Handelsministerens lunsjtale

Houston, torsdag 12. september 1996

Norway: Your maritime and high technology partner

Ladies and Gentlemen,
- intro
Let me first of all express my appreciation for your invitation. The Norwegian American Chamber of Commerce is an important assembly for discussing developments in Norwegian - American shipping relations. The Chamber is an important tool, as well as an important partner for strengthening the ties between Norway and America.

Betydningen av Houston/USA for norsk skipsfart m.m.

As a center of international business and trade with a well developed port system, Houston plays a very important role for Norwegian shipping companies. As a matter of fact, the port of Houston is one of the ports in the United States where Norwegian ships call most frequently. This applies especially for tank, gas and chemical carriers.

It is also interesting to notice that at any time, 30 to 50 percent of the Norwegian ocean-going fleet is on route to or from a port in the United States. It is therefor needless to tell you that not only Houston, but the United States as a whole plays a significant role for Norwegian shipping, as well as Norwegian trade.

- Norge som skipsfartsnasjon

Norwegian shipping operation and maritime involvement is rich in traditions. Since ancient times, transportation by sea has been the most convenient mode of moving people and goods. The Norwegian shoreline, including islands and fjords, measures a total length of 56,000 km, equivalent to one and a half times around equator. The Norwegian transport system has been and is dominated by the sea. 80 to 90 percent of the goods are transported onboard ships.

Not only do we use the Norwegian coast, but we are also active abroad. Norway is the third largest shipping nation in the world, and a higher proportion of its fleet sails under the country's own flag than is the case for any of the other traditional shipping countries. The international dimension is demonstrated by the fact that the Norwegian fleet mainly consists of cross traders, and more than 90 percent of our fleet never calls at a Norwegian port.

The shipping industry is today recognized as the core component of a many-faceted Norwegian maritime community, where the cluster of maritime enterprises is very much inter-linked in a way as to enhance the competitiveness of Norway as a maritime nation. This phenomenon impacts not only the economics of the maritime sector, but also enhances the social environment in which the various business operate. Norway has a high level of expertise, and has developed internationally competitive companies - several of them world leaders - in fields such as shipbuilding, ship's gear, technical surveillance, shipbroking, research and development and finance. Several Norwegian insurance companies are also world leaders in the field of marine insurance. These segments of the Maritime sector have key positions both in Norway and in the international shipping community.

Where many countries maritime industries are now fragmented, Norway stands out because of the wide range of its maritime cluster of companies, and its significant stake in the world marked. The cluster offer a highly competitive environment able to meet the challenges from home and abroad. The various maritime trades and services are thus seen as parts of a cohesive whole. Norway's strong position in the maritime sector is based on expertise, the ability to adjust and innovation.

The development of new technology within the maritime sector is based upon user oriented programs. We feel it is important to focus on research programs that correspond directly to needs and challenges in society. Sustained technological development and innovation is a first-order priority for the Norwegian maritime industry sector. And as a leading nation in maritime technology, Norway has the possibility to contribute to cooperation in the field of maritime research.

- melding

In a report of 15 March 1996 from the Ministry of Foreign Affairs to the Norwegian Parliament - Stortinget - the Government introduced a number of proposals regarding the maritime industry. These are aimed at achieving our goal of maintaining Norway's position as a leading maritime nation. These measures include securing the recruitment of Norwegian men and women to the Norwegian merchant marine, providing the environment for state-of-the-art services and technology, and a strengthening of environmental protection at sea, for example by encouraging the use of modern, environmentally sounder vessels.

Measures that will be implemented in order to stimulate recruitment include tax reimbursement to companies and strengthening the education of new seafarers. In addition the Parliament approved proposals concerning new financing schemes to the ship building sector, increased public funding of maritime research, more stringent rules for use of foreign masters on Norwegian ships and a number of actions to prevent maritime pollution. All in all there is broad agreement that these measures will contribute to increased competitiveness of ships under the Norwegian flag, and thereby strengthen the maritime industrial sector.

An important point in the Report is that Norway aims to enable companies to operate from Norway under Norwegian standards, to the benefit of the entire maritime sector and economy. To ensure this the Parliament adopted a new tax system for Norwegian shipping companies. The new tax system exempts Norwegian shipping companies from regular corporated tax (28 percent) as long as funds are held in the company. The companies will in addition pay a tonnage tax in line with existing Dutch and Greek conditions. Norwegian companies are therefore able to operate under similar tax conditions as other international shipping companies.

International shipping is bound to expand further as international trade is expanding. Shipping offers the best way for taking care of this expanding trade because shipping is the most environmentally friendly mode of transportation.

