3 Developments on Svalbard since 1985

3 Developments on Svalbard since 1985

3.1 Introduction

Since Report No. 40 (1985-86) was submitted to the Storting, there have been extensive changes on Svalbard, both in the structure of the local communities and in the external parameters of Norwegian policy towards Svalbard. These changes are partly the result of a conscious policy and deliberate measures on the part of the Norwegian authorities, and partly the result of international processes that have had geopolitical consequences.

The main changes that have taken place locally on the archipelago can be summarized as follows:

  • The infrastructure and services offered in Longyearbyen and Ny-Ålesund have been considerably expanded. This is the main reason why there has been an increase in central government expenditure in connection with Svalbard during this period.
  • There has been a growing diversification and privatization of economic activities, especially in Longyearbyen. The tourist industry has become an important direct and indirect employment factor.
  • The research and higher education sectors have undergone steep and rapid growth and more of these activities now take place all year round. The number of nations represented on Svalbard has increased.
  • Industrial activities have declined, in both absolute and relative terms. This applies to both the Norwegian and the Russian communities on Svalbard.
  • The Norwegian authorities have strengthened the exercise of Norwegian sovereignty and increased their presence in the Russian community. Cooperation has been considerably improved.
  • The local environmental administration on Svalbard has been considerably strengthened, in keeping with the growing importance the Norwegian authorities attach to environmental protection in their Svalbard policy.
  • The administration has been gradually strengthened and modernized.

The most important changes in terms of the external parameters are as follows:

  • The détente policy pursued in the second half of the 1980s and the dissolution of the Soviet Union in 1991 have created a new basis for cooperation in the northern areas. The level of military activity has been reduced, in parallel with the intensification of regional and national cooperation in the Arctic. International interest in Svalbard has increased steadily throughout the period.
  • As a result of the economic crisis in the 1990s, Russia has scaled down its activities both in its own Arctic areas and on Svalbard. At the same time, the country has opened the way for international participation in the exploitation of resources on its own territory and in the economic zone in the Barents Sea. Industrial activity in these areas is developing rapidly.

In order to understand the changes that have taken place on Svalbard since 1985, external and internal factors must be viewed in relation to each other.

3.2 A new geopolitical situation

Barely a year after Report No. 40 (1985-86) was submitted to the Storting, the political process known as glasnost and perestroika began in the Soviet Union. The process soon had repercussions in Eastern Europe and culminated in the dissolution of the Soviet Union on 25 December 1991. Many people declared that the Cold War was over at last. However, a totally new geopolitical situation had arisen, which created new demands on Norwegian policy towards Svalbard.

The northern areas were affected by the political changes at an early stage. In a speech in Murmansk in autumn 1987, the then president of the Soviet Union, Mikhail Gorbachev, called for closer cooperation in the northern areas. This led to the Norwegian initiative to establish the Barents cooperation.

The glasnost policy had a noticeable effect on Svalbard in that the Soviet settlements were opened up to visitors and cooperation was established locally between Norwegian and Russian tourist agencies. Both the mining company Trust Arktikugol and the Soviet consulate became increasingly receptive to Norwegian administrative measures and authority, and cooperation improved considerably. Norwegian letter offices were opened in Barentsburg and Pyramiden, and Norwegian road signs were also set up. The Norwegian authorities were received with far more openness than previously in connection with visits, inspections and controls. The Governor of Svalbard described relations with the Russians in the early 1990s as "uncomplicated", an opinion that is even more true today. There is no doubt that the general détente has had a favourable effect on local conditions on Svalbard.

Boks 3.1 End of the Cold War

After Mikhail Gorbachev introduced the perestroika policy in the Soviet Union in 1987-88, relations with the West became more cordial and the first signs of democratization began to emerge, and spread in the years that followed to large parts of Eastern Europe. The process gathered momentum towards the end of 1989 and can be said to have culminated in the fall of the Berlin Wall on 9 November. This, more than any other single event, signalled the beginning of the end of the Cold War.

