NORWAY NOT EQUIPPED TO LEAD KFOR (Aftenposten)

The ability of the Norwegian armed forces to lead allied operations is "at a critically low level". Norway is due to take over leadership of the KFOR operation in Kosovo from April next year, after both politicians and the armed forces themselves have lobbied hard for the job. However, a report from the Chief of Defence Staff indicates that Norway’s ability to handle such operations is, to put it mildly, weak. The criticism, contained in Chief of Defence Staff, Lt. Gen. Sigurd Frisvold’s annual report, has up to now been classified as "confidential".

CENTRE PARTY TO DEBATE PROPOSED BUSINESS CYCLE TAX (Nationen)

The Government could make its proposed business cycle tax more palatable to the Centre Party and the Christian Democrats if the tax rate was higher in central urban areas than in rural districts. "That would be a better solution. I would not reject a proposal for a geographically differentiated increase in the payroll tax," says Centre Party Chairman Odd Roger Enoksen.

NBCI TO BE USED IN FIGHT AGAINST CRIMINAL ASYLUM SEEKERS (Aftenposten)

The National Bureau of Crime Investigation (NBCI) is being brought into the fight against criminal asylum seekers from the Baltic countries, Russia and parts of eastern Europe. "The level of crime has reached a point where it is appropriate for us to take a closer look at the cases involved, primarily because of the possibility that much of it is organized. The crimes have many common features, and a large part of this criminal activity is carried out across the various police districts’ own boundaries," says Chief Inspector Karen Sørdalen from the NBCI’s criminal intelligence department.

KORSVOLD FORCED OUT (Dagsavisen)

Åge Korsvold’s fall from grace is complete. His controversial Storebrand stock option purchase was the reason for his resignation yesterday as chairman of Orkla. Mr Korsvold now has no positions at the top of Norwegian commercial life. Mr Korsvold’s downfall may have repercussions for the rest of Storebrand’s board. The entire board may be sacked at today’s meeting of the company’s Corporate Assembly.

DOUBTS ABOUT GOLDEN HANDSHAKE (Dagens Næringsliv)

Experts have grave doubts about whether Storebrand’s chairman Jon R. Gundersen had the authority to give chief executive Åge Korsvold an advantageous golden handshake without getting the board’s approval beforehand. Mr Gundersen will today have to explain himself to Storebrand’s Corporate Assembly and its chairman Sven Ullring. Mr Korsvold runs the risk of losing the luxury house that has generated such controversy.

NEW NSB BOARD IN A WEEK (Dagsavisen)

NSB’s acting chief executive Arne Wam expects a new NSB board to be appointed in a week’s time. "The situation needs to be clarified," says Mr Wam. He points out that the company’s owners, represented by Transport Minister Terje Moe Gustavsen, is calling a general meeting. The general meeting consists of the Transport Minister himself.

WORTH NOTING

• In an internal report, Storebrand’s management told employees that its extremely expensive company house was bought because it was a good investment. But chairman Jon Gundersen put the profit from that investment straight into Åge Korsvold’s own pocket. (Dagbladet)

• All the signs point to former chief executive of Den norske Bank, Finn A. Hvistendahl, being appointed the new chairman of Orkla. (Verdens Gang)

• The Storting meets today and tomorrow to debate the Speech from the Throne. One of the issues that will be raised by the opposition is the mess surrounding shares and options in private industry. (Dagsavisen)

• This is a survey that has caused raised eyebrows among researchers. As much as 38 per cent of the alcohol we consume is drunk in connection with our work. Ten of these 38 per cent refer to alcohol drunk together with colleagues after work. The remainder – 28 per cent – is consumed at job-related social events, such as business trips, courses or seminars, or for business entertainment. (Verdens Gang)

• MeritaNordbnken has extended its offer of NOK 44 per share in Kreditkassen, the high street bank. The head of the Government Bank Investment Fund, Jan Willy Hopland, says that a purchaser must pay between NOK 25 billion and NOK 35 billion for the bank. (Dagens Næringsliv)

• Even if the tax on spirits is cut by 15 per cent next year, the Government still expects revenues from the sale of alcohol to rise. The Finance Ministry has calculated that revenues will increase by NOK 256 million. (Aftenposten)

• According to Government calculations, the interest rate rises instigated by Svein Gjedrem, Governor of the Norwegian Central Bank, will not make themselves felt on public consumption before next year. The Government’s calculations indicate that this year’s interest rate rises will reduce consumption by between one half and one per cent. (Dagens Næringsliv)

• Labour Party veteran Thorbjørn Berntsen says it is completely wrong to lower petrol taxes. According to Mr Berntsen almost the entire political community is pandering to what he calls the "tyranny of the moment". The short term goes before the long term, says Mr Berntsen. (Verdens Gang)

• For the first time ever, Norwegian musicians have reached the top in what is regarded as the most prestigious music award, the Gramophone Award. Leif Ove Andsnes and Det norske Kammerorkester (the Norwegian Chamber Ensemble) have received an award for a recording of Haydn. The award ceremony was held yesterday at the Royal Festival Hall in London. (Vårt Land)

TODAY’S COMMENT FROM NATIONEN

It is symbolic that the Storting’s debate on the Speech from the Throne will be opened today by Carl I. Hagen. Mr Hagen is the first speaker because he represents the largest opposition party, and can set the tone for the autumn’s first major parliamentary battle. And Mr Hagen is certainly at the centre of things. Norwegian politics revolves round the question of how the other parties are going to meet the threat from the Progress Party. We run the risk that the relationship between Prime Minister Stoltenberg, the centre alliance and the Conservative Party simply reflects Mr Hagen’s dramatic improvement in the polls. Any further increase in Progress Party popularity could frighten both Mr Stoltenberg and his potential budget allies. If that happens they will be caught in an endless dance from which only the Progress Party has anything to gain. Do the Government and the centre alliance have the courage to stop the music?

N O R E G