Jens drives wedge into Government (Dagsavisen)

Labour’s Jens Stoltenberg is willing to discuss the budget with the minority coalition Government, but he is also trying to drive a wedge between the Christian Democrats and the Conservatives by demanding the reinstatement of dividend tax. "I think that may Christian Democrats agree that money for local authority care of the elderly is more important than lower taxes for those with the highest dividend incomes. The Christian Democrats supported dividend tax last year, so this cannot be a completely alien idea for them," said Mr Stoltenberg, well knowing that this is quite definitely an alien thought for the Conservatives.

Labour should do budget deal (Aftenposten)

Former Labour Prime Minister, Oddvar Nordli, believes the minority coalition government and the Labour Party should negotiate a budget settlement. "It cannot possibly require much in the way of statesmanship," said the Labour veteran, who feels the Labour Party’s alternative budget proposals must be far more palatable to the Government than the Progress Party’s. Following the breakdown of negotiations with the Progress Party, the ruling coalition parties will probably now turn to the Labour Party in an effort to create a parliamentary majority for next year’s national budget.

Socialist Left Party announces expensive budget alternative (Dagsavisen)

The Socialist Left Party’s alternative national budget was announced yesterday, immediately after the breakdown of negotiations between the ruling coalition parties and the Progress Party. The Labour Party is the most likely new budget partner for the Government, but the Socialist Left Party has not been ruled out either. "The Government will have to cross out all its anti-social benefit cuts for the unemployed, disabled and sick before we are prepared to even open the door to them. It will cost NOK 1.6 billion," said party leader Kristin Halvorsen. She underlined that the Socialist Left Party’s alternative budget is not a list of demands to Prime Minister Kjell Magne Bondevik, but the party’s total package.

Hagen turned down NOK 2 billion budget package (Verdens Gang)

The budget package which Progress Party chairman Carl I. Hagen turned down yesterday was worth well over NOK 2 billion, according to government sources. But following the breakdown of negotiations, Mr Hagen said that consideration for the party’s voters was more important than saving the Government. "We must take into consideration the expectations of our members and our voters. The gulf between us had become too wide," said Mr Hagen. The ruling coalition parties will spend today working out their next moves in the budget negotiations.

Continued doubts about Devold’s leadership (Aftenposten)

The Labour Party, Socialist Left Party and Centre Party are still doubtful about whether Defence Minister Kristin Krohn Devold has full control of all parts of the Armed Forces. But Ms Krohn Devold is in no danger of losing her job. This is the situation after the Storting had received her written explanation of the training exercise involving cluster bombs. "There is a lack of understanding and common sense in parts of the Armed Forces. That is why it is now important to establish routines which will prevent any repetition of this kind of thing," said Marit Nybakk (Lab), who chairs the Storting’s Defence Committee.

Defence Minister passes the buck (Dagbladet)

Defence Minister Kristin Krohn Devold has taken responsibility for the use of cluster bombs during a training exercise, but blames others for the blunder. "Chief of Defence Staff Gen Sigurd Frisvold has informed me that in the course of the next few days he will propose appropriate disciplinary measures. I take note of his decision," she said. This means that the system risks a stinging reprimand because a Norwegian and Dutch aircraft dropped cluster bombs during a training exercise over the Hjerkinn firing range last month.

Tax authorities compelled to blow the whistle (Aftenposten)

The country’s tax collectors will now be obliged to notify the police if they uncover what they suspect to be evidence of serious crime in the course of their work. Justice Minister Odd Einar Dørum and anti-corruption supremo Eva Joly have joined forces to roll back the tax authorities’ duty of confidentiality, which tax auditors have felt to be a hindrance for a long time. One of them, Hans Petter Tetmo, now has information in his possession regarding the laundering of NOK 12 million, but cannot notify the police until the confidentiality regulations are changed in the New Year.

Schools not good enough (Dagbladet)

Many pupils are dissatisfied with their day-to-day school experience. They feel overlooked, are bullied by their teachers and think the air quality in their classrooms is inadequate, according to a major new survey of 52,000 lower and upper secondary school pupils. The survey shows that every second lower secondary school pupil has few or no teachers who inspire them to put in any extra effort, while 49 per cent feel that they have too little influence on their class timetables.

Companies heading abroad courtesy of state grants (Aftenposten)

State bodies like Industrial Development Corporation of Norway (SIVA), Norwegian Industrial and Regional Development Fund (SND) and the Norwegian Trade Council grant hundreds of millions of kroner to companies planning to set up shop in low-cost countries. The Norwegian Trade Council says it has never before received so many inquiries. Never before have so many companies wanted to replace Norwegian workers with cheap foreign labour.