3.3 Research and education

In Report No. 50 (1990-91) to the Storting on economic activities for Svalbard, research and education were treated as economic activities and as means of ensuring the continuation of Norwegian settlements on Svalbard. As a consequence, there has been extensive investment in infrastructure for research and education, both in Longyearbyen and in Ny-Ålesund. Since 1985, private and state investment on Svalbard by Norway and other countries has amounted to more than NOK 500 000 000. Ny-Ålesund has become an international natural science research centre without equal in the Arctic. Research and education now account for a considerable share of all activity in Longyearbyen, both directly in terms of the activity carried out there, and indirectly in terms of the repercussions it has for the community.

The period since 1985 has been characterized by an increase in the extent of research activity, greater international participation, the establishment of a larger number of permanent stations, and more year-round activity. There seems to be growing interest in Svalbard as a platform for research, and this will require better planning, coordination and control.

3.4 A modernized public administration

The increase in the official Norwegian presence on Svalbard and the strengthening of local administration accelerated in the 1970s in response to Report No. 39 (1974-75) to the Storting concerning Svalbard. Since 1985, this trend has continued and the administration has been progressively strengthened. At the end of the 1980s, the Store Norske group was divided up, and the responsibility for local social infrastructure was transferred to a new public corporation, Svalbard Samfunnsdrift AS. This meant that the latter was assigned a number of functions that are taken care of by municipal agencies on the mainland, without its being subject to local political control. Nonetheless, the administrative structure on Svalbard has become more similar to that on the mainland during the 1990s. The office of the Governor of Svalbard has been expanded and reorganized and now has, for example, a separate department for the environment, on the same lines as the Norwegian county governors. Several of the directorates have been delegated administrative responsibility for Svalbard by their ministries, so that the procedures for dealing with matters follow the mainland model. In a number of areas, the legislation has been updated and adapted to similar legislation on the mainland. The public enterprises for postal services and telecommunications on Svalbard have also been reorganized. Private companies are increasingly providing services that compete with public services, resulting in a greater range of choices.

Thus the administration of Svalbard has unquestionably been modernized since 1985, and it is now more similar to that on the mainland. This, together with the improved geopolitical climate, has helped to strengthen Norwegian sovereignty directly and indirectly. At the same time, the decision-making structures in relation to Svalbard have been progressively decentralized and to some extent privatized. In general the political authorities therefore have less opportunity to exercise overall control of developments on the archipelago.

3.5 Development of the local communities

3.5.1 Introduction

The only settlements on Svalbard that can be called local communities in the usual sense are Longyearbyen and Barentsburg. Until recently, Pyramiden was also included in this category. The expansion of infrastructure and services, which were more or less designed for families, began in the 1970s in all three local communities. This expansion continued in the 1980s, but during the 1990s the Norwegian and Russian communities developed in fundamentally different directions. Whereas expansion accelerated in Longyearbyen in the 1990s, the reverse was the case in the Russian communities. The Russian mining companies had to reduce their level of activity as a result of the reforms that followed in the wake of the Soviet Union's collapse and growing economic problems. In spite of the reduction in coal mining activities, there has been progress in Longyearbyen, partly through an increase in state investment and transfers and partly because of private investment.

A register of the population on Svalbard was established in 1994. It is a supplement to the national population register and is to provide an overview of the number of people residing on Svalbard. The Governor of Svalbard served as registrar until the end of 1999, when responsibility for keeping the register was transferred to the Svalbard tax office.

The population of Svalbard has declined since the previous report to the Storting due to the decline in the Russian settlements. According to the population register for Svalbard, 2 333 people were living there as of 20 September 1999. In 1985 the figure was 3 480. The ratio between the Russian and Norwegian populations has also changed. Previously it was approximately 2:1 and was relatively stable, whereas now it is approximately 2:3.

While the number of foreign nationals on Svalbard has declined, the number of foreign nationals in the Norwegian settlements has increased. This is particularly due to the research activity and the tourist industry.

The majority of the people on Svalbard live in established communities. With the exception of the meteorological stations on Hopen and Bjørnøya, all the settlements are on Spitsbergen. There are, however, a few people living in cabins outside the settlements.

3.5.2 Longyearbyen

Longyearbyen, which is situated on Adventfjorden, is the administrative centre of Svalbard. As recently as 1991, Longyearbyen was characterized as "entirely industrial" in spite of the sizeable public administration in the town (Report No. 50 (1990-91) to the Storting). However, much of the basis for this description has now disappeared.

