The Royal Ministry of Foreign Affairs,
Oslo Press Division

Norway Daily No. 100/00

Date: 26 May 2000

MEDIATOR PRESENTS COMPROMISE PROPOSAL (NTB)

State mediator Reidar Webster stated at 3:00 this morning that he would submit an outline proposal to the negotiators in the public sector bargaining round. This is an indication that a settlement may be in sight. At 7:00 the unions had still not issued a strike announcement, either one way or the other.

CONSERVATIVES FORESEE HIGHER BUDGET (Dagsavisen)

The Conservative Party predicts that the Government may be forced to add as much as NOK 2 billion to its draft budget. The Conservatives want to cut one billion kroner in addition to what the Government proposes, but their cuts would have a greater impact on farmers, the sick and recipients of assistance. The centrist parties and Labour met yesterday for their first round of negotiations. Christian Democratic Party chairman Valgerd Svarstad Haugland presented a veto list rejecting a long list of the Government’s proposed cutbacks. They call on the Government to come up with a new proposal to balance NOK 1.5 – 2 billion in added expenditures.

GOVERNMENT TIES NO STRINGS TO KREDITKASSEN SALE (Aftenposten)

The Government will not demand a share in the new bank entity when the Kreditkassen is sold. Nor are any other special constraints placed on the sale in the report to be presented to the Storting today. The way is thus open for a bid from the Swedish Handelsbanken, whose management has clearly stated that any state involvement on the ownership side is out of the question.

OPPOSITION TO LOWER DRINK-DRIVE LIMIT (Dagsavisen)

Director General of Public Prosecutions Tor-Aksel Busch is concerned that reducing the drink-drive limit to 0.2 per cent BAC could actually have a negative impact on traffic safety. His concern is that a lack of popular support for this measure could undermine it instead, and he receives solid support from others who have submitted statements in the consultation process. The Norwegian Bar Association recommends against the adoption of the proposal, and the Police Union feels the legislators will be making a mistake if they lower the limit.

JAGLAND PROMISES UN HELP IN LEBANON (Aftenposten)

Minister of Foreign Affairs Thorbjørn Jagland has announced that Norway will contribute to a peacekeeping force in Lebanon, saying we cannot very well decline. But now he will have to explain this to the Storting. The Storting has given no signals indicating this type of involvement in southern Lebanon. According to tradition, the Government consults the Storting before taking a final decision on matters of this nature, says Foreign Affairs Committee chairman Einar Steensnæs (Chr.Dem.).

STOLTENBERG INSISTS ON KEEPING STATOIL OFF CONVENTION AGENDA (Verdens Gang)

Prime Minister Jens Stoltenberg is adamant: the controversial privatization of Statoil will not be discussed at the national convention. The Government will now be implementing party policy. This decision was taken by the highest ranking body between national conventions, and it is the result of a long process which took place within the party, says Mr. Stoltenberg.

ESA BLOCKS POWER SUBSIDIES (Dagens Næringsliv)

The EFTA Surveillance Authority (ESA) has rejected the Storting’s decision on new power contracts for heavy industry. The ESA takes the view that the new contracts amount to industrial subsidies in violation of the EEA Agreement. This is a large and difficult case which the Government must clear up before the summer.

WORTH NOTING

• The Centrist Parties agreed yesterday to continue with the budget talks, but a budget compromise with the Government is still a long way off. (Aftenposten)
• Minister of Health Tore Tønne proposes to let girls below the age of 16 terminate pregnancies without informing their parents. A new set of regulations which the Ministry of Health and Social Affairs has now sent ouf for consultations provides for keeping parents uninformed when the situation could create family conflicts. (Aftenposten)
• Labour politicians are trying to force Kåre Willoch to resign his post as chairman of the executive board of the Norwegian Broadcasting Corporation (NRK). Former Minister of Culture Anne Enger Lahnstein and influential Conservatives are working actively to prevent this. (Dagens Næringsliv)
• The daily press committee advocates increasing newspaper production subsidies by NOK 100 million, and unanimously opposes expanding the VAT criteria to include newspapers. However, committee chairman Hallvard Bakke is prepared to accept VAT if this what it takes to boost press subsidies. (Klassekampen)
• A group of five private companies will contribute NOK 9 billion towards the planning and construction of hospitals in Akershus county. The group wishes to build hospitals in Østfold and Hedmark as well. (Dagens Næringsliv)
• Cut-rate meat prices are what will halt the stream of Norwegian consumers to Sweden, and Østfold county is targeted as the testing ground for this strategy. According to the Federation of Norwegian Commercial and Service Enterprise, cross-border trade costs the Norwegian state NOK 5 billion every year. (Nationen)

TODAY’S COMMENT from Verdens Gang

The Storting’s Defence Committee recommends letting the controversial frigate project proceed as planned. The former Government had been directed by the Storting to buy at least five frigates meeting certain specifications at a maximum cost of NOK 12.2 billion. The contract has not even been signed yet, but it is already clear that the specifications have not been met and the price has gone through the ceiling. The navy has put other projects on hold in order to have enough to spend on this highly questionable investment; the air force has had to halt the procurement of new fighter jets which have been characterized as essential to the defence of Norway, and the army, too, has had to accept restrictions. In the Defence Committee, Gudmund Restad (Centre) is the only one who has raised his voice in protest, but he knows what he is talking about. As Minister of Finance in the Bondevik Government which negotiated the contract with the Spanish shipyard, he opposed the project, but in the internal process within the Government, he lost. Mr. Restad found the specifics of the tender questionable economically as well as in terms of defence policy, and he is now asking the Storting to put off a decision on the additional appropriation that is now required. It is not often we insist that the Centre Party is right and the other parties are wrong, but that is certainly the case now.