Norway to reduce state-ownership of industry (Aftenposten)

The Government is to ask for permission to reduce state ownership of Norsk Hydro from 44 per cent to 34 per cent. Arcus, the wine and spirits distributor, is to be sold off, and Statkraft will be partially privatized. The sell-off could give a massive boost to the Norwegian treasury. Trade and Industry Minister Ansgar Gabrielsen (Con) is also proposing to give billions of kroner in tax relief to Norwegian companies. Dividend tax will be axed, but the investment tax will not now be abolished for another year.

SAS faces losses of SEK 2 billion (Aftenposten)

SAS could end the year with losses of SEK 2 billion. The company is losing SEK 22 million every single day. Everything fell apart in the third quarter. Until then the company had been saying it would make a profit. Now SAS must axe 2,500 jobs. And in the middle of it all is the question of whether to go ahead with the planned acquisition of Braathens. A decision on this will be made in the coming weeks. As expected, Egil Myklebust, current chairman and former president of Norsk Hydro, was yesterday elected as the new chairman of SAS. He replaces Harald Norvik, former chief executive of Statoil, who resigned following the controversy surrounding SAS’s illegal cooperation with the Danish airline, Maersk Air.

Domestic flights halved in two years (Dagens Næringsliv)

Including yesterday’s cuts in SAS’s schedule, 77 of the 175 daily flights between Norway’s main domestic destinations have disappeared in the past two years. "We are making some small adjustments to the Norwegian domestic schedule. In addition we are cutting some of the capacity between Trondheim and Tromsø," said Johnny Skoglund, head of SAS’s domestic service. The figures speak for themselves. The massive cuts made by SAS and Braathens show the real level of overcapacity the two companies have had. SAS’s chief executive Jørgen Lindegaard said he will have to take a closer look at Braathens before he decides if SAS will go ahead with its plans to acquire the ailing Norwegian airline.

Airline crisis hits Norway (Dagsavisen)

The Norwegian airline industry is facing a major upheaval in the next few months. The crises at both SAS and Braathens are just the start of an extremely turbulent period, according to Sverre Strand, senior researcher at the Institute of Transport Economics. "There will be turbulence at all levels in the Norwegian airline industry in the coming months," said Mr Strand. He is forecasting a rise in fares and the closure of airports in Norway. He believes we will see acrimonious political squabbles about which towns and districts should retain their local airport.

Doubts about value of Government handouts (Nationen)

The Government is working flat out to persuade Naturkraft and Industrikraft to choose a gas-fired power station design which will not lead to carbon dioxide emissions. And they will probably stump up billions of kroner in inducements to achieve that end. Professor Øystein Noreng, an expert on petroleum economy, is doubtful about the value of this government ‘giveaway’. "What has not been made clear during the Norwegian debate on gas-fired power stations is the fact that even conventional gas-fired power stations are scarcely profitable. With today’s electricity and gas prices the profitability of Naturkraft and Industrikraft’s projects would be extremely precarious," said Professor Noreng. He believes it would be better to spend the money on research efforts rather than ‘stripping’ individual power stations of their carbon dioxide emissions.

Bondevik will keep on bombing until the objective is reached (Vårt Land)

According to Prime Minister Kjell Magne Bondevik, his "ethical norms and values have been put to a very hard test." Mr Bondevik feels it is strange that he has been the one to lead the country during the two military conflicts in which Norway has been engaged since the Second World War. "We must allow an open debate on this in Norway, including criticism of the USA. But it is odd that more of the appeals are not being aimed at the Taliban. It is they who hold the key to the situation," said Prime Minister Bondevik.

Norwegian Soldiers to Afghanistan? (Dagbladet)

Foreign Minister Jan Petersen is not ruling out the possibility that Norwegian soldiers could be sent to Afghanistan if our Nato allies request it. But he has made it plain that no signals to that effect have been made by the USA. "At the moment it is purely a hypothetical question," said Mr Petersen, adding that Norwegian military personnel are now in place in the operational command centre in the USA, where they are briefed on developments and discuss how Norway can contribute to the war in Afghanistan.

