Historical archive

Norway Daily No. 158/01

Historical archive

Published under: Stoltenberg's 1st Government

Publisher: Ministry of Foreign Affairs

The Royal Ministry of Foreign Affairs, Oslo
Press Division

Norway Daily No. 158/01

Date: 21 August 2001

Labour takes off (Verdens Gang)

The voters are running from Jan Petersen straight into the arms of Jens Stoltenberg. The Labour Party now has more support than the Conservatives for the first time since April, according to the latest poll carried out by market researchers Opinion on behalf of VG and TV2. The relative strength of the two parties has changed by over 10 per cent in just one week. In the latest poll the Labour Party has the backing of 27.5 per cent of the electorate, while the Conservatives are supported by 26.0 per cent. "I was looking forward to getting the campaign underway – and now we are on the move," said a smiling Jens Stoltenberg. But despite this week’s progress, if the poll results were to be repeated on election day, they would represent a disaster for the Labour party and a solid victory for the Conservatives.

Conservative call to arms as polls show drop in support (Aftenposten)

After nine months of continuous advance, the Conservatives have suffered the first serious blows to their popularity. "This is a clear reminder that we could lose the chance to form a government if the party becomes too weak. The poll results should be a spur to both our own supporters and the many sympathizers who this summer have protested against the tax burden in this country," said Per-Kristian Foss, deputy leader of the Conservatives’ parliamentary group. "No one can expect to hold on to 30 per cent of the vote in an election campaign like this. Everyone has been taking pot shots at the Conservatives, even the Christian Democrats," he added.

Christian Democrat attack on Labour (Dagsavisen)

The Labour Party’s sharp upturn in the polls yesterday will not help Jens Stoltenberg. It still looks as though the Conservatives, Christian Democrats and the Progress Party will together win a majority of seats in the Storting. The Labour Party must be ousted from office and spend some time in opposition before there can be any question of a coalition, according to Valgerd Svarstad Haugland, leader of the Christian Democratic Party. Ms Svarstad Haugland also says it is the Labour Party’s political arrogance which is preventing any cooperation with the parties of the centre, despite the fact that the Christian Democrats have more in common with Labour than with the Conservatives.

Labour confidence growing (Dagsavisen)

Three weeks before the election and the Labour leadership has really got the wind in its sails. The party is once again the country’s largest, and Labour Party chairman Thorbjørn Jagland has started to believe his team will win the election. "I am confident we will make further gains," said Mr Jagland. He believes Labour’s improvement in the polls is mainly due to the fact that the party has managed to focus people’s attention on what Labour sees as the weaknesses in the Conservatives’ policies. "The Conservatives have had to defend their position, and people have not liked what they heard. On top of that, the Conservatives have not seemed very well prepared," said Mr Jagland.

Centre Party wants Norway to pull out of EEA Agreement (Klassekampen)

The Centre Party has previously said it would not propose that Norway should pull out of the EEA Agreement until the time was right. The party is now promising to do just that in the next parliamentary term. "The time is now right to propose that Norway withdraw from the EEA Agreement," said Steinulf Tungesvik, who is standing as a Centre Party candidate in Oslo. Since 1994 the EU has adopted 4,000 pieces of legislation which, because of its participation in the EEA, are also legally binding on Norway.

SAS denied monopoly of the skies (Aftenposten)

Knut Eggum Johansen, head of the Norwegian Competition Authority, is not prepared to give SAS a monopoly on air traffic in Norway without a fight. Braathens will have to carry on competing with SAS for the good of the consumer – whether the company wants to or not. Yesterday Mr Eggum Johansen announced he was taking drastic measures to ensure that consumers still have two airlines to choose between. These include the rejection of SAS’s application to take over Braathens, and wide-ranging changes in the two companies’ frequent flyer bonus schemes, key account discounts and agreements with travel agents. "If the measures are carried out, SAS and Braathens will be able to continue as two independent competitors in the air travel market," said Mr Eggum Johansen when he announced the measures yesterday.

Analyst forecasts imminent bankruptcy for Braathens (Dagens Næringsliv)

Hans Erik Jacobsen, an analyst with First, is highly critical of the Norwegian Competition Authority’s preliminary statement rejecting SAS’s application to acquire Braathens. Mr Jacobsen believes Braathens could go bust before the Competition Authority has made its final decision. "The only way for Braathens to survive is to bring in a strategic partner, another airline which can help cut Braathens’ costs," said Mr Jacobsen.

Worth noting

  • The centre alliance has more support than the Conservatives, according to Feedback’s August poll. This is good news for Kjell Magne Bondevik, who believes people are tired of the bickering between Jens Stoltenberg and Jan Petersen. (Dagbladet)
  • The Liberals, the Coastal Party and the Red Electoral Alliance are being virtually ignored by the various television channels during the election campaign. "This is a dubious move from a democratic point of view," said election expert Bernt Aardal. (Nationen)
  • SAS has provided Labour and Government Administration Minister Jørgen Kosmo as well as a number of other government ministers with the company’s lucrative gold card. Mr Kosmo will soon have to decide whether SAS should be allowed to take over Braathens. (Dagbladet)
  • Braathens chief executive Arne A. Jensen stands to get NOK 3 million if SAS takes over Braathens. If he chooses to resign from the company he will get a further NOK 4.4 million. He believes Norway is best served by having one airline which has the strength to compete with foreign competitors. (Aftenposten)

Today’s comment from Dagsavisen and Dagens Næringsliv

As head of the Norwegian Competition Authority Knut Eggum Johansen took a brave decision when he said no to SAS’s bid to take over Braathens. It was also the right decision. The Competition Authority does not believe Braathens is as close to the precipice as the company has been claiming, and therefore gave priority to upholding competition in the market. It is a decision Norwegian consumers should applaud, and politicians should leave well alone. Now Mr Eggum Johansen has had his say, SAS and Braathens will have their chance to comment on his decision. SAS has already said that the company will appeal to the Ministry of Labour and Government Administration if Mr Eggum Johansen sticks to his decision. If that happens the best thing Labour and Government Administration Minister Jørgen Kosmo can do is to stay out of the whole issue, and loyally support the Competition Authority’s conclusion. Braathens’ owners should now lower the price they have put on the company, and contact other potential purchasers. If the company does not succeed in attracting a buyer, the authorities should try and encourage a new company to establish itself in Norway. Allowing SAS to grow into an oversize monster, controlling both Widerøe and Braathens, is unacceptable.