Norway Daily No. 158/02
Historical archive
Published under: Bondevik's 2nd Government
Publisher: Ministry of Foreign Affairs
News story | Date: 22/08/2002 | Last updated: 21/10/2006
The Royal Ministry of Foreign
Affairs, Oslo
Press Division – Editor: Benedicte Tresselt Koren
Norway Daily No. 158/02
Date: 22 August 2002
Kurd resident in Norway suspected of al-Quaida terrorist links (nrk.no)
A Kurd who has been granted the right to stay in Norway,
where his family now resides, is suspected of responsibility for
the production of chemical weapons for the al-Quaida terror
network. Mulla Krekar, who is being hunted by all the major western
intelligence organizations, has been granted residency in Norway.
Krekar is currently somewhere in northern Iraq where he leads the
Ansar-al-Islam group which, according to intelligence reports,
cooperates with al-Quaida. The Immigration Directorate (UDI)
intends to discuss the matter with the National Police Security
Service and the Foreign Ministry. Krekar now risks losing his
Norwegian residence permit. NRK’s Brennpunkt documentary series has
recorded an interview with Mulla Krekar, which is scheduled for
transmission this coming Tuesday.
Gjedrem refuses to rescue industry (Aftenposten)
With his gaze fixed firmly on Kjell Bjørndalen, leader of the
Norwegian United Federation of Trade Unions, Svein Gjedrem,
Governor of the Norwegian Central Bank, departed from his prepared
text yesterday and said: "I think you underestimate the uniquely
Norwegian level of wage rises and the forces which lie behind it."
These words set the tone for Mr Gjedrem’s speech, as he bearded the
lion’s den and addressed the union’s industrial conference. Mr
Gjedrem refused to take responsibility for the high level of
interest rates and the strong Norwegian krone, which Norwegian
industry is struggling to cope with. He lays the blame on employers
and unions alike, because they agreed a level of wage rises which
was too high, and on the Norwegian people, who are keen to spend
more of the country’s oil revenues.
Foss to tighten next budget (Dagens Næringsliv)
Finance Minister Per-Kristian Foss has been given figures
showing that he can spend more of the country’s oil revenues
without decimating Norwegian industry. The Finance Minister and the
Government have been under fierce attack by both the Labour Party
and the Socialist Left Party for spending too much oil money. Mr
Foss has now warned that the 2003 budget, which will be presented
in October, will be ‘tight’. "The most important contribution we
can make to help those companies facing international competition
is a less expansive budget. It can help to cut interest rates,
which in turn will reduce the exchange rate. We are taking the
situation facing industry very seriously. It is one of the most
important arguments in the Government’s internal budget
discussions," said Mr Foss, who was attending a major industrial
conference in Oslo yesterday.
Bergesen calls for emergency package for export industry (Verdens Gang)
Finn Bergesen Jr, chief executive of the Confederation of
Norwegian Business and Industry (NHO), has sounded the alarm on
behalf of the country’s export industry. Interest rates, exchange
rates and wage rises have put 50,000 jobs at risk. The NHO has now
dusted off the 1990s solidarity agreement in an effort to get the
economy back on track. "We did it in 1992 when Norway really was in
dire straits. Now we have to act before the crisis becomes as deep
as it was then. I really believe we can bring the cooperation
between the authorities, the employers and the unions back to life
again," said Mr Bergesen.
Norway facing rapid transfer of industrial production abroad, politicians warned (Dagens Næringsliv)
Industrialist and banker Terje Vareberg, is predicting a
rapid and wholescale transfer of production out of the country’s
outlying districts. Small and medium sized companies are packing up
and moving abroad. Yesterday Jordan decided to move its production
to the UK. Announcements of such relocations are increasingly
common. Mr Vareberg, who is chief executive of Sparebank 1 SR-Bank,
says that responsibility for this does not lie with Svein Gjedrem,
Governor of the Norwegian Central Bank, nor with the trade unions.
"Mr Gjedrem has his mandate, and I do not wonder at workers asking
for higher wages when demand for labour gives them the chance. The
Storting, on the other hand, has a very great responsibility for
distributing resources in this country. MPs must shoulder that
responsibility. Politicians – and I mean politicians from all
parties – must be aware that the consequences their actions will
become apparent very quickly," said Mr Vareberg.
