The Royal Ministry of Foreign Affairs,
Oslo Press Division

Norway Daily No. 105/00

Date: 6 June 2000

TAX EXEMPTION FOR WORKING CAPITAL (Aftenposten)

The centrist alliance proposes to exempt working capital from net wealth taxation, which would grant business taxpayers NOK 1.5 billion in tax relief. The bill, which is also supported by the Progress and Conservative parties, is expected to pass. Organizations representing the business sector have long been demanding relief from this tax, and Tor Steig, senior economist for the Confederation of Norwegian Business and Industry (NHO), expresses satisfaction that this is finally taking place. Sweden has recently adopted a similar measure.

LABOUR MPs ADVOCATE FREE REIN FOR INSURANCE FUND (Dagens Næringsliv)

Labour MPs who specialize in business and industrial policy feel the National Insurance Fund should be given greater freedom. Senior Fund officials would like a freer hand in administrating the Fund’s assets, and would like to escape trade constraints which restrict them to the Oslo Stock Exchange. The Fund would like to trade on other Nordic stock exchanges and trade in unlisted Norwegian stock. Labour has always opposed this, however, and Finance Minister Karl Eirik Schjøtt-Pedersen has not indicated that he is prepared to change.

EXTRA HOSPITAL FUNDING ON ITS WAY (Dagsavisen)

There may be a sufficient parliamentary majority to allocate another half-billion kroner to Norway’s hospitals. Progress, the Conservatives and the centrist parties are working on a measure they can all stand behind to increase funding for hospitalization and medical equipment over and above what the Stoltenberg Government has proposed in its Revised National Budget.

LO COMMITTEE RECOMMENDS PARTIAL PRIVATIZATION (Dagsavisen)

A recommendation adopted yesterday by the Norwegian Confederation of Trade Unions’ Balstad committee opens for the partial privatization of Statoil without specifying the degree of privatization. The recommendation will now be sent out to the unions for their remarks, and is expected to be acted on by the LO secretariat this autumn. According to Dagsavisen’s sources, the recommendation is offered by a unanimous committee, despite the fierce debate that preceded it.

INTEREST RATE HIKE ON THE HORIZON (Aftenposten)

A number of economists are confident that the central bank will raise key rates by 0.25 points next Wednesday. Commercial banks normally raise their own rates in response, so this is likely to lead to higher mortgage rates. A rise in unemployment is also to be expected.

MAJOR LABOUR UNION SUPPORTS FARMERS (Nationen)

The Norwegian Union of Municipal Employees, the largest and most powerful in the Norwegian Confederation of Trade Unions (LO), is asking the Storting to give farmers a better deal than they have been offered so far when they deliberate the agricultural settlement. Union president Jan Davidsen, who serves with Prime Minister Jens Stoltenberg on the Labour Party’s executive committee, expresses concern over the negative impact a poor farm settlement would have on rural Norway.

WORTH NOTING

• Marine biologists insist that cod quotas must be brought down to a level which, for the fishing industry, represents an overall income reduction of around NOK 3 billion. Drastic reductions in quotas for cod and other important types of fish, and the resulting losses, can no longer be avoided. (Dagens Næringsliv)
• Former Minister of Social Affairs Magnhild Meltveit Kleppa (Centre) calls for the elimination of the municipal sector’s NOK 40-50 billion debt. If the Storting can cancel the NOK 7 billion debt owed by the Gardermoen airport express railway, it should also be possible to do the same for local governments, says Ms. Kleppa. (Dagbladet)
• The Government says it will soon issue a report to the Storting on the competitive situation in the Norwegian offshore sector, but the issue of Statoil’s ownership structure will not be mentioned. Minister of Petroleum and Energy Olav Akselsen emphasizes that the Government has intended all along to issue a petroleum policy paper separately from its proposition regarding Statoil and the State Direct Financial Interest (SDFI). (Aftenposten)
• The Norwegian Seafood Export Council is awash with salmon money. Revenues are flowing in faster than the Council can spend them on marketing. The salmon farming industry will probably have around NOK 150 million in the bank by the end of the year. (Dagens Næringsliv)
• Labour’s popularity surged after Jens Stoltenberg took over as the party’s prime minister candidate, and then actually became Prime Minister, but then plunged 4.5 points to a 30.5 per cent rating in the political barometer for June. (Verdens Gang)
• The number of students working towards IT qualifications at public and private colleges is nearly three times what it was in 1996, and they can still pick and choose in the job market. (Aftenposten)

TODAY’S COMMENT from Nationen and Verdens Gang

Three children have been killed within a matter of weeks—all victims of criminal acts. Commissioner for Children Trond Waage wonders if parents should continue to let their small children out of the house on their own, while the chief concern of psychiatric experts is to keep public anxiety under control. One goal which psychiatry and law both have in common is to help people cope. And both have a responsibility to safeguard society against harmful behaviour. But the political process has recently reduced Norway’s psychiatric treatment capacity by 50 per cent, so what is happening is the result of a political decision. People with serious psychiatric problems are involved in a growing number of crimes, and someone must blow the whistle. We believe the foremost consideration in psychiatric policy and justice policy alike must be that victims and the safety of potential victims come first. But the political community seems incapable of responding.