Historical archive

Norway Daily No. 203/02

Historical archive

Published under: Bondevik's 2nd Government

Publisher: Ministry of Foreign Affairs

The Royal Ministry of Foreign Affairs, Oslo
Press Division – Editor: Mette Øwre

Norway Daily No. 203/02

Date: 24 October 2002

Stoltenberg claims Bondevik tied to Progress Party (Dagsavisen)

Labour’s Jens Stoltenberg has said that the minority Bondevik government has now revealed its dependence on the Progress Party by promising to cut the net wealth tax in 2004. "Labour will not support the cutting of taxes for the wealthiest people in Norway. This money will have to be found elsewhere. This year we have seen how the Government has chosen to take from the unemployed, give little to education and the care for the elderly, as well as cutting schemes for the sick and disabled," said Mr Stoltenberg.

Benefit from high interest rates (Aftenposten)

According to the tax records for 2000, 1.2 million out of a total of 3.4 million Norwegians over the age of 18 were debt-free. 570,000 of those without debts had bank deposits of NOK 50,000 or more. The risk of even higher interest rates is the most commonly used argument against the Progress Party – the only political party which is publicly in favour of spending a significantly larger amount of the country’s oil revenues than that permitted by the so-called ‘spending rule’. "The Progress Party was previously a party largely for younger voters. In recent years the party has gained a lot of ground with older voters, among whom there may be many who are not particularly concerned about lowering interest rates," said Bernt Aardal, head of research at the Institute for Social Research (ISF).

Minister tries to coax research cash from celebrity investors (Aftenposten)

Education Minister Kristin Clemet wants to boost research funding with more private capital, and has now contacted a number of high-profile investors with the aim of establishing a private research fund. Ms Clemet has already arranged an informal get-together between wealthy business people and leading scientists, or as she puts it, "the wealthy and the wise". In the New Year she intends to follow this up with another, more specifically targeted gathering, perhaps in the form of a conference. Her hope is that this contact will eventually result in the creation of a private fund to stimulate and support Norwegian research.

Kids to be given right to demand better school environment (Verdens Gang)

Norwegian schoolchildren may soon be able to bang their own working environment act down on the teacher’s desk – and demand a better classroom environment, better sanitary conditions and an end to bullying. The Storting’s Education Committee will today publish its recommendation on this matter. MPs have beefed up Ms Clemet’s original proposal for a separate law to safeguard pupils’ rights. Among other things, the Education Committee is demanding a separate schools watchdog and a complaints body in the form of a local working environment committee, whose task will be to ensure schoolchildren have an adequate physical environment in which to learn.

Progress Party demands more local government cash (Vårt Land)

Per Sandberg of the Progress Party says the Christian Democrat mayors who have been warning against the Government’s collaboration with the Progress Party have got it all wrong. "We are not the problem for the Christian Democrat mayors," said Mr Sandberg, "The problem is the Government." He believes local authorities would have NOK 1-2 billion more to spend if the Government had stuck to the agreement which the Progress Party and the ruling coalition parties had signed in June about local government transfers in 2003. "During our negotiations on next year’s national budget, we will be demanding that the Government keeps its part of the bargain on local authority financing," he said.

Human rights blunder for Foreign Ministry (Dagsavisen)

While Norway speaks long and loud about human rights abroad, work in that area at home is being neglected. The Foreign Ministry should have sent an important report on human rights activities in Norway to the UN three years ago. It still has not been sent. The Foreign Ministry has admitted its mistake and apologized profusely after a group of law students discovered the blunder. "We can only say we are sorry," said Foreign Ministry spokesman Karsten Klepsvik. He blamed internal reorganization and changes in personnel for the fact that the report was quite simply forgotten about. Mr Klepsvik admitted that the affair was embarrassing for the Foreign Ministry, but denied that the Ministry had failed to send in the report deliberately.

Supermarkets declare open season on suppliers (Nationen)

Norway’s supermarket chains intend to squeeze the country’s food suppliers hard during their negotiations on next year’s prices. The chains are looking for further savings now that they have discovered what the international suppliers’ margins are, and put the bite on them. "There is no doubt that the prices charged by a number of Norwegian suppliers are too high compared with other countries," said Egil Sætveit, head of purchasing at Coop.

