ISSN 0804-709X
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THE ROYAL MINISTRY OF FOREIGN AFFAIRS
Press Division, Oslo
NORWAY DAILY NO. 118-122/94 BT/KJ
DATE: 23 June 1994
OVERSEAS BUSINESS GROWING FASTER (NTB/Dagens Naeringsliv)
The volume of business done by Norway's biggest companies is
growing four times as fast abroad as it is at home, and foreign
markets account for 40 per cent of this volume. This trend is
revealed in an analysis performed for Dagens Naeringsliv by D&B
Soliditet based on statistics from Norway's 300 biggest companies.
While domestic sales for Norway's biggest companies went up 1.8
per cent last year, growth in foreign sales for the same companies
was 8.2 per cent during the same period. This analysis shows that
the dependence of Norwegian industry on foreign trade is
increasing. While overseas sales of goods and services comprised
39.3 per cent of the 300 biggest companies' turnover in 1993, this
figure rose 1.5 per cent to 40.8 per cent. Three hundred and
twenty-one billion kroner worth of "Norwegian" goods were sold by
the 300 biggest companies last year. The greatest growth in
overseas sales, in per cent, did not take place in the oil
industry, nor in manufacturing or shipping. The greatest growth by
far took place in "other industries", including construction,
transport, trading and services.
GUATEMALA TALKS IN CRITICAL PHASE (Aftenposten)
Representatives of the guerillas and the Guatemalan government
agreed yesterday to continue talks for one more day. Discussions
have been going on night and day, and some progress has been made,
but not enough for the parties to sign an agreement that would lay
Guatemala's bloody past to rest. "We are doing everything we can
to achieve some results from these negotiations, but some deep
psychology is involved. We've got two parties here who have been
at each other's throats for over thirty years. There are a lot of
principles and prejudices to be overcome," said Norway's Latin
America mediator, Arne Aasheim to Aftenposten.
VALUE-ADDED TAX MAY GO UP (NTB)
Finance Minister Sigbjoern Johnsen has confirmed to the Norwegian
News Agency that the VAT rate may be raised if Norway joins the
EU. "I cannot discount this possibility as one way of adjusting
total consumption," said Mr. Johnsen, pointing out that growth in
consumption this year may be stronger than anticipated by the
Government. Moreover, if Norway joins the EU, with EU prices on
farm products implemented from day one, household purchasing power
will receive an additional boost on the scale of NOK 5-6 billion.
"In a situation like this, we have to consider the value-added
tax. However, we will not deprive the taxpayers of all the
economic benefits they stand to gain by membership of the EU." Mr.
Johnsen takes the view that it is better to use the fiscal budget
as an implement of controlled austerity than to raise interest
rates to accomplish the same thing.
APPLICATIONS FOR HIGHER EDUCATION STILL RISING (NTB)
According to a preliminary survey compiled by the Ministry of
Education, Research and Church Affairs, 102,000 applicants have
sent nearly 850,000 applications to Norwegian colleges and
universities. This is the greatest number of applicants and
applications ever recorded. There are approximately 1,000 more
applicants this year than last year.
EU SUMMIT (Dagbladet)
Prime Minister Gro Harlem Brundtland and Finance Minister
Sigbjoern Johnsen will openly criticize the economic profiles of
the EU's member states when the EU's heads of state or government
meet on Friday to discuss unemployment and economic policy. The
Norwegian PM confirmed this yesterday when she arrived at Corfu.
Discussion of the EU's White Book on Employment, Economic Growth
and Competition will be the most important item on the agenda of
this weekend's summit being held on the island of Corfu. Norway
has targeted this issue for publicizing its views. "My aim is to
broaden the scope of economic and political consideration to
include environmental efforts and investments as an integral part
of the whole," says Ms. Brundtland.
TODAY'S COMMENT:
Norwegian companies are growing four times faster abroad than they
are at home. This sharp rise in overseas activity is partly due to
a growth in exports and partly to purchases of foreign
enterprises. But is the trend good or bad? Does it mean that
Norwegian industry is turning its back on unemployed Norwegians,
or that Norway is no longer an attractive country in which to
invest? If working conditions in general are prompting this flight
of industry, then we have every reason to be concerned. We believe
this applies only to a minority, however. One indication of this
is the significant number of foreign investors buying and
investing in Norway. If expansion abroad is the result of a number
of different strategic considerations, than there is little cause
for alarm. For many years, critical voices have decried the lack
of internationalization in Norwegian industry, pointing to the
shrewd Swedes who have acquired substantial foreign interests. We
should not then worry, now that Norwegian enterprise is following
suit. We may like it or not, and we may participate or not, but
one thing we cannot do, however, is let this be a one-way flight
only. (Dagens Naeringsliv)
DATE: 24 June 1994
BRUNDTLAND SPEAKS OUT ON BEHALF OF THE UNEMPLOYED AT CORFU
SUMMIT (Aftenposