Juul to return prize money (Dagbladet/Saturday)

The Foreign Ministry breathed a sigh of relief yesterday when it received a fax confirming that Mona Juul’s decision to return the controversial prize money she received in 1999 from the Peres Centre in Israel. But husband Terje Rød-Larsen will not be handing back his share of the cash. "I am proud of the prize, and will spend the money to promote peace in the Middle East," he was quoted as saying yesterday. In an interview with Dagbladet, the UN Special Envoy to the Middle East has previously stated that part of the prize money was used to cover expenses incurred after he left the Norwegian Foreign Ministry and before he joined the UN payroll.

Wise decision by Mona Juul, say politicians (Aftenposten/Saturday)

Norwegian politicians are pleased that Ambassador Mona Juul has decided to return the prize money she received from the Peres Centre. Ågot Valle (Socialist Left Party), who chairs the Storting’s Scrutiny and Constitutional Affairs Committee, described Ms Juul’s decision as wise. Ms Valle emphasized that she had always regarded this affair as an internal personnel issue within the Foreign Ministry. But Ms Juul’s decision does not make it any less relevant to evaluate the way Norwegian financial assistance to the Centre was used. "Not that I think there has been anything shady going on, but the way the money was used should be investigated," she added. The Conservative Party’s Inge Lønning says he is looking forward to finding out what Terje Rød-Larsen is planning to do with his share of the prize money. "He was also on the Foreign Ministry’s payroll when he received the money," said Mr Lønning.

Shareholders want cash (Dagens Næringsliv)

Den norske Bank (DnB) will have to fork out several billion kroner in cash if they are to persuade Storebrand’s shareholders and the company’s chief executive Idar Kreutzer to agree to a merger. The companies are thought to have reached agreement on the desirability of a merger. The problem is to agree on the form and size of the financial settlement. This weekend saw a hectic round of meetings between the two companies.

Storebrand and DnB continue talks (NTB)

No agreement was reached this weekend on a merger between Storebrand and Den norske Bank (DnB), but talks continue. Neither company would comment on the discussions currently underway between them before the Oslo Stock Exchange opened for business on Monday morning. A stock market announcement giving additional information on the process is expected.

DnB emerges the winner in merger with Storebrand (Aftenposten)

Formally it is a merger, but in reality Den norske Bank is taking over Storebrand. Storebrand’s senior executives will not be offered any of the top slots following a merger with DnB. DnB chief executive Svein Aaser will take the same position in the new enlarged company, with Jannik Lindbæk as chairman. Knut Eggum Johansen, head of the Norwegian Competition Authority, has warned that a merged DnB/Storebrand could be forced to sell off parts of its life insurance business. DnB already owns the insurance company, Vital, and will therefore gain a dominant market position.

Over 3,000 journalists could take strike action (NTB)

130 newspapers, news agencies, web-based news sites and local television stations could be hit by strike action. The two sides will meet at the offices of the State Mediator late on Monday afternoon, and the deadline for an agreement has been set at midnight on Tuesday. The Norwegian Union of Journalists (NJ), the Norwegian Newspaper Publishers’ Association and the EA, an employers’ organization representing local television stations, are the parties who will be meeting under the auspices of the State Mediator. Negotiators for the journalists said they had broken off negotiations because the employers refused to discuss their most important demand – an increase in holiday entitlement.

Last minute agreement (Dagsavisen/Saturday)

Yesterday afternoon – 17 hours after the deadline for agreement on local government salaries had passed – a deal was struck. The pay package has been described as one of the best this year, but the nurses are still threatening to take strike action. "There is far too little money in this deal. The financial aspect is too weak, particularly for supervisory staff," said Bente G. H. Slaatten, president of the Norwegian Nurses’ Association. The board of the Nurses’ Association will decide next Friday whether to accept the pay deal or not.

Transport Minister to face public hearing (Verdens Gang/Saturday)

A majority of MPs voted yesterday to call Transport Minister Torild Skogholm to appear before an open hearing of the Storting on Tuesday to explain her lack of candour regarding massive cost overruns at the Pubic Roads Administration. The decision came after VG revealed that Ms Skogholm had for several weeks failed to disclose that the cost of restructuring of the Public Roads Administration had skyrocketed. Yesterday the Labour Party and the Socialist Left Party demanded a hearing, and were supported by both the Conservatives and the Progress Party.

