Oil merger a small step closer (Dagens Næringsliv)

Both Prime Minister Kjell Magne Bondevik and Labour leader Jens Stoltenberg have indicated that they are in principle not opposed to a merger between Statoil and Norsk Hydro’s oil and gas business. At the same time the Government has opened the way for a reduction in the state’s stake in Norsk Hydro to 34 per cent. The PM confirmed that the Government has not rejected outright the possibility of a merger, but added that the issue was a matter for the two companies concerned. Mr Bondevik’s fellow Christian Democrat, Petroleum and Energy Minister Einar Steensnæs has previously expressed his opposition to the formation of a huge new oil company.

State sell-off of Norsk Hydro shares (Dagsavisen)

Tomorrow the Government will ask for the authority to reduce the state’s shareholding in Norsk Hydro. On the other hand the Government has rejected proposals for a partial privatization of Statkraft by means of a stock market flotation. These are thought to be the most important news items in the Government’s report on state ownership which will be presented in the Council of State tomorrow. The report to the Storting has been entitled "Smaller and Better State Ownership". There has been a fierce struggle within the Government over this issue, with Statkraft proving to be a particular bone of contention.

SAS sell-off halted (Verdens Gang)

Trade and Industry Minister Ansgar Gabrielsen (Con) will not be allowed to sell off the state’s shares in SAS. Nor will Statkraft, NSB or the Postal Administration be getting any private shareholders at this juncture. The Conservatives have lost a series of battles in the Government over the sell-off of state-owned shares in a number of enterprises. This will probably be the main impression left when the Bondevik government presents its report to the Storting on state ownership tomorrow. From what VG has learned, the Government will divide state-owned companies into three categories: wholly-owned state enterprises, 34 per cent state ownership – which gives the state negative control over the company concerned – and complete privatization.

Storting to debate immigration policy today (Nationen)

Norway’s immigration policy in all its many manifestations is due to be debated in the Storting today, just days after the fatal stabbings in Moss. A total of seven recommendations from the Local Government Committee regarding various aspects of Norwegian society’s handling of the problems and challenges posed by immigrants will be thoroughly chewed over during what is expected to be a lengthy debate. The backdrop to this debate is a dramatic increase in the number of asylum-seekers arriving in Norway, partly as a result of the Schengen Agreement, and controversy over the extent to which immigrants should be allowed to practice their own customs in Norway.

Infection risk at Norwegian hospitals (Dagbladet)

Deaths and unnecessary suffering caused by inadequate measures to prevent and control hospital infections are common occurrences, according to Bjørg Marit Andersen, who is responsible for infection prevention at Ullevål Hospital in Oslo. She describes a total breakdown of infection prevention measures. She has been warning of the situation at Norway’s largest hospitals for the past five years. And it will get worse if nothing is done. The number of resistant bacteria is increasing. The dramatic situation affects far more patients than those who have been infected with Dent-O-Sept’s pseudomonas bacteria. Lars E. Hansen, the Director General of Health, yesterday backed Ms Andersen’s claim, saying that infection prevention measures in the Norwegian health service were inadequate.

Dent-O-Sept scandal snowballs (Aftenposten)

The Food Control Authority in Kristiansand knew three years ago that Dent-O-Sept oral swabs contained large quantities of bacteria. But the Food Control Authority, which was being paid by the manufacturer, Snøgg, did not notify the health authorities at national level. The Food Control Authority could know about other sources of serious infection without the health authorities being aware of the fact. The Food Control Authority carries out a large number of privately commissioned tests, and the findings are not reported. Health Minister Dagfinn Høybråten has announced an inquiry into the scandal.

Choice of new Conservative leadership under fire (Aftenposten)

Inge Lønning is visibly upset at being dropped as deputy leader of the Conservative Party. The party’s selection committee has recommended Erna Solberg and Per-Kristian Foss, both currently serving in the Government, as new deputy leaders. Not unexpectedly the selection committee has proposed the re-election of party chairman Jan Petersen. It is more surprising that the Conservatives’ entire party leadership will hold Government office if the party’s annual conference follows the selection committee’s recommendations when it meets in two weeks’ time. "We have based our recommendation on what we believe to be the best leadership team today," said selection committee chairman Siri Frost Sterri.

