Historical archive

Norway Daily No. 225/01

Historical archive

Published under: Bondevik's 2nd Government

Publisher: Ministry of Foreign Affairs

The Royal Ministry of Foreign Affairs, Oslo
Press Division

Norway Daily No. 225/01

Date: 22 November 2001

New rules could block Hagen’s budget threats (Aftenposten)

Progress Party chairman Carl I. Hagen could have difficulty carrying out his threat to inflict a series of unpleasant defeats on the Government in the run-up to Christmas. New rules for the Storting’s handling of the budget – introduced as a trial scheme in 1997 and made permanent this year, both times to vehement protests from the Progress Party – could prove an effective obstacle to such attempts. If the Prime Minister makes it clear that the Government must have a majority for the budget in order to continue in office, the Progress Party’s MPs will vote in favour, after Mr Hagen has made it perfectly clear that in reality the party is fiercely opposed.

Government accused of arrogance (Nationen)

Hill-Marta Solberg (Labour) believes the Government is gambling with its very existence when it turns to Carl I. Hagen for help. "Their strategy is astonishing. Arrogant even," she said. The Conservatives’ economic policy spokesperson, Jan Tore Sanner, has defended the coalition’s decision not to look for support from the left. "The Labour Party lost the election because the voters wanted a new political direction. But I have not noticed that Labour wants a new direction. It is therefore not logical to initiate negotiations with them," he said.

Petersen gets something to chew on (Dagsavisen)

"I have not studied this in great detail," was Foreign Minister Jan Petersen’s response to the question of whether the USA’s proposal to use military courts to try suspected terrorists could conflict with human rights conventions. Mr Petersen said that the Americans themselves should be allowed to convict suspected terrorists if human rights regulations are adhered to. "Mr Petersen must have misunderstood the issue," said Peter Eide, Secretary General of Amnesty International.

Gloomy for Christian Democrats (Dagsavisen)

Support for the Christian Democrats has dropped significantly, while the Progress Party has made substantial gains. These are the most notable changes in AC Nielsen’s November poll. Support for the Christian Democrats has dropped to 10.7 per cent, while the Progress Party has moved up to 17.7 per cent. Labour has advanced to 24 per cent, making it once again the country’s largest party. However, support for Labour is still 0.3 percentage points lower than its record low election result in September. Support for the Conservatives and the Socialist Left Party has fallen slightly, to 22.2 and 14.4 per cent respectively. But both parties are well ahead of their September election results.

Progress Party punished after budget clash (Nationen)

The Progress Party played hardball and turned its back on the Government during the budget negotiations. The voters have reacted by punishing the party. According to the latest poll carried out by Sentio-Norsk Statistikk on behalf of Nationen, over 85,000 voters have abandoned the party in just less than a month. The coalition partners on the other hand have not been punished by the voters after this autumn’s turbulence in the Storting. The two main coalition partners (the Christian Democrats and the Conservatives) have so far not lost support by taking office. However, the Labour Party has much more reason to be pleased with the poll results. Labour is once again the country’s largest party.

Norwegian package deal (Dagbladet)

Dagbladet has reason to believe that Kjell Inge Røkke wants to sell Aker Oil and Gas to Kværner in exchange for Kværner shares. At 09.45 this morning, Mr Røkke is due to brief Trade and Industry Minister Ansgar Gabrielsen on his ‘Norwegian solution’ for Kværner. Mr Røkke’s new deal is very like the proposal he put forward in February and last summer. Mr Røkke is fighting a intense battle to avoid ending up the loser in the struggle for Kværner. He has lost NOK 2.5 billion and does not want to end up with no influence.

Røkke will force Kværner to buy Aker (Dagens Næringsliv)

While Kværner is one step away from bankruptcy, Kjell Inge Røkke is once again attempting to sell Aker Maritime to the company – with payment probably being made in Kværner shares. In return Mr Røkke will consider supporting Kværner’s share issue, which tops the agenda at the extraordinary general meeting to be held on 29 November. To push through the highly controversial merger of Kværner and Aker Maritime, Mr Røkke may need support from the Norwegian Confederation of Trade Unions (LO). Knut Weum, leader of the LO’s industrial section, says that he and LO president, Gerd-Liv Valla had a meeting yesterday with Mr Røkke and his entourage. "Our people are fighting on both sides in this battle, so we cannot make any comment," said Mr Weum.

Worth Noting

  • The hospitals’ vast deficit is not due to the fact that they have treated more patients, as they themselves have claimed. The county hospitals’ deficit has risen by 100 per cent this year, while only 4.5 per cent more patients have received hospital treatment. (Aftenposten)
  • The length of time Norwegian soldiers serve abroad is to be doubled. The 1,000 Norwegian soldiers who will be sent to Kosovo next summer must sign a 12-moth contract. This change will mean a significant tax cut for the soldiers concerned. ( Aftenposten)
  • Arne Johannessen of the Police Union is incensed that privatization of prisoner transport services is being used as a matter of negotiation by the Government. The coalition is using the proposal as bait in their budget negotiations with the Progress Party. (Verdens Gang)
  • A poll by MMI indicates that SAS will lose over 40 per cent of its international passengers if bonus points disappear from the domestic Norwegian market. (Dagens Næringsliv)
  • Telenor’s chief executive, Tormod Hermansen, was more than ready to come to the aid of his party colleague Yngve Hågensen, president of the Norwegian Confederation of Trade Unions (LO), in the spring of 2000. Mr Hågensen needed help to prevent Finland’s Sanoma from acquiring the labour movement’s traditional newspaper group, A-pressen. Telenor bought shares in A-pressen to the tune of NOK 500 million, and kept the group in Norwegian hands. (Dagens Næringsliv)
  • Swedish customs officers despair over the amount of alcohol being smuggled into Norway. Not since the prohibition days of the 1920s has so much 96 per cent proof alcohol flooded over the border. "I just don’t understand what the Norwegians are up to. Do they wash their cars in 96 per cent alcohol? asks Boo Feuk, chief customs investigator in Gothenburg. (Aftenposten)

Today’s comment from Dagens Næringsliv

For the first time ever it looks as though a national budget will be approved only after the Government has demanded a vote of confidence from the Storting. This is a bad political omen. It could end up with Norway getting a centre-left government, despite the voters’ clear signal at the September general election that they wanted a move towards the right. Carl I. Hagen must bear the personal responsibility if this is the result. The Progress Party chairman feels that the party’s voters have got miserably little out of the revised version of the Stoltenberg government’s 2002 budget. He also feels that, over and above the question of the budget itself, he/his party (the line between them is fuzzy at times) has been ‘badly treated’ by the Bondevik government’s representatives. His bitterness is understandable, and his openly declared ambition to step inside the Government is quite natural. However, by using the power at his disposal to make life unpleasant for the Bondevik government, Mr Hagen will not get more of the Progress Party’s policies implemented, and his chances of joining the Government will become still more remote. He could even push the Christian Democrats into the arms of the Labour Party. The result of that would be higher direct and indirect taxes, and more state meddling. And Carl I. Hagen will be remembered as the politician who never grew out of his role as capricious populist.