Local authorities cheat parents out of reduction in nursery fees (Aftenposten)

The Government has decreed that all pre-school nursery places should cost NOK 200 per month less from 1 August. But in two out of three local authorities investigated by Aftenposten parents will not see any reduction in price. The money which should have gone to make pre-school nursery places cheaper will in many areas be used to create new places instead, despite the fact that local authorities have been given separate funding for just that task – the so called stimulation grant. "It is extremely disappointing that our intentions are not being followed up at local level," said Ruth Stenersen, political adviser at the Children and Family Affairs Ministry. The Government has no possibility of punishing ‘disobedient’ local authorities.

Army’s attempts to discharge mentally unbalanced reservists thwarted by health authorities (Dagsavisen)

Norway’s reserve army, Heimevernet (HV), whose 83,000 members all keep service-issue automatic weapons at home, is being thwarted in its attempts to discharge soldiers who are mentally unbalanced by the Directorate of Health’s refusal to lift doctors’ duty of confidentiality to enable those who pose a danger to be weeded out. The Directorate is maintaining its position despite fact that since 1986 there have been almost 25 incidents in which people have been killed, wounded or threatened with death by mentally unbalanced HV reservists. In the past six months almost 800 HV reservists have had their service weapons withdrawn following a renewed and thorough evaluation. But there are still those who pose a risk, human time bombs with an automatic rifle and 100 live rounds in a cupboard at home.

Giske’s path to the top of the Labour Party (Dagsavisen)

Trond Giske’s supporters in the Labour Party are thinking of voting Karita Bekkemellem Orheim, the party’s women’s rights spokesperson, into the Labour leadership. Such a move would clear away a number of obstacles on Trond Giske’s path to the top. It is the party’s women members, led by Ms Bekkemellem Orheim herself, who have proposed that the Labour leadership should be made up of five people – not four as is the case today. The fifth person would be the leader of the party’s women’s movement. If Trond Giske’s supporters back the proposal, they can eliminate a raft of problems all at one go. They will rid themselves of a competitor for the deputy leadership post and lay to rest any further debate on the balance of the sexes, since a solution of that kind would put two women into a five-member leadership team.

Warning not to elect trouble-maker as Labour deputy leader (Aftenposten)

"It is pointless choosing a deputy leader to alter the party leader’s course. It will not strengthen the party as a whole to have a deputy who disagrees with the leader on key issues. Remember we have 22 per cent support in the country. The Labour Party cannot get smaller. Labour is no longer a large coalition which embraces all shades of opinion. The party must now consolidate, adopt a clear mission and develop a clear profile," said ex-minister Raymond Johansen, aiming directly at Trond Giske. Mr Johansen’s comments could swing the debate from gender to political content and what kind of deputy leader the Labour Party needs.

Giske: I disagree (Aftenposten)

"If Mr Johansen thinks the road back to power involves suppressing points of view which might not be in line with the party leader’s, then the road back will be long indeed. The Labour Party has always had room for people with different points of view. It has been one of the party’s strengths," replied Trond Giske. According to Mr Giske it is important for the party leadership to be broadly based, and he warns against narrow conformity. "It would be dreadful if all of those on the central committee thought alike and no other points of view were expressed," he added.

Pay elderly motorists to hand in their driving licences (Verdens Gang)

Upwards of 6,000 motorists suffering from senile dementia are driving around on Norway’s roads. Arild Eggen, acting head of the Public Roads Administration in Hordaland County, has called for the introduction of a returnable deposit on driving licences. "Elderly drivers should be paid for handing in their driving licences," he said. He is not only frustrated by young speed freaks, but also by elderly drivers who cause accidents and create traffic problems. Transport Minister Torild Skogsholm is extremely unhappy about the fact that people suffering from senile dementia are loose on the roads. "It must not happen. I expect doctors to take responsibility for weeding out elderly drivers who should not be behind the wheel," she said.

Unit trust funds exploit banks’ customer information (Aftenposten)

The banks are free to use the information they hold on their customers’ bank accounts to sell unit trusts. They are doing the job of the unit trust funds themselves, which do not have access to such information. Incoming Labour leader, Jens Stoltenberg, has grave doubts about this kind of linkage. "This is something we will now have to take a closer look at," he said. Following the recent spate of press reports, Mr Stoltenberg has also called for a thorough review of they way unit trusts are marketed.