Report No. 50 (1990-91) to the Storting on industrial and commercial measures for Svalbard laid the groundwork for a more diversified economic structure in which private enterprises were encouraged. State activities have been expanded, for example through the establishment of the University courses on Svalbard (UNIS). There is now a differentiated labour market, which makes it more attractive for families to settle in Longyearbyen. Today the level of infrastructure and services exceeds that in most local communities of comparable size on the mainland.

Previously Store Norske Spitsbergen Kulkompani AS (Store Norske) was responsible for all community services in Longyearbyen. In 1989 the company was divided and responsibility for these services was assigned to a subsidiary, Svalbard Samfunnsdrift AS. Since 1993 Svalbard Samfunnsdrift AS has been a wholly-owned public corporation. For a more detailed account, see section 7.3.1 Svalbard Samfunnsdrift AS and its subsidiaries.

The range of services provided in Longyearbyen has increased considerably since 1985. At that time there was no grocery store in Longyearbyen, and food had to be purchased from the company provision stores of Store Norske. Today there is a well developed trade and service sector, with a grocery store, clothing and sport stores, a photo shop, etc. There has also been an increase in overnight accommodation, cf. section 7.4.4 Travel and tourism.

In the period 1975 to 1986, most of the construction that went on was new housing. This trend has continued to the present - particularly as regards family dwellings - because of the growth of Longyearbyen in the second half of the 1990s. See section 11.2 Housing in Longyearbyen for more details.

A number of commercial and service buildings were also constructed to meet new needs and house new enterprises in the area. In 1990 a new building was constructed in the centre of Longyearbyen where Svalbard Samfunnsdrift, Info-Svalbard, Svalbard Reiselivsråd, the Norwegian Polar Institute and several private businesses have their premises. The Svalbard store built a new commercial building in this area in 1991. A new hospital and a separate building for the youth club were also built in 1991. Nybyen has been renovated and converted into student housing and tourist accommodation.

Because of the increase in tourism and commercial and service activities, there has been competition for premises in the centre of Longyearbyen and greater pressure on the natural environment in the area around the town. This has heightened the need for coordinating land-use management and assessment of construction projects. See section 6.3.11 Land-use management in the settlements.

There has also been an increase in research and education facilities on Svalbard. UNIS began operations in 1993. In June 1999, the Svalbard Satellite Station (SvalSat) at Platåberget was officially opened. It is a station for the control and accessing of data from polar orbiting satellites. The EISCAT station at Breinosa above Mine 7 has also been opened.

A system of local democracy is being developed. In 1993 direct election to the Svalbard Council, modelled on the municipal council elections on the mainland, was introduced. All Norwegians and others entitled to vote in local elections on the mainland who are resident on Svalbard have the right to vote, but only inhabitants of Longyearbyen may be elected to the Council. See section 14.2.2 The Svalbard Council, for more information.

The number of people living in Longyearbyen has increased since 1985, but now seems to be levelling off.

According to the population register for Svalbard, there were 1 396 people living in Longyearbyen as of 20 September 1999. In comparison, the figure in 1985 was 1 118 according to Report No. 40 (1985-86) to the Storting. Svalbard Næringsutvikling has provided an overview of population trends in Longyearbyen in a report issued in August 1999, cf. Table 3.1 below.

Table 3.1 Population in Longyearbyen as of 31 December for the years 1989, 1994, 1995, 1997 and 1998
Year 1989 1994 1995 1997 1998
Population 1 050 1 157 1 167 1 339 1 331

Source: Industrial and Commercial Development on Svalbard 1989-1998, Svalbard Næringsutvikling AS.

There was a decline in population at the end of the 1980s and beginning of the 1990s which is presumably due to the reduction in the number of people employed in the mining company Store Norske. The population increase since 1994 is due to a combination of the growth in other business sectors, primarily tourism, the establishment of UNIS and the development of Longyearbyen into a family community. However, as may be seen from the above table, the population has stabilized in the past few years.