Government performance after six months gets thumbs up (Dagsavisen)

Kjell Magne Bondevik’s second government celebrates its first six months in office tomorrow. In the eyes of academic experts, political opponents and Dagsavisen’s own commentators, the performance of the Government’s 19 ministers has on the whole been adequate. They have passed their first half-year exams. The Government’s openness and willingness to listen come in for particular praise. Finance Minister Per-Kristian Foss is agreed to be top of the class, while Cultural Affairs Minister Valgerd Svarstad Haugland is sent to stand in the corner by the chief executive of Oslo’s local authority owned cinema group.

DnB shares worth billions sold yesterday (Aftenposten)

A parcel of shares corresponding to around three per cent of Den norske Bank’s total number of shares was sold yesterday. Only the Government Bank Investment Fund, the National Insurance Fund, JPMorgan and Fidelity are registered as having so many shares in the bank. It was probably one of the latter two which was involved in the transaction. "This is not a dramatic event. I do not think it is anything to write home about," said Anders Onarheim, who heads the stock broking company, Carnegi Norge, in response to the share deal. The Norwegian state is DnB’s largest shareholder, with a 47 per cent stake, and there is a broad political majority in the Storting which does not want the bank sold to foreign investors. The only strategic reason for buying a major stake in the bank would be to gain a position ahead of any possible merger attempt.

1 Worth Noting

1. Foreign Minister Jan Petersen has expressed his great disappointment that the US Secretary of State Colin Powell’s visit to the Middle East did not result in more progress towards the agreement of a cease-fire. (NTB)
2. Strikes do not pay in the public sector. Since 1978 more than 900,000 working days have been lost through industrial action in the public sector. The financial gains this has achieved have, with few exceptions, been non-existent. Geir Høgsnes, a researcher at the University of Oslo specializing in pay agreements, cannot name a single strike in the private sector which did not lead to higher wages. (Aftenposten)
3. The little airline, Norwegian Air Shuttle, could lose its contract to fly for SAS/Braathens next year. The company is now considering whether to go into competition with SAS on its most popular domestic routes. (Dagens Næringsliv)
4. Christian Democrat MP Lars Rise believes it is vital for the party to abandon the remains of what he describes as "Taliban tendencies" – in other words the desire to control and manage the way other people live their lives. (Vårt Land)
5. Plans have now been finalized for a windmill park in the Jotunheimen mountain range. The scheme’s backers believe the windmills could also become a tourist attraction. Four out of ten people questioned in a recent survey said they wanted more investment in Norwegian wind power. 27 per cent felt that gas-fired power stations were best. (Nationen)
6. Norwegian owners of apartments on board the luxury liner The World risk having to pay both income tax and wealth tax on their sumptuous floating condos. (Dagens Næringsliv)
7. Last year Norwegian insurance companies made a combined loss of NOK 2.2 billion on their accident insurance businesses, according to calculations made by the Norwegian Financial Services Association (FNH). In an interview with NRK, Preben Sandborg Røe of the FNH said that the downturn in the world’s stock markets was to blame for most of the deficit. (NTB)
8. Christian Democrat-run Audnedal in West Agder County was for a long time the only local authority in Norway which did not permit the sale of beer. Now the shops are allowed to sell beer. Audnedal had a unique position. It was not only the only dry local authority in Norway, but in the whole of the Nordic region. (Vårt Land)

2 Today’s comment from Dagsavisen

NRK’s documentary series Brennpunkt broadcast an interview with Veronica Orderud on Tuesday which was billed as "exclusive". The only exclusive thing about it was that NRK had persuaded Veronica Orderud’s attorney to let the channel have an interview. The documentary aspect of the programme was that a person who has recently been convicted of complicity in three premeditated murders was allowed to present her version of reality – without any critical questions being asked.