Norway Daily No. 199/99

The Royal Ministry of Foreign Affairs,
Oslo Press Division

Norway Daily No. 199/99

DATE: 15 October 1999

COALITION CONFIDANT OF BUDGET DEAL

(Dagsavisen)

The coalition parties are still convinced of the prospect of reaching a budget deal with Labour. Finance committee chairman Lars Gunnar Lie (Chr.Dem.) is not intimidated by the list of heavy demands presented by Labour finance policy spokeswoman Hill-Marta Solberg. “They simply go into more detail on demands they have already stated in public. There are no major demands they have not already made known, though there are a few demands of a lesser nature,” says Mr. Lie.

NHO DEPLORES COMPROMISE WITH LABOUR

(Aftenposten)

Expectations of a budget compromise between the Government coalition and the Labour Party are not greeted with any enthusiasm by the Confederation of Norwegian Business and Industry (NHO). “Negotiations aiming to increase taxes by NOK 2 billion show that the Government can do whatever it wants with business and industry to save its own skin. This Government has spoken warmly for small family businesses from the day it took over, but it has been adding to their burdens for just as long,” says NHO deputy director general Kristin Clement.

LABOUR DEMANDS NEW ALCOHOL POLICIES

(Dagbladet)

Among the budget demands presented by Labour immediately upon sitting down to negotiations with the Government are: cheaper strong alcoholic beverages, sales outlets for the state wine and spirits monopoly in all municipalities – approximately 300 new outlets –; a new, cheaper class of beer, an awareness campaign and stricter border controls. The object of these measures is to reduce cross- border trade, smuggling, illicit distillation operations and the overall consumption of alcohol, and there are indications that Labour is likely to win support for them. Prime Minister Kjell Magne Bondevik said yesterday that his Government is prepared to accept lower alcohol prices and concentrate on other measures to reduce consumption.

869 ASYLUM SEEKERS IN HIDING

(Aftenposten)

This year alone, 869 persons, or one asylum-seeker in eight, have disappeared from Norwegian refugee centres. Neither the police, the Ministry of Justice nor the Immigration Directorate know where they are. No searches are made, nor are they reported missing. Among these missing persons are 28 children who have come to Norway without their parents. No one is making any effort to find these children, however, nor does anyone know if they are victims of crime.

NO PROMISES FROM STATOIL

(AFtenposten)

The engineering industry is in a state of crisis, but Statoil cannot promise any new offshore contracts. On the contrary, Statoil president Olav Fjell does not believe the rate of investment will ever return the record levels of the past two years. “This is my main point. With investments having been up to NOK 60 - 70 billion per year, I do not think there is any way to avoid a reduction to half this level,” says Mr. Fjell, though he hopes contracts may be forthcoming from Statoil’s international activities sometime in the future.

SELF-EMPLOYED TAKING DIVIDENDS INSTEAD OF EARNED INCOME

(Dagens Næringsliv)

There has been a sharp rise in dividends paid by non-listed companies. A growing number of self- employed persons are incorporating their businesses in order to avoid paying personal income taxes. Instead of a salary, they take heavy dividends, which are not taxed at all in Norway. Private incomes in Norway included NOK 12.9 billion in dividends in 1997, and 95 per cent of this amount was from privately-held corporations.

WOLF RESERVE IN THE OFFING

(Dagbladet)

State Secretary Jesper W. Simonsen of the Ministry of the Environment promises that the Government will have a clear administration and zoning plan for wolves ready by the time sheep are sent out to pasture next spring. Mr. Simonsen hints that a wolf reserve will be created in an area including parts of southern Hedmark, eastern Akershus and eastern Østfold counties.

WORTH NOTING

• Some of Labour’s demands regarding changes in the fiscal budget are more than finance committee chairman Lars Gunnar Lie (Chr.Dem.) had counted on. Mr. Lie said as much after Labour presented its detailed list of demands to the coalition parties’ finance policy experts yesterday. (Aftenposten)
• Swedish serial killer Thomas Quick has now been charged with the previously unsolved murder of Gry Storvik which took place 14 years ago. Quick has already been convicted of the murder of Therese Johannessen in 1988, and is already charged with killing Trine Jensen in 1981. (Dagsavisen)
• According to a poll taken by Gallup, most people would prefer to let private health care providers solve problems at the expense of those who are ill rather than pay more taxes. Only one out of three Norwegians is now interested in paying higher taxes in order to shorten hospital queues. (Vårt Land)
• The voters seem to be rewarding Labour for once again seeking to exert influence on economic policy. Opinion’s October poll shows a 3.7 point gain, bringing Labour up to a 30.7 per cent rating. Worst off is the Liberal Party, which dropped to 2.6 per cent, which would take the party out of the Storting altogether if this had been a general election. (Aftenposten)
• Layoffs are in store for Norsk Hydro’s crisis-ridden agricultural division. Most will take place outside Norway, though some reductions will take place here as well. (Dagens Næringsliv)
• After negotiations broke down completely on Tuesday, the Conservatives, Christian Democrats, Liberals and the Progress Party signed an agreement last night by which they will form a new Municipal Executive Board in Oslo. Per Ditlev-Simonsen (Cons.) will continue as mayor, with Svenn Kristiansen (Prog.) as deputy mayor. (Aftenposten) TODAY’S COMMENT Staff reductions at Kværner Oil & Gas were not unexpected. The number of people affected, though – 3,000 redundancies and the promise of further extensive layoffs – is much higher than anyone was prepared for. Employees must find it unjustified and unfair to be given notice now that oil prices are up and the oil companies are earning money again. Kjell Almskog, Kværner’s new CEO, promised blood, sweat and tears when he took over, and he has certainly delivered. He may have had no choice but to cut costs and sell off divisions to start with, but he is going too far now. These cuts will park Kværner, once Norway’s industrial locomotive, on an industrial side track. It is possible to operate a large industrial concern in Norway. The Norwegian economy is healthy: interest and price inflation is moderate and stable, Norwegian labour is skilled, wage growth is comparable to wage growth abroad and labour conflicts are few. Forward-looking industrialists and competent politicians, on the other hand, are becoming harder and harder to find. (Dagsavisen) This page was last updated October 15 1999 by the editors