STOLTENBERG: BETTER PUBLIC SERVICES, VAT RESTRUCTURING IN STORE (Dagsavisen)

"We must make our public services better. To do this we must provide more funding and organize them better. We will present a budget which I think the centrist alliance will find interesting. We will start charging value-added taxes (VAT) on services, but the billions of kroner generated thereby will be used solely to reduce taxes elsewhere. I cannot say at this time whether this will mean lower petrol taxes, lower alcohol taxes or lower VAT on food. We have not finished studying these issues," says Prime Minister Jens Stoltenberg.

EU DEMANDS LOWER IMPORT DUTIES ON FOOD (Nationen)

The EU Commission is preparing to cancel an existing agreement with Norway which regulates duties on processed agricultural products and demand reductions of up to 50 per cent on Norwegian import duties. The Government, after its initial rejection of the demand earlier this year, is now vacillating. Lower duties would make it impossible for Norwegian manufacturers to compete in the domestic market using Norwegian raw materials. The Government is reluctant to say no to the EU, as doing so would have a negative impact on relations with Brussels.

ARCUS VALUE COULD SUFFER (Aftenposten)

It could be expensive for the government to decide where Arcus should buy the potatoes it uses in the production of alcohol, in the view of Jan Eiler Fleischer of Gambak, a unit trust management firm. A number of investors believe Arcus’s stock market value will go down if the government insists on retaining a one-third stake. Minister of Trade and Industry Grete Knudsen has agreed with Former Prime Minister Kjell Magne Bondevik and his Finance Minister, Lars Sponheim, that this should be done in order to prevent Arcus from being split up by new owners, but the Conservatives view this as an infringement on the budget compromise between the centrist alliance, the Conservatives and the Progress Party.

KREDITKASSEN TURNED KVÆRNER DOWN (Dagens Næringsliv)

The Kreditkassen bank declined to guarantee Kværner’s NOK 2.5 billion share issue because top management felt the risk of being left holding Kværner shares was too high. Kværner responded by taking the issue out of the hands of the Kreditkassen’s brokerage house, Christiania Markets. Kværner’s weak equity base limits its chances of obtaining a partner in the oil and gas market.

RØKKE IS IN CONTROL (Verdens Gang)

"I recognize that Kjell Inge Røkke controls a sufficient number of shares to give him virtual control over Kværner. At a general meeting of shareholders exhibiting the normal pattern of shareholder participation, Mr. Røkke would command a sufficient majority to make changes in the board. He could also have a sufficient majority to order acquisitions and block mergers, says senior employee representative at Kværner, Rolf Utgård.

PETROL PRICES HEADING DOWN (Dagsavisen)

Petrol prices at the major service station chains have dropped 80 øre per litre in the past month. Prices at some service stations in Oslo were under NOK 10 per litre yesterday, and a new price war could depress prices further. These rapid fluctuations also serve to increase internal competition between service stations.

WORTH NOTING

Norwegians are among the most eager online shoppers in the world. We love net-shopping for books and CDs, which are the most popular online products according to an international survey. (Dagsavisen)

An amendment to drunk-driving law making it illegal to operate a motor vehicle with blood alcohol levels in excess of 0.02 per cent will go into effect at the beginning of next year. (Aftenposten)

Minister of Social Affairs Guri Ingebrigtsen is considering a reduction in alcohol taxes. As Norway’s alcohol taxes are the highest in Europe, there should be plenty of room for reductions. (Verdens Gang)

The EU will draw up common marketing regulations which are likely to apply throughout the entire European Economic Area (EEA), which includes Norway. Such EU regulations may prevent the Consumer Ombudsman from taking action against gender-discriminatory advertising and other marketing practices. (Klassekampen)

TODAY’S COMMENT from Dagsavisen

The Labour Government has made it clear that Norway does not intend to be left behind in the process of European evolution. Implementation of directives will be stepped up, and Foreign Minister Thorbjørn Jagland does not pass up any opportunity to point out how important the EU is for Norway’s development. He is absolutely right, of course. Even the most avid opponents of EU membership cannot ignore the dynamics at work in our neighbouring countries. Within a few years, the EU may count 25 member states. Through the EEA Agreement, most of what takes place within the EU has a direct impact on us, but not all forms of EU harmonization are popular. Some directives are highly controversial, and this will undoubtedly be so in the future. The principle of give and take is important in any community—it is impossible to accommodate everyone on all points. But one thing most Norwegians would like to see—the prices and tax levels common in most EU countries—will not come about through directives. There is a huge gap between the prices Norwegians must pay for mortgages, food, cars, petrol and alcohol and what most other Europeans must pay. What about policies aimed to harmonize Norway with the EU in these areas within a certain time frame, such as by the end of the next electoral term, ending in 2005? That would be good for most people, but it would involve some sacrifices, and some industries would have to go through radical transformation processes to achieve this. Unlike some EU directives, though, few people would view this as a threat.