THE ROYAL MINISTRY OF FOREIGN AFFAIRS, Oslo Press Division

Norway Daily No. 150/00

DATE: 9 August 2000

REACTIONS AGAINST MOVE TOWARDS PRIVATE CARE PROVIDERS (Dagbladet)

The Labour Party faction which advocates a greater degree of privatization in the public sector looks to have lost its case already. Most who call for changes in party policy make clear their intention to escalate their resistance against putting public care services out to bid. In all likelihood, the executive committee will propose later on this month to exempt core areas such as health, education and care for the elderly from competitive bidding.

PHYSICAL LABOUR FOR CHILD CRIMINALS (Aftenposten)

Commissioner for Children Trond Waage suggests lowering the age of criminal responsibility and letting minors convicted of crimes pay for them by performing physical labour. Mr. Waage’s proposal is a reaction to the rise in crime rates in Oslo, where child-perpetuated crime has doubled in the course of the past year. Mr. Waage feels these figures should force us to explore new ways of thinking. He would like to see legislation dealing specifically with criminals under the age of 18, incorporating elements from the Criminal Code as well as child protection law. The goal of this legislation should not be to punish but to rehabilitate children and instill in them a sense of responsibility, he says. Minister of Justice Hanne Harlem takes a positive view of his proposal.

GOVERNMENT DIVIDED ON NEW SOCIAL SECURITY SCHEME (Dagsavisen)

The Labour Government’s proposal to establish a contributions-based retirement scheme has caused an uproar, exposing an ideological division extending from the floor of union shops right up to the Government. A number of cabinet ministers feel they were misled by the Ministry of Finance. Draft legislation providing for contributions-based retirement funding was presented to the cabinet on 16 June, but in a departure from standard procedure, the Ministry made no mention of the political aspects of the bill. Since then, several ministers have reacted to the content of the bill and the manner in which it was presented.

INADEQUATE CONTROL OVER SOCIAL SECURITY PAYMENTS (Aftenposten)

The Auditor General has recently examined the routines for registration, calculation and payment of benefits at 69 social security offices, and the report now sent to Minister of Social Affairs Guri Ingebrigtsen is severely critical of the casework and accounting practices in general use. The National Insurance Administration and the Ministry of Health and Social Affairs both promised to take steps to correct the situation. Social security office employees point to complex rules as a major source of error, and call for a simpler system of rules. 950,000 Norwegians received NOK 92 billion in social security payments last year.

NORWAY TO SUPPLY KFOR CHIEF (Aftenposten)

After several weeks of manoeuvring, Norway has come out on top regarding the command of NATO forces in Kosovo. Lt. Gen. Thorstein Skiaker is the first choice of General Joseph Ralston, NATO’s Supreme Allied Commander in Europe, for this prestigious position. How Norway and Denmark will split the bill remains to be seen. "I will submit this to the Storting as a budget item, but since all reactions from the other parties have been positive, I do not think it will be difficult," says Minister of Defence Bjørn Tore Godal.

KVÆRNER BID LOSING VALUE (Dagsavisen)

While the finance market waits for Kjell Inge Røkke and Kværner to come to terms, Kværner stock—the medium of the trade—is falling rapidly. After only two days, the value of Kværner’s offer has declined by nearly half a billion kroner. A growing number of analysts believe Kværner and Aker Maritime will negotiate their way to agreement, despite Kjell Inge Røkke’s flat rejection of Kværner’s bid on Monday.

RØKKE HAS SIGHTS SET ON KVÆRNER (Dagens Næringsliv)

Kjell Inge Røkke scoffs at Kværner chief Kjell Almskog’s attempt to buy Aker Maritime. Sources close to him say he has a long-term agenda as a major shareholder in Kværner. Signals that he is in no hurry to resolve the current standoff are no comfort to Kværner management, who are keen to bring the situation under control.

INTEREST RATES EXPECTED TO GO UP (Dagbladet)

Central bank governor Svein Gjedrem is expected to announce a 0.75 rise in key rates soon, possibly even today. 2000 will be a bad year for borrowers. High demand and heavy spending by business and private spenders reinforce the inflationary trend, but Norges Bank is willing to respond with strong countermeasures. The question is not if, but when, key rates will be raised.

WORTH NOTING

• Opinions are divided in the political community on the issue of prosecuting children. Justice Committee chairman Kristin Krohn Devold (Cons.) is willing to consider the possibility of detention, but Ane Sofie Tømmerås (Labour) strongly opposes the idea. (Aftenposten)
• The Banking, Insurance and Securities Commission sounds the alarm against lending practices in the banking industry. Heavy mortgages allow Norwegians to increase their spending. 70 per cent of mortgages exceeding the value of the property were granted with no added security required of the borrower. "Imprudent," says BISC director Bjørn Skogstad Aamo. (Verdens Gang)
• Three years have passed since the Storting pledged full funding for all necessary radiation therapy by 2003, but the Norwegian Board of Health says nothing at all has happened. (Aftenposten)
• A lack of ready cash may be why Kværner is offering shares in exchange for Aker Maritime. Its capital funding is relatively low, so it has little room to manoeuvre if more liquid investors should enter the competition. But Aker Maritime is short of capital itself. (Aftenposten)

TODAY’S COMMENT from Dagbladet

The Norwegian Board of Health has reviewed the capacity of hospitals with radiation therapy facilities and found that nearly 3000 patients are not receiving the treatment they require. In order to help everyone, a 70 per cent increase in capacity is necessary. It is easy to agree with Social Committee chairman John Alvheim (Progress), who says this amounts to abuse of seriously ill persons in a country that has more than enough money. It also conflicts with the Storting’s guidelines. Minister of Health Tore Tønne acknowledges that treatment capacity is not sufficient, but his plans are ready for rectifying this. If this is true, he should implement his plans immediately, because cancer patients have no time to lose.