The Royal Ministry of Foreign Affairs,
Oslo Press Division

Norway Daily No. 106/00

Date: 7 June 2000

VISION WITHOUT APPLAUSE (Aftenposten)

Prime Minister Jens Stoltenberg was unable to spark any interest in his modernization drive when he delivered an important speech to Labour voters in Bergen yesterday. He presented what he called his political project, in which the unifying theme is the will and courage to change. With the resistance to his plans for Statoil fresh in mind, he cautioned the party against the danger of ending up as a conservative organization with an inclination to defend the current state of affairs. Mr. Stoltenberg promised a number of changes: an increase in government workers and higher allocations to health and education, the elderly and public child care; hospitals converted to independent, responsible entities; and Web-based public services available round the clock. If too many people think Mr. Stoltenberg has parked core social-democratic values in a museum, the rebellion we have seen so far in the Labour Party will have been only the beginning, writes Aftenposten’s commentator.

STOLTENBERG ATTACKS POLITICAL RIGHT (Dagsavisen)

Jens Stoltenberg fired off a broadside against the political right when he presented the Labour Government’s strategy for next year’s general election. He also promised more money to health, education and child care services. Mr. Stoltenberg has started the election campaign with an attack on the political right, and he chose to stage this attack in Bergen. This was an important meeting, and I was able to explain what the Government is doing, said Mr. Stoltenberg to Dagsavisen after presenting the Labour Government’s campaign issues and its strategy for the 2001 election.

PUBLIC SPENDING DOWN - PRIVATE LENDING UP (Nationen)

While politicians pursue austerity, private and commercial debt is growing. The overall volume of debt rose 12.3 per cent, or NOK 94 billion, from April 1999 to April 2000, according to statistics from the central bank. The rate of growth is around twice last year’s level. This underscores the madness of maintaining a balanced budget, says Carl I. Hagen (Progress).

OIL TAXES REASSESSED (Aftenposten)

The Storting was informed yesterday that a public expert commission is in the concluding stages of its review of the tax regulations which apply to oil companies. The recommendations of this commission will be an important part of the Ministry of Petroleum and Energy’s work on the competitive situation in Norway’s offshore industry. One of the things the commission has examined is whether economically marginal oil fields would be economically viable if tax rules were changed.

DEFENCE TO CUT A QUARTER OF ITS STAFF (Dagens Næringliv)

The defence forces must sack 6,000 of their 24,000 employees. The officers’ union understands and accepts the need for major cutbacks. The report from the Defence Policy Commission, which will be presented on 29 June, and the Chief of Defence Staff’s in-depth professional recommendation, which will be presented a few days later, both recommend drastic cuts in defence spending. According to Dagens Næringsliv’s sources, both recommend cutting defence staff by 25 per cent. The work on re-employment packages, severance pay and early retirement plans has already begun.

7100 WAITING FOR PSYCHIATRIC HELP (Verdens Gang)

Queues in psychiatry have reached record levels. According to figures from the Norwegian Patient Registry, 7,100 persons are now waiting for psychiatric treatment, more than at any time since Unimed at the Foundation for Scientific and Industrial Research (SINTEF) started keeping these records in 1997. Despite the growing patient backlog, county health services have not managed to use the large appropriations granted by the Storting towards psychiatric health care. NOK 170 million still remained of these funds at the beginning of the year.

WORTH NOTING

• This is the modern social democrat speaking. Jens is leading traditional social democracy onwards to its destination, a journey Gro Harlem Brundtland began around 1980, says political science professor Trond Norby, an avowed leftward-leaning social democrat.
• Minister of Agriculture Bjarne Håkon Hanssen wishes to collaborate with the EU on food safety. We support the EU’s work on the new food safety measures. It is important for us to be in on the creation of the European food agency, says Mr. Hansen. (Nationen)
• The National Insurance Fund may be given greater freedom to trade on other Nordic stock exchanges and to invest in unlisted Norwegian stock. After a bit of horsetrading yesterday, the centrist alliance agreed to give the Fund more elbow room. Whether or not the proposal passes depends on the Conservatives. (Dagens Næringsliv)
• Labour will vote against any reduction in taxes on stock options, even though the party’s industrial policy experts support the measure. The Centre Party will vote in favour of studying further tax reductions, though they advise against them. One thing is certain, however: on Thursday, the Storting will approve, by a large majority (all parties except the Socialist Left), certain reductions in taxation of options agreements. (Dagens Næringsliv)
• Like the rest of the Norwegian people, Prime Minister Jens Stoltenberg is affected by the many murders and episodes of violence this spring. This is so serious that quick-fixes are out of place. This calls for serious efforts, he says. (Vårt Land)
• Comparison with Denmark’s anticipated revenues from concessions shows that Norway stands to forfeit up to NOK 7 billion by not putting the four new mobile network operator concessions up for bidding. (Dagens Næringsliv)
• British industrial concern Rolls-Royce is moving its maritime headquarters to Ulsteinvik, in Møre og Romsdal county, instead of Oslo. Five thousand employees in 33 countries will be led from the small industrial community on the Norwegian west coast. (NTB)

TODAY’S COMMENT from Dagens Næringsliv

Prime Minister Jens Stoltenberg presented his vision for Norway yesterday, the same day an opinion poll gave Labour a 30.5 per cent rating. Labour is now back down to popularity levels reminiscent of the Jagland period. Mr. Stoltenberg’s vision is primarily aimed at modernizing the public sector, but its chances of capturing the enthusiasm of voters and party members are not good. The most recent major experiment in classic Keynesian economics was attempted by French socialist Prime Minister Pierre Mauroy in the early 1980s, and it was a miserable failure. Ever since, modernization and reform efforts by social democrats have always meant appropriating ideas and rhetoric from conservative parties. This will cause no uproar in Norway because it is extremely difficult to promote the need for unpleasant changes in a state that is filthy rich. In the Labour Party, the elite, eager to modernize, are fighting the rank and file, where social democrats of the old school and converts from socialist parties even further to the left still command respect. That is why Mr. Stoltenberg’s modern vision of social democratic ideology is moderate. But then, moderation rarely stirs up enthusiasm or inspires passion.