Minister calls for women to be represented on all boards next year (Dagsavisen)

Trade and Industry Minister Ansgar Gabrielsen has called for all of the country’s largest companies to elect at least one women to their boards at next year’s annual general meetings. "If this call achieves results, women will make up 20 per cent of companies’ boards as early as next year," he said. Mr Gabrielsen has already noted that there is stiff competition to attract the best women. "In my view business has now seen the political lie of the land, and therefore realizes that there is much to be gained by acting fast. It can give the greatest room for manoeuvre in the selection process for board members," he said.

Twice as rich in ten years (Dagbladet)

The majority of people in this country can rub their hands together in satisfaction. In recent years there has been an incredible growth in private wealth. We are now seeing figures which paint a picture of a population of millionaires. By calculating the market value of our homes, holiday homes, land, farms, business properties and other assets, minus our debts, the Norwegian Savings Banks’ Association has worked out the net wealth of Norwegian households. Today, the average household has a net wealth of NOK 1.1 million.

1. Worth Noting

  • "There are probably some people who like having high interest rates, but the Progress Party wants interest rates to come down," said party chairman Carl I. Hagen. Mr Hagen said that there were a large number of reasons why many older voters supported the Progress Party, including pension-related issues and healthcare policies.
    (Aftenposten)
  • The SAS Pilots’ Association could force the company’s management to postpone the purchase of 20 new aircraft worth around USD 600 million. A new agreement with the pilots regarding smaller jet planes is still a long way off, and management wants an agreement on this signed before the new aircraft are ordered.
    (Dagens Næringsliv)
  • The new low-cost airline, Norwegian, has said it will have to cut departures if it does not win more large-customer contracts. The company recently lost out on a deal with Telenor.
    (Dagens Næringsliv)
  • The cries from the Oslo Police District for more officers have not been heard. Last year they asked for a staff increase of 321 – and was granted 20. Chief Constable Anstein Gjengedal is asking for even more this year. He is demanding the creation of 355 new jobs within the Oslo Police District.
    (Verdens Gang)
  • This year a total of 6,800 new pre-school day care places will be created. The target was 10,000, but Children and Family Affairs Minister Laila Dåvøy is, nevertheless, happy with the result. "This is the largest number of new places we have seen in many years," she said.
    (Aftenposten)
  • Parents whose offspring are addicted to drugs are hard hit in the workplace. A recent survey shows that one in three family members suffers significant problems in their careers. Half of them are absent from work for shorter or longer periods as a result of their family situation.
    (Dagsavisen)
  • A number of electricity providers have given notice of price rises in the coming weeks. But that means the winter peak could have been reached already. If the mild weather continues and the rain keeps falling, the reservoirs supplying the country’s hydro-electric power stations could fill up in just a few weeks. But in any event, there will be no electricity shortages.
    (Aftenposten)
  • Trade and Industry Minister Ansgar Gabrielsen wants to eliminate the equivalent of 100 full-time jobs which companies spend filling in forms. He has named 122 specific sets of regulations which are to be improved.
    (Nationen)
  • Economists believe that the effect on interest rates would be better if the Government forces its budget proposal through the Storting by asking for a vote of confidence than by letting Carl I. Hagen influence the budget.
    (Dagsavisen)
  • The owners of empty office blocks are fighting each other for customers. Office rentals have already fallen by 20 per cent, and the situation will get worse. One square metre in ten of office space in Oslo will soon be standing empty.
    (Aftenposten)

2. Today’s comment from Aftenposten

The supermarket chain, Norgesgruppen, is right in saying that Norwegian consumers pay too much for their groceries. But the supermarkets should not be the only ones threatening to boycott suppliers who do not cut their prices. Over the whole spectrum – from cars to bars of chocolate – suppliers inflate their prices in Norway. The explanation is that both manufacturers and wholesalers demand what they think the market will stand. In other words, now they are getting the message, via the supermarket chains, that the market will not stand it, we can expect lower prices. When Norgesgruppen says that "we cannot defend the prices they are demanding to our customers", the foundation is laid for a substantial cut in prices. The result of this pressure is just that – several of the supermarket chains’ suppliers are now cutting their prices. There is no reason why this campaign should be limited to groceries. Why, for example, should car dealers put up with the fact that they can buy cars in Sweden cheaper than the manufacturers demand for shipping the same vehicles to Norway? The boycott threat is justified and should be widened.