Poll shock: Conservatives on 30 per cent (Dagbladet)

For the first time since 1987 support for the Conservatives has passed 30 per cent, according to an opinion poll carried out by MMI. Support for the Labour Party continues to tumble. According to MMI’s June figures Labour has the backing of 24 per cent of the electorate. Conservative Party chairman Jan Petersen cannot conceal his satisfaction. In fact he is almost intoxicated by his party’s progress in the polls. No one begrudges Mr Petersen this moment, and he is making the most of it. But he is cautious when it comes to the political realities which accompany the Conservatives’ journey to the stars. "No, the government question will have to wait until after the election. I do not believe there will be a three-party coalition with the Progress Party. That is out of the question." And a purely Conservative government? No comment.

Quarter of a million voters turn their backs on Labour (Aftenposten)

The Labour Party has lost 230,000 voters since November last year, but gained 100,000 new ones. Prime Minister Jens Stoltenberg is now making advances to both the Christian Democrats and the Centre Party, both of whom have initially rejected their suitor and are waiting to see if they manage to win the kingdom by themselves. However, Mr Stoltenberg says he is satisfied with his government’s efforts and claims Labour has achieved more in 15 months than the Bondevik government managed in two and a half years. "The claim is fallacious and completely without foundation," was Mr Bondevik’s response.

Stoltenberg fears Bondevik has already signed deal with Conservatives (Dagsavisen)

Prime Minister Jens Stoltenberg (Labour) has said he would consider forming a coalition government with the Christian Democrats and the Centre Party after the election. But he fears that Kjell Magne Bondevik (Christian Democrat) has already signed a deal with the Conservatives. He has noted that Mr Bondevik is now talking openly of his ‘plan B’ (a coalition government made up of the Christian Democrats, the Conservatives and the Liberals). On Tuesday Mr Bondevik made it clear that he would also consider being part of a two-party coalition. Yesterday Mr Stoltenberg used his half-yearly press conference to underline that Labour’s invitation to the centre parties is still on the table.

Government too scared to meet northern rebels (Nationen)

Four months after the ladies of Finnmark told PM Jens Stoltenberg in no uncertain terms what changes were needed in the Government’s regional policies, no cabinet ministers are willing to take part in a debate organized by a protest group based in Bodø and calling itself the Nordland County Rebellion. "It’s cowardly and lily-livered," said Jan Selmer Methi, of the Nordland County Rebellion. He cannot understand why the Government does not use the opportunity to start its campaign in Bodø by discussing regional policy and globalization.

Opposition to EU membership rising (Dagbladet)

Opposition to EU membership has grown stronger over the past month. 51 per cent of voters now say that Norway should not become a member of the EU, while 30 per cent support Norwegian membership. 19 per cent are undecided. The growing support for the political right has not affected people’s attitudes to the EU. The Conservative Party is now the only party with a majority of EU membership supporters. However, a great many opponents of EU membership have recently switched to the Conservative Party. This latest poll shows that for the first time a slight majority of Labour Party voters are opposed to EU membership.

Cabinet dispute paralyses Telenor (Aftenposten)

Efforts to find a new chairman for Telenor have been brought to a stand-still by a disagreement between Trade and Industry Minister Grete Knudsen and Prime Minister Jens Stoltenberg. Ms Knudsen wants Bjørn Rune Gjelsten, Kjell Inge Røkke’s former partner, to chair Telenor’s board of directors. But this proposal has been turned down flat by the Prime Minister. According to Mr Stoltenberg, it is up to the company’s nomination committee to find a new chairman. However, the dispute between the Trade and Industry Minister and the Prime Minister has left the nomination committee sitting on the fence, unable to make a decision.

Bumper profits for fish farmers (Dagens Næringsliv)

Last year Norway’s fish farmers ended up with profits of NOK 4 billion from a total turnover of NOK 11 billion. In relation to turnover, the small-scale operators earned twice as much as the industry giants. One reason why the major companies have difficulty matching the performance of small-scale fish farmers is that several of them do more than just raise the fish. They process some of the fish themselves and are involved in the value chain right up until it is lying on the consumer’s plate, in contrast to their smaller competitors. This factor eats into their profitability, particularly in a year like last year.

Labour U-turn on gas-fired power station emissions (Dagbladet)

The Labour government has made a U-turn of historic proportions. 15 months ago the Bondevik government was forced from power because it would only permit the construction of gas-fired power stations if they were emission-free. Tomorrow the Environment Ministry will announce that Norway will have its first emission-free gas-fired power station by 2005. The ministry will also announce wide-ranging measures to be implemented by the North Sea oil industry to cut emissions of CO ₂ and other greenhouse gases. Emissions from Norway’s North Sea oil and gas industry are the country’s biggest climate-change problem.

Worth Noting

• The new blood alcohol limit of 0.2 ppt has scared off the "one beer won’t hurt" brigade. As many as nine out of ten drivers who would previously have driven after drinking one beer, now choose an alcohol-free alternative, according to a recent survey carried out by MMI. (Dagsavisen)
• Prime Minister Jens Stoltenberg can breathe a sigh of relief. The prospect of an interest rise before the election has been shelved. Yesterday Mr Stoltenberg was saved by his own changes in the Government’s monetary policy. Svein Gjedrem, Governor of the Norwegian Central Bank, forecast a substantial rise in prices in his recently published report on inflation. But the Central Bank does not need to respond by raising interest rates. The target of 2.5 per cent inflation in 2003 will be reached without a change in interest rates. (Aftenposten)
• If the Norwegian Competition Authority forces SAS to drop its frequent flyer bonus scheme on domestic flights in Norway, the company will abandon its proposed acquisition of Braathens. "SAS would be placed at a disadvantage in relation to its major international competitors," says SAS deputy chief executive Gunnar Reitan. (Dagens Næringsliv)
• Local Government and Regional Development Minister Sylvia Brustad and Director General of Labour Lars Wilhelmsen are calling on business leaders to more readily open the door to immigrants and job-seekers from both EEA countries and other countries who wish to work in Norway. Ms Brustad points out that unemployment among immigrants is 2-3 times higher than for the rest of the population. (Nationen)
• Telenor’s chairman, Eivind Reiten, still has confidence in chief executive Tormod Hermansen, but prefers to say as little as possible about Mr Hermansen’s recent clashes with both the Trade and Industry Minister and the head of the Oslo Stock Exchange.

Today’s comment from Dagbladet

The Norwegian Central Bank made no changes to interest rates yesterday, and the Government can breathe a sigh of relief. If Svein Gjedrem, the Central Bank’s Governor, had made any adjustments to interest rates, he would have raised them. That would have made the Government’s position ahead of the election even more difficult. Mr Gjedrem would not comment yesterday on which way interest rates will go when they are adjusted next time. Even though inflation is currently too high, prices may rise less steeply in the short term. The halving of VAT on food items will play an important role here. Norway has the highest rate of interest in the western world. That it cannot be cut is due to the country’s low unemployment rate, high costs and pressure on the economy. Politicians’ public statements announcing that more of Norway’s oil revenues will be used to boost public spending is also a factor that forces interest rates up. It may be a good thing to remind people of this as the parties kick off their election campaigns, since some parties believe you can have your cake and eat it too. A lax finance policy today would lead to even higher interest rates.