Substantial cut at Norwegian Seafood Export Council (Aftenposten)

The Norwegian Seafood Export Council will probably have to cut its budget for next year by 40 per cent. This year’s budget amounts to NOK 460 million, while the budget for 2002 is expected to be around NOK 270 million. The budget cut is due to the expiry of the salmon agreement with the EU next summer. The agreement resulted in an increase in export duties from 0.75 per cent to 3 per cent for salmon exporters. This extraordinary duty disappears along with the agreement.

Police turn down anti-terrorist planes during Nobel Peace Prize ceremony (Aftenposten)

The Police Directorate refused to even consider the use of pilotless drone aircraft to prevent a terrorist attack on the Oslo City Hall during the Nobel Peace Prize award ceremony 9-10 December. For around NOK 5 million the planes can keep all aircraft movements in and around Oslo under surveillance while 34 Nobel Peace Prize winners, including UN Secretary General Kofi Annan, are in Oslo. The offer to provide the pilotless drone aircraft was made by the company, UAV Norge, as long ago as January. At that point the Police Directorate said no. The offer was renewed last week. So far the police have not replied.

Worth Noting

• The environmental lobby is calling on Norway to spearhead efforts to ensure that "climate bandits" are punished. Environment Minister Børge Brende supports their demands, and has announced his intention to make Norway’s position crystal clear when he speaks to the climate conference in Morocco today. (Dagsavisen)
• "Even though we are taking part in the fight against terrorism and Osama bin Laden, we cannot simply trail along behind the USA. Norway must have a more independent stance," said Professor Øystein Noreng of the Norwegian School of Management, an expert on petroleum economy. "We must speak out and urge reason and moderation. The objective is to find the perpetrators of the September 11 terrorist attacks, not destroy Afghanistan. (Dagbladet)
• We are awash with fish and the world is crying out for food. But there is still no guarantee that anyone will buy our fish. In future, tariff barriers and accusations of dumping could become a bigger obstacle to the development of the Norwegian fishing industry than we can guess. The WTO summit starts in Qatar 8 November. This meeting could determine the basis for the future development of Norway’s fishing and aquaculture industries. (NTB)
• Small businesses throughout the country anticipate lower revenues and reduced profits compared to their expectations just a few months ago, according to a survey of small businesses carried out by the consulting company, Sentio analyse og rådgivning. Gyrd Steen of Bedriftsforbundet, the Association of Small and Medium-Sized Enterprises, one of the organizations behind the survey, believes the effects of the September 11 terrorist attacks on the USA are now also beginning to be felt by Norwegian companies. (Nationen)
• Finance Minister Per-Kristian Foss is hoping for an early cut in interest rates. This is one of the two measures the Bondevik government is banking on to prevent Norway falling into an economic crisis. The other measure is a cut in taxes. We will know the answer on Friday. That is when Mr Foss announces the Government’s revised national budget. (Verdens Gang)
• Trade and Industry Minister Ansgar Gabrielsen is annoyed and frustrated over the golden parachute agreements negotiated by senior business executives. Mr Gabrielsen believes that executive salaries in the mega-bucks league affects the wage demands of other employees, and that they ultimately weaken the country’s international competitiveness. (Aftenposten)

Today’s comment from Verdens Gang

The Conservatives’ Jan Petersen has made his first visit to Washington D.C. as Norwegian Foreign Minister. The ongoing war in Afghanistan and the political issues linked to it were obviously on the agenda for Mr Petersen’s talks with Secretary of State Colin Powel and the President’s National Security Advisor, Condoleezza Rice. But the main objective was for Mr Petersen to meet personally with two of the key foreign policy figures in a country which is still Norway’s largest and most important ally. That in no way means that Mr Petersen or the rest of the Government should act as a fawning puppy in its relations with the USA, in the way certain critics at home would have us believe. Norway and a large part of the world initially declared their support for the USA in the fight against the Taliban regime in Afghanistan and its international terrorist comrades. The Foreign Minister could only confirm that Norway’s new government would continue to provide that support.