COMPROMISE REJECTED (Dagsavisen)

The Labour Party Conference is going to find it extremely difficult to reach a compromise on the privatization of Statoil. Opponents are unshakable in their view that Statoil must remain 100 per cent state-owned. "When it comes to privatization, it is all or nothing. You can’t be a bit privatized, just as you can’t be a bit pregnant," says Labour Party veteran Finn Lied.

ANGRY WITH JENS (Dagbladet)

The cabinet will hold its first meeting outside Oslo since the Second World War when it meets in Trondheim tomorrow. "When the Government comes to town we will wish them welcome and roll out the red carpet. But to do that we need to know where the red carpet should be rolled out, at what time and for whom," says Trondheim’s Mayor Kathrine Sungård (Conservative), adding that she is both frustrated and unhappy. Political advisor Kathinka Meirik rejects Ms Sungård’s criticism.

NORWAY PROMISES NOK 170 MILLION (Aftenposten)

Prime Minister Jens Stoltenberg was in a generous mood when Yugoslavia’s new president Vojislav Kostunica visited Oslo yesterday. The government is promising NOK 30 million in emergency humanitarian aid to Yugoslavia, and NOK 140 million in financial support this year and next. Economic sanctions are to be lifted immediately.

FLOOD OF CHEAP HEROIN ON ITS WAY TO NORWAY (Dagsavisen)

Sales of heroin have risen explosively in Murmansk. Prices have fallen as low as NOK 15 a fix. Norwegian police are concerned that a wave of cheap heroin will flood into Norway over the country’s northern border. The Sør-Varanger police district keeps a close watch on the 195 km long border with Russia. "We are on our guard and are aware of the situation in Murmansk," says police superintendent Bjørn Tormod Syversen.

JAGLAND BELIEVES COUNTIES WILL SURVIVE (Aftenposten)

Foreign Minister Thorbjørn Jagland says he thinks the Labour Party Conference will vote to keep an elected mid-level administrative structure. In other words, he believes the counties will survive. He is leaving the fight against the Progress Party to Prime Minister Jens Stoltenberg, while he concentrates on foreign policy and developing the party programme.

NO CHANGE IN INTEREST RATES TODAY (Dagsavisen)

Today the Norwegian Central Bank will be reviewing interest rate levels. Economists do not believe that Central Bank Governor Svein Gjedrem will raise interest rates to slow down the growth in consumer borrowing. But what will happen next year is another matter. The Central Bank raised interest rates by 0.25 per cent on 20 September. At that time Mr Gjedrem said that the next change in interest rates could just as well be a cut as a rise. However, he did not indicate how long it would be before the next change would be made.

BIGGEST INSURANCE BILL SINCE FLOODS OF ’95 (Aftenposten)

The storms of the past few days will cost at least NOK 300 million. Some of the damage is being classified as a natural disaster and will not lead to an increase in insurance premiums. However, rain damage falls outside this scheme – and may prove expensive. In a normal year the insurance companies expect to pay out NOK 100-200 million to cover damage from natural disasters. This year they will probably have to pay out almost NOK 400 million.

WORTH NOTING

1. The Norwegian airline Braathens has calculated that the Government’s proposed tax increases will make the cheapest aeroplane tickets around 30 per cent more expensive. (Dagens Næringsliv)
2. Just one day after Aker Maritime sold its deep-water business the company, which is controlled by Kjell Inge Røkke, has sold another company to the French. The bulk of Aker Geo is being sold to the French company CGG for NOK 1.1 billion to be paid in shares and some cash. However, Aker Maritime denies that it is in the process of becoming an investment company. (Aftenposten)
3. The Bellona Environmental Foundation says that Environment Minister Siri Bjerke is skating on thin ice when she claims that the decision regarding the gas-fired power station issue is legal. Both the Socialist Left Party and the Centre Party will pursue their criticism of the Environment Minister’s emission estimates in the Storting. (Nationen)
4. Thirty-nine Norwegian local authorities have fiddled their tax records to the tune of NOK 80 million in order to get more government subsidies. The Ministry of Local Government and Regional Development has now sorted out the figures and made sure no one benefits from the ploy. (Dagsavisen)
5. First it was the runway that cracked, then the budget crumbled, and when it came time to apportion the blame the parties themselves went to pieces. The asphalt at Oslo’s Gardermoen airport is not good enough. Airport owner Oslo Luftahvn AS and the contractors Kolo Veidekke AS cannot agree who should foot the bill. (Dagbladet)

TODAY’S COMMENT FROM DAGSAVISEN

Most people, it seems, are happy with the sale of Aker Maritime’s deep-water operations to a French buyer for NOK 5.9 billion. It is said that Kjell Inge Røkke will use the money to develop what is left of Aker in Norway. The sale gives Aker a long-awaited financial boost. But before Aker can receive what it is due, the banks which lent Mr Røkke the money he needed to buy a significant slice of Kværner will have to be paid on account and with interest. After that Mr Røkke and the company’s other owners will undoubtedly want their share of the profits. Whatever is left can be spent on the remains of Aker Maritime, if Mr Røkke wants to. But nobody really knows what Mr Røkke wants out of his industrial investments, apart from getting extremely rich. As time goes on it is possible to discern a pattern to his financial acrobatics. He uses the classic method of private capitalists. Buy cheap, sell for a high price and earn a huge profit. We are therefore not entirely convinced that he will invest the money in the further development of Aker Maritime, because the next question in relation to Mr Røkke is what will he buy and sell next time.

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