The Royal Ministry of Foreign Affairs,
Oslo Press Division

Norway Daily No. 49/00

Date: 9 March 2000

BONDEVIK’S BACK AGAINST THE WALL (Aftenposten)

Labour and the Conservatives are not leaving the Government much leeway in interpreting the gas-fired power plant measure to be voted on in the Storting today. If the Government does not accept the Storting’s decision, it must step down. Labour and the Conservatives will leave it to the Government to decide whether any changes are necessary in existing legislation in order to make gas-burning power plants eligible for concession. Jens Stoltenberg (Labour) does not believe the Pollution Control Act requires any amendment, so it will be up to the Government to decide whether it can live with the measure or whether it will call for a vote of confidence.

LOSES ON POINT OF LAW - WINS POWER PLAY (Dagbladet)

Labour parliamentary leader Jens Stoltenberg lost out on the legalities of the issue, but he has still demonstrated where the power lies. Today, the Storting will pass a measure which will permit the construction of gas-fired power plants in Norway. Prime Minister Kjell Magne Bondevik must either bow to the measure or step down. The Storting has made it clear that further evasive manoeuvres on the part of the Government will not be tolerated. We should be spared for further attempts to recast disagreement on the gas-power issue as a debate targeting other issues entirely. Today we will take a straightforward vote which will open up for the development of gas-burning power plants in Norway, and Mr. Bondevik will simply have to accept it, says Mr. Stoltenberg.

GOVERNMENT FIGHTS TO THE END (Dagsavisen)

The Bondevik Government was involved in hectic meeting activity all evening and into the night yesterday. No stone is being left unturned in its efforts to survive. Influential persons in the Government felt yesterday that the Government should accept today’s measure. This was forthcoming after Labour, in a reversal of its former stance, accepted the possibility of amending the Pollution Control Act in order to permit the construction of gas-fired power plants based on technology in current use.

BONDEVIK GIVEN SOME SLACK (Verdens Gang)

According to Verdens Gang’s sources, there is little to indicate that Mr. Bondevik is likely to push things to extremes if today’s vote in the Storting does not go his way. Leading figures in the three coalition parties found late last night that the surprising new proposal from Labour and the Conservatives would give Mr. Bondevik far more leeway than was apparent at first sight. The measure directs the Government to finish studying the matter and come back with any necessary legislative proposals before 1 June.

TIME TO TAX OIL PRODUCTION (Dagens Næringsliv)

Minister of Finance Gudmund Restad feels it is time to consider a reinstatement of carbon taxes on offshore oil production. Times are good for the oil companies at present, not to mention the fact that low carbon taxes make emissions-free gas-fuelled power plants unattractive on the offshore oil fields.

ENERGY CONSUMPTION MUST COME DOWN (Dagsavisen)

Norwegian electric power consumption is so high that the Government has appointed a secret panel of experts whose mission is to get us to conserve electricity. Figures from the Norwegian Water Resources and Energy Directorate (NVE) show that the power supply has been close to collapse on several occasions, but before compulsory measures are taken, efforts are being made to reach agreements with major consumers.

WORTH NOTING

• Carl I. Hagen (Progress) feels there is no need for Kjell Magne Bondevik to call for a vote of confidence even if the Storting, contrary to the Government’s will, passes a measure today for building gas-fired power plants. (Nationen)
• I view this as a declaration of war by the Labour Party against the environment and the environmental movement. It will leave a deep, lasting impression. I am appalled at the prospect of having to fight Labour in order to salvage the Pollution Control Act, says an irate Frederic Hauge of the Bellona Environmental Foundation. (Dagsavisen)
• Labour and the Conservatives yesterday plugged Prime Minister Kjell Magne Bondevik’s last legal escape routes for avoiding a Government crisis over the gas-power controversy. The Government will be forced to go – or stay – on political grounds. (Vårt Land)
• We are much closer to a Government crisis, but the considerations Mr. Bondevik must take involve whether the Government now has sufficient leeway to pursue sensible environmental policies at all. At the moment, this leeway does not seem to exist, says Socialist Left party chairman Kristin Halvorsen. (Dagsavisen)
• Political sanctions against Austria will not be lifted for now, said Foreign Minister Knut Vollebæk at the Storting’s Question Time yesterday. (NTB)
• Air fares have gone up ten per cent since the beginning of the year and they will keep rising. Further increases are in store due to the record high cost of jet fuel, reorganization of taxes, and the wishes of the airlines to recover some of their considerable losses from last year. (Dagsavisen)
• The Fornebu IT centre will need another 30 ha of land in order to fulfill the goals of the IT plan. Fred Olsen & Co. will now have to go through a tough and costly battle to secure the attractive parcels. (Aftenposten)
• Storebrand CEO Åge Korsvold wants nothing to do with any merger with Den norske Bank. He is not tempted by state ownership after having seen it in action. (Aftenposten)

TODAY’S COMMENT

The Storting will act on the gas-power controversy today, handing down a decision which will affect issues far beyond the question of whether or not the Bondevik Government will survive. There is majority support in the Storting in favour of developing gas-fired power plants using current technology, and barring unforeseen events, the Storting will adopt a measure reflecting the majority opinion. This does not mean that such power plants will ever be built, however. The process leading up to construction is long and full of uncertainties. Norway has considerable unrealized assets in the form of energy conservation potential, renewable energy and simple measures for reducing energy use and abuse. Other countries are far ahead of us in these areas. Knowing that it is only a matter of time before emissions-free power plants will be feasible, it is a mystery why the Storting is prepared to give highly polluting plants the green light. (Dagbladet)