Gas supply deal with Poland unlikely to go ahead (nrk.no)

The gas supply agreement between Norway and Poland will not come into effect, according to Polish Prime Minister Leszek Miller, who visited Norway yesterday. Mr Miller told Statoil that Poland is unable to purchase as much gas as was originally agreed because the country is obliged to meet the terms of existing supply agreements with Russia. It has been known for some time that the current government in Poland opposes the gas supply agreement with Norway, which was to have run for 16 years from 2008. During that time Poland would have purchased 16 billion cubic metres of gas to the tune of NOK 100 billion. "Statoil therefore has no need for a gas pipeline from the North Sea to Poland," said Statoil’s Peter Mellbye to NRK. This means that construction of the proposed pipeline from the North Sea across Sweden to Poland will not now go ahead. The change of plans will also have consequences for the Grenland area, which was to have been supplied by a spur from the main pipeline. Prime Minister Kjell Magne Bondevik has told NRK that he hopes Norway can still supply some gas to Poland.

State sell-off halted (Klassekampen)

Opposition from the Progress Party means the Government will not win majority support for its plans to sell off state-owned businesses. The Progress Party’s Øystein Hedstrøm, who is responsible for piloting the Government’s report on state ownership through the Storting, also wants to withdraw the Storting’s approval for a reduction in the size of the state’s shareholding in Telenor. The recommendation from the committee stage is due to be presented to the Storting on 13 June, and the final vote will be taken on 18 June. It therefore looks as though Trade and Industry Minister Ansgar Gabrielsen (Con) faces defeat on this issue.

Rural areas lose out (Nationen)

Norway’s rural areas have once again drawn the short straw as the politicians struggle to balance the nation’s books. There will be less money for regional airports, regional business development and the agricultural sector. The opposition is highly critical of the compromise deal between the Government and the Progress Party. "Not a penny for the local government sector to cover the NOK 5-6 billion budget shortfall this year alone," said Morten Lund of the Centre Party. "Business leaders and local authority mayors complained about the drastic cuts in regional development measures which were included in the national budget at the end of last year. But not even these signals have been acted upon. On the contrary, the Civil Aviation Authority as well as farming and forestry grants are on the list of items to be cut," said Mr Lund, who believes this will have a dramatic impact on business development in rural districts.

Labour rejects carbon quotas (nrk.no)

The Labour Party has rejected the Government’s proposal for national carbon quotas to reduce carbon dioxide emissions. The Government says that companies should be given quotas for their carbon dioxide emissions, and that those whose quotas are too large should be able to sell them to other Norwegian companies. Industry believes such a trading system could cost at least NOK 30,000 for every workplace, and opposes the plan. Labour’s Sylvia Brustad says the party is against the scheme because it could lead to the loss of industrial jobs. The Socialist Left Party supports the quota system.

Nordic investments increase five-fold (avisa.no)

The revised national budget will allow the National Insurance Scheme Fund to increase its investment in shares listed on the other Nordic stock exchanges by a factor of five, bringing the total to around NOK 5 billion. Tore Lindholt, chief executive of the National Insurance Scheme Fund, is pleased with the decision. The Fund is currently allowed to channel five per cent of the NOK 25 billion it can invest in the stock market into Finnish, Swedish and Danish shares. This corresponds to around NOK 1.2 billion. The Fund’s board requested some time ago that the limit for Nordic investments be raised from five per cent to 25 per cent. The agreement between the Government and the Progress Party on the revised national budget takes a large step towards meeting the Fund’s request, increasing the limit to 20 per cent.

Progress Party breaks promise to childless over IVF treatment (tv2.no)

The Progress Party promised to make IVF treatment available practically free of charge to childless couples, but broke that promise when it agreed a compromise deal with the governing coalition parties on Tuesday. The Progress Party’s Jon Alvheim confirmed that the party intended to put an end to the recently introduced system under which couples have to pay up to NOK 100,000 for in vitro fertilization treatment. But only hours later his party colleagues signed an agreement with the Government on the revised national budget which prevents the Progress Party from seeking parliamentary support for a proposal to slash the cost of IVF treatment at state-run hospitals.

Opposition could force Government to cap pre-school day care fees (nrk.no)

Negotiations to reduce the amount that parents have to pay for pre-school day care, in which all the various parties in the Storting have participated, broke down yesterday. But the opposition still thinks it can force the Government to impose a price cap on pre-school day care. Jan Tore Sanner, finance policy spokesman for the Conservative Party, says that the opposition has promised too much, too quickly, and that parents risk having the wool pulled over their eyes.

Worth Noting

• The Public Roads Administration has spent a total of NOK 80 million on gigantic air filters to trap the dust churned up by traffic in the road tunnels under Norway’s major cities. The effect has been minimal and the air quality is just as bad as before. The Foundation for Scientific and Technical Research (SINTEF) has now launched a project to find out why the filters do not work. (Dagsavisen)
• Around 1,000 disabled young people are being housed at nursing homes for the elderly. Nevertheless, the financial support which is supposed to make it possible for local authorities to find them alternative accommodation is being cut back. (Vårt Land)
• The opposition parties are highly critical of the Government’s decision to invest over NOK 1 billion in the US Joint Strike Fighter project. In contrast, the leaders of the country’s defence forces are jubilant. (Nationen)
• A majority of MPs are backing proposals for a significant tightening up of the legislation covering dangerous weapons. The Storting’s Justice Committee wants to give the police wider powers to search individuals and vehicles in the hunt for weapons, as well as raise sentencing levels. The maximum penalty for carrying a knife in a public place is to be raised from three to six months’ imprisonment, while the maximum penalty for the illegal acquisition and possession of a weapon will increase from six to ten years’ imprisonment. (dagbladet.no)
• Strike action by newspaper packers could halt distribution of a number of newspapers from Friday morning. The Newspaper Publishers’ Association (MBL) and the Norwegian Union of Transport Workers will meet at the offices of the State Mediator on Thursday. If the two sides do not reach agreement by midnight 349 workers at 17 newspaper packers will go out on strike. Among those affected would be Media Øst, which prints and packs Finansavisen. (dn.no)

Today’s comment from Dagsavisen

The passage of the revised national budget through the Storting will go on record as being the smoothest for a long time. In most respects the Government got what it wanted. The Progress Party, which received the original budget proposal with a lion’s roar, is now as quiet as a mouse. It is hard to understand what the Progress Party hopes to gain politically by agreeing with the Government on the revised national budget. This time the political process was more important than the financial result. The Progress Party’s support for the budget confirms the impression of the party as the Government’s junior partner. This is important for this autumn’s negotiations on next year’s national budget. The Government will once again be forced to seek the backing of the Progress Party – and if Carl I. Hagen is in the right mood, he will once again give the national budget his grudging support. In so doing, the most powerful right-wing alliance we have seen in the post-war period could be cemented for the rest of the parliamentary term.