Historical archive

Norway Daily No. 98/01

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. 98/01

Date: 28 May 2001

Failing parents should be forced to cooperate (Aftenposten)

Parents who fail to prevent their offspring from repeatedly committing criminal offences should if necessary be forced to cooperate with the child welfare authorities, according to a proposal by the Commissioner for Children, Trond Waage. The proposal has been sent to Justice Minister Hanne Harlem. "The aim is not primarily to punish the parents, but to ensure we can offer a better package of measures. Parents must be held accountable for the criminal actions of young people under 18. If they do not follow up their children properly, the authorities must be able to put the family under direct supervision," says the Commissioner for Children. There has been a significant rise in juvenile crime in recent years.

Finance Minister unmoved by VAT criticism (Dagbladet)

Finance Minister Karl Eirik Schjøtt-Pedersen is not worried by the storm of criticism and ridicule his VAT reform has provoked. "The reform has been well prepared and will be implemented 1 July as planned," retorted Mr Schjøtt-Pedersen in belligerent mood. He admits that some of the exemptions and delimitations of the reform may seem a trifle comical. "It is true, but that is nothing special for Norway. You will always get these kinds of grey-area problems," he said.

Labour defeat over residential property tax (Dagsavisen)

The Centre Party's chairman, Odd Roger Enoksen, spent the weekend thinking things over, and now he has made up his mind. He will not be supporting the Government's proposal for changes in the residential property tax. This means the Government does not have a majority behind its proposal which could have exempted 60 per cent of home owners from the tax. The current system will therefore continue to stand, even though all the parties agree that it is far from perfect and is unfair in its application.

Finance Minister to discuss Storebrand bid with Sampo boss (Aftenposten)

Sampo's chief executive, Bjørn Wahlroos, and his counterpart at Storebrand, Idar Kreutzer, will enter the lion's den on Wednesday for a meeting with their chief opponent, Finance Minister Karl Eirik Schjøtt-Pedersen. The objective is to persuade Mr Schjøtt-Pedersen to view the Finns' attempt to acquire Storebrand in a more positive light. The Norwegian Finance Minister's undisguised opposition to the takeover provoked a great deal of public attention last week, both in Norway and abroad.

Ministers divided over Statoil flotation (Dagsavisen/Saturday)

The Government was due to announce details of the Statoil flotation yesterday. But the press conference on the biggest sell-off of state shares in Norwegian history was postponed three times due to internal wrangling between government ministers. While the journalists waited, Finance Minister Karl Eirik Schjøtt-Pedersen and Petroleum and Energy Minister Olav Akselsen were arguing down to the wire over how much of Statoil should be sold off. The Prime Minister was also drawn into the debate. The dispute ended with an agreement to float 23 per cent of Statoil's shares, which will be priced at between NOK 66 and NOK 76. This puts a total value of NOK 155-167 billion on the company.

Finance Minister slammed for Statoil confusion (Dagens Næringsliv)

On Friday evening the Government made a public fool of itself over the Statoil flotation. The Conservatives' Jan Tore Sanner accused Finance Minister Karl Eirik Schjøtt-Pedersen of clumsiness and bungling over the Statoil sell-off. Even the Labour Party's Tore Nordtun described as unfortunate the fact that the Finance Minister and the Petroleum and Energy Minister should be so publicly out of step with each other. Mr Nordtun refused to comment on the Finance Minister's role, but said that the Storting has had a good working relationship with Petroleum and Energy Minister Olav Akselsen. Mr Nordtun does not think the affair will have serious negative consequences for Statoil.

Sales of meat just keep on rising (Nationen)

In 2001 Norway has set a new record in meat consumption. Never before have we bought so much meat. Europe's epidemic of contagious livestock diseases has not diminished Norwegian consumers' appetite for meat, which is now so great that the country risks facing a meat shortage. The meat industry does not expect to be able to meet total demand this year even with the addition of meat imports.

Worth Noting

  • The Conservatives and the Progress Party want to increase defence spending by NOK 2 billion per year. The two parties are planning to block the Stoltenberg government's proposed defence cuts. (NTB)
  • In the past few years the Ministry of Finance has spent over NOK 5 million to develop and test various valuation schemes. But today's residential property tax just keeps on going. (Verdens Gang/Saturday)
  • The Confederation of Norwegian Business and Industry (NHO) will sell its Storebrand shares to Sampo. The organization's finance director, Bjørn Lundaas, is therefore flying in the face of his own president, Jens Ulltvedt-Moe, who supports the DnB bid. "Sampo has made the highest offer," says Mr Lundaas. (Dagens Næringsliv/Saturday)
  • If SAS's takeover of Braathens goes ahead the company's domestic routes will be profitable by early next year. SAS deputy chief executive, Gunnar Reitan, confirms that SAS will improve its bottom line by NOK 1 billion per year over the next few years. (Dagens Næringsliv/Saturday)
  • This summer, air fares in Norway are 24 per cent higher than last year. Practically all types of fares are more expensive – from full fare to special offer tickets. At the same time air fares have fallen to rock bottom in other countries. (Aftenposten/Sunday)

Today's comment from Dagbladet

The Labour Party, the Socialist Left Party and the Centre Party have failed to agree on a new valuation system for residential property, as a result of which there is no parliamentary majority in favour of changing the current residential property tax either. It is a tax which is so blatantly unfair that it should have been reformed years ago. But it will live on this time, too. The political battle revolves around what kind of system should be used to determine the taxable value of a residential property. We are faced with a piece of political spinelessness which is remarkable even in an election year. Because it is up to the Storting and the individual local authorities to decide at any given time if residential property tax is to be levied or not. And it is up to the individual local authorities to decide if they wish to levy property-based rates. Either way we need a sensible system of property valuation. The voters must be told how the parties plan to compensate for the disappearance of these revenues, and whether residential property regardless of its value is to be exempt from any form of taxation, while bank deposits and interest earned, for example, will be taxed from the word go. These are the questions the Conservatives, Christian Democrats, Liberals and the Progress Party must answer in the Storting today if they are to avoid being branded as political cowards.