STATE SELL-OFF FOR DNB IN MARCH (Aftenposten)

The Government is planning to sell DnB shares worth up to NOK 10 billion in March next year. One result of the sale will be a windfall profit for the Government following a year in which DnB’s shares have climbed dramatically on the stock exchange. Nevertheless, part of the sale may be postponed until the autumn to increase the Government’s profit and to ensure that the Statoil flotation can be completed first. Stock brokers both in Norway and abroad will be competing for the lucrative job of organizing the sale, which may net the lucky winners well over NOK 100 million in fees.

MAY NOT HAVE RUN AGROUND WITH RADAR SURVEILLANCE (Aftenposten)

The "John R" may not have run aground if Norway had had a better coastal surveillance system, according to the head of the Norwegian Navy’s Maritime Operations Centre, Commander Arne Morten Grønningsæter. At the official inquiry into the accident on Thursday, Commander Grønningsæter presented radar pictures which showed the vessel sailing steadily farther east at an average speed of 11.2 knots. The ship’s captain, on the other hand, believed the vessel was travelling north on its correct course.

THUMBS DOWN FOR RØKKE ACQUISITION (NTB)

The Fisheries Directorate has given the thumbs down for Norway Seafood’s acquisition of a stake in five new trawlers based in Finnmark. The Directorate believes that such an acquisition would give Kjell Inge Røkke, Norway Seafood’s major shareholder, too large a share in the total cod quota. According to the national broadcasting company NRK, the Fisheries Minister will make a final decision on the acquisition in the new year.

OIL INDUSTRY MORE DANGEROUS (Dagens Næringsliv)

The number of near-misses and unplanned incidents in the Norwegian oil sector has more than doubled during the past two years. Up until yesterday the Petroleum Directorate had received reports of 507 hazardous incidents so far this year, with 16-17 people only a hair’s breadth from death. Together with the oil companies, the Norwegian Oil Industry Association and other employee organizations, the Petroleum Directorate will investigate the reasons for the rise.

KLP LOSES NOK 1.6 BILLION (Dagens Næringsliv)

After a lengthy battle, the municipal sector pension fund, KLP, has lost the custom of 15 local authorities, with pension funds totalling around NOK 1.6 billion. KLP’s competitor Vital Forsikring has walked off with almost NOK 1 billion. "KLP’s monopoly has been broken," says Vital’s chief executive, Gunn Wærstad.

ONE IN FOUR REFUSED DISABILITY PENSION (Aftenposten)

This year fewer people will be awarded disability pensions than last year. During the first 11 months of the year 27,000 people were granted disability pensions. A year ago the figure was 31,000. The statistics from the National Insurance Administration are significantly better than those which form the basis for public policy decisions. One reason for the fall in numbers is that the National Insurance Service insists that disability pensions are awarded only in the event of permanent illness.

CLIMATE CHAOS MAKES GAS-FIRED POWER STATIONS UNNECESSARY (Dagbladet)

Electricity production is at an all time high. According to the latest calculations Norway’s total electricity production will reach over 142 TWh, which represents an enormous power surplus. Climate changes mean that the need to build large new power stations will drop dramatically. The increase from last year to this corresponds to the output of over 30 Alta power stations. According to Christian Democrat leader Kjell Magne Bondevik, who was forced from office over the gas-fired power station issue, the huge power surplus shows that the arguments of the gas-fired power station lobby are even weaker than before.

WORTH NOTING

1. By 7 o’clock on Friday morning 200 tonnes of fuel oil had been taken off the freighter "John R", which ran aground in shallow water near Tromsø on 25 December. According to the Norwegian Pollution Control Authority the ship had 620 tonnes of fuel oil on board when it ran aground. (NTB)
2. "We run the risk of a major environmental disaster," says Rigmund Storøy, vice president of the Norwegian Seaman’s Union. He has called on the Government to ban all ships flying a flag of convenience from transporting freight between Norwegian ports. (Dagbladet)
3. Norwegian shipyards may win contracts worth around NOK 20 billion this year, twice as much as last year. According to Birger Skår, chief executive of Norske Skipsverft, the Norwegian shipyards’ marketing and sales organization, the construction boom has been driven by the offshore supply sector. (Dagens Næringsliv)
4. By the new year the Government Petroleum Fund will be worth almost NOK 400 billion and will have generated returns of NOK 20 billion this year. This source of revenue will not be without significance for the Finance Minister’s meeting with Norway’s leading economists in January. (Dagens Næringsliv)
5. There is a good chance that there are one or more millionaires in your immediate social circle. There are currently 125,000 people, one in every 36 Norwegians, with a net assets of NOK 1 million or more. The number of millionaires has doubled since 1993. Ordinary Norwegians have private means totally an amazing NOK 752 billion, according to figures from financial analysts Dun & Bradstreet. (Dagsavisen)
6. Most teenagers would rather have more money than spend more time with their parents according to a survey carried out by the environmental organization, Future in Our Hands. It is those youngsters who have been given a lot of material things but spend little time with their parents who are most concerned with money and consumption. (Nationen)

TODAY’S COMMENT FROM AFTENPOSTEN

Finance Minister Karl Eirik Schjøtt-Pedersen has asked for advice on how the Norwegian economy should be managed. That Norway’s leading economists have been invited to discuss the issue with the Finance Minister is a positive step, but should not be interpreted as indicating Mr Schjøtt-Pedersen is in any doubt about the policies he should be proposing. This new openness is rather a sign that the Finance Minister is having to adopt new measures to ensure sufficient support for the Government’s economic policy. The task has not been made any easier by the fact that doubts have been raised about the Finance Ministry’s own calculations. As the year draws to a close the Norwegian economy seems in many ways to be a success, but not everything is as it should be. In the schools sector the quality of the teaching, equipment and buildings varies enormously. The health service has been given more resources and more staff, but everyone seems to agree that they are often not used effectively. Care of the elderly is in difficulties, particularly in the major cities. Oil revenues alone will not solve all the problems in the public sector, but the battle over the country’s oil wealth will continue to dominate the political debate as long as there remains no consensus of opinion on how much of that wealth should be set aside to cover the state’s rising future pension obligations.

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Norway Daily’s editorial staff would like to wish all our readers a very Happy New Year!

NOREG