Opening remarks: Meeting with international construction companies in Leipzig

Minister of Transport and Communications Marit Arnstad (Sp)
Opening remarks - Meeting with international construction companies in Leipzig

I am very pleased to have this opportunity to meet with you all. Close co-operation with many of you present here today is vital if we are to succeed in the major improvements we are to introduce in the Norwegian transport sector over the next decade.

The National Transport Plan 2014-2023
Norway consists of approximately three hundred and twenty-five thousand square kilometres, with roughly five million inhabitants, a number that is rapidly increasing. Oslo is one of the European cities where population growth is amongst the most rapid. This in turn results in an increase in the demand for transport, presenting us with a major challenge. Another challenge we face is to reduce the disadvantages inherent in distance for our very transport-dependent trade and industry sectors.

Transport is a cornerstone in the general policy for improving welfare standards, creating jobs, regional development and meeting the environmental challenges.  

A reliable, intermodally integrated transport system is essential to economic prosperity and equitable access to goods and services. The system needs to be financially sustainable, safe and secure and meet high standards of environmental protection.

The National Transport Plan is a rolling ten-year plan for the Norwegian transport sector. A short version of the plan will be available in English in our website soon.

The Director of Public Roads Terje Moe Gustavsen will speak in more depth about the Norwegian planning system a little later. I will just briefly mention that the National Transport Plan 2014-2023 has a framework of five hundred and eight billion kroner – about 70 billion euro -  in state spending on transport, an increase of fifty percent compared to the 2013 budget.

This will give concrete results. The funds made available for the new National Transport Plan means amongst other things that during the course of the next ten years one thousand two hundred and eighty kilometres of new trunk roads will be opened in Norway.

Both the Norwegian and foreign construction industries should be able to identify a wide range of tasks and projects as a result of the plan.

Predictability is a key factor. If the market is to make the necessary investments, there must be confidence in that the transport plan will be fully implemented. If we look at the historic transport plans the current government in Norway has presented thus far, the market has every reason to act with full confidence that this will be the case. We have tabled highly ambitious plans – and these have without exception been implemented. We aim to continue in the same way.

Not only will we be investing more money, we will also be getting more value for each krone spent. We are working to reduce time spent on planning. The various departments in the public transport administration are engaged in the work of improving internal efficiency. An increased financial framework in itself will contribute to that faster and more cohesive infrastructure development becomes possible. This is work we will be carrying out during the coming decade. 

Contract strategies
We are aware that predictability in financing and decision-making processes is a key factor for both Norwegian and foreign construction companies. We must make the necessary arrangements to match capacities of both small and large construction companies in the best possible way.  
There will be an increase in major contracts, but there will also be many tasks suitable for small to medium size companies.

Predictable financing and planning schedules
It is obvious that when we initiate a major road or rail building project, contractors must know in advance that the necessary funding is assured. The Government is introducing a new financing arrangement for the National Transport Plan under which prioritised projects have predictable and secured financing that is less dependent on annual budgets. It will be the progress of the projects that decides funding, not the reverse.

A dedicated project organisation will be established in the relevant department that will be responsible for the planning and implementation of the project. Stortinget - the Norwegian Parliament – will adopt the total commitments associated with the project, the completion date and an annual sum that ensures that the project can be rationally implemented. The objective is to ensure that the project is fully financed from day one.

As I mentioned, we are also working to reduce time spent on planning. An average planning period of ten years is far too long! The Government is working to reduce this by half. We have proposed a number of concrete initiatives and measures under the National Transport Plan.

Competition from abroad and social dumping
With the increased activity we have made preparations for under the National Transport Plan it will be necessary for both Norwegian and foreign companies to participate. It is therefore a key factor that conditions are in place to ensure that foreign construction companies find the Norwegian market attractive, and we wish foreign competition a very warm welcome!

We will strive for healthy competition, but it must be on equal terms, with amongst other things the same HES (health – environment – safety) standard. It will not be acceptable that companies that have lower standards with regard to working conditions and social factors use this to gain advantages.

Social dumping is a challenge that must be faced internationally. The European construction branch organisation has pointed out that there are a number of human resources companies and less than serious construction companies and contractors that actively attempt to evade the regulations. Rising international competition has served to increase this problem.

Breaches of the regulations governing wages and working hours have been identified in some Norwegian transport projects. Audits that were carried out on the E6/Dovrebanen joint project show that this applied to both Norwegian and foreign contracting companies.

Foreign employees shall have good employment arrangements that are in accordance with Norwegian legislation. In their roles as Principals the various departments must impose clear and unambiguous requirements and standards, and these must be monitored underway.

The transport departments will introduce more stringent terms and conditions of contract and will ensure that these are adhered to through both external and internal audits.

This is demanding work. All involved parties must work hard to achieve these objectives, and this will require close co-operation between the branch and the inspectorate authorities.

In closing I would like to emphasise that
The public transport infrastructure in Norway is in need of renewal. We are well underway, but much remains to be done in order to reach our goal: A modern and efficient public transportation system.

This job must be accomplished through co-operation between efficient and professional Principals and professional construction contractors. I am looking forward to continuing a good relationship and co-operation with the international construction industry with the aim of realising our first class and vital public transport projects.

Thank you for listening!