JAGLAND DROPS EFFORTS FOR VOLLEBÆK (Aftenposten)

For all practical purposes, Minister of Foreign Affairs Thorbjørn Jagland has given up his effort to see former Foreign Minister Knut Vollebæk given the post of UN High Commissioner for Refugees. The reason is that Norway already has one person in a top UN post, namely, Gro Harlem Brundtland, who heads the World Health Organization with headquarters in Geneva. "A campaign in behalf of Mr. Vollebæk would defeat its own purpose," says Mr. Jagland.

SCHJØTT-PEDERSEN PLEDGES LOWER HOMEOWNER TAXES (Dagsavisen)

Finance Minister Karl Eirik Schjøtt-Pedersen promises lower homeowner taxes for the average homeowner. He says [a two-tier housing tax with] higher rates in densely populated areas is out of the question, at least in the form of the measure that has been under consideration. Mr. Schjøtt-Pedersen discussed homeowner taxation with the Labour Party’s parliamentary group yesterday, but only on a preliminary level. He cannot say when new assessment guidelines will be presented to the Storting, but they are aiming to have a new system in place by the end of 2004.

NO GENERAL REDUCTION IN VAT ON FOOD (Aftenposten)

VAT compensation is the budgetary means the Government will use to reduce Norwegian meat prices. The Government has no intention of reducing value-added taxes (VAT) on food in general, as the centrist alliance has called for. In the view of the alliance, experience has shown that VAT compensation provides only temporary relief, while a general VAT reduction would be permanent. The Government thus seems to be headed for trouble in the Storting.

HANSSEN: THE FARMERS HAVE ALREADY DONE THEIR PART (Nationen)

Minister of Agriculture Bjarne Håkon Hanssen believes farmers are doing their best to make Norway cheaper, so he will take a closer look at the retail business. "I have studied the accounts of the middlemen and the food retailers, and it is the latter who are making money," says Mr. Hanssen, who will request documentation from the supermarket chains regarding their profit trends.

COMMISSION PROPOSES RADICAL CHANGE IN SICK LEAVE SCHEME (Dagbladet)

Employees will have to work more for short-term sick leave and employers will have to pay more for long-term sick leave. The state, for its part, will reduce social security taxes. These proposals, contained in the recommendation to be presented by Matz Sandman tomorrow, will involve a radical restructuring of the current system. Workers who stay healthy and are not away from work for more than 12 days will be the winners under the new system. The losers will be those who take short but frequent sick leaves. The new sick leave system is intended to halt the explosive growth in sick leave and disability.

HEYERDAHL EXPELLED FROM ORKLA BOARD (Dagens Næringsliv)

Orkla cannot let things keep going with confidence in the corporation at such a low ebb. Group CEO Jens P. Heyerdahl was forced to back down yesterday, and will now leave the board, together with three hand-picked board members. Mr. Heyerdahl promises greater openness in the future, and hopes for help in this respect from newly-appointed board chairman Åge Korsvold from Storebrand.

HEYERDAHL’S ROLE TO BE INVESTIGATED (Dagsavisen)

Orkla chief Jens P. Heyerdahl’s role in the sale of a major block of Orkla shares will be a central issue to be dealt with new board’s investigation committee. One of the major tasks of the committee will be to find out if there is substance to rumours that Mr. Heyerdahl was personally involved in the friendly acquisition of a 10 per cent stake in Orkla. Mr. Heyerdahl’s explanation will have a pivotal effect on his future as chief executive.

WORTH NOTING

• Two men have been arrested and charged with the murder of two young girls in Kristiansand last May. One of the suspects has confessed that he and his friend killed the girls. The two men are 19 and 21, and are both from Kristiansand. (all papers)
• Official efforts in Norway to combat racism do not measure up, in the view of the UN committee against racial discrimination. Inadequate legislation, discrimination in public places and discriminatory practices in the housing market are among the failings found by the committee. (Aftenposten)
• The Government’s efforts to reduce the cost of meat, alcohol and petrol run counter to all the current wisdom on health issues. A generally poorer state of public health and increased health spending are likely to be the result. (Vårt Land)
• No one will have to wonder what they will do with the 50 øre they will save on every litre of petrol next year. The state will simply take it back by charging higher electricity taxes. (Verdens Gang)
• Orkla board member and group employee representative Stein Stugu believes group CEO Jens P. Heyerdahl will take the truth concerning his role in the anonymous acquisition of a stake in Orkla to his grave. (Dagens Næringsliv)
• Neither group employee representative Stein Stugu nor finance analysts believe the new Orkla regime will make any dramatic changes in group strategy. Orkla will still be an industrial locomotive based in Norway. (Aftenposten)

TODAY’S COMMENT from Dagsavisen

Newly-appointed Orkla board chairman Åge Korsvold is launching a full investigation of the share acquisition registered to Rabobank, a Dutch bank. If it turns out that Mr. Heyerdahl has done anything contrary to shareholder interests, it will affect his future in the group. The end simply does not justify the means. Rebellious shareholders, for their part, should give a clear account of what they envisage for Orkla. After all, Orkla is a major concern with thousands of employees who deserve to know whether the group is to be split up and sold piece by piece, as is feared by many. Jens P. Heyerdahl has pursued long-term strategies all along, and this must continue, with or without the present CEO.

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