Norway Daily No. 194/99

The Royal Ministry of Foreign Affairs,
Oslo Press Division

Norway Daily No. 194/99

DATE: 8 October 1999

LABOUR PARTY WANTS TO COOPERATE

(Dagsavisen)

Key finance politicians in the Labour Party and the centrist parties want a budget agreement that will commit both sides to cooperation next year, too. The main areas that may be included in binding agreements are VAT, taxes and redistribution policy. Soon Labour Chairman Thorbjørn Jagland and Prime Minister Kjell Magne Bondevik will meet for negotiations to see whether it is possible for the two parties to agree on the budget for the year 2000.

CENTRE PARTY OBJECTS TO FOREIGN MINISTRY'S WTO STRATEGY

(Aftenposten)

The Ministry of Foreign Affairs has ignored the views of many Centre Party politicians in its preparations for World Trade Organization (WTO) negotiations. The party's county chairmen have warned that they will fight the Government, after last week's Foreign Ministry decision to work towards establishing a common set of rules for investments within the WTO. This is in direct contradiction to a statement made at the Centre Party's national party congress in March. It is also inconsistent with Foreign Minister Knut Vollebæk's statements in the Storting in May and June.

STORTING DID NOT RECEIVE WEATHER REPORT

(Aftenposten)

Three months before the Storting decided that the new airport should be located at Gardermoen, a report made by meteorologists to the Ministry of Transport and Communications revealed that weather conditions there are extremely difficult in the winter. The Storting was never informed about this report. However, a similar report about weather conditions at Hurum was made public, and was a decisive factor in the decision not to build the airport there. According to these reports, problems caused by ice, freezing rain and snow are far greater at Gardermoen than at Hurum.

EXPENSIVE MEN FOR STOREBRAND'S SHAREHOLDERS

(Dagens Næringsliv)

Jens P. Heyerdahl Jr. and Kjell Inge Røkke have cost Storebrand's shareholders at least NOK 5.5 billion. After these two overturned the "Christiania merger", the value of the Kreditkassen bank increased by NOK 11 billion. Storebrand's shareholders could have received half of this. The potential losses incurred by the shareholders represent the difference between the market value of Kreditkassen and Storebrand on the day before the general meeting voted against the merger, and their market value yesterday. In addition, it is possible that a higher bid will be made on Kreditkassen before the sale is finalized. This would increase Kreditkassen's market value even more. LABOUR PARTY BURIES DnB PROPOSAL (Dagens Næringsliv) Hill-Marta Solberg, Deputy Chairman of the Labour Party, has rejected a proposal made by the top-level management at Den norske Bank regarding a new public financial report. This means that a majority of the Storting is against DnB's proposal. Svein Aaser and Gerhard Heiberg at DnB have encountered even more resistance: former Chairman of the Board Ole Lund has expressed deep and fundamental disagreement.

REPURCHASING AGREEMENTS NOT GOOD ENOUGH

(Dagens Næringsliv)

The repurchasing agreements offered to the Norwegian private sector by frigate suppliers Bazan and Blohm+Voss are not good enough. The Ministry of Defence is not prepared to reduce its demands one iota. Project coordinator Bjørn Krohn at the Norwegian Navy is afraid that the entire frigate-construction project may be put on ice.

NORWAY ON TOP OF WEAPONS LIST

(Nationen)

The UN has carried out a survey of firearms ownership in 15 countries in Western Europe and North America, plus Japan. According to the survey, Norway is one of the countries where per capita firearms ownership is highest. One in every three Norwegian homes has at least one firearm. Handguns and rifles are responsible for as many fatal shootings in Norway as in Northern Ireland.

WORTH NOTING

• * Maintenance of highways, bridges, signs and tunnels is currently NOK 12 billion in arrears, according to next year's fiscal budget. Appropriations for new roads are also far too low. And there is no improvement in sight. (Aftenposten) * The Office of the Auditor General seldom praises anyone to the skies. But now it has - in a report on the administration of the Petroleum Fund. The Ministry of Finance and Norges Bank have every reason to blush with pride. (Dagens Næringsliv) * Last year's turbulent winter of angry passengers and major delays has not frightened the employees at the Oslo International Airport, Gardermoen. Today they are celebrating the first anniversary of the opening of the airport, in the firm belief that this winter things will run more smoothly. (Dagsavisen) * The police may be accorded extended powers to detain persons who have been charged before they have to be brought before a court to be remanded in custody. A proposal to extend the time limit from the current 24 hours to up to four days, as in Sweden, is being considered. (Dagsavisen) * Lower retirement age, longer holidays and a shorter working week are the top priorities for most people, according to an extensive survey carried out by the Norwegian Confederation of Trade Unions. Higher salaries, on the other hand, were much farther down on the list. (Dagbladet) * Members of the workforce will lose up to NOK 20,000 annually from their pensions if the Government's proposal to cut down on contractual pensions is carried through. For some people the consequences may be even worse. The greatest losses will be felt by people on low incomes, according to calculations by the Confederation of Vocational Unions. (Dagens Næringsliv) * "The Ministry of Cultural Affairs should be closed down", says Per Sandberg, head of the Progress Party's group for cultural affairs at the Storting. The party would prefer virtually all cultural allocations to go directly from the Storting to municipalities and organizations. (Aftenposten) * Norges Bank, with Svein Gjedrem at the helm, wants to charge a fee for exchanging currency for the banks. Bank employees fear that this would mean a jump in bank charges to consumers of NOK 160 million a year. (Dagbladet) * The world's second largest pharmaceutical company, Novartis, currently earns billions of kroner on a drug developed from a particular Norwegian fungus. There are no existing regulations that can be used to ensure that Norway receives a share of the income from Norwegian genetic resources. (Klassekampen) * If you are dissatisfied with the interest on your mortgage, go to the bank and negotiate new terms. If that doesn't help, transfer your mortgage to another bank where your interest rates can be reduced. Despite the minor increase in the market rate of the last few days, interest rates are declining. It's never too late to negotiate! (Verdens Gang) * Production of Norwegian aquavit made from Norwegian potato-based alcohol appears to be secure, at least for the next five years. The Norwegian Potato Industry (NOPO) has signed a five-year alcohol contract with Arcus Products. (Nationen)

TODAY'S COMMENT

One thousand two hundred young Norwegians will, from now on, be able to gain first-hand experience of what the Ministry of Foreign Affairs refers to in the fiscal budget as "currently the most serious foreign and security policy challenge for the countries of Europe". This challenge, faced daily by soldiers of the Telemark Battalion, is to keep watch and prevent new conflicts in one of the most critical areas in Kosovo: the city of Kosovo Polje, near the capital Pristina. As the Ministry has noted, "substantial resources have been earmarked for political processes in the area". These resources include humanitarian assistance for people who have been affected by war and ethnic cleansing, as well as funding to help bring the economy and political life back to normal. As Chairman-in-Office of the Organization for Security and Cooperation in Europe this year, Norway has made an active and commendable contribution. But as early as next year our voice will no longer be heard when the centre of activities shifts to the EU, which will be responsible for coordinating the work of rebuilding and developing the Balkans. The EU took the initiative for the Stability Pact for Southeast Europe, and continues to play a leading role in this context. Once again we see that even if Norway earmarks "substantial resources" and participates actively in the field under KFOR, we do not have as much influence as we could have had if Norway had been a member of the EU. (Aftenposten)