Norwegian workers world’s most expensive (Verdens Gang)

Norwegian industrial workers are the most expensive in the world. For this reason large parts of Norway’s industrial base will disappear in the years ahead. Quite simply we have grown too rich to support much industry in this country, say the economists. According to the Federation of Norwegian Engineering Industries (TBL), 8,000 industrial jobs disappeared in the period from May to August alone. There are many reasons for this development. Weak international markets, extremely high wage inflation at home and a strong Norwegian currency all pull in the same direction.

1. Worth Noting

• Major General Thomas Colin Archer, Chief of Staff Royal Norwegian Air Force, issued a written ban on the use of cluster bombs in December last year. But the Air Commander for Southern Norway, Brigadier Arnvid Brage Løvbukte ignored the ban.
  (Nationen)
• According to the Chief of Defence Staff’s report, which was published yesterday, approval was given for a total of 19 cluster bombs to be dropped from F-16 fighter planes over the Hjerkinn firing range. Only two such bombs were actually dropped.
  (Verdens Gang)
• Chairman of the Storting’s Business and Industry Committee, former Labour Petroleum and Energy Minister Olav Akselsen, has called for Norway to rescind the EEA Agreement, even if Norway remains outside the EU.
  (Nationen)
• Prime Minister Kjell Magne Bondevik was accused of taking a defensive and introverted stance on the EU after his address to the Nordic Council’s plenary session yesterday.
  (Dagsavisen)
• The Norwegian Central Bank wants to privatize the production of Norwegian coins. The Central Bank’s supervisory board voted on 24 October to initiate a process with the view of selling the Royal Mint in Kongsberg where Norwegian small change is produced.
  (Dagbladet)
• Social scientist Joron Pihl has launched a fierce attack on the Government’s plans to demand that those seeking Norwegian citizenship must first pass a language test. "A warning lamp should flash when proposals are mooted which would bar ethnic minorities from a basic democratic right," she said.
  (Klassekampen)
• Swedish car dealers along the border are enjoying something akin to a gold rush. Well over half of all new cars sales are to Norwegian customers. 10-12 new cars cross the border at Svinesund every day.
  (Dagens Næringsliv)
• Many people thought we would almost see the end of patients being cut open after the age of key-hole surgery dawned. This has not been the case. A number of Norwegian hospitals have been cautious in their use of this new technique.
  (Dagsavisen)
• Finn Bergesen Jr, chief executive of the Confederation of Norwegian Business and Industry (NHO), is getting everything he asks for this autumn. First he wanted a tight budget from the Government. Now the opposition parties want to give industry lower taxes and no tightening up of the rules governing temporary lay-offs.
  (Dagens Næringsliv)
• A unanimous Justice Committee has decided to make amends to those children born to Norwegian mothers whose fathers were members of the German occupying forces during the last war, and pay them compensation for the treatment they suffered at the hands of society. The Storting wants to move faster on this matter than the Government would like.
  (Vårt Land)
• This year more than 700 people can tag the letters PhD behind their names. This is a new record for the number of doctorates awarded by Norwegian universities and Colleges of Higher Education.
  (Aftenposten)

2. Today’s comment from Aftenposten

Yesterday was a black day for Defence Minister Kristin Krohn Devold and Chief of Defence Staff Gen Sigurd Frisvold. The report on what happened when the Armed Forces approved the dropping of cluster bombs over the Hjerkinn firing range during a training exercise comes to the conclusion that mistakes were made both during the planning of the exercise and its execution. And not only that, key officers have, according to the Defence Minister, demonstrated poor judgement in acting in breach of the fundamental political guidelines which the Armed Forces have been given. Criticism of this kind from a Defence Minister is devastating. It is crucial that a body as powerful as the Armed Forces understands the political framework within which it operates. If this is unclear for senior officers it is an indication that the Armed Forces are not under effective political control. That such a worrying situation, to put it mildly, has arisen, is the responsibility of the Defence Minister – which is why this issue is also problem for Ms Krohn Devold. Her authority has been weakened, even though her job remains safe. A defence Minister cannot survive for long with a military machine which acts in breach of fundamental political guidelines. Nevertheless, there were a few bright spots for Ms Krohn Devold on an otherwise black day. The opposition parties are not hunting for ministerial scalps. They have other things to think about this autumn than government ministers in trouble.