RECORDING SYSTEM OUT OF ACTION FOR TWO YEARS (Aftenposten)

The computer system that is supposed to record conversations between ships and Oslofjorden Vessel Traffic Service has been out of action for two years. The recorder has been permanently tuned to the wrong channel, not the one which is used for communication at sea. The mistake was discovered after the British Navy frigate HMS "Grafton" ran aground in September. The same failure has been uncovered before, but was not rectified. The system’s supplier claims that there is nothing wrong with the company’s product, while Oslofjorden VTS maintains that it is the supplier’s responsibility. The radio communication recordings are meant to be used, among other things, to help investigators find out what happened in the event of an accident at sea.

NORWEGIAN MEDICAL ASSOCIATION INVESTS MILLIONS IN TOBACCO (Dagbladet)

In breach of its own guidelines, the Norwegian Medical Association has invested millions in shares belonging to the tobacco giant Philip Morris. The investment was made through the doctors’ own health and pension fund, whose aim is to provide financial security for the association’s members in the event of illness, pregnancy and retirement. At any one time a total of between NOK 5 million and NOK 10 million is invested in Philip Morris.

FJELLANGER TRIGGERED DEMAND FOR VOTE OF CONFIDENCE (Aftenposten)

Intense discussions between Prime Minister Kjell Magne Bondevik and Environment Minister Guro Fjellanger the night before the debate in the Storting on the gas-fired power station issue led the centrist government to demand a vote of confidence in its administration. Centre Party veteran Johan J. Jakobsen makes this claim in his memoirs, to be published next week.

NO CUTS IN SICKNESS BENEFIT PAYOUTS (Dagens Næringsliv)

Prime Minister Jens Stoltenberg has indicated that there will be no cuts in the Norwegian sickness benefit system for at least a year. "Some people have unrealistic expectations about what it is possible to save by means of a simple legislative decision to make cuts in the sickness benefit system. Cuts in legislated benefits will only lead to increased demands for locally negotiated benefits," says Mr Stoltenberg.

HIGH OIL PRICES CAUSE STOCK MARKET ABOUT-TURN (Aftenposten)

The extremely high price of oil has caused an about-turn in the relative values of shares on the stock market. Eight months ago, the top five IT companies were worth NOK 30 billion more than the five largest companies in the oil tanker and oil services market. Now the situation is the reverse. Investors in the IT market have seen the value of their investments shrink, while oil shipping companies have increased their worth by several billion.

SWEDES CAN HALT MERGER (Dagbladet)

As a major shareholder in Storebrand, the Swedish financial services company, Skandia, can put a halt to the politicians’ dream of a merger with Den norske Bank. If there is to be a bidding war over Storebrand the Swedes have the deepest pockets. Now that Norway’s political leaders finally seem to be unanimous, it might be a Swedish company that puts a spanner in the Norwegian works.

WORTH NOTING

1. Customs officers in Østfold county have seized 40 tonnes of illegal meat imports so far this year, compared to 30 tonnes for the whole of last year. Much of the meat was destined for restaurants in the Oslo area. (Dagbladet)
2. Ellen Stensrud, the Norwegian Confederation of Trade Unions’ (LO) head of information, has decided not to run for president of the organization. She is instead being proposed as secretary. This move ends the battle for LO leadership. LO’s first chairwoman will therefore be Gerd Liv Valla. (Verdens Gang)
3. LO Vice President Jan Balstad regrets his involvement in the Norwegian-Russian investment company Pandestor. According to a programme broadcast by the Norwegian national broadcasting company NRK, Mr Balstad and the convicted spy Arne Treholt misled the Norwegian Industrial and Regional Investment Fund (SND) in an application for a loan. At the time the application was made, Mr Balstad was chairman of Pandestor and a member of SND’s board. (Aftenposten)
4. SND consultant Arne Finne says that with hindsight we acknowledge that we should have done a better check on one of the items in the application from Pandestor. But we have made no procedural errors in our handling of the loan application. (NTB)
5. The Prime Minister and the King are agreed that the King alone should be the one to give the Crown Prince permission to marry. Mr Stoltenberg will give his advice should the King ask for it. (Aftenposten)
6. Oslo’s drinking water may soon get a clean bill of health. But 700 Norwegian waterworks are still substandard. For half a million Norwegians the quality of the drinking water in their homes is extremely poor. (Dagsavisen)
7. The Securities, Investment and Banking Commission has, it seems, widened the scope of its investigation into Åge Korsvold’s cut-price options for Storebrand shares. The investigation has become so wide-ranging that the whole case will probably not be presented to the Commission’s board at its next meeting, as had previously been announced. (Aftenposten)
8. The whole country is enjoying the warmest October for 150 years. It is enough to chase away the autumn blues and make the weather men rub their eyes in front of their computer screens. And as if that wasn’t enough – the strawberries are ready for picking in Tromsø! (Aftenposten)

TODAY’S COMMENT FROM NATIONEN AND VERDENS GANG

In 1997 lumber supplier Pandestor was given a loan worth NOK 2.7 million by the Norwegian Industrial and Regional Investment Fund (SND). LO deputy chairman Jan Balstad was chairman of Pandestor at the same time as he was a board member of SND, which paid out the cash. To many opposition party representatives, this smells of cronyism. Trade and Industry Minister Grete Knudsen has promised a thorough investigation. She could start by asking her colleague, Health Minister Tore Tønne. Mr Tønne was at that time SND’s chief executive. This is not a big case – measured in purely financial terms. Moreover, SND is a bank which was created to lend risk capital of this kind. SND’s loan to the Russian project must be thoroughly investigated, including all the details surrounding the decision to grant the loan and the roles of the various individuals involved. It must surely be possible to expect that those who pay out such loans and those who manage the funds received know what they are about.

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