The Royal Ministry of Foreign Affairs, Oslo
Press Division

Norway Daily No. 51/01

Date: 14 March 2001

Norway closes borders to French meat and cheese (Nationen)

The Government has banned French agricultural imports following confirmation that foot-and-mouth disease has broken out in France. Last year Norway imported 775 tonnes of cheese and 105 tonnes of meat from France. "The situation is serious. We are evaluating whether to introduce a total ban on imports of meat and dairy products from the entire EU area on an ongoing basis," said Agriculture Minister Bjarne Håkon Hanssen last night.

May shut Norway completely (Dagsavisen)

The Government is evaluating from hour to hour whether Norway should close its borders completely to agricultural products from continental Europe. Following confirmation yesterday that foot-and-mouth disease had reached the European Continent for the first time, the Farmers’ Union, the Centre Party and the Christian Democrats all feel that Agriculture Minister Bjarne Håkon Hanssen should have closed Norway’s borders already.

Pensioners to be allowed to earn more (Aftenposten)

The Government is proposing to raise the limit for how much people receiving early retirement benefit can earn before their pensions are cut. Social Affairs Minister Guri Ingebrigtsen believes the current ceiling of NOK 4,000 is too low and wants to initiate discussions with both employer organizations and the unions. However, Ms Ingebrigtsen is unwilling to indicate how high the new limit might be. A pensions commission will work out a proposal to simplify the regulations.

Rebels receive gift of political party (Dagsavisen)

Yesterday it became clear that the Progress Party exiles will take over the Liberal People’s Party (DLF). Their objective is to present a list of candidates in every county at this autumn’s general election. Up until last week the DLF was a dormant mini-party with only one member – its founder, Tor Ingar Østerud. A week ago Mr Østerud contacted ex-Progress Party MP Fridtjof Frank Gundersen and offered to give away his party. The deal was concluded on Saturday. In return for his gift, Mr Østerud got a cup of coffee.

Business profits sky high in 2000 (Dagens Næringsliv)

Norwegian business had a fantastic year in 2000. Total profits amounted to almost NOK 400 billion, around NOK 160 billion higher than in 1999. The oil industry was the engine driving this growth, but profits also rose in the other business sectors. The Norwegian Confederation of Trade and Industry (LO) is concerned that wage levels rose faster in Norway than in those countries with whom we compete. However, despite this employees retained a somewhat smaller slice of the cake in 2000 than the year before.

Bucked the market (Dagbladet)

A year ago Tore Lindholdt, head of the National Insurance Fund, was roundly criticized for not investing the Fund’s money in IT shares. Today Mr Lindholdt can sit back and laugh at his critics. The reason? With a return on investment of a handsome seven per cent, Mr Lindholdt and his investment managers have knocked the majority of market know-it-alls into a cocked hat. During the same period listed shares dropped by an average of 1.7 per cent – in large part as a result of the major fall in the price of IT shares. The National Insurance Fund totals NOK 125 billion.

Hospital privatization no longer an option (Aftenposten)

Bowing to strong pressure from the Norwegian Nurses’ Association, the Norwegian Confederation of Trade Unions (LO) and the Labour Party’s social affairs representatives, Health Minister Tore Tønne has decided to tighten up the wording in the hospital reform bill which would have allowed hospitals to spin off some of their services as private companies. "It has never been our intention that the Act should open the way to the privatization of the hospital service. If the bill’s text can be interpreted in this way, it must be changed," says Mr Tønne. The Government has invited interested parties to submit comments on its proposal to transfer of hospital ownership from the counties to the central government. The final bill will be introduced to the Storting 6 April.

Worth Noting

• The Government’s promise of four hours a day free nursery care will cost at least NOK 3 billion per year, according to the Norwegian Association of Local Authorities. The Ministry of Children and Family Affairs has not calculated the costs of providing a free minimum level of nursery care. (Aftenposten)
• The Norwegian Ministry of Agriculture managed to create complete confusion yesterday about whether Norway had introduced an import ban on agricultural products from the whole of the EU. The incorrect press release was eventually recalled. (Aftenposten)
• Oslo should be allowed to organize and pay for the capital’s own railway traffic, says Oddvar Nilsen (Conservative), chairman of the Transport Committee of the Storting. Today it is the Government which books and pays for train services from NSB, the national railway company. (Dagsavisen)
• Last year the Norwegian Armed Forces cancelled the purchase of 20 new fighter planes because they lacked the cash. Now they are planning to buy 48 new planes, at a cost of at least NOK 30 billion. (Aftenposten)
• Orkla shareholders Avanse, K-Fondene and KLP have made it plain that they expect a number of representatives on Orkla’s corporate assembly to be replaced. They are concerned that the interests of shareholders are currently not being well enough taken care of. This move makes it increasingly unlikely that current chief executive Jen P. Heyerdahl will succeed in becoming chairman when he steps down later this year. (Dagens Næringsliv)

Today’s comment from Vårt Land

Finance minister Karl Eirik Schjøtt-Pedersen has stuck a label on himself which reads: "No tax increases". It is a bold move for a finance minister. It may well be that when the crunch comes – after the election and if he is still Finance Minister – Mr Schjøtt-Pedersen will be able to claim that he has kept his promise. But it remains to be seen whether the public’s perception will match his own. The compromise with the centre alliance parties over this year’s budget already involves NOK 7.5 billion in tax cuts next year, in the form of reduced VAT on food and a lower rate of investment tax. Other taxes may therefore be raised without the total level being changed. An election year is obviously not the best time to get a glimpse of the Government’s overall calculations. It is nothing new, we are used to governments acting in this way. But it does mean we must take whatever we have been promised with more than just a pinch of salt.