Krone is king (Verdens Gang/Saturday)

A super-strong Norwegian krone is powering ahead of other currencies. Yesterday the Norwegian and Danish kroner stood at one-to-one. This puts increased spending power in the pockets of Norwegian holidaymakers. But we could face a cold shower later this year in the form of higher mortgage rates, if the Norwegian Central Bank puts up interest rates. Many economic experts believe we may see a rise in interest rates in July.

‘Major boost’ to pre-school day-care ends in fiasco (Aftenposten/Sunday)

Jens Stoltenberg’s Labour government promised that 6,000 new nursery places for the youngest age groups would be built in 2001. The facts show that Labour missed by a mile. Norwegian local authorities managed to open only 800 new places. The disastrous figures now being made public will probably dampen the parties’ optimism in the debate over maximum prices and day-care places for all.

Electricity alliance fizzles out (Dagens Næringsliv/Saturday)

Plans to form a new Norwegian energy alliance have come to nought. The Confederation of Norwegian Business and Industry (NHO) could not tolerate the challenge to its power or ‘contagion’ from the Norwegian Investors’ Forum and its views on state ownership. The alliance was due to get off the ground on 5 June. At a hotel in the centre of Oslo – and with the Prime Minister in attendance – hundreds of representatives from all sides of the electricity industry were to have established the umbrella organization, called EngergiForum. Electricity producers, local authorities, organizations and companies were all to have participated in the new umbrella organization. The aim was to bring across-the-board interests together, promoting value creation and increasing the influence of the electricity industry as a whole. The creation of EnergiForum has now been postponed indefinitely. There is reason to believe that the NHO leadership was afraid the new umbrella organization would diminish its influence in a key Norwegian industry.

Worth Noting

• Kjell Inge Røkke could face two years behind bars. The Public Prosecutor is firmly convinced that the popular industrialist and investor is guilty of both corruption and making a false statement to police. (Dagbladet)
• The Labour Party has been given the chance to change its name to the Social Democrats thanks to former Progress Party member Vidar Kleppe. The name Social Democrats was adopted by group who broke away from the Pensioners’ Party. Last spring a number of ex-Progress Party politicians, led by Mr Kleppe, signed up as Social Democrats and hijacked the party. Now Mr Kleppe has decided to change its name to the Democrats. (NTB)
• The Orderud case has so far cost around NOK 35.5 million, according to figures compiled by TV2. The defence attorneys are the financial winners in the case. Their fees total NOK 17.5 million. (NTB)
• Police officials have warned about the increasing use of the sleeping pill, rohypnol, as a party drug by young people. So far this year almost 250,000 sleeping pills and tranquilizers, mostly rohypnol and valium tablets, have been seized in police raids. This is 63,000 more than at the same period last year. (Nationen)
• Houses are meant to be lived in, but apparently not if they are owned by the state. This year state-owned enterprises will have to fork out NOK 16.5 million in rent for property which is standing empty. And that figure will rise by several more million in the years ahead. The most important reason is changing requirements for rented space. Property may stand empty for five to ten years until the end of the contract period, according to a survey the Directorate of Public Construction and Property has carried out on behalf of the Labour and Government Administration Ministry. (Dagsavisen)
• Norwegian motorists are among the safest and most considerate in Europe. But despite this we are punished hardest of all. Norway’s drink driving laws are the toughest in Europe. Speeding fines are the toughest in Europe. The punishment for driving through a red light is the toughest in Europe. Even parking fines are at the top end of the scale. (Aftenposten)

Today’s comment from Vårt Land

Politicians are constantly being accused of breaking their promises, a habit which is damaging to their credibility. Yesterday we learned that the Stoltenberg government’s promise to build 6,000 new nursery places for the youngest age groups in 2001 ended with the addition of just 800 new places. This is just the most recent example – many governments of varying persuasions have broken their promises on pre-school day-care. The parties in the Storting are now negotiating a consensus agreement on this issue – and once again the promises are thick in the air. MPs wish the parents of small children well. But nurseries are built by private organizations and local authorities, not by the Storting. And they cannot be forced to do so. The Storting can only smooth the path with various schemes and adequate local authority funding. Can’t those who are now working on a cross-party agreement say that they will lay the foundations for the creation of more nurseries and that a nursery place may become considerably cheaper for parents – but that they cannot promise places for all at low prices? We can stand the truth, but not broken promises.