Managed without oil revenues (Aftenposten)

Public expenditure last year ballooned to NOK 500 billion, but the national accounts show that it was only necessary to spend NOK 1.6 billion of the NOK 12 billion in oil revenues allocated for the purpose. This is because the Government took in more in direct and indirect taxes from Norway’s non-oil related economy than had been anticipated. Over the past ten years the amount of oil revenues used to cover public spending has been slashed. In 1993 we spent NOK 70 billion, last year that figure had dropped to a record low NOK 1.6 billion – the equivalent of six hours of oil production.

Hagen calls for tax cuts (Aftenposten)

"The figures confirm that Norway is well off. Direct and indirect taxes can be cut, and much more of the country’s oil revenues could be spent without damaging the economy. This has not come as a surprise, we’ve known about it for a long time," said Carl I. Hagen, chairman of the Progress Party. But Finance Minister Per-Kristian Foss claims the figures are no longer representative following the Storting’s decision to adopt the so-called ‘spending rules’ with regard to the amount of oil revenues the Government can put into the domestic Norwegian economy. "From now on governments will spend a fixed and predictable percentage of the Petroleum Fund corresponding to the net return on investment," said Mr Foss.

Senior Foreign Ministry official wanted Mona Juul recalled (Verdens Gang)

The Foreign Ministry’s senior civil servant, Bjarne Lindstrøm, wanted Norway’s Ambassador to Israel Mona Juul, to be recalled home now. VG has learned that Mr Lindstrøm has expressed this opinion in several internal meetings at the Foreign Ministry. Mr Lindstrøm had also pressed for a faster and firmer reaction to the affair than Foreign Minister Jan Petersen (Con) decided on. Mr Lindstrøm and the civil service feel that Ms Juul’s violation of the Civil Service Act and breach of loyalty are so serious that she should no longer hold the post of Ambassador.

Application for EU membership more important than cabinet office (Aftenposten)

Jan Petersen must bear in mind the astonishing results of a recent opinion poll when the Conservative Party’s annual conference gets underway in Oslo today. Around 70 per cent of Conservative local politicians believe that, if forced to choose, the party should give priority to the question of EU membership rather than remaining in the coalition government. 79 per cent of those polled said it was right to choose EU membership over cabinet office. 350 local politicians responded to the poll.

Norway has second smallest wages gap (Verdens Gang)

Norwegian women are now also at the front of the field when it comes to equal pay. The wages gap between the sexes for the same kind of jobs is far smaller in Norway than in all the EU countries except Luxembourg. "We are absolutely not one of the worst countries. Many European countries have problems with equal pay. But the Norwegian labour market is much more strongly divided into typically male and typically female occupations," said Gender Equality Ombud Kristin Mile, pointing to the fact that the healthcare and educational sectors are not as female-dominated in many other European countries.

Decentralized pay negotiations hit low-paid workers hardest (Dagsavisen)

If the demands for higher wages are pushed forward to the autumn’s negotiations at local level, workers will not be able to take strike action in support of their claims. Large groups of low-paid workers will have most to lose as a result of this development. "Under today’s minimum wage system larger rises can be given to certain employee groups, but the local authorities do not have the money to do it. What the professional staff want to do by introducing a new negotiating system is to take from the lowest paid and give to those who already earn the most. This is a reverse of the old Robin Hood story," said Jan Davidsen, president of the Norwegian Union of Municipal Employees.

Worth Noting

• The Conservatives can open their party conference today as Norway’s largest political party. It is something which has never happened before. Based on an average of the opinion polls carried out in April, the Conservatives are on top, following the Progress Party’s significant upswing in March. (Vårt Land)
• When Kjell Magne Bondevik and Per-Kristian Foss were in opposition they forced through a number of budget changes against the Government’s wishes which were far costlier than the agreement arrived at by the Labour Party, Socialist Left Party and Progress Party, according to Labour deputy leader Hill-Marta Solberg. (Dagsavisen)
• Olav Akselsen (Lab), chairman of the Storting’s Trade and Industry Committee, has called for an investigation into the role played by the Industrial Development Corporation of Norway (SIVA) in the transfer of Norwegian industrial jobs to low-cost countries in the Baltic region. (Dagens Næringsliv)
• Jubilation over generous wage rises this spring could have fizzled out by the summer. The banks’ financial analysts believe the current wage bonanza will lead to a rise in interest rates which will wipe out the entire gain. (Dagsavisen)
• Chief executives of the country’s small companies are far less optimistic now than they were just two months ago. The Association of Small and Medium-Sized Enterprises believes this pessimism is due to the large wage rises and small hope of any cut in interest rates. (Dagens Næringsliv)
• On the same day that the Government presents its offer to the farmers, an opinion poll shows that Lars Sponheim has a popularity problem. Only 15 per cent of those questioned think he is doing a good job as Agriculture Minister. (Nationen)
• The Government has decided to set up a Cultural Monument Fund with NOK 200 million in start-up capital to pay for the rescue of such historic buildings as the country’s stave churches. (Aftenposten)
• The Tunsberg Diocesan Synod wrote a little piece of Norwegian history yesterday. For the first time ever two women were nominated as candidates for a vacant episcopal seat in this country. (Aftenposten)

Today’s comment from Dagbladet

Ambassador Mona Juul in Tel Aviv will probably receive a black mark on her record because she failed to comply with the Civil Service Act’s provisions and formally inform the Foreign Ministry that she had received a peace prize in Israel worth a substantial sum of money. But this affair also has a human side. According to newspaper reports none of her superiors at the Foreign Ministry have contacted her at a time when she needed some sympathy and compassion. Don’t they have a personnel department at the Foreign Ministry? And what about her trade union? Should she not have received some support from them? In any company under similar circumstances – at least any sizeable company – these bodies would have swung into action. It is in just such situations that an organization’s corporate culture and working environment are put to the test. There is obviously no such culture at the Foreign Ministry. It is the law of the jungle in a system where no one who comes under fire can expect any sympathy. Yes, the Foreign Ministry is a ‘closed shop’. The Juul affair has demonstrated that it is high time the doors were opened to let in some fresh air.