Union leader calls for cut in interest rates – NOW (Dagbladet)

Gerd-Liv Valla, president of the Norwegian Confederation of Trade Unions (LO), is calling for an immediate cut in interest rates. Her demand is supported by the Confederation of Norwegian Business and Industry (NHO) and a whole host of experts, who are now piling the pressure on Svein Gjedrem, Governor of the Norwegian Central Bank. ‘Everyone’ expects Mr Gjedrem will now cut interest rates by half a percentage point. This is primarily because of the increasing gap between Norwegian and international interest rates, which has a major impact on the exchange rate. The Norwegian krone has been further strengthened on the currency markets in recent weeks. Ms Valla has accused Mr Gjedrem of being far too preoccupied with inflation in his decision-making on interest rates. "The Governor of the Central Bank has interpreted his mandate extremely narrowly, and has not taken manufacturing, employment or currency stability into account," said Ms Valla.

Ex-MPs paid too much while they look for new job (Aftenposten)

After 12 years as a member of the Storting, politicians are entitled to NOK 343,200 a year while they are looking for a new job. But in practice, everyone who asks receives the highest amount – regardless of how long they have served as an MP. The new chairman of the Pensions Board, John Alvheim (Progress Party) is doubtful about whether this interpretation of the law is correct. 14 former politicians are currently in receipt of ‘waiting pay’, among them former Progress Party MPs Vidar Kleppe and Dag Danielsen. If they had been on the dole in the ordinary way, they would have received NOK 202,800 a year in unemployment benefit.

Norway contributes substantial amount to Carter (Aftenposten)

This year’s winner of the Nobel Peace Prize has been called the USA’s best ex-president because of his wide-ranging humanitarian efforts in 68 countries – efforts which Norway has supported to the tune of NOK 40 million. It is not surprising that Jimmy Carter loves Norway. According to figures supplied by the Foreign Ministry, Norway has provided a total of NOK 40,376,000 to the Carter Center in the years since 1989. The bulk of Norway’s financial assistance to the Carter Center’s activities has been channelled indirectly through such international organizations as the World Bank. Norwegian governments of various political persuasions have supported the Carter Center’s work in the fields of democratization/peace processes, health improvements – particularly the battle against Guinea worm disease – as well as human rights efforts.

Storting demands rethink on embassy closures (Dagbladet)

Foreign Minister Jan Petersen will have to have another go at persuading the Storting to back government plans to close Norway’s embassies in Baghdad and Abu Dhabi, as well as downgrade the consulates general in Miami, Hamburg and Hong Kong to honorary status. A majority on the Storting’s Foreign Affairs Committee are critical of such major changes and have demanded that Mr Petersen reconsiders the matter before reporting back to the Storting. However, the parliamentary majority itself does not have its own proposal for change. The Progress Party wants to retain the embassy in Abu Dhabi and the official consulates general in support of Norwegian business interests. The most important thing for the Socialist Left Party is to keep the embassy in Baghdad open, while the Centre Party wants to retain the diplomatic missions in both Baghdad and Abu Dhabi.

Norsk Hydro planning to pull out of Snow White project (Aftenposten)

Norsk Hydro wants to sell its 10 per cent share of the Snow White gas field, which is currently under development. This is because production of liquid gas is not one of the company’s core businesses. Cost overruns in connection with development of the Snow White field have already reached NOK 5 billion. Statoil is fighting hard to maintain investor and public confidence in the project. At the company’s capital market conference yesterday, the head of Norsk Hydro’s oil and gas business, Tore Torvund, announced that Norsk Hydro planned to pull out of the Snow White field. It is estimated that development of the project will cost some NOK 40 billion, 10 per cent of which is down to Norsk Hydro. Statoil is the Snow White operator, and the project is a matter of great prestige for the company.

Centre-left parties join forces over local government (Dagsavisen)

The Labour Party, Socialist Left Party and Centre Party have joined forces in support of a new policy to ensure more money for the local government sector as an alternative to the Government’s tax cuts. For the first time the three parties have come together in a series of jointly held positions during the Local Government Committee’s discussions in connection with next year’s national budget. The centre-left has previously been in strong agreement in the Education Committee and the Justice Committee. The contours of a broad centre-left alliance at the next general election are becoming more clearly defined.

Worth Noting

• Prime Minister Kjell Magne Bondevik thinks it was more fun to hammer out a wages agreement behind the scenes with LO president Yngve Hågensen and the NHO’s Karl Glad than it is now that the Norwegian Confederation of Trade Unions (LO) is led by a woman. The PM let slip this comment at the parliamentary press contingent’s Christmas party last Thursday. Journalists and MPs who heard the remark could hardly believe their ears.
  (Verdens Gang)
• Lawyers at the Prime Minister’s Office are considering whether there is any basis for bringing charges against former minister Tore Tønne. The review comes at the request of Socialist Left Party MP, Ågot Valle, who also chairs the Storting’s Scrutiny and Constitutional Affairs Committee.
  (Aftenposten)
• BA-HR, one of Norway’s leading commercial law firms, has filed criminal charges against one of its own employees. The National Authority for Investigation and Prosecution of Economic and Environmental Crime is to investigate allegations that the individual concerned leaked confidential client information relating to the Tore Tønne scandal to the newspaper, Dagbladet. Anders Eckhoff a partner at BA-HR has hinted that the motive was revenge.
  (Dagens Næringsliv)
• The Norwegian salmon farming industry will lose a total of around NOK 1 billion this year due to the strength of the Norwegian krone, according to the head of the market analysis company, Kontali. The Norwegian exchange rate has strengthened its position in relation to key currencies, but it is the market price in euro, USD and yen – not Norwegian kroner – that is crucial for the fixing of price levels.
  (NTB)
• Local Government and Regional Affairs Minister Erna Solberg intervened yesterday to end the strike at private nursing homes by sending the dispute to compulsory arbitration. Ms Solberg made the move after reports of critical conditions in Trondheim.
  (Aftenposten)
• The Church of Norway’s Council on Foreign Relations is joining the increasingly broad-based peace alliance against a war with Iraq. "A war could set the entire Middle East on fire," said the Council’s secretary general, Olav Fykse Tveit. At the same time the Christians in Iraq fall between two stools. The West sees the Christian Arabic minority as potential terrorists, while the Muslims perceive the Christians as the West’s supporters.
  (Vårt Land)
• The chief executives of the country’s ten largest companies increased their salaries by 87 per cent in the period from 1997 to 2001. Leading the field in this respect are Jan Reinås, chief executive of Norske Skog, and Jon Fredrik Baksaas, who heads Telenor. The exception to this rule is Helge Lund, chief executive of Aker Kværner, who earns half as much as his predecessor, Kjell Almskog.
  (Klassekampen)

Today’s comment from Dagbladet

Today, former US president, Jimmy Carter, will receive the Nobel Peace Prize. The Norwegian Nobel Committee’s choice of Mr Carter has been applauded in all quarters. He is a worthy recipient. So there is no reason to tie this year’s award to the issue of how Committee members are selected, an issue which has been raised both by Committee chairman Francis Sejerstad and this newspaper’s editorial writers. It is unfortunate that the political parties view appointments to the Committee so strongly as a pat on the back for a long career serving the party. It means that from time to time the Committee contains individuals who do not have a clue about international affairs, and who are barely able to explain in public the decisions that have been taken. The Conservative Party deserves credit for having named Mr Sejersted as its candidate for committee membership – not because he was a party member, but because he was one of the country’s leading intellectuals. Political experience is all well and good, but it should not be the only qualification. For this reason someone should take responsibility for the Committee’s overall composition when individual members are being selected.