icelandic costume, and Orri Páll Dýrason of the post-rock band Sigur Rós.

Austin Mitchell MP, chairman of the British-Icelandic All- Party Parliamentary Group, said: 'I welcome this petition. Government was too quick to act against Iceland when we should have helped them.'

The petition was launched after the British Government invoked the Anti-terrorism, Crime and Security Act of 2001 to freeze UK assets of the Icelandic bank Landsbanki, the Central Bank of Iceland and the Government of Iceland on October 8 last year.

Icelandic-owned Kaupthing Singer & Friedlander bank was also placed into administration using the Insolvency Act 1986, not anti-terrorism legislation – precipitating the collapse of the sister bank in the Isle of Man.

A court order outlining the evidence filed by the UK's Financial Services Authority in support of its application to put the bank into administration has been 'sealed' and cannot be opened for public inspection without the court's leave.