Russo-Norwegian friendship strengthened (Aftenposten)

The conflict in Chechnya and the dividing line between Russian and Norwegian territorial sovereignty in the Barents Sea were among the topics under discussion when Prime Minister Kjell Magne Bondevik held talks with Russia’s President Vladimir Putin yesterday. According to a communiqué issued after the meeting, "the two sides emphasized the importance of quickly reaching agreement on a maritime dividing line in the Barents Sea, and expressed mutual satisfaction with the considerable progress that has been made on this issue." Foreign Minister Jan Petersen said that President Putin’s visit had strengthened the spirit of neighbourliness between the two countries.

Agreement still a long way off (Aftenposten)

The Labour Party and the ruling coalition parties, who are currently engaged in budget negotiations, were far from reaching a settlement yesterday evening. But the two sides are not giving up. Negotiations will continue today. "We are still a long way from seeing the outlines of an agreement," said Labour’s economic policy spokesperson, Hill-Marta Solberg. However, she declined to speculate on the chances of reaching a budget compromise with the Conservatives. "We know what Labour’s main concerns are, and we have taken a small step in their direction," said the Conservatives’ Jan Tore Sanner.

Labour demands guarantee for full sick pay (Dagsavisen)

The Labour Party is demanding that the current sick pay scheme remain unchanged in 2003. This is one of the tough concessions the Government will have to make in order to achieve a compromise deal with Labour on the national budget. "We cannot issue a guarantee of that kind," said a centrally placed Conservative Party source. Victor D. Norman, Labour and Government Administration Minister, has made it clear that financial measures will have to be considered if the number of people taking sick leave does not fall as much as expected. In reality, this would mean the present system, which entitles those on sick leave to full pay, is under threat.

Norway tops European sick leave league (Aftenposten)

Levels of sick leave in Norway and Sweden are twice as high as elsewhere in Europe. The number of people taking sick leave in Norway varies sharply, depending on the country’s economic climate, while in Europe the figures remain steadily low, according to a recent report. This discrepancy has the experts baffled. The sick pay scheme is just as generous in Germany, but there the number of people taking sick leave has fallen dramatically. Nor does the fact that Norway has a large number of elderly workers explain the substantial gap.

Norman has had enough (Dagbladet)

Labour and Government Administration Minister Victor D. Norman, who is also responsible for issues of business competitiveness, intends to take a stick to the country’s power utilities. He is worried that they are manipulating the price they charge for the use of their power lines, and has expressed his concern. The problem is that a number of the country’s electricity generators also own sections of the national grid. While they must compete to sell their electricity, they have a monopoly on charging for grid access. This means the country’s electricity consumers risk paying too much in access charges.

Oslo could lose public sector watchdogs (Dagsavisen)

The Government is considering relocating several public sector watchdogs, including the Directorate of Labour, the Norwegian Maritime Directorate, the National Railway Administration and the Norwegian Competition Authority, out of Oslo. The relocation drive could lead to the loss of several hundred jobs in the capital. "This is a very old-fashioned approach. I thought we had stopped handling regional policy in this way," said Marit Nybakk (Lab).

SAS to make further cuts (Dagens Næringsliv)

The major problem facing SAS is that its revenues are falling – despite the fact that the number of passengers travelling with the airline has gone up. SAS will make another loss this year. So the company is being forced to make even bigger savings. In addition to the current campaign to save SEK 4 billion, the airline says it must slash costs by a further NOK 2.4 billion. By the end of next year SAS will have 4,000 fewer employees. The full effect of the cost-cutting programme will not be felt until 2004.

Braathens saves SAS’s bacon (Dagbladet)

Norwegian airline passengers have saved SAS from losses amounting to billions of kroner. Braathens has already become a cash cow, while Widerøe also provides a welcome boost to SAS’s corporate coffers. The profits from these companies are so large that SAS’s chief executive, Jørgen Lindegaard, has promised to cut fares on domestic flights in Norway. This low-cost fares initiative is clearly an attempt by SAS to avoid being surprised by additional competitors of the Norwegian Air Shuttle ilk.

1 Worth Noting

• Last year sales of Norwegian goods to Russia rose by 40 per cent. That increase will continue this year, and in the years ahead Russia will become one of Norway’s most important markets.
  (Aftenposten)
• The Progress Party has become more attractive to politically active immigrants. Twice as many people from immigrant backgrounds have joined the Progress Party’s Oslo branch since last year.
  (Dagsavisen)
• Up to now being a headteacher has been closed to outsiders. Education Minister Kristin Clemet (Con) now wants to give business executives and others from outside the education system the opportunity of becoming a headteacher. In practice, this means that leadership skills will be given greater emphasis when school principals are being appointed.
  (Verdens Gang)
• Norway has fallen three places on the list of the world’s most competitive economies. The slide is blamed on insufficient investment in research and development, generous wage increases and a strong currency.
  (Dagsavisen)
• Telenor achieved a major PR coup when Russia’s President Vladimir Putin attended the signing of a new mobile phone agreement yesterday. Telenor is committed to investing NOK 420 million to develop mobile phone services in Russia, which currently has seven million mobile phone users. However, experts predict that this figure will rise to 25 million over the next few years.
  (Verdens Gang)
• Tormod Hermansen, former chief executive of Telenor, can pocket NOK 3 million just for "being available" for one year following his retirement. "I do not have any regular tasks or particular responsibilities other than being available," said Mr Hermansen.
  (Dagens Næringsliv)
• According to Trond Giske (Lab), the Christian Democratic Party was in clear violation of the law when it failed to make public that Jens Ulltveit-Moe, president of the Confederation of Norwegian Business and Industry (NHO), had contributed NOK 100,000 to Kjell Magne Bondevik’s campaign to become Prime Minister.
  (Dagens Næringsliv)
• Without any discussion whatsoever the Norwegian Confederation of Trade Unions (LO) donates NOK 5 million to the Labour Party each year. The LO has no control over what the money is spent on. A number of union leaders are now demanding that the LO puts an end to this practice.
  (Dagens Næringsliv)
• Heavy snow and slippery road conditions caused chaos in Oslo yesterday. The Public Roads Administration appealed to the public to leave their cars at home and make use of public transport. But that did not help much since both the underground rail network and the buses were stuck fast. The insurance industry expects to receive insurance claims amounting to NOK 25-30 million as a result of yesterday’s weather conditions.
  (Verdens Gang)

2. Today’s comment from Verdens Gang

It is a daring gambit for all concerned when the ruling coalition parties engage the Labour Party in negotiations on next year’s national budget. Labour and the Conservatives have traditionally been at opposite ends of the Norwegian political spectrum. The two old adversaries have never previously come together in this way. They are both running a considerable risk, since a compromise could help to blur the political differences between the Labour Party and the Conservatives. It is difficult for the Labour Party to be the country’s largest opposition party and, at the same time, be the ones to secure a parliamentary majority for the Government’s budget proposal. Despite this, we believe that what is happening in the Storting at the moment is the right thing. Labour and the ruling coalition parties have the same fundamental perception of the situation facing the country. Norway needs a tight budget. The spending limit with regard to oil revenues must be adhered to. If the Storting spends too much of our oil revenues, we will all have to pay in the form of higher interest rates. And some people will end up with a bigger share of the bill than others. Industrial jobs are already disappearing at an alarming rate. It is important for the Storting to adopt a tight budget, not least out of consideration for those employees around the country who are in danger of losing their jobs.