Minister of Trade and Shipping Grete Knudsen

"Ireland Norway Forum"

DUBLIN, 7 MAY, 1996

Dear Minister, Exellency, ladies and gentlemen,

It is a great pleasure for me to be with you here today for the opening of the "Ireland Norway Forum" and to make my first official visit to the "Emerald Isle". The "Ireland Norway Forum" is the most extensive business conference ever to be held with participation from Irish and Norwegian firms and organisations, and my delegation includes some 25 senior executives representing a cross-section of the Norwegian business community . This is a true sign of the growing interest among Norwegian and Irish firms in expanding their business relations and to establish business partnerships.

The ties between Norway and Ireland go a long way back in history. 1200 years ago groups of Norwegians were already arriving in Ireland, though not exactly in the same way nor with the same aim as our delegation today. This was the first of many contacts that were developed into the close bilateral relationship our nations enjoy today.

I believe that our common history and cultural heritage and the fact that we share common ideals and values form a good basis for close relations between Irish and Norwegian businesses, and the forging of close economic ties between our two countries.

Thus, Norway's international orientation dates right back to the Viking Era. The Vikings sailed east, south and west to remote corners of the world. This global attitude has not left us. Today we are involved in global challenges and we are active in international affairs, but first and foremost we are Europeans. Norway takes an active part in the European integration process - despite the "NO" vote in our referendum in 1994 on EU membership. And in today's situation, with increasing European economic co-operation and integration, Norway will seek solutions to the challenges we are facing.

What are these challenges? In fact they are still the same as before the "NO" vote. Europe's future is our future. Our economy is an integral part of the European economy. Norway's foreign trade figures demonstrate this: 75 per cent of our exports go to EU countries and 70 per cent of our imports come from the EU. Furthermore, Europe's security is vital to our security, and we share the same environment. These basic facts will continue to underpin our European policy also in the years to come.

There is broad consensus in Norway in favour of continuing active participation in European co-operation. Our declared ambition is to take part in the ongoing process of European integration, East-West and North-South, to contribute to this process, and to take our share of the responsibility this entails.

As a matter of fact, no other non-member country has closer ties with the European Union than Norway. Through NATO we are allies with 11 of the 15 EU countries. We have been an associate member of the Western European Union since 1994. And we are part of the Internal Market through the Agreement on the European Economic Area, the EEA Agreement.

Our aim is clear: We are making use of all available opportunities to develop our relations with the European Union. Our bilateral relations with EU countries are important. This is why I am so pleased that we are gathering here to provide a meeting place for our business communities, where the participants can make contacts, learn more about each other's trade and potentials and build confidence and partnerships.

Today Norway is associated with the European Union through the Agreement on the European Economic Area (EEA). Norway is an integral part of the Internal Market. It is important that the Agreement continues to be an effective and mutually advantageous instrument governing relations between Norway and EU. With regard to the forthcoming Irish EU Presidency, Norway's priority areas are; Fisheries, energy and the maritime sector. This tree sectors are well suited for extended co-operation between Norway and EU

The EEA Agreement ensures the same opportunities in Norway for business and investment from other European companies, as it ensures access for Norwegian companies to the single market. In short, we are, through the EEA Agreement, as much a part of the Single market as any EU Member State. The Agreement includes all of the so called "four freedoms", as well as a number of areas related to the single market. By paying our own way, we are able to participate in a number of research and development programmes, related to areas such as small and medium enterprises, the social dimension, culture and education.

Furthermore, Norway is part of the Nordic family. No passport is required to cross borders between the Nordic countries, and we have enjoyed a common labour market since the 1950s. The EEA Agreement creates a common market between the five Nordic countries, which is an asset for foreign firms and investors. The Nordic countries are very much alike in terms of culture, legislation, and government and we all speak basically the same language. By doing business with Norwegian companies and by investing in Norway, you will find that this can be a bridgehead to the other Nordic countries, as well as to Russia, and the Baltic states.

Over the last ten years, Ireland's exports to Norway have increased sixfold. From 1994 to 1995 there was a remarkable 40 per cent increase in your exports to us, which totalled IEP 300 million. Norway's exports to Ireland also show a positive trend, though the value and volume of these exports fluctuate substantially along with our exports of oil and ships. In 1995 our exports to Ireland amounted to IEP 240 million.

Since the late 1980s Ireland has attracted a good deal of direct foreign investment. This is due to your attractive and competitive tax system and highly educated labour force. Among the Norwegian companies that have invested heavily in Ireland recent years are Nycomed, Dyno, Norsk Hydro and Statoil. The Norwegian authorities are favourably disposed towards Norwegian investment and establishment abroad, as we are convinced that this will strengthen the domestic position of our companies.

A Norwegian airline, Braathen is for the time beeing seriously investigating the possibility to start a Oslo-Dublin schedule air-service, with 2-3 trips weekly from October. This would of course be of major importance for the travel activity between Norway and Ireland.

People say that if the Vikings were operating today, they would stay home. That is where all the treasure is. That is of course not true, since Norway is a highly internationalised society, both when it comes to economy and culture, but those who says this, is referring to our "black gold". Norway's oil production represents about 4 per cent of the world's total oil production and means that Norway will probably become the sixth largest producer next year. We are the world's second largest exporter of oil and the Western Europe's third largest producer of natural gas.

Norway has developed unique skills and expertise in the offshore petroleum field. This sector is very interesting in terms of the further expansion of the co-operation between our two countries. I am therefore delighted that Statoil and other major companies in both countries are working actively together to exploit the opportunities and meet the challenges Ireland is facing in developing its national oil industry.

However, Norway is not all energy. It is also a major international shipping nation with the world's fourth largest merchant fleet. Shipping and the maritime industry are important to Norway, and we look forward to participating later today in the workshop on the maritime industry. I believe that this is also very relevant to Ireland in the process of shaping future policy in this field.

Norway's expertise in information and communication technology is also strong. Norwegian niche products such as digital technology for data transmission and storage and satellite communication for maritime and aviation service can be found world-wide. Norway is in many fields a pioneer in developing new telecommunications technology, and we are playing a prominent part in the introduction of sophisticated national and international cellular radio systems.

As regards food industry, Norway's strength lies in seafood. However, when it comes to agricultural products, we have a lot to learn from you, and I am pleased that one of the workshops will focus on this industry. Ireland has distinguished itself in this area, and this has been recognised internationally. We have not come so far, but we see a potential here as a result of the EEA Agreement.

Let us use the "Ireland Norway Forum" as a stepping stone to a better knowledge of each other's markets, culture and way of life as a whole. And let us start a joint journey of combining the talents and resources of our respective countries in order to expand existing businesses and locate new areas of trade and co-operation. Talking about talents; Your singer Eimear Quinn will deliver the Irish contribution to the Eurosong festival to be held in Oslo, and Ireland is already a favourite both in the newspapers and among experts.

Finally, let me extend my thanks to the efficient organisers, The Norwegian Embassy, the Norwegian Irish Business Council, and the Norwegian Trade Council who have done a great job and made this event possible.

I hereby declare the "Ireland Norway Forum" as opened.