Prime minister’s tax changes under attack (Dagsavisen)

The Central Bureau of Statistics (SSB), has just published an economic analysis in which the Bureau’s head of research, Jørgen Aasness, shows that a number of the tax measures included in the recent budget will lead to a more inequitable distribution of Norway’s vast oil riches. The most negative change is the reduction in child benefit for the third and fourth child. Instead of helping young families the Labour Party and the centre alliance chose to cut the petrol tax after political opponents and consumers mounted a wave of protests against high petrol prices.

Expulsion for Danielsen no matter what (Aftenposten)

Dag Danielsen will be expelled from the Progress Party regardless of the outcome of any court case on Mr Danielsen’s suspension. Progress Party general secretary Geir Mo has made this clear before the Court of Execution and Enforcement has made a decision on whether the suspension of party members may be brought before the court. Mr Danielsen represents the Progress Party in the Storting until next year’s general elections. Following the party leadership’s purge of the Oslo branch organization there are now indications that Vidar Kleppe and Jan Simonsen will be prevented from standing for reelection.

Voters moving in all directions (Aftenposten)

The Conservatives have lost more voters to the Progress Party than the Labour Party has done. However, the latest poll carried out by market research company Opinion on behalf of Aftenposten shows that the ruling party has lost more voters than it has acquired from all the other parties apart from the Liberals. During the past six months over one million voters have either switched party allegiance or moved to or from the category "undecided voters".

Fringe benefits go to the men (Klassekampen)

Fringe benefits increase the pay differential between men and women. Five per cent of the male workforce have a company car, while only one per cent of women enjoy the same benefit. Schemes for purchasing shares at discounted prices and individual pension schemes are two of the most valuable fringe benefits. In 1998 fringe benefits with a taxable value of NOK 6.6 billion were handed out to employees.

Heyerdahl’s coup may spoil Jebsen’s chances (Aftenposten)

According to Arne Selvik, one of the country’s leading experts in how company boards work, Jens P. Heyerdahl’s demand that Finn Jebsen succeed him as chief executive of Orkla may be counterproductive. Mr Selvik believes it is possible the move may have angered the board, which is responsible for hiring a new chief executive. "We have seen it before, both in business and the public sector. It is usually a bad move for a powerful boss to publicly name a successor. Both the boss and the successor tend to be the losers," he says.

Bondevik demands straight answer (Dagbladet)

Kjell Magne Bondevik is calling for Tormod Hermansen to reveal what really happened prior to Telenor’s flotation on the stock market. "We are left with a lot of questions that we need answers to. Telenor should give us those answers. My impression is that when Telenor finally took the decision to float its shares in such an uncertain market, it must have been on the basis of some specific advice. If that were not the case, it would be very serious indeed," says Mr Bondevik.

West of Norway shaken by earthquake (NTB)

Around 2 o’clock Friday morning the west of Norway was hit by an earthquake measuring 4.2 on the Richter scale. According to the Institute for Solid Earth Physics at the University of Bergen the earthquake’s epicentre was out at sea, some 50-60 kilometres west of Sotra. The institute said that an earthquake measuring 4.2 and with its epicentre out at sea would be too small to cause property damage.

Worth noting

• The Central Bureau of Statistics believes that the most intense pressure on the economy has eased off, and that interest rates will come down next year. But there are still dangers ahead. Not everyone believes interest rate will be reduced. (Dagsavisen)
• Agriculture Minister Bjarne Håkon Hanssen has promised that the government will pay for the measures being implemented to check the spread of mad cow disease. But both environmental and consumer organizations will be keeping a close watch on developments in beef prices. (Dagsavisen)
• The Norwegian national railway company NSB will not be allowed to raise its fares by as much as it had planned. This became clear after the Storting’s Transport Committee debated next year’s transport budget on Thursday evening. (NTB)

• After Kjell E. Almskog stated yesterday that additional candidates should be considered for the job, Orkla’s chairman Finn A. Hvistendahl has toned down his backing for Finn Jebsen as the company’s new chief executive. (Aftenposten)
• The strategic manoevring to find Orkla’s new chief executive continues. Tom Ruud is open for the job, but the question is whether anyone dares to propose him as a candidate against Finn Jebsen, Orkla management’s own man. (Dagens Næringsliv)
• The value of the Norwegian industrial group Kværner may be weakened further if something dramatic is not done soon, says Kværner analyst Glen Rødland of First Securities. Not even Kjell Almskog has managed to solve all Kværner’s many financial and operational challenges, he says. (Dagens Næringsliv)
• The EU Commission has initially blocked Kjell Inge Røkke and Aker Maritime’s bid to gain control of Kværner. The battle for Kværner has now been postponed for four months. (Dagens Næringsliv)
• The National Insurance Administration is to review the cases of a huge number of people who have been awarded permanent benefit payments. If it is proved that anyone has received benefit payments fraudulently, they will have to pay back the amount received. (Verdens Gang)

Today’s comment from Aftenposten

The latest voters’ panel survey by market research company Opinion tells us one thing with certainty – the tension ahead of next year’s general election is growing. During the past six months over one million voters have either switched party allegiance or moved to or from the category "undecided voters". The same number was on the move in the preceding six-month period. For almost all the parties with a net gain in voters, the most important explanation is that the party has managed to mobilize a large number of voters who were sitting on the fence or staying at home six months ago. Correspondingly, the most important explanation for those parties with a net loss is that voters who had previously said they would vote for the party have moved to the "undecided" category. This type of movement does not show up in the usual political opinion polls, but may be more significant for the outcome of the next general election than direct movement from one party to another. No matter whether the Progress Party is Norway’s largest party or not, it is interesting to note that Carl I. Hagen has captured more votes from the Conservatives than from the Labour Party. But despite its progress, the number of people who would never dream of voting for the Progress Party has risen from 47 per cent in June to 51 per cent in November. It is also interesting to note that the fall in support for the Labour Party is not simply due to defections to the Progress Party. Almost as many voters have switched to the Conservatives. This indicates that the electorate has little faith in the Labour Party’s ability to fulfil its promise to modernize the public sector.

NOREG