3.5.3 Ny-Ålesund

Ny-Ålsesund is situated on Kongsfjorden and is the world's most northerly permanent settlement. It has been a research station since 1965. The Storting has decided that Ny-Ålesund is to be the main centre for Norwegian and foreign scientific research on Svalbard. Norwegian, German, British, Italian and Japanese research stations have been permanently established there. And the French are following suit. Other Norwegian and foreign research institutions also use the facilities there without becoming permanently established. See section 8.5.6 Ny-Ålesund - an international scientific research and monitoring station for more details.

The public corporation Kings Bay AS owns land and plants in Ny-Ålesund and is responsible for the infrastructure. It has a duty to provide services, promote research and scientific activity and help to develop Ny-Ålesund as an international Arctic scientific research station. The infrastructure includes quay structures and services , air transport, workshop services, accommodation, eating facilities and water and power supplies. See section 7.3.3 Kings Bay AS.

Ny-Ålesund is also an attractive tourist destination. However, such economic activities must be adjusted to requirements set by the research activities.

Approximately 24 people live in Ny-Ålesund on a year-round basis. This is an increase in relation to 1985, when 11 people were registered as living there. In high season, i.e. in summer, there are currently more than 180 people there, most of them in connection with research activities.

3.5.4 Svea

In 1985 Store Norske decided to start mining operations in Sveagruva in Van Mijenfjorden. However, the results were so poor that mining was discontinued in 1987. The company did not resume regular coal production in Sveagruva until 1997.

In the revised national budget for 1999, NOK 30 million was allocated to Store Norske to start construction on an exploration drift at Svea Nord. The purpose of the exploratory operations is to determine whether the deposits are commercially viable. See section 7.4.1 Norwegian coal mining operations.

Svea is not a permanent settlement. Operations are run by personnel who for the most part live in Longyearbyen and commute to Svea in shifts. Six people are currently registered as living in Svea, but there are an average of 90 people there at any given time. By way of comparison, there were 91 people staying at Svea in 1985. It is assumed that future operations in Svea will be based on people who commute from Longyearbyen.

3.5.5 Barentsburg

Barentsburg, which is situated on Grønfjorden, is the only inhabited Russian settlement on Svalbard today. The Russian consulate on Svalbard is in Barentsburg.

The settlement has undergone major changes since 1985. Today the Russian mining company Trust Arktikugol mines coal in its own claim areas in a mine whose entrance is in the middle of the settlement. According to the Commissioner of Mines for Svalbard, 301 419 tons of coal were mined in Barentsburg in 1998. The company is also planning to start up new mining operations at Grumant and will use the infrastructure in Barentsburg. In this connection, Trust Arktikugol has applied to build a road from Barentsburg to Colesbukta, cf. section 6.3.2 Land-use management and infrastructure development outside the settlements.

Since 1986 there has been a certain amount of tourism, with ships calling and tourists spending the night at the hotel in the summer season, and in the wintertime visitors come on snowmobiles from Longyearbyen. There is also a certain amount of scientific activity in Barentsburg in the form of meteorological and seismic observations and archaeological research. Moreover, since 1992 a Norwegian factory called Barents Tekstil has employed approximately 40 women in the production of children's clothing to be sold on the Norwegian mainland.

Outside Barentsburg - at Heerodden - Trust Arktikugol has a helicopter station, Kapp Heer. There is currently one helicopter stationed there.

There has been a certain amount of new construction in Barentsburg since 1985, primarily in the beginning of the period. For example, a sports hall with a swimming pool was completed in 1988, and a new hotel was opened in 1989. A museum of natural history and archaeology was also established during the period.

The Governor of Svalbard has a cabin outside Barentsburg at Finneset, and has also had the use of office premises in the centre of Barentsburg since 1998. In order to ensure that the Russian and Ukrainian inhabitants are provided with regular services, the Governor has arranged to have his offices in Barentsburg open, with a police officer and an interpreter present, certain days a week. In return, Trust Arktikugol has the use of premises in Longyearbyen.

In the course of the past three years, the people of Barentsburg have experienced two major accidents. In August 1996, 141 people were killed in a plane crash at Operafjellet outside Longyearbyen. In September 1997, 23 miners were killed in an explosion in the mine.

In 1985, 1 220 people were registered as living in Barentsburg, cf. Report No. 40 (1985-86) to the Storting. The population fell sharply in summer 1994, when children and non-working women were sent to the mainland because of austerity measures, and the settlement ceased to be a family community. In 1999, 939 people were registered as living in Barentsburg, including Kapp Heer. They are Russian and Ukrainian nationals, most of whom are on two-year contracts with Trust Arktikugol. In autumn 1999, the company again began to allow people to bring their children with them.

