Government considers further defence cuts (Aftenposten)

Defence Minister Kristin Krohn Devold is considering further cuts in defence spending. Expensive anti-terrorist measures will probably force the Government to abandon the coalition partners’ promise to fully finance the defence structure adopted by the Storting last summer. The Defence Minister admits that she prefers to avoid using the form of words contained in the coalition partners’ joint political platform, the so-called Sem Declaration, but has promised to maintain a balance between structure and funding. However, she refused to commit herself to finding the additional NOK 4 billion which the Armed Forces says it needs to operate the new defence structure.

Government to sell stake in SAS (Verdens Gang)

The Government is planning to sell off all state-owned shares in SAS. The Scandinavian airline will probably be completely privatized within a few short years, according to government sources. A resolution to that effect has not yet been passed by the Council of State, but several senior sources in and around the Government confirm that this will be the result. The formal proposal to sell off the state’s shares in SAS will be announced when Trade and Industry Minister Ansgar Gabrielsen (Con) presents the Government’s report to the Storting on company ownership on 19 April. But he has already hinted at his conclusion. "I have still not heard any good arguments in support of state ownership of SAS shares worth between NOK 1 billion and NOK 1.5 billion," said Mr Gabrielsen.

SAS defends executive bonuses (Dagsavisen)

SAS is axing 2,500 jobs and has just announced a loss of over NOK 1 billion. But 260 senior executives will still receive bonus payouts of NOK 20 million. SAS chairman Egil Myklebust thinks this is perfectly reasonable. Mr Myklebust explains that executive compensation in SAS consists of a fixed part and a flexible part, with the fixed part being the biggest by far. The flexible part – the bonus – consists of two elements. One of these is calculated on the basis of the airline’s financial results, while the other depends on whether the individual executive has met their pre-set targets.

Government secrecy under fire (Aftenposten)

The Public Administration Ombudsman has criticized the Petroleum and Energy Ministry for unnecessary secrecy in connection with the sale of state-owned oil assets. The Petroleum and Energy Ministry has claimed that publishing the details, and the public debate which would follow, would erode the value of the state’s assets. This position was recommended by the Ministry’s international financial advisers. "This gives us the opportunity to take a closer look at the Ministry’s practice with regard to the Freedom of Information Act," said Petroleum and Energy Minister Einar Steensnæs.

Unions use opinion polls to back pay demands (Dagens Næringsliv)

A number of trade unions are using opinion polls in the battle for higher wages. Utdanningsgruppenes Hovedorganisasjon, an umbrella organization for several professional public service unions, will today publish a poll which provides added ammunition in the battle for higher wages. Six out of ten Norwegians believe public sector employees earn too little, while seven out of ten people say that private sector wages are about right or too high.

Fat cats see biggest interest rate cut (Dagbladet)

Did you think that all borrowers got a 0.5 per cent reduction in their interest after the Norwegian Central Bank cut interest rates in December? Well, think again. A number of banks are only passing the full cut on to their best customers. Thousands of others will have to make do with a smaller reduction in interest rates. Only Nordea and Fokus Bank are treating all their customers the same.

Government defies ESA over quotas for women (Nationen)

The Government has decided to reject the EFTA Surveillance Authority’s demand that Norway should abandon its scheme of reserving certain professorships for women only. Education Minister Kristin Clemet made it clear yesterday that Norway is sticking to its policy. The number of women holding senior academic positions is extremely low. Only 13 per cent of professors and 29 per cent of senior lecturers are women. This is despite the fact that for years a large proportion of those taking higher education have been women.

Worth Noting

1. The Appeal Court yesterday upped the sentence handed down to Viggo Kristiansen, convicted in connection with the rape and murder of two young girls, to 21 years in detention. The decision could mean that he will spend the rest of his life behind bars. Jan Helge Andersen was jailed for 19 years, two years more than his sentence at the original trial. The court described the crimes the two were convicted of as ‘harrowing, gruesome, repulsive and cold-blooded’. (All newspapers)
2. A new watchdog is to be created within the Trade and Industry Ministry to ensure that new regulations are not too big a burden for businesses. (Aftenposten)
3. Fisheries Minister Svein Ludvigsen would like to change the way responsibility for safety and emergency response at sea is organized. He is attracted by the US Coast Guard model, and wants to give the Norwegian National Coastal Administration a bigger role to play. (Dagens Næringsliv)
4. More and more people complain about the work carried out by carpenters and other craftsmen. Last year three out of ten cases brought to the Consumer Complaints Commission were complaints about plumbers, electricians and carpenters. Complaints most often relate to inflated bills and shoddy workmanship. (Dagsavisen)
5. The Norwegian Opera’s board of directors have expressed grave concern in a letter sent to the Cultural Affairs Ministry. The board has issued a strongly-worded warning not to make further cuts in the Bjørvika opera house project. The Cultural Affairs Minister, however, is prepared to spend ‘a few billion’. (Aftenposten)
6. This year a total of 151 candidates for the Nobel Peace Prize have been proposed. Last year’s figure was 136. Never before have so many candidates been proposed. (NTB)

Today’s comment from Nationen

Finance Minister Per-Kristian Foss has slammed the decision by SAS’s board of directors to pay out NOK 20 million in bonuses to senior executives who have led the company in a period in which SAS has made a loss of over NOK 1 billion. At the same time as SAS’s management shamelessly awards itself millions in extra cash, it has announced mass redundancies in an effort to save money. Executive greed in a financial crisis is never a pretty sight. It is therefore good to see that Mr Foss, as a representative for the company’s owners, has said exactly what he thinks of such behaviour. Hopefully, the board’s decision does not reflect a feeling that SAS’s new monopoly in the market means it no longer needs to worry about how its customers will react. But we are not entirely convinced.

NOREG