Historical archive

Norway Daily No. 94/01

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. 94/01

Date: 21 May 2001

Government secrecy often unlawful (Aftenposten)

One in six Justice Ministry employees believes that issues handled by the central government administration are withheld from public knowledge in breach of the Freedom of Information Act. One in four employees knows of specific instances where this has occurred. The problem is also well known among senior level civil servants. Eight out of 17 ministerial secretaries general confirm that the public is denied access to information, in breach of the law.

Cut in aid to poorest countries (Aftenposten/Sunday)

While countries in the Balkans and the Middle East are receiving more aid through the Norwegian Agency for Development Cooperation (NORAD) than previously, assistance to the world’s 48 poorest countries has been cut by NOK 200 million over the past two years. The Christian Democrats have reacted angrily to this state of affairs. "It is deeply regrettable that Norway’s assistance to the countries who need help most is being cut at a time when we are getting richer and richer as a result of increased oil revenues," says Einar Steensnæs (Christian Democrat), leader of the Storting’s Foreign Affairs Committee.

Interest rate rise postponed (Verdens Gang)

Yesterday the banks warned they would be putting up interest rates as a result of the Government’s changes to the VAT system. Both Finance Minister Karl Eirik Schjøtt-Pedersen and the chief executive of the Norwegian Financial Services Association, Arne Skauge, should perhaps have observed the day of rest more strictly. What started the day as a point of conflict, ended up in full agreement later in the evening.

Oslo’s criminals increasingly brutal (Dagsavisen)

Crooked businessmen, bouncers with a criminal record, violent youth gangs, organized crime networks and hyperactive juvenile muggers have made Oslo a less law-abiding city. Serious crime has become more brutal in its nature, according to an internal police report. "Criminals have become more violent, but they pose a danger first and foremost to each other," says Christine Fossen, head of the Oslo Police District’s Narcotics Unit.

DnB offer for Storebrand (Dagbladet)

Yesterday the country’s largest commercial bank, Den norske Bank (DnB), made a formal offer for the country’s largest insurance company, Storebrand. The offer could be overwhelmingly approved, if the politicians, shareholders and competition authorities do not have any major objections. If the merger does take place, it will mean a substantial dilution in the current state ownership of DnB. In a Norwegian context the merged company will be a financial giant, with the state’s holding falling to around a third of the shares.

Weekend negotiations (Dagens Næringsliv)

Throughout the weekend Storebrand has been in negotiations with the Finnish financial services giant, Sampo. Dagens Næringsliv has learned that the aim of the negotiations was to arrive at a wide-ranging agreement between the two companies. There are strong indications that the negotiations have been intensified after rumours of a bid began circulating on Friday morning.

Plans to form a pension fund giant (Aftenposten/Saturday)

The Norwegian Public Service Pension Fund and KLP Insurance, a mutually owned insurance company specializing in insurance and financial services to the municipal sector, are planning to merge. The resulting company would be the country’s largest life insurance company, both in terms of the number of customers and annual premiums. The two companies pay out a total of NOK 15 billion in pensions each year. A merger would mean that the premiums paid in by several hundred thousand customers would be invested on the stock market instead of going straight into the Government’s treasury.

Battle over residential property tax (Dagsavisen)

Negotiations over changes in the residential property tax look set to break down. The Labour Party’s proposal to raise the threshold from 85 to 100 square metres is not good enough for the Centre Party. "The majority of people should be exempt from residential property tax," said Centre Party chairman Odd Roger Enoksen. On the other side of the political divide the Socialist Left Party wants to increase the revenue generated by the residential property tax, particularly from the largest properties.

One in four Norwegians wants a republic (Aftenposten/Saturday)

A third of the Norwegian people have become more negative with regard to the monarchy in the past year, according to an opinion poll carried out by market researchers, Opinion. As many as 24 per cent of the population believe Norway should change its constitutional form of government. Crown Prince Haakon’s choice of Mette-Marit Tjessem Høiby as his future wife is the main reason that people have a more negative attitude than before.

Worth Noting

  • When the upcoming changes in the VAT system are implemented the Norwegian Red Cross and Save the Children Norway will have to pay out more in taxes than they receive in support from the Government. "It looks as though we will have to pay the Government for the right to carry out our charitable work," said an aggrieved Sven Mollekleiv, Secretary General of the Norwegian Red Cross. Ten charities have joined forces in protest against the reform. (Aftenposten/Sunday)
  • Telenor chief executive Tormod Hermansen broke off negotiations with Tele Danmark’s owners, SBC, because he feared Danish opposition to a Danish/Norwegian telecom merger. The disastrous attempt to merge with Swedish Telia remains fresh in the memory. (Dagens Næringsliv/Saturday)
  • Men will soon be allowed to arrange for paternity tests to be carried out in Norway to establish if they are really the father of the children they have parental responsibility for in law. (Dagsavisen/Saturday)
  • An intensive lobbying campaign gave the farmers an additional NOK 1.4 billion when this year’s agricultural subsidies were fixed. Centrally placed sources at the Ministry of Agriculture say that the Government had been ready to cut farmers’ incomes by NOK 800 million. (Verdens Gang/Sunday)

Today’s comment from Verdens Gang

Negotiations regarding changes in the residential property tax are nearing their conclusion and hundreds of thousands of home owners are anxiously awaiting the outcome. Representatives of the Labour Party, the Centre Party and the Socialist Left Party are holding their cards close to their chests. What they are negotiating about is the tax on the benefit of living in one’s own home. The expression itself, " tax on the benefit of living in one’s own home" appears to be the answer to every tax-happy politician or bureaucrat’s prayer. And there are a lot of those in this country. Of course there is a benefit to living in one’s own home. That is exactly why Norwegians scrimp and save and take out expensive loans so that they can fulfil their dream of acquiring a home of their own. While the Conservatives, Christian Democrats, Liberals and the Progress Party oppose a tax on this benefit, the three parties now in negotiations want it to continue. Politicians have become aware of the considerable discontent among the population over the level of taxes and what are seen as hopelessly bureaucratic regulations. Even Labour politicians have publicly denounced the "tyranny of taxes" in this country. But from the way some parties are acting it would seem they believe it is the voters who are out of step with the politicians – not the other way round.