3.5.6 Pyramiden

Pyramiden is situated on Billefjorden, and used to be the second Russian settlement. In April 1998 Trust Arktikugol closed down the coal mine at Pyramiden after 53 years of continuous operation. In 1985 1 008 Russians and Ukrainians were registered as living at Pyramiden. The settlement had a school, a daycare institution and a number of community activities. However, in the 1990s the population declined steadily, and since the winter of 1998-99 the settlement has been deserted. Today there is only one person living there.

Trust Arktikugol's plans for the future of the settlement are not known, although plans for expansion of tourism have been mentioned. The buildings and installations at Pyramiden have cultural and historical importance, and the Governor has concluded that the place should be preserved. The conservation work will take several years. The Governor has given permission for several less important buildings to be demolished and has ordered the site to be cleared of refuse and pollution resulting from mining activities.

3.5.7 The remaining settlements

Bjørnøya

The Norwegian Meteorological Institute, Station for Northern Norway, runs a meteorological station on Bjørnøya. In addition to regular meteorological observations, the station performs ozone measurements for the Norwegian Institute for Air Research and measures geomagnetic and cosmic noise for the Auroras Observatory at the University of Tromsø.

The station at Bjørnøya has a staff of about ten and can accommodate two or three guest researchers in addition.

Hopen

The Meteorological Station for Northern Norway also runs a meteorological station on Hopen in the same way as on Bjørnøya. The station has a staff of four and can also accommodate guest researchers.

Hornsund

At Hornsund there is a small research station run by Polish researchers. Since 1978 there has been a permanent staff of 10-12 people all year round, plus a few more in the summer. The research programme includes meteorological observations, local seismic studies, biological studies, and magnetic and glaciological registration.

In February 1990 a Norwegian letter office was established at the research station, which was the first Norwegian postal services office ever to be established in a foreign settlement.

Isfjord Radio

Isfjord Radio, which is an earth station for satellite communications, is situated on Kapp Linné at the mouth of Isfjorden. The station has had a satellite link with the mainland since 1978. This resulted in a radical improvement in telephone contact with the rest of the world and since 1984 it has enabled direct reception of television programmes. The station currently has a staff of one, but in autumn 1999 it will be made fully automatic so that it can be controlled from the telecommunications centre in Longyearbyen. There will then no longer be any technical personnel at Isfjord Radio.

There are also eating and accommodation facilities at Isfjord Radio during the spring and summer. These will be maintained after the station has been automated.

3.6 Central government transfers to Svalbard in the period 1987-1998

3.6.1 Introduction

The main part of the state transfers for Svalbard purposes are appropriated in the government budget chapters of the various ministries concerned. In addition central government funds are transferred in the form of allocations to the Svalbard budget and in the form of grants and loans from the Norwegian Industrial and Regional Development Fund (NIRDF). "For Svalbard purposes" means activities carried out on Svalbard and work relating to Svalbard carried out on the mainland.

The Svalbard budget is submitted by the Ministry of Justice as a separate budget proposition at the same time as the government budget. Article 8, second paragraph, of the Svalbard Treaty provides that taxes, dues and duties are to be devoted exclusively to Svalbard and are not to exceed what is required for the object in view on the archipelago. This is the reason why there is a separate Svalbard budget, which is mainly an operating budget for the central government administration on Svalbard.

3.6.2 Central government transfers

Table 3.2 provides an overview of the total central government transfers for Svalbard purposes for the period 1987-98.

Table 3.2 Central government transfers for Svalbard purposes for the period 1987-98 (in NOK million, nominal value)
Year 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
Transfers from the govt. budget (net) 210.1 179.1 232.9 252.4 244.9 306.6 336.4 370.3 372.5 380.9 311.8 321.6
Allocations to the Svalbard budget 38.6 44.3 42.9 43.3 41.3 45.3 55.7 50.3 55.1 85.1 57.9 50.5
NIRDF funds - 0.9 0.1 0.3 7.1 1.1 2.2 1.7 10.4 4.1 1.2 5.6
Total central govt. transfers 248.7 224.3 275.9 296.0 293.3 353.0 394.3 422.3 438.0 470.1 370.9 377.7

The table is based mainly on figures from the Svalbard budget and central government accounts, and information from the NIRDF. Several of the items are estimates of how much of a larger grant was earmarked for Svalbard purposes, and therefore cannot be regarded as exact. The figures for the early part of the period are the most uncertain.

