One third of local authorities cut schools budget (Aftenposten)

Schools are the losers when local authorities are strapped for cash. A survey carried out by the Norwegian Association of Local Authorities (KS) shows that one in three local authorities have made cuts in their schools budget. Care for the elderly gets much more generous treatment. Only nine per cent of local authorities say they have made cuts in this sector. The local authorities are now demanding more cash from the Government, cash they do not want earmarked for specific purposes.

Women flee Progress Party (Dagsavisen)

Women are turning their backs on the Progress Party as a result of recent sex scandals. The party has the support of 17.8 per cent of voters, but only 12 per cent of women back the party. "This should be of serious concern for party chairman Carl I. Hagen. It is primarily women who identify with the victims in sex cases," says election expert Frank Aarebrot.

Oil age refuses to end (Aftenposten)

According to the original prognoses, Norway’s oldest oil field, Ekofisk, should be empty by now, 30 years after Norwegian oil production began in 1971. Yesterday Phillips Petroleum announced that Ekofisk can carry on producing oil for the next 50 years. The announcement follows a pattern. All the prognoses forecasting the end of the oil age have been too pessimistic. "The fact is that the oil and gas sector will be one of Norway’s most important industries for the whole of this century. People don’t properly realise this. In the period after the fall in oil prices in 1998-1999, much of the public debate has revolved around what we are going to do in this country after the oil runs out," says Gunnar Berge, head of the Petroleum Directorate.

Stock market launch made easier by strong year-end results (Aftenposten)

After presenting a fabulous year-end result yesterday, a profit of NOK 38 billion, Statoil chief executive Olav Fjell can expect the company’s forthcoming stock market launch to be a fairy-tale affair. However, it all depends on Statoil receiving the good offices of the Storting and other guardian angels. In other words, that the Storting gives the go-ahead for partial privatization and a stock exchange listing for Statoil this summer, and that nothing unforeseen – such as a dramatic fall in oil prices – throws a spanner in the works, in terms of the timing of and enthusiasm for a stock market launch.

State takes it "all" (Dagens Næringsliv)

Statoil chief executive Olav Fjell will end up keeping just less than NOK 5 billion of the company’s record NOK 38 billion in profits for last year. Taxes and government dividends amount to NOK 32.5 billion. "Our average tax rate is 69 per cent. This reflects the fact that most of our activity is in the Norwegian sector of the North Sea. But it is this sector which gives us our greatest profits," says Mr Fjell.

Consumers to act as price police (Verdens Gang)

This spring the Government will start a major campaign to ensure that it is the ordinary consumer who benefits from the cut in VAT on food products, which is due to come into effect 1 July this year. The aim is to prevent the supermarket chains using the VAT reduction to increase their own profit margins. Agriculture Minister Bjarne Håkon Hanssen says that the Government wants you and me to keep a close watch on supermarket prices. He hopes that consumers will boycott chains which do not pass on the VAT reduction in its entirety.

Worth Noting

• In record time police investigators have concluded that there are no grounds to bring charges against Terje Søviknes, the former Progress Party top politician who had been accused of sexually assaulting a teenage member of the party’s youth wing. Both Mr Søviknes and the now 17-year old girl have been questioned by police. (Dagbladet)
• The Progress Party now has another sex scandal to contend with. A young female Progress Party employee was molested by an extremely drunk elected official after a party-organized social gathering. The incident was treated as an internal personnel matter. More sex cases are waiting in line. Porsgrunn police have gone through a list naming eight Progress Party politicians who are alleged to have committed sexual assault. (Dagbladet)
• Price is not the most important factor influencing Norwegian consumers’ choice of supermarket. That the supermarket is located close to home, has a high level of service and wide selection of goods are more important than price for the majority of people. (Nationen)
• Norwegian local authorities have doubled their level of debt in the past three years. One in five local authorities would have been on the brink of bankruptcy if the law permitted such a thing. (NTB)
• Last year Statoil petrol stations sold grocery and convenience store items to the tune of NOK 2.6 billion. The plan is to increase that figure. (Dagens Næringsliv)

Today’s comment from Dagens Næringsliv

Is it a sensible use of government money to have public employees carrying out exhaustive investigations of the supermarket chains to find out which has the lowest prices and which should be allowed to call themselves cheap? At best such a use of resources is extremely dubious. Most consumers are not completely brainless when it comes to choosing where to shop. It is partly a matter of location, partly price and partly about quality and service. Most consumers are also familiar with advertising. It can only be Per Anders Stalheim’s employees at the Consumer Council who believe people will go running off to a particular shop at the mere sight of the word "cheap". Having been force fed with advertisements for the strangest additives which are supposed to make your hair look like silk, your skin become baby smooth and your yellowing teeth turn whiter than white, there is a limit to what Norwegians will believe. The Consumer Council’s preoccupation with such things is probably an indication that the organization has outlived its role. The current shortage of both financial and labour resources demands a thorough re-evaluation.