Trade unions demand clarification from Labour (Dagsavisen)

Gerd-Liv Valla, president of the Norwegian Confederation of Trade Unions (LO), has called on the Labour Party to clarify who they will join forces with before the next election. She envisages a situation in the run-up to the next election in which Labour, the Socialist Left Party and the Centre Party can stand united as a political bloc in the mould of the former centre alliance. Ms Valla is also looking for a Labour Party rooted more strongly in the Norwegian political left. But Jens Stoltenberg cannot promise the LO president that the Labour Party will profile itself as a more noticeably leftwing party in opposition. "We are not moving to the left, or the right. We are keeping straight on. Labour already stretches from the centre to the left," said Mr Stoltenberg.

Bondevik threatens Hagen with Labour (Dagsavisen)

The Government’s patience with the Progress Party is beginning to wear thin following Carl I. Hagen’s bully-boy tactics during the budget negotiations. For this reason Prime Minister Kjell Magne Bondevik yesterday attempted to issue a warning – and the stick being waved was the threat that at the next hurdle the Government will seek support from the Labour Party. However, that particular strategy was effectively blocked by the Labour Party’s parliamentary leader, Jens Stoltenberg. "Those parties which have given the country a new government should also ensure they have majority backing for their budget. That is just right and proper," said Mr Stoltenberg.

Black economy estimated at NOK 100 million (Dagsavisen)

Norway’s tax authorities believe that the country’s black economy could equal as much as 10 per cent of GDP, or NOK 100 million. This means that the size of the black economy can be compared with the cash flow and asset value of industrial juggernauts like Norsk Hydro, Telenor and Statoil. 78 tax hunters have now been handpicked to trace the flow of cash.

Røkke denounced Kværner’s former leaders (Dagens Næringsliv)

Led by Kværner’s largest shareholder, Kjell Inge Røkke, 77 per cent of the company’s shareholders took their seats at the extraordinary general meeting which took place in Oslo yesterday. Before the election of a new board of directors Mr Røkke mounted the rostrum to launch a fierce attack on Kværner’s management and bankers. "It would be hard to find a share whose performance is poorer than this one. And it would be equally hard to find anything more badly run at the top, in other words the company’s management," said a furious Mr Røkke from the rostrum of the trade union movement’s main auditorium, where the meeting was being held. Mr Røkke also slammed the company’s bankers. "The banks have shown perhaps a little too much patience. The have lent the company too much money based on too weak a foundation, and we are the ones who are having to pay the price," said Mr Røkke.

Socialists took control of the board (Dagbladet)

The new Kværner board has a substantial socialist majority – courtesy of arch-capitalist Kjell Inge Røkke. Six out of the board’s nine members can loosely be described as lefties. Former president of the Norwegian Confederation of Trade Unions (LO), Yngve Hågensen, has joined the board to build bridges between Mr Røkke and Kværner’s employees. "I am grateful that he is willing to devote part of his time to this," said Mr Røkke. Tore Tønne, former Health Minister in the Stoltenberg government, was also elected to the board.

Røkke a better owner than passive investment managers (Aftenposten)

Capitalists like Kjell Inge Røkke are better owners than companies like Storebrand, if one measures the results of the companies they own. An active owner who has invested his own cash leads to greater profitability than an insurance company who manages other people’s money. This is the short version of the results of a major research project on company ownership carried out by professor Øyvind Bøhren and senior lecturer Bernt Arne Ødegaard from the Norwegian School of Management.

Worth Noting

• Russia’s Yukos Oil surprised Kjell Inge Røkke by abstaining from the vote on Mr Røkke’s proposal for Kværner’s new board of directors. But almost everyone else voted in favour of a board of which Mr Røkke himself is now chairman. (Aftenposten)
• The new Kværner board consists solely of Kjell Inge Røkke’s placemen. Among them is former LO president Yngve Hågensen. "We employees feel stabbed in the back. We understand now why the LO refused to comment on this affair earlier in the process," said Anders-Stephane Løvik of Kværner Rosenberg in Stavanger. (Klassekampen)
• When Aker Maritime merges with Kværner, Kværner’s senior trade union representative, Rolf Utgård, has no guarantee that he will continue in that position for the new industrial giant. The merger will take place in March next year. (Dagsavisen)
• On 9 December UN Secretary General Kofi Annan will meet relatives of Israeli soldiers who were kidnapped last year. The meeting will take place in Oslo’s synagogue, where Kofi Annan will ask forgiveness for the UN’s handling of the affair. (Aftenposten)
• The Progress Party has persuaded the Government to cut a further NOK 40 million from the regional development fund. The Labour Party, the Socialist Left Party and the Centre Party claim the budget framework for the Local Government Committee is so tight that they will vote against the entire budget recommendation. (Nationen)
• "It is difficult to say whether a terrorist attack on Norway would have prompted the use of emergency legislation. But the answer is probably yes," says one of Norway’s leading experts on martial law, Public Prosecutor Arne Willy Dahl. (Aftenposten)
• According to recent figures from the Norwegian Central Bank, Norwegians have total net assets of NOK 1,738 million. Five years ago households’ assets totalled NOK 973 million, up from ‘just’ NOK 627 million ten years ago. Distributed among Norway’s 4,513,000 inhabitants, this gives average per capita assets of NOK 385,000. (Aftenposten)
• If Finance Minister Per-Kristian Foss had taken the drop in stock market prices into consideration, he would have had NOK 1-2 billion less to play with when the budget was being formulated. (Dagens Næringsliv)
• As much as 40 per cent of the Christian Democratic Party’s membership could shortly be Muslim. "The Christian Democrats are closer to the Muslims than any other party. If we look deeper into the value systems of the two religions we see that we have much in common. Particularly on moral issues," said Christian Democrat member, Ali Khan. (Vårt Land)

Today’s comment from Verdens Gang

The best thing for Kværner now is probably that Kjell Inge Røkke has become the dominant shareholder and taken control of the company. Why Kværner’s former management and board, as well as the employees’ representatives, have been fighting such a long drawn out and stubborn battle to prevent Mr Røkke from gaining control has been a mystery to us for some time. We have not seen any sensible reason why it would be better for Kværner to fall into Russian hands rather than stay a Norwegian company with Mr Røkke at the helm. That Mr Røkke’s opponents finally had to admit defeat was due to the fact that he used the voting muscle he had purchased with his own money, combined with an almost incredible singleness of purpose and staying power. We believe that bringing the oil and gas businesses of Aker Maritime and Kværner under one ownership and management is the right thing to do. It is the best way to enable this important and technologically advanced segment of Norwegian industry to develop further. Kværner’s creditors have given the company a breathing space which Kjell Inge Røkke and the new management must use to sort out the mess and bring the company back on the offensive.