Historical archive

Norway Daily No. 182/01

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. 182/01

Date: 24 September 2001

Duel could scupper tripartite coalition (Dagbladet)

The duel between Kjell Magne Bondevik and Jan Petersen over who should lead a new tripartite government could scupper the entire project before it is even launched. The Conservatives are sticking firmly to their belief that the leader of the largest party should become prime minister. The Christian Democrats are equally convinced that Mr Bondevik’s experience makes him the best candidate for the job. The battle between the two must be decided early this week – perhaps even today. The alternative could be a purely Conservative government, according to one Conservative Party source.

Slimmer Labour (Aftenposten)

Labour is not only losing political influence and – probably – government office, the party will also suffer a sharp blow to its finances as a result of a significant cut in state subsidies. This year Labour’s central administration will receive NOK 49.9 million in state subsidies. If the total amount of public funding for the political parties is maintained at current levels, Labour could lose NOK 14.4 million next year. However, party secretary Solveig Torsvik has refused to indicate whether such a large cut would lead to layoffs. "Nothing has yet been clarified. We have to take the time we need," she said.

Ministerial muttering against Thorbjørn Jagland (Verdens Gang/Saturday)

Several government ministers have contacted Jens Stoltenberg in confidence and asked him to try and remove Thorbjørn Jagland as Labour Party chairman. Some of the ministers are thought to have told Mr Stoltenberg that they will resign from national politics at the next general election if Mr Jagland does not step down as party chairman at the next Labour Party conference. In their discussions with Mr Stoltenberg, the ministers are thought to have pointed out that this is not simply a mater of Mr Stoltenberg’s own political future, but about the future of those senior party officials who have been loyal to him.

Jagland’s enemies must come out into the open (Dagsavisen/Sunday)

Ranveig Frøiland, leader of one of the Labour Party’s county organizations, is furious that ministers in the Stoltenberg government have anonymously demanded Thorbjørn Jagland’s removal as party chairman. She believes they should come out into the open immediately. Ms Frøiland has said she, "has no opinion about" who the anonymous ministers are, though it is obvious that she has her suspicions.

Destructive power struggle (Verdens Gang/Sunday)

"Labour’s parliamentary group is too preoccupied with internal rivalries and is not focused enough on pushing through the party’s policies," according to outgoing Labour MP Jon Olav Alstad. "The party’s MPs have done a poor job during the last term. We must take our share of the blame for the party’s disastrous election results. The cooperation between Mr Jagland and Mr Stoltenberg has worked well, but the party’s MPs have been too busy positioning themselves with regard to each other, instead of using the opportunities presented for political dealing," said Mr Alstad.

Billions to be invested in gas (Nationen)

There are gigantic schemes in the pipeline for domestic use of Norwegian natural gas. Norwegian companies are on the verge of investing around NOK 6.5 billion in preparation for the use of the gas, according to a review of gas-related investment plans carried out by the publication, Natur & Miljø Bulletin. Even though only a small minority of companies have made a final decision on whether to invest or not, many of the plans are extremely well developed.

Planes grounded without state aid (Aftenposten/Saturday)

Norwegian aircraft will be grounded from midnight tomorrow, if the Norwegian authorities do not guarantee to cover the costs of a future terrorist attack involving a Norwegian plane. Both SAS and Braathens have made it clear to the Government that no aircraft will take off from Norwegian airports unless the authorities make a contribution.

Drama last night (Verdens Gang)

In reality Kværner’s chairman, Harald Arnkværn, was given a tough message by Kjell Inge Røkke last night: Kværner needs much more fresh capital than the board thinks. So Mr Arnkværn was forced into a new round of late-night crisis meetings. The desperate battle to save the industrial giant from ending up as Norway’s largest ever bankruptcy, entered a critical phase last night. Without the addition of billions of kroner in fresh capital the company could be forced to file for bankruptcy today. It is only a year ago that Kværner’s shareholders gave the company NOK 2.5 billion.

Worth Noting

  • A number of Labour Party state secretaries – both current and former – are in the running for the post of General Secretary of the Norwegian Red Cross. One of several names currently being bandied about is that of Jonas Gahr Støre, Prime Minister Jens Stoltenberg’s closest adviser. (Dagbladet)
  • Labour Party secretary Solveig Torsvik has said she is glad that the party’s national committee has been so patient. Opponents did not manage to get Ms Torsvik removed this time around. (Dagsavisen/Saturday)
  • An expert group is considering the use of armed security personnel on board commercial airlines. Together with other security measures, this could reduce the risk of terrorist attacks in the air. Norway has previously been critical of the use of firearms on board aircraft because of the dramatic consequences arising from a shot being fired while the plane is airborne. (Aftenposten/Saturday)
  • Norway remains convinced that its decision to create women-only professorships at the University of Oslo was correct, despite the fact that the EFTA Surveillance Authority (ESA) claims this breaches the EEA Agreement. (Aftenposten/Sunday)
  • Norwegian teenage girls give birth to a much larger number of babies than their Scandinavian sisters, according to a recent UNICEF report, which details birth-related data for the world’s 28 richest countries. (Dagsavisen)
  • The Norwegian state railway company, NSB, could be forced to install empty cupboards on board its new "Puls" trains to reduce the space available for passengers and so stop carriages becoming overfilled. The trains are now being tested and the results show that they exceed their weight limitations if all the available standing room is filled with passengers. (Aftenposten/Sunday)
  • Kværner’s financial situation is much worse than previously thought. Investigations over the past few days have revealed that the company has debts amounting to at least NOK 10.8 billion. (Dagbladet/Sunday)
  • So far this year over 100 Norwegian IT companies have filed for bankruptcy and been compulsorily wound up – to the despair of their shareholders and the satisfaction of the lawyers. (Dagens Næringsliv)

Today’s comment from Dagbladet

Over the weekend the situation facing Kværner has worsened. The company’s board is working overtime to find a solution, which could involve the Government playing the role of white knight. The question is whether Kværner has such a strategically important position that state intervention would be appropriate. Developments over the past few days have exposed a management which has not had control over the company’s finances. Chief executive Kjell Almskog, who resigned last week, has said the company’s problems came to a head following the terrorist attacks on the USA. But the facts which have come to light over the past few days show that the company has been in deep financial crisis for a long time. It is an irony of fate that Mr Almskog himself, who resigned with the biggest golden parachute in Norwegian history strapped to his back, could be one of the biggest losers if Kværner goes bankrupt. We will refrain from commenting on whether this would be deserved or not. When Mr Almskog was brought over from ABB, Kværner’s board believed he was some kind of miracle-worker. Today’s situation shows that he too had feet of clay – despite his supernatural salary and gilded parachute.