Fur flies over national budget (Dagsavisen)

Siv Jensen (Progress Party) is spitting mad with the Government, which is quietly letting it be known that it has offered "several billion kroner" during the budget negotiations. "We have been offered just NOK 849 million more in the 2003 budget," she said. Ms Jensen points out that this sum alone is not enough to pay for the removal of prescription charges for chronically sick disabled and elderly people. She has reacted strongly to reports in the media yesterday afternoon that the Progress Party had been offered "several billion kroner", according to sources in the ruling coalition parties. Ms Jensen gave the coalition parties’ chief negotiator, Jan Tore Sanner (Con), an hour to deny these leaks. But when Mr Sanner did not avail himself of this opportunity, Ms Jensen took the unusual step of revealing the size of the coalition parties’ secret offer.

Cheap (Aftenposten)

Carl I. Hagen, chairman of the Progress Party, has said he is very disappointed over what he describes as the coalition parties’ ‘cheap’ offer. "We have asked for a new offer in the hope that it could provide the basis for negotiations," he said. On Friday at 12 o’clock, the negotiators will meet again, and unless the Progress Party is offered considerable concessions the talks could break down altogether. Given the way the political situation in the Storting is at the moment, such a breakdown would not cause a tremendous stir in the national assembly. There is still a month to go before the Storting’s Finance Committee is due to announce its recommendation.

Standardized state school a fixation (Dagbladet)

Education Minister Kristin Clemet wants to amend the legislation on private schools to make it easier to open private primary schools. The proposal has been met with protests from the Labour Party, Socialist Left Party, the Norwegian Confederation of Trade Unions (LO) and teachers’ unions. Former Education Minister Gudmund Hernes (Lab) said yesterday that as a multicultural society, Norway needed a standardized state school system more than ever. Now Inge Lønning (Con), vice president of the Storting, has hit back at his long-standing opponent on education issues. "The struggle to maintain a standardized state school system is national romanticism long past its sell-by date. It is a mental fixation" he said.

Labour wants to avoid a divisive vote (Aftenposten)

The Labour Party’s selection committee is working hard to put forward a unanimous recommendation which would avoid a divisive run-off between various candidates at the party’s annual conference in November. Yesterday the selection committee met for the entire day. Both names and political principles were discussed, but no conclusions were drawn. Gerd-Liv Valla, who chairs the selection committee, described the meeting as "long and positive". One of the reasons why the committee does not want to make a decision too early is the risk of leaks. The Labour Party’s annual conference will take place 8-10 November.

No wage growth in 2003

Labour and Government Administration Minister Victor Norman has already let slip what he is planning to give Mr and Mrs Norwegian for Christmas in two months time. Small change, moderation and as near as possible zero kroner in wage rises next year. An estimated 4.5 per cent wage settlement next year has, in practice, almost been eaten away by the after-effects of this year’s pay bonanza.

Minister warns of measures to curb executive pay (Klassekampen)

Labour and Government Administration Minister Victor D. Norman has warned that he will use the power the state has through its shareholdings to curb executive pay. "The state is the largest shareholder in Norwegian business, and we are capable of using our power as a shareholder to limit executive pay rises," said Mr Norman. The sharp rise in executive pay levels has made wage negotiations for ordinary employees more difficult. In the period 1995 to 2001, the salaries of the best paid executives rose by 110 per cent, while industrial workers saw their wages rise by 28 per cent during the same period.

Supermarket squeezes suppliers to cut prices (Aftenposten)

The supermarket chain, Norgesgruppen, believes Norwegian consumers are paying too much for their food, and is threatening to boycott suppliers who refuse to cut their prices. Norgesgruppen is demanding that the price of groceries produced abroad must be cut by 20 per cent on average. Fellow supermarket chains, Coop and the Reitan Group, have backed the call. One supplier has already slashed its prices by around 30 per cent.

LO leader wins victory for women (Dagsavisen)

Yesterday, the Government made a huge concession to Gerd-Liv Valla, president of the Norwegian Confederation of Trade Unions (LO), and all other Norwegian women. There will be no change in the legislation which will make it more expensive for local authorities to employ women rather than men. On 8 October, the LO won a crushing victory in the Industrial Disputes Court over those local authorities which had pulled out of the municipal pension fund, KLP, in order to save money. According to the Court, all other pension schemes violated established tariff agreements. Now the Government has decided to shelve its plans to change the law, which means the right to require that employee pensions cost the same, regardless of age and gender, will be retained.

1. Worth Noting

• John Alvheim (Progress Party), leader of the Storting’s Social Affairs Committee, is not happy that the police are preventing smuggled alcohol from being tested for methanol anonymously. "I do not like this one little bit. It is a mystery to me that anyone would dare to drink such spirits," said Mr Alvheim.
  (Dagsavisen)
• A parliamentary majority is in favour of establishing a new, nationwide mobile emergency communications system. It will cost at least NOK 3.5 billion. The proposed digital radio communications equipment will ensure secure communications between the authorities and services such as the police, civil defence force, fire service and the health service.
  (Aftenposten)
• The hospital reform celebrates its first anniversary at the New Year. This year’s deficit, an expensive wages settlement and increased pension costs will make its second year in operation extremely tight for the hospitals’ new owners.
  (Dagbladet)
• More and more employees receive individual, performance-based salaries. But managers are finding it difficult to evaluate their employees’ performances and determine correct salary levels, according to several recent surveys.
  (Dagsavisen)
• Norwegian travel agents are deeply divided as a result of SAS’s decision to eliminate all commission on the sale of airline tickets from the New Year. It has not been possible to unite the industry in a common front against the airline. Travel agents are predicting complete chaos for passengers.
  (Dagens Næringsliv)
• 140 employees at Jordan’s Flisa plant were made redundant in August. Now 1880, a directory inquiries service, has decided to set up operations in the area. This means the creation of 100 new jobs.
  (Aftenposten)
• During the elk-hunting season, meat with a wholesale value exceeding NOK 340 million is brought out of the forest. Only 10 per cent of the meat is subject to public health checks before it is put on sale in the shops. At the same time 100 tonnes of elk meat was imported into Norway last year.
  (Nationen)
• Norwegians abroad have been quick to contact the media if they have felt themselves to be poorly treated by our embassies. The Foreign Ministry has now hit back. "Norwegians’ expectations of what our embassies can actually do are too high. People forget that the majority of embassies are extremely small, with just 2-4 functionaries," said Foreign Ministry spokesman Karsten Klepsvik.
  (Dagsavisen)
• TV2 is picking up the advertising revenue which has been lost by the newspapers. While the daily papers have seen advertising revenues fall by 10 per cent so far this year, TV2’s advertising revenues have increased during the same period.
  (Aftenposten)

2. Today’s comment from Dagbladet

Labour and Government Administration Minister Victor D. Norman had a meeting yesterday with the eight largest employer organizations and trade union confederations – dubbed the Dialogue Forum – to look forward to next year’s wage negotiations. Everyone agrees that wage rises next year should be kept within reasonable limits. The Norwegian economy and industry’s ability to compete in international markets require a moderate settlement. All sides have expressed their willingness to do the right thing. Yet despite this, next year’s wage increases will be substantial next year because so much of that growth is a consequence of this year’s settlement. Local government wages will be 4.5 per cent higher in 2003 simply as a result of the deal done in 2002. In the central government sector, around 3.5 per cent of a maximum limit which the Government has estimated at 5 per cent has already been accounted for. There is, in other words, not much room for new solutions next year. This is something employees should be told loud and clear, and as soon as possible. And those in senior executive positions should show the greatest moderation of all.