Conservatives drop proposal to cut development assistance (Dagsavisen)

Following severe criticism of their proposal to cut development assistance, the Conservatives now say that they will not necessarily do so if they get into power after the election. In this year’s national budget the Conservatives proposed a cut in development assistance of NOK 2.5 billion. Now the party says this proposal was intended to signal their desire to change Norway’s development assistance policy and make it more efficient. The Conservatives are prepared to drop their proposed cuts if the Christian Democrats join them in a coalition government.

Warning against Conservative tax cuts (Aftenposten)

State Secretary Hege Norheim at the Ministry of Finance has demanded to know just how big the Conservatives’ proposed tax cuts will be and where the money will be taken from. She has warned against believing that the Conservatives’ tax cuts will benefit ordinary people. "All we know is that the Conservatives have said they will abolish the dividend tax, the wealth tax, the surtax on high salaries and the residential property tax. These tax cuts will cost a total of NOK 27 million. In other words, those earning more than NOK 600,000 per year will on average get a tax reduction of 94,000, while those earning less than NOK 300,000 will on average only receive tax cuts of NOK 3,000," said Ms Norheim.

Labour damaged by Minister’s comments (Dagbladet)

Social Affairs Minister Guri Ingebrigtsen’s comments branding many social security claimants as drug addicts have damaged the Labour Party’s election campaign, and she should withdraw them, according to Pål Berrefjord, fifth-placed candidate for the Labour Party in Hordaland county. "It is quite possible to repair the damage if it is made crystal clear from now until the election that Labour is the party for the weakest members of society," said Mr Berrefjord. In the last few days Prime Minister Jens Stoltenberg has apparently been strongly urged to remove Ms Ingebrigtsen from her post.

The deaf demand to be heard (Dagsavisen)

The Norwegian Association for the Deaf is calling for sign language to be made one of Norway’s official languages, on a par with Norwegian and Sami. If that were to happen it would give sign language the same status in this country as it has enjoyed in Finland for several years. "The right to your own language is a fundamental human right. But it is also a matter of equality, because deaf people make up a small minority who are unable to participate fully in society unless conditions are specially tailored for them," said Sissel Gjøen of the Norwegian Association for the Deaf.

Sampo subject to Norwegian law (Aftenposten)

Bjørn Skogstad Aamo, director of the Banking, Insurance and Securities Commission, is using the following rule in his evaluation of Sampo’s application to take over Storebrand: "Until otherwise documented, Norwegian law is in accordance with the EEA Agreement. Documentation to the contrary will only exist if Norway should lose a case brought against it by the EFTA Surveillance Authority (ESA) in the EFTA Court, or has agreed to change its domestic legislation. Until that happens, only the stipulations contained in Norwegian legislation will apply."

Hot potato for legal experts (Dagens Næringsliv)

Sampo’s attempt to acquire the Norwegian insurance group, Storebrand, has long since turned into a legal thriller. There is disagreement over who should decide the outcome: the EU, EFTA or the Norwegian authorities. It is unclear which legal acts apply and how the various clauses should be interpreted. "This is definitely a case for the most skilled of legal experts," said Henrik Bull, a researcher at the University of Oslo’s Centre for European Law.

Worth Noting

• Several key MPs are backing the Consumer Council’s call to drop Den norske Bank (DnB). The bank’s arguments simply do not stand up, they say. DnB’s official justification for raising its mortgage interest rates fails on one important point. The interest they pay on bank deposits has not been raised. (Verdens Gang)
• The Liberals and Conservatives are moving in the same direction on tax cuts, according to Liberal leader Lars Sponheim. He would like to see NOK 20 billion given in tax relief. (Aftenposten)
• Justice Minister Hanne Harlem is to ask the Police Directorate to investigate the scale of organized crime in Norway. She wants to increase the operational efficiency of such special police units as the National Bureau of Crime Investigation and the National Authority for Investigation and Prosecution of Economic and Environmental Crime. "We lack a clear overview, which is why this must be done quickly," said Ms Harlem. (Dagbladet)
• Since May 90,000 more Norwegians have had the benefit of a primary GP. However, rural districts are struggling to recruit enough doctors. (Nationen)
• Norwegian local authorities are converting their power stations into hard cash. Some power stations have already been sold off, but the state’s right to take over the power stations free of charge in the future is holding prices down. (Aftenposten)

Today’s comment from Aftenposten

The Consumer Council has collected a considerable number of brownie points from ordinary Norwegians for its public rebuke of Den norske Bank (DnB) following its recent, brazen rise in mortgage rates. The bank scores fewer points, because someone there has not been thinking straight. The interest rate rise hits 40,000 borrowers, who in no uncertain terms have been advised by the Consumer Council to switch to another bank. The Council does not accept the bank’s explanation that the rise was made necessary because money market interest rates have gone up during the first half-year. The most striking thing, however, is the crass stupidity exhibited by DnB in its handling of this affair. Firstly, the bank is the only one in the Norwegian market to raise its mortgage rates, and secondly, it says it will not raise the interest it pays on bank deposits. The majority of borrowers and depositors, including those with no financial training, understand that a bank must have higher interest rates on the money it lends than on the money deposited with it. But the difference should not be too great, and the gap should certainly not be increased like this. The bank’s next move should therefore be to ask itself: What have we just done? The best answer is probably: Something really stupid.