Argument over oil money (Dagbladet)

The Government Petroleum Fund has lost NOK 60-70 billion as a result of the stock market crash, and Prime Minister Kjell Magne Bondevik and the rest of his government is begging the opposition to show moderation in this autumn’s budget negotiations. It is an appeal Progress Party chairman Carl I. Hagen has no time for at all. "We have a considerable operating profit from the Petroleum Fund. We are not going to waste money, but will use what we need to. It is ridiculous to say that share prices should have an impact on the national budget, whether they go up or down," said Mr Hagen. Labour’s Jens Stoltenberg supports the Government’s plea not to force through expensive election promises. "We could be looking at an even tougher battle over allocations in the budget negotiations. Reduced returns on investment from the Government Petroleum Fund means that we have less money at our disposal. That is a result of the rules on how much of the Fund can be used for public spending purposes," he said.

Worth Noting

• According to a survey by the Norwegian Cooperative Society, the amount of time we need to work in order to fill our shopping baskets is getting less and less. Last year we had to work for two hours and 32 minutes to pay for a week’s food purchases. This year we need to work for 15 minutes less. This is due to the fact that VAT on food has been halved. Only the Germans and the Danes work a shorter period to fill their bellies. (Nationen)
• A number of youth organizations feel that the Christian Democrats have forsaken their fundamental values in the area of alcohol policy. Lower prices for alcoholic beverages, increased availability and far too little money for measures to prevent alcoholism are the main complaints. (Vårt Land)
• The boost to the pre-school nursery sector is the only thing which will definitely be included in this autumn’s national budget. This has been agreed in writing by the parties which make up a majority in the Storting. The subject is therefore closed, according to Progress Party chairman Carl I. Hagen. (NTB)
• Acting Prime Minister Lars Sponheim (Lib) has issued a warning to Carl I. Hagen. Mr Sponheim is threatening to turn to the Socialist Left Party and do a deal with Kristin Halvorsen instead of the Progress Party. "It will be very difficult to reach agreement with the Progress Party this autumn. Both the Christian Democrats and the Liberals are equally willing to reach a budget compromise with the Socialist Left Party," said Mr Sponheim. (Verdens Gang)
• Complaining about unit trust funds has so far proved fruitless. Not a single complaint has been upheld. "We have received in the region of 20 complaints and we have still not reached a final decision on around 10 of them," said Per Fiskerud of the Complaints Board for Consumers in Banking and Finance Matters. (Verdens Gang)
• Accounting fraud is less common in Norway than in the USA. But you should nevertheless be careful when you are evaluating certain companies, according to a comparison of accounting practice in Norway and the USA. (Dagens Næringsliv)
• In the past year shares on the Oslo Stock Exchange have lost almost 30 per cent of their value. Financial experts Dagsavisen has spoken to believe the stock market slide is on the point of bottoming out, and are forecasting a brighter outlook ahead. (Dagsavisen)
• The stock market crash will have a dramatic impact on local authorities’ finances. Local councils face extra bills amounting to billions of kroner from private and public pension funds. Central government can expect to receive compensation claims from local authorities, warns the Norwegian Association of Local Authorities (KS). (Klassekampen)
• The state-owned rail company, NSB, admits that it could be forced to reduce train fares in response to tougher competition from airlines, buses and private cars. "We do not want to show our hand just yet, not until we are ready to launch an initiative," said Audun Tjomsland, NSB’s head of corporate communications. (Aftenposten)

Today’s comment from Verdens Gang

It is not just small investors with their private savings who are in despair over current developments in the stock market. Finance Minister Per-Kristian Foss would also be forgiven for sweating a little as he considers the effect that plunging share prices will have on this autumn’s national budget. Returns on investment by the Government Petroleum Fund could be far less than the Government had been banking on, which could lead to some tough battles over spending priorities. The struggle has already begun. Local Government and Regional Affairs Minister Erna Solberg warned yesterday that the stock market crash could have an impact on the opposition’s generous decision to spend billions of kroner to make pre-school nursery places cheaper. The Socialist Left Party, Progress Party and Labour Party responded by calling Ms Solberg’s comments a declaration of war. We believe Ms Solberg is painfully aware of the Storting’s decision, and that her comments were rather an attempt to allocate the blame for the coming budget squeeze on the pre-school pals. They had no good answer as to where the money should be taken from when they launched their scheme, and they have not found one yet. Ms Solberg is quite correct to point out that the scheme will have to be implemented at the expense of something else. With fewer billions to play with it will be interesting to see if the Socialist Left Party, Labour Party and Progress Party are just as unanimous on what should be pushed down the list of priorities in order to give an already fortunate group even more. The Socialist Left Party and the Labour Party will probably shed no tears if the victim turns out to be the Government’s previously announced tax cuts, but will the Progress Party be able to live with that?