Giske supporters use threats to get their man elected (Verdens Gang)
Trond Giske’s supporters are now openly threatening that he
will be less loyal to the Labour Party if he is not elected deputy
leader. MP Gunn Karin Gjul says bluntly: "After the debate we have
just had, it would be more difficult to have Trond outside the
leadership than inside. His ties of loyalty to the party will not
be as strong as they would be if he were a member of the Labour
leadership." The use of unconcealed threats to get Mr Giske elected
as deputy leader at the annual conference this autumn represents a
dramatic increase in the intensity of the debate.
Storebrand leaders pay up (Dagbladet)
A number of key figures in and around Storebrand have now dug
deep in their pockets to buy Storebrand shares. The aim is probably
to convince the world that the company is sound. Board members,
senior executives and other leading employees in the troubled
financial services group have obviously had the same idea at the
same time – now is the time to buy Storebrand shares. It is almost
possible to believe that they have been talking together.
Worth Noting
- Former Labour minister Grete Knudsen has been branded disloyal
in a resolution adopted by the executive committee of her own party
branch in Bergen on Wednesday evening. The high-profile Labour
politician was reprimanded by her fellow party workers after
revelations that she worked as a consultant for the youthful
businessman Carl Fredrik Seim before he acquired the Mjellem &
Karlsen shipyard.
(NTB) - Mjellem & Karlsen’s chairman, Robert Hermansen, yesterday
assured senior managers from the Spanish company, Izar, that the
Norwegian shipyard will complete its part of the frigates being
built for the Norwegian navy. However, Izar’s management wanted to
see the industrial plans for the construction of the frigates.
(Aftenposten) - Development Minister Hilde Frafjord Johnson does not want to
link negotiations on measures to combat poverty with negotiations
on market access at the World Summit on Sustainable Development in
Johannesburg. She believes that developing countries’ demands for
better market access belong under the WTO trade negotiations rather
than being a topic for debate at the UN summit on environmental and
development issues.
(Dagens Næringsliv) - Within a few years Ansgar School, the Norwegian Teacher Academy
for Studies in Religion and Education, and Fjellhaug Mission
Seminary intend to offer students a five-year master’s degree in
theology. There are currently three colleges which provide courses
qualifying individuals for the clergy. These are the Free Faculty
of Theology, the University of Oslo’s Faculty of Theology and the
School of Mission.
(Vårt Land) - In a recent opinion poll from MMI, the agricultural sector
takes a beating. Fewer and fewer consumers are buying the farmers’
claims that Norwegian food is of high quality. Consumer confidence
has plummeted over the past three years. Only one in two Norwegians
agrees that Norwegian agricultural produce is first class.
(Aftenposten) - During the first six months of the year 3,000 more real estate
sales were officially registered than in the corresponding period
last year. The sales value of the property rose by NOK 10.2
billion, according to figures from Statistics Norway.
(NTB)
Today’s comment from
Shipyards are closing, companies are transferring production
abroad and share prices are holding steady at rock bottom.
Employees are losing their jobs and there is a groundswell of
pessimism in business circles. The hunt for those responsible is
underway, and one of the principle targets is Svein Gjedrem,
Governor of the Norwegian Central Bank. He is keeping his eye on
one key target – inflation is to be kept down. To achieve that he
has set interest rates at a high level. This makes it very
lucrative for foreigners to place their savings in Norwegian
kroner, which in turn pushes up the exchange rate. Business is
always looking for a good reason to cut costs. The negative effect
on exports brought about by a strong currency is something everyone
understands. It is an opportunity waiting to be exploited without
anyone making too much fuss. For society as a whole it seems as
though all the bad news is coming at once. For the sitting
government this is bad news indeed. Prime Minister Kjell Magne
Bondevik is struggling with his image over regional development
issues, and is being forced into difficult explanations about
balancing the budget and keeping within the agreed limit for oil
revenue spending. The country’s most popular politician, Carl I.
Hagen, contributes in his is inimitable way by ridiculing such
"responsible" explanations. We have enough money, so let’s spend
it, is his simple message. The people are left confused. There they
are with lots of money in their pockets after this spring’s
generous pay rises and extra holiday pay. But they have become
profoundly anxious about what the future will bring. This could
lead to a cut in consumption. This kind of cooling down of the
economy need not be a bad thing, and Mr Gjedrem could finally come
out and announce the cut in interest rates everyone has been
clamouring for. Could it be that the Governor of the Norwegian
Central Bank ends up being the hero of the day later on this
autumn?