The table shows that from 1987 to 1996 there was a relatively heavy growth in central government transfers for Svalbard purposes. In 1996 transfers amounted to NOK 470 million, which is an increase of NOK 221 million compared with 1987. This represents a growth of almost 90 per cent in terms of the current value of the Norwegian krone. Adjusted for inflation, the real growth from 1987 to 1996 was 43 per cent, which corresponds to an average annual real growth of about 4 per cent. During the period 1996-1998, however, transfers have been reduced by about 20 per cent.

The figures for 1999 and 2000 show a fresh growth in transfers to Svalbard compared with the figures for 1998, which is due to the Svea Nord project.

The above figures are net sums, representing the remainder after the subtraction of the state's revenues from activities on Svalbard. The revenues for the period 1987-1997 amounted to about NOK 125 million. Most of this sum comes from taxes levied at Svalbard Airport.

The total amount of state allocations for Svalbard purposes in 1996 was extraordinarily large. This was mainly due to the transfer of NOK 52 million to Store Norske for investment in Svea. Additional appropriations also had to be made to the Governor in connection with the plane crash at Operafjellet in August 1996, and for a new administration building for the Governor's office after the old building had burned down in November 1996.

Until 1990 the activities of the Telecommunications Administration and the Postal Services Administration on Svalbard were part of the Svalbard budget, and the same applied to Svalbard Airport. As of 1991, however, the activities of the Telecommunications Administration were transferred to the government budget and so were those of the Postal Services Administration and Svalbard Airport as of 1993. As of 2000 extra costs related to tele-communications services on Svalbard will appear in the Svalbard budget, cf. section 12.3 Telecommunications services.

Table 3.3 shows a breakdown of central government transfers for Svalbard purposes by type of allocation.

Table 3.3 Central government transfers for Svalbard purposes for the period 1987-98 by type of allocation (in NOK million, nominal value)
Year 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
Allocations 248.7 224.1 275.9 296.0 290.3 352.9 284.0 422.3 437.9 470.1 370.9 377.7
Loans   0.2     3.0 0.1 0.3   0.1      
Equity capital             110.0          
Total 248.7 224.3 275.9 296.0 293.3 353.0 394.3 422.3 438.0 470.1 370.9 372.7

 

Table 3.4 Central government transfers for the period 1987-1998 according to category of activity (in NOK million, nominal value)
  1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
Coal mining 120.4 84.8 104.9 114.8 78.6 129.8 114.3 136.8 115.3 134.0 63.0 62.0
Research/research services 18.5 18.7 28.2 35.6 37.3 48.4 56.1 70.5 71.5 87.1 74.0 86.1
Higher education 0.0 0.0 0.0 0.0 0.0 0.0 14.2 37.0 49.5 44.4 33.4 33.9
Other businesses 0.0 0.9 0.1 0.3 6.5 0.5 0.9 1.9 11.4 5.1 2.2 6.5
Community services 65.0 68.4 92.5 95.2 122.8 114.9 130.3 106.6 117.1 100.1 124.7 122.5
Government agencies 6.2 7.0 7.3 6.9 6.9 14.2 22.7 18.9 18.1 13.2 14.2 14.7
Administration 38.6 44.3 42.9 43.3 41.3 45.3 55.7 50.6 55.2 86.2 59.4 52.0
Total 248.7 224.1 275.9 296.1 293.4 353.1 394.2 422.3 438.1 470.1 370.9 377.7

The categories comprise the following activities:

  • Coal mining: Store Norske Spitsbergen Kulkompani AS
  • Research/research services: the Norwegian Polar Institute, the Research Council of Norway, the Norwegian Space Centre, the Norwegian Mapping Authority (geodesy division)
  • Higher education: University Courses on Svalbard
  • Other businesses: Private enterprises in Longyearbyen
  • Community services: Svalbard Samfunnsdrift AS, Kings Bay AS, daycare facilities, school, hospital, airport, postal and telecommunications services
  • Government agencies: Stations at Bjørnøya and Hopen (Meteorological Institute) and various directorates and inspectorates. The Norwegian Mapping Authority (excluding the geodesy division)
  • Administration: the Governor of Svalbard, the Commissioner of Mines, Svalbard church, Statsbygg Nord, etc. (allocations over the government budget to the Svalbard budget)

Figure 3.1 Central government transfers for the period 1987-98

The figure shows the same as Table 3.2, but in diagram form.