- sikkerhet

A main objective in our shipping policy is to improve safety at sea. We give high priority to national and global efforts to improve safety at sea. The safeguarding of human life, ships and cargo has many aspects, and is a continuos process. Norway is at the forefront in the use of information technology at sea. The use of such technology can help to improve safety standards. The development of electronic navigation and information systems, which includes electronic sea charts and accurate satellite-based position findings, is an important element.

Although many measures have been adopted in recent years to improve safety at sea, a great deal remains to be done. There have unfortunately been several serious accidents costing far too many human lives in recent years. These accidents are a challenge for all those engaged in the maritime industry.

Norway is not alone in being uneasy over this development; it is a concern we share with most major shipping nations. This widespread recognition that the problems are largely international, and cannot be solved by national measures alone, is a good starting point for further efforts. Safety at sea can best be assured if we all agree to play by the same rules. An international industry like the shipping industry needs rules which promote safety in a global perspective.

As a matter of fact, safety at sea can only be obtained satisfactorily through international cooperation. Norway believes that initiatives to improve safety at sea must be taken in the International Maritime Organization (IMO). At times it takes a while to reach a satisfactory outcome. Still one must keep in mind that unilateral or multilateral actions, besides being insufficient, distorts the efficiency of free competition in the market of international sea transportation - and such measures also weaken the spirit of cooperation in the global maritime community. However, the lack of efficient implementation of IMO standards in many countries is a serious challenge to the credibility of global measures.

There is a need to develop a "total maritime safety regime". Its key issues should be improving flag state compliance with existing international rules; the use of port state control as a compliment to the work of flag states; and emphasis on the "human factor" with regarding both seamen's qualifications and their working environment.

The IMO International Ship Management Code is the most recent important improvement. This instrument indicates a new "safety" era where government regulators are less oriented to specific details and more oriented to company responsibilities for their overall operations.

- den maritime sektor/Norsk leverandør- og tjenesteindustri

Norway has one of the largest and most diversified ship equipment industries in the world employing over 10,000 people. The expertise in Norwegian shipbuilding, and the production of ship equipment, is unique.

Supply and manufacture of ship's gear represents an important field in our many-faceted maritime sector. Norwegian equipment suppliers have long cooperated with Norwegian shipyards and shipowners. They are an important part of the maritime community. Not only with regard to the recruitment of personnel with a maritime background, but also in relation to shipowners as customers and working partners in the development of new products. The manufacturers deliver a wide range of equipment worldwide, and they are particularly recognized in the field of navigational equipment.

We do have excellent cooperation between American shipyards and the Norwegian ship's gear industry. An extensive campaign promoting Norwegian ship's gear was carried out in the United States in April 1995. The campaign appeared to be very successful, both for American shipyards and Norwegian equipment suppliers.

- norske oljeinteresser

I cannot speak to the Norwegian American Chamber of Commerce in the "oil capital of the world" without also making reference to another important sector which binds Houston and Norway together - namely the petroleum sector.

When oil was discovered in the Norwegian sector of the North Sea about a quarter of a century ago, Norway didn't have the necessary technology and expertise to develop the resources on her own. During the initial stages we depended to a significant extent on foreign companies and their know-how. And where better to look for expertise in this field than right here in Houston! The ties between Houston and Norway developed quickly. A number of Norwegian companies established activities here, mainly in the shipping and petroleum sectors, and already in 1973 the Southwest branch of the Norwegian American Camber of Commerce was opened.

The shipping and petroleum industries are, of course, today very much inter-twined. We have over the years seen a remarkable development as to the utilization of shipping. Not only in drilling operations and storage, but more recently also in the area of technically sophisticated floating production vessels.

Several companies from this part of the United States also established themselves in Norway, mainly in Stavanger, and Houston and Stavanger became sister cities - a natural match!

Norway's investment friendly climate combined with technological innovations has resulted in Norway being the second biggest oil exporter in the world with a production in excess of

3 million barrels per day. A substantial part of the Norwegian oil is exported to the United States. In total Statoil sells about 500,000 barrels of crude oil and oil products per day on the American market.

It is important that the petroleum sectors in Houston and in Norway continue to work together to develop technology which will be needed to meet the challenges this sector will be facing in the future.

- konklusjon

The seven seas cover most of the surface of this planet, and I am sure that we will experience innovative maritime activities and concepts in the future that are untaught of today. In this process we will need basic maritime skills and attitudes like the will to discover, create and cross horizons into the unknown, in a multi-cultural and transnational-national atmosphere.

Yet, I will underline that for Norway, to retain its position as a major maritime power in the future, we must be willing to place emphasis upon and continue to develop our competitive advantages in the areas of technology, human resources and know-how, and safety at sea - all based on the important, underlying concept of a sustainable development.

Thank you for your attention!