Historic focus on transport and communications

The Government proposes NOK 28 billion to transport and communications via the fiscal budget for 2009 for safer, more environment-friendly and efficient transport nationwide. This is an increase of NOK 3.2 billion compared with 2008.
- I am proud to be the transport and communications minister in a Government prepared to stake out a new, far more proactive course in taking the entire country forward, says Transport and Communications Minister Liv Signe Navarsete.

A total of NOK 17.04 billion is earmarked for roads, including government purchases of ferry services forming part of the national road system, an increase of NOK 1.6 billion or 10.4 per cent compared with 2008.

Just over NOK 8.84 billion is to be spent on the railways, an increase of just over NOK 1.3 billion or 17.4 per cent. This figure includes close to NOK 3.2 billion on rail network investments, an increase of NOK 850 million or 36.2 per cent compared with 2008.

A further NOK 2.08 billion goes to civil aviation, other transport initiatives, postal services and telecommunications along with research and development.

Almost NOK 240 million is proposed for research and development in 2009 via the Transport and Communications Ministry budget. The increase of NOK 68.3 million or 40.2 per cent compared with 2008 is devoted mainly to climate research and includes NOK 50 million to set up the Transnova project. Transnova will support worthy environmental projects, in particular projects promoting greater use of alternative fuels such as second generation biofuels, electricity and hydrogen.

Public roads: Just over NOK 17 billion, up NOK 1.6 billion

The Government proposes spending a total of NOK 17.04 billion on roads, including government purchases of national road ferry services, for 2009. This is a good NOK 1.6 billion, or 10.4 per cent, more than the adopted budget for 2008.

Spending via the fiscal budget will be supplemented next year by about NOK 5.7 billion made available by toll road companies for investment programmes, comprising NOK 3.5 billion for development of the national road network and NOK 2.2 billion for investment programmes targeting the public transport infrastructure.

Traffic safety control, operation and maintenance: NOK 7.75 billion

Of the proposed government spending on roads, NOK 7.75 billion is earmarked for traffic safety control and for operation and maintenance of the national road network. The increase of NOK 688 million or 9.7 per cent compared with 2008 will inter alia enable the resurfacing of some 1,500 kilometres of roadway. Priority will be given to vehicle traffic safety; this applies inter alia to winter operation and measures targeting accident prone stretches of road. Driver education and vehicle inspection are a further priority.

Investment: NOK 7.13 billion – up almost NOK 600 million

A total of NOK 7.13 billion will be released for road investment, including ordinary investment in national roads, funds for rockfall/landslide protection and government funds for partial financing of the E18 highway tunnel development at Bjørvika in Oslo. This is NOK 599 million or 9.2 per cent more than for 2008.

Ferry services forming part of the national road system

Almost NOK 1.78 billion goes to state purchases of national-road ferry services. This is an increase of almost NOK 230 million or 14.8 per cent compared with 2008. The Ministry of Transport and Communications intends to raise ticket prices by 4.4 per cent as from 1 January 2009.

Railways: NOK 8.84 billion – investments up NOK 850 million

NOK 8.84 billion is allocated to the railways for 2009. The increase of just over NOK 1.3 billion or 17.4 per cent compared with 2008 makes room for significant renewal of and investment in the rail network, in addition to an extensive focus on maintenance.

Just over NOK 7.07 billion of the railways appropriation goes to the Norwegian National Rail Administration for operation, maintenance and investment in the line network. This is about NOK 1,260 million or 21.7 per cent more than for 2008.

NOK 3.8 billion goes to rail network operation and maintenance. The increase of NOK 411 million or 12.1 per cent compared with 2008 will enable more effective measures to be put in place to avoid slowdowns and delays on the Oslo-Bergen line and the Oslo-Trondheim line, and will also enable important maintenance work to continue in the Oslo area, inter alia in the Oslo Tunnel.

Investment in the line network totals NOK 3.2 billion, an increase of NOK 850 million or 36.2 per cent compared with 2008.

About NOK 580 million goes to programmes and projects specifically benefiting to goods traffic. This figure includes funding for the goods terminals at Ganddal, Brattøra and Alnabru and for passing loops on the Østfold, Gjøvik and Sørland lines and a number of other measures to boost rail network capacity.

Spending on the railways also includes just over NOK 1.71 billion for state purchases of rail passenger transport services.

Civil aviation: NOK 751 million

The total budget proposal for government spending on civil aviation comes to NOK 751 million, an increase of 5.6 per cent compared with 2008.

For 2009 NOK 519.9 million is allocated to government purchases of domestic air services on routes that are not commercially viable. The allocation for purchase of such services will promote an efficient nationwide air route offering for people and businesses nationwide.

Grants totalling NOK 13.4 million are proposed for non-state regional airports. Next year, as in 2008, losses incurred by the state-owned regional airports will be met by profits earned by hub airports that are commercially viable.

Public transport programmes: NOK 14.3 billion

NOK 14.3 billion, including road toll revenues of NOK 2.2 billion, will be spent on public transport programmes in 2009. This is an increase of 30.7 per cent compared with 2008.

The above figure includes:

State purchases of rail passenger transport services and spending on development, operation and maintenance of the rail network,

Public transport initiatives financed by ‘road funds’, i.e. by appropriations via the budget for national road investments and road toll revenues. The funds will inter alia be spent on improving traffic speed and flow in urban areas,

State purchases of national-road ferry services, purchase of coastal transport services on the Bergen – Kirkenes route (in keeping with the “Coastal Express Agreement”) and state purchases of air route services.

The overall figure of NOK 14.3 billion includes an appropriation of NOK 323 million for an “incentive scheme to improve public transport and reduce the use of cars in urban areas”,

Spending on public transport also includes a grant of NOK 56 million to local and county authorities to make public transport more accessible for all users.

The above state funding and road toll revenues are supplemented by county authority funding for local public transport, including concessionary fares for pupils and students on local public transport.

Post and telecommunications: NOK 205 million

Overall spending of NOK 205.1 million is proposed for postal services and telecommunications. The entire amount relates to the Norwegian Post and Telecommunications Authority.

For 2009 – as in recent years – no appropriation is proposed for state purchases of postal services, including banking services. According to the budget proposal, efforts will be made to arrive at a model better able to compute the net loss incurred by Norway Post on commercially unviable postal and banking services.

Dividend from state-owned limited liability companies
In keeping with the Government’s dividend policy, a dividend of NOK 221 million is expected from Norwegian State Railways (NSB AS). Based on results expected for 2008, no dividends are anticipated in 2009 from Avinor AS, Norway Post or Railway Contractors.