The table shows that the major share of central government transfers is in the form of allocations. The loans have been made by the NIRDF to companies in the tourist and other industries. The equity capital sum of NOK 110 million refers to payment made to Store Norske for the state's purchase of shares in Svalbard Samfunnsdrift AS.

3.6.3 Transfers to the various categories of activity

Table 3.4 shows how central government transfers are distributed between the various categories of activity.

The major part of the state subsidies in the period 1987-1998 has gone to coal mining and com-munity services, and considerable sums have been allocated to administration and research/research services. Since 1993 central government funds have also been allocated to the establishment and operation of the University Courses on Svalbard (UNIS).

One of the greatest changes during the period 1987-1998 is the reduction in the proportion of central government transfers to coal mining. In 1987 this accounted for about 48 per cent of total central government transfers, while in 1998 this had been reduced to 16 per cent. During the same period transfers to research/research services increased from about 7 per cent of the total to 23 per cent. However, the Svea Nord project has caused the coal-mining share of central government transfers to increase again; in the 1999 budget this was 22 per cent and in the budget proposal for 2000 it has risen to 31 per cent.

For trends in the other central government agencies the reader is referred to the Svalbard budgets for the period in question.

3.7 Norwegian Svalbard policy since 1985 in perspective

When Report No. 40 (1985-86) to the Storting concerning Svalbard was submitted in 1986, an increase in industrial activity was expected in the whole Arctic region, especially in connection with petroleum activities. However, this has had little direct impact on Svalbard. No finds worth exploiting have been made, and exploratory activity has not attained the expected volume. Coal mining has followed a negative economic trend, with falling prices and declining activity. The change in economic policy that took place in about 1990 was therefore essential for securing a foundation for stable Norwegian settlement on Svalbard. In terms of creating a more diversified economic structure in Longyearbyen, the policy has succeeded beyond all expectations. The Norwegian population has increased and new enterprises have more than compensated for the reduction in man-years in coal mining. The goal of reducing central government transfers to Svalbard, on the other hand, has not been achieved during this period. It should be noted, however, that a substantial part of the transfers in the 1990s has been spent on infrastructure and improving services, not on subsidizing new economic activities.

Maintaining peace and stability in the northern areas has been a mainstay in Norwegian Svalbard policy. The improvement in East-West relations from the end of the 1980s enabled the Norwegian authorities to exercise their authority in a much more active manner, including in the Russian settlements. This, together with the strengthening of the administration on the archipelago, means that the exercise of Norwegian sovereignty has been strengthened during the period.

In this connection it should be noted that the general détente has not meant that Svalbard's strategic importance is reduced, but that it has changed in character. Developments in the Russian economy have posed new challenges, not least in the environmental field, and there has been considerable pressure on the fisheries resources in the whole Barents Sea. The assessments made in 1985 in connection with Report No. 40 (1985-86) to the Storting are therefore still highly valid.

Environmental protection in its broadest sense has become more important and has received correspondingly more attention since 1985, at both national and international level, and the Norwegian authorities have placed increasing emphasis on this in their Svalbard policy during this period. Report No. 22 (1994-95) concerning environmental protection on Svalbard sets out ambitious goals for environmental management, which has been considerably strengthened at all levels. The research activity on Svalbard, which has also expanded greatly during this period, is mainly in the environment field. Generally speaking, environmental protection has become one of the main objectives of Norwegian Svalbard policy.

There has been general political consensus on the main lines and priorities in Norwegian Svalbard policy throughout the period, as was the case prior to 1985. This continuity and consistency have done much to enhance the credibility and effectiveness of the exercise of Norwegian sovereignty.