Complete disagreement over residential property tax (Aftenposten)

The Government has failed to win the backing of any of the other parties represented in the Storting for its proposals for a new residential property tax. The introduction of a new valuation system is therefore still a long way off. On Wednesday the Christian Democrats’ parliamentary group voted to reject any tax on the benefit of owning one’s own home. Neither the Conservatives nor the Progress Party want any kind of benefit tax, which leaves only the Centre Party and the Socialist Left Party as potential allies. However, the Centre Party’s finance spokesman, Odd Roger Enoksen, has said that the party will stick to the proposal it agreed with the Labour Party four or five years ago. The Socialist Left Party does not support the Government’s proposals either. At the moment it looks as though the Government can give up any hope of achieving a broad compromise on this issue.

Valla aims to move on (Dagsavisen)

Newly elected president of the Norwegian Confederation of Trade Unions (LO), Gerd-Liv Valla, has indicated she is not totally opposed to ending the tradition whereby the LO’s president has a permanent seat on the Labour Party’s executive committee. After the LO congress closed yesterday, she declared that the close cooperation between the Labour Party and the LO will continue, but she also indicated that the LO would now be discussing internally whether it should have a seat on the Labour Party executive committee. Yngve Hågensen may therefore be the last LO leader to take his seat in the Labour Party’s executive committee.

Frontal attack on Valla (Verdens Gang)

Finn Bergesen, president of the employers’ association, the Confederation of Norwegian Business and Industry, has made a frontal attack on Gerd-Liv Valla’s vision of the future for the Norwegian Confederation of Trade Unions (LO). The recent LO congress voted in favour of a cut in the working week from 37.5 hours to 35 hours. "It is incredible that they should vote for reduced working hours just when there is a crying need for workers. A reduction of this kind would be the most efficient way of killing the private sector," he said.

Labour must seek partners (Dagsavisen)

Two former Labour Party ministers, Thorbjørn Berntsen and Matz Sandman, have warned the party leadership to seek coalition partners after the election in order to secure the country’s political stability. Mr Berntsen is cautious in his criticism of Prime Minister Jens Stoltenberg. Nevertheless, the Labour Party veteran believes that something important was missing when the PM recently rejected the idea of a coalition with the Centre party and the Socialist Left Party. Matz Sandman believes the Labour Party must adjust to the fact that it is no longer the largest political party by far in Norway.

Sponheim promises NOK 5 billion in tax cuts (Dagens Næringsliv)

The Liberals have included proposals for sweeping changes to the Norwegian tax system in their programme of policies, which will be voted on at the party’s annual conference in Trondheim this weekend. The Liberals want a "green" tax reform which will mean higher electricity bills for the majority of people, increased environmental taxes and a higher level of capital tax. But now Mr Sponheim is sweetening the party’s tax proposals with tax relief measures worth NOK 5 billion.

Norwegian research scientists will get funding boost promises Giske (Dagbladet)

Education Minister Trond Giske has promised Norwegian research scientists a NOK 1 billion increase in research grants each year until 2005. Altogether Mr Giske will provide cash-strapped Norwegian researchers with NOK 110 billion over the next four years. The proposals will be announced as part of the Government’s revised national budget, to be published to day. For a long time Norwegian research scientists have been complaining that they receive too little money to finance their research projects, and that the scale of Norwegian research funding falls far below that of comparable countries.

Government tones down promise of half-price nursery care (Aftenposten)

The Government has promised to halve the cost of nursery places, but admits this does not mean nursery fees for everyone will be cut by half. Children and Family Affairs Minister Karita Bekkemellem Orheim admits that the word ‘halve’ is a ‘general expression’, but she hopes that nursery fees will be substantially reduced. However, she cannot give any guarantees that the local authorities will pay their share of the bill.

Cross-border retail spending not as large as previously estimated (Aftenposten)

The Ministry of Finance estimates that the total value of goods bought last year by Norwegian shoppers crossing the border into Sweden, was in the region of NOK 3.2 billion to NOK 3.5 billion. This is in marked contrast to Norwegian retailers’ own estimates, which put the value of cross-boarder shopping at nearly NOK 7.3 billion. Nevertheless, the Finance Minister is still planning to initiate measures to reduce the incentive for Norwegian shoppers to cross into Sweden in search of cheaper goods.

Worth Noting

• A unanimous LO congress has rejected Health Minister Tore Tønne’s hospital reform plans. The LO will be putting pressure on Labour Party MPs to win support for their views, but there is no question of the LO taking direct action. (Dagens Næringsliv)
• Chronically sick children look like being the biggest losers as the Norwegian National Hospital searches for ways to save NOK 40 million this year. Among the hospital management’s proposals are the closure of Berg Gård, a rehabilitation and training centre for handicapped children; a reduction in the number of beds in several wards or the closure of complete wards; cuts in the number of bone marrow transplants carried out at the hospital; and the sacking of 200 employees. (Aftenposten)
• The Government wants to open negotiations with the Centre Party and the Socialist Left Party over its residential property tax proposal. This could mean higher taxes for people with large houses since the Socialist Left Party believes the Government’s current proposals would let the rich off the hook too easily. (Dagens Næringsliv)
• When it comes to business issues, two thirds of chief executives have less faith in politicians than a year ago. Almost half of those who still have a positive opinion support the Conservative Party. By comparison, only eight per cent of those polled believe the Labour Party’s industrial policies are to be trusted. (Nationen)
• Unless something extraordinary happens Tormod Hermansen will keep his job as chief executive of Telenor, with a new chairman at the head of the company. The new nomination committee’s agenda is therefore set. (Aftenposten)
• "Some of the things we have done have had an element of luck in them. We haven’t always known what we were doing," concluded Einar Førde yesterday, summing up his 12 years as head of Norway’s national public service broadcasting company, NRK. (Aftenposten)

Today’s comment from Verdens Gang

When politicians start talking about taxes, the voters know there is a general election coming up. It is no different with this year’s election, but there are indications that this election campaign could develop into a battle over taxes. The Conservative Party’s slogan is "Enough is Enough", and it seems to have struck a chord with more than just the traditional right wing anti-tax voters. This is bad news for the Labour Party. Finance Minister Karl Eirik Schjøtt-Pedersen may have thought he was being daring when he solemnly promised not to increase the total tax burden next year. Instead the claim seemed provocatively lacking in credibility. The "tax party" is the nickname which the parties of the right have fixed to the Labour Party with super-glue. It is a name which seems to have stuck in the public’s perception. The fact that the Government is in the process of introducing a VAT reform which completely lacks a logical foundation and has been thoroughly chiselled away at does not help either. In the Labour Party’s defence it could be argued that the Government inherited a patchwork quilt of a proposal. But instead of sewing the various pieces together, the Labour Party has unpicked even more of the stitching. Tax is always a good election issue because it so clearly defines the parties differing ideologies. But voters would be wise to ask themselves how all these juicy promises will be paid for after the election. It is not only the Labour Party which over the years has screwed up the level of taxes.