Export prices expected to fall (NTB)

Never have so few business executives believed in an upturn in export prices. The strength of the Norwegian krone must take its share of the blame for this pessimism. A number of executives believe there is a greater chance that export prices will fall than that they will rise, according to a survey by Statistics Norway of business executives’ perception of the situation in 12 months time. Industrial sectors producing capital goods such as metal parts, machinery, oil platforms and ships are most negative in their outlook, reports Statistics Norway.

State housing bank looking for partners (Aftenposten)

The Government is planning the partial privatization of the Norwegian State Housing Bank, and wants to change its image. From next year it could become the first-time-buyers’ bank, with young people buying their first homes as its target market. Private banks will be invited to ‘co-finance’ mortgages for young people and those who would traditionally have difficulty getting a loan. The Labour Party has reacted angrily to the plans, which means turning a community bank into a social bank. State Secretary Morten Andreas Meyer at the Local Government and Regional Affairs Ministry makes no bones about the fact that the modernization of the State Housing Bank could mean that some of its current customers will disappear.

Employers’ organization lost NOK 3 million a day in July (Dagbladet)

The Confederation of Norwegian Business and Industry (NHO) has lost NOK 200 million as a result of the stock market slump this year. In July alone the organization has lost NOK 3 million a day. The NHO is a major investor on the Oslo Stock Exchange through investments in a number of its listed member companies. This is part of the management of the NHO’s dispute fund, which is used to pay compensation to companies which have suffered financially as a result of strike action. The NHO’s chairman, Jens Ulltveit-Moe, is now preparing to pass the bill on to his members. They will have to stump up NOK 40 million to cover the losses.

Gardermoen faces loss of one million passengers (Dagsavisen)

According to recent analyses, Oslo’s Gardermoen Airport (OSL) will not go into the black for almost four more years, and in the course of 2002 the airport expects to lose one million passengers. But the budget airlines like Sterling and Norwegian Air Shuttle could provide the airport with the basis for long-term profits. However, OSL, which is a limited company, is not planning on offering lower landing fees in order to tempt additional budget airlines to establish operations at the country’s main airport.

Clemet promises social policy for private student loan provider (Aftenposten)

Privatization of the State Educational Loan Fund will not weaken the social policy aspect of student financing, according to Education Minister Kristin Clemet (Con). "Privatization has nothing to do with the actual student financing. The rules will still be decided by the Storting, usually in connection with each year’s national budget," said Ms Clemet. She pointed out that the objective is to outsource such customer-related activities as application processing, dealing with personal enquiries and issuing payment notices.

Labour rejects privatization of student loans (Dagsavisen)

The Labour Party is strongly opposed to the Conservatives’ proposal to privatize the State Educational Loan Fund, according to Karita Bekkemellem Orheim, Labour’s educational policy spokesperson. Ms Bekkemellem Orheim claims that the State Educational Loan Fund has been one of the most important government measures to give hundreds of thousands of Norwegians the chance to take higher education. Privatization of the Fund could undermine the principle of equal opportunities for education in Norway, she said.

Pressure builds for cheaper wine (Dagbladet)

So far this year Norwegians have bought 83 per cent more wine in Sweden than in 2001. The Conservative Party, Progress Party and Labour Party now constitute a parliamentary majority in favour of cutting taxes on wine to Swedish levels. The Socialist Left Party has now also said it will consider a reduction in the tax on wine. The question for this autumn’s budget battle is whether Prime Minister Kjell Magne Bondevik and his Christian Democratic Party can nevertheless block any moves to make wine significantly cheaper in Norway.

Worth Noting

• On Sunday the Headquarters Defence Command Norway (FO) said that a US naval vessel was on a ‘research mission’ off the coast of Finnmark. Now the FO has admitted that the vessel is tracking Russian submarine activity in the Barents Sea. From what Aftenposten is given to understand, the ship has been operating in northern waters on a regular basis over the past few years. Its focus has been the Russian nuclear submarines operating from bases on the Kola Peninsula. (Aftenposten)
• The Norwegian Red Cross could decide to pull out of the UN-backed humanitarian operation in Zimbabwe if the government there uses starvation as a weapon against its political opponents. "If political conditions in Zimbabwe make it impossible for the Red Cross to practice its fundamental principles of independence and neutrality we will, as a last resort, be forced to tell the UN that we cannot carry out our transport mission," said Halvor Fossum Lauritzen, head of foreign operations at the Norwegian Red Cross in an interview with NTB. (NTB)
• Norwegian local authorities have lost billions on the stock market. Over the past four years councils have sold shares in local hydro-electric power companies to the tune of NOK 40-50 billion. A large part of this has been invested in shares whose value is plummeting. (Dagsavisen)
• Norwegians are crossing the border into Sweden to shop as never before. And they are not only buying beer, wine and spirits. In the first six months of this year alone cross-border shopping rose by 30 per cent, according to figures published by the Federation of Norwegian Commercial and Service Enterprises (HSH). (Dagbladet)
• The USA has demanded that Norway ease its protectionist policy with regard to Norwegian film and television production. The USA wants Norway to abandon its ownership restrictions for investment companies. This is one of the points included in a 25-page list of demands which the USA has sent to Norway in connection with the World Trade Organization’s negotiations on the service sector. (Nationen)
• Statoil and the South African national oil company, Petro SA, are to build a pilot plant to convert gas into diesel. The plant will go into operation this autumn and will cost NOK 530 million. (Aftenposten)
• "As Labour’s deputy leader Trond Giske would complement Jens Stoltenberg in a brilliant way," said Sture Arntzen, president of the Norwegian Union of Commercial and Office Employees. Trond Giske is also extremely popular with representatives of the public service unions. (Aftenposten)
• Norwegian football clubs are ignoring their financial difficulties and intend to invest billions of kroner in new stadium complexes. Vålerenga has the most ambitious plans. The club is planning to invest NOK 1 billion in a new stadium at Jordal in Oslo. (Dagens Næringsliv)

Today’s comment from Dagbladet

The Government is thinking of privatizing the State Educational Loan Fund in order to save money. Several banks are thought to be interested in the Fund’s customer base. The Conservatives’ educational policy spokesperson, Søren Voie, believes privatization could win majority backing in the Storting. He can see several different privatization models, from the state buying services from the high street banks, to full privatization with no involvement from the authorities. We recommend that the Government save money in some other way. Do not bother examining the alternatives. Student financing should remain a public responsibility and should not be determined by market forces. Loans should be granted on such terms that everyone has the opportunity to study. This can best be ensured if the loans are granted by a bank which is under political control. Commercial banks exist to make money. That should not be the politicians’ objective when it comes to student financing.