We are spending less (Aftenposten)

Economic experts are forecasting continued buoyancy in the Norwegian economy, but Svein Gjedrem, head of the Norwegian Central Bank, is still doing all he can to reduce the impression that it is no longer in danger of overheating. However, the Central Bank is keeping interest rates at the same level and the Central Bureau of Statistics has forecast a dramatic fall in inflation. Nevertheless the rate of private spending is beginning to slow down. From September to October retail spending fell by 2.4 per cent, which is probably due to the rise in interest rates earlier this year. For the same reason it looks as though this year’s Christmas spending spree will be smaller than last year.

Fewer airline passengers (Dagsavisen)

Oslo-based business passengers are flying less since Gardermoen became the country’s main airport. Around 150,000 fewer business trips each year are being made now, compared to when the old Fornebu airport was operative. According to a recent survey carried out by the Civil Aviation Authority and Oslo Lufthavn AS, which runs Gardermoen airport, the number of leisure trips has also flattened out. Many passengers have switched to Torp airport in Sandefjord, or now take the train.

200 new taxmen (Dagens Næringsliv)

This autumn’s budget compromise and the introduction of VAT on services will result in a large increase in the number of civil servants. The Directorate of Taxes will have to hire 200 additional staff to administer the new VAT rules, and the Customs Administration will also require more people. State Secretary Ellen Moe at the Ministry of Finance says that the aim of the reform was to simplify the rules, but that is certainly not what has happened.

Heir apparent takes over (Aftenposten)

Norsk Hydro is the closest thing to a monarchy that Norwegian business life has to offer. When the king abdicates, there is always a home-grown prince ready to take over. The outgoing monarch himself usually takes on the role of company chairman. Director General Egil Myklebust yesterday named Eivind Reiten as his successor. Mr Myklebust will not be remembered as being particularly investor-friendly. During his ten-year tenure, returns on Norsk Hydro’s shares have been lower than the stock market average.

New boss demands more (Dagsavisen)

Around 37,000 Norsk Hydro employees will have to prepare themselves for tougher times ahead when Eivind Reiten becomes their new boss in May. He wants higher profits. "I will be a more impatient leader, and believe there are opportunities for the company to be better managed and so create higher profits. I want to get more out of our staffing situation so that we can run the company more efficiently than we do today," says Mr Reiten. However, he refuses to say whether this will mean job cuts when he takes over the company.

On his way out (Verdens Gang)

Telenor chief executive Tormod Hermansen may resign his current position to become chairman of the company. VG has indications that this dramatic move may be the probable outcome of yesterday’s hand-over of power at Norsk Hydro. Mr Hermansen has led Telenor since 1991.

Children lose out (Vårt Land)

Local authorities are legally obliged to provide care for the elderly, but not day-care for children. Reports of local authority run nurseries being closed, long waiting lists and higher fees for parents have come in from all around the country. "We cannot afford to provide care for both the elderly and the young," says Tysvær’s Municipal Executive Arne Jensen.

Worth noting

• Despite the severe criticism Steinar Killi has received as head of the National Rail Administration, he still has the full support of the organization’s own employees. Today he has been summoned to report to the Minister of Transport. (Dagsavisen)
• Emissions of environmentally damaging oil vapour and methane, the most harmful of the greenhouse gases, may easily be reduced substantially. Venturie AS, a small technology company in Søgne, has come up with a solution to two of the biggest environmental challenges facing the North Sea oil industry. To date Statoil has invested around NOK 250 million without success. (Aftenposten)
• Modernizing central government’s financial management has doubled the amount of bureaucracy. The number of financial administrative units has risen from 270 in 1997 to around 560 units today. "Extremely unfortunate", comments Finance Minister Karl-Eirik Schjøtt-Pedersen. (Dagens Næringsliv)
• Telenor will have to search for a new chairman following Eivind Reiten’s appointment as Director General of Norsk Hydro. This is not good news for the recently listed telecom company. (Aftenposten)
• Environment Minister Siri Bjerke is being bombarded by e-mails from furious wolf-lovers from around the world. Every day she receives 60-70 letters of protest. (Dagsavisen)
• People in the south of Norway can shelve any plans they may have had for skiing and a cold winter. Rain and mild temperatures are forecast to continue until 1 March. If we are to believe a forecast made by British meteorologists, there is an 80 per cent chance that the rain will continue way past the New Year. (Verdens Gang)

Today’s comment from Dagsavisen

At a time when the world seems to be getting smaller and the need for information on what is happening is becoming more and more important, it looks as though Norway’s national broadcasting company NRK wants to cut back its international news coverage. An in-house committee has proposed a radical plan to axe six out of nine foreign correspondent postings. At the same time we are already seeing foreign affairs being given less space and fewer resources. It seems as though the trend is for Norwegian regional news to be given priority over foreign affairs. Perhaps some of NRK’s strategists hope this tactic will make regionally-minded MPs more disposed to be generous when it comes to allocating NRK’s finances. But it is a tactic that significantly weakens NRK’s fulfilment of its obligations as a public service broadcaster. The company urgently needs a new leader who can make the right decisions about some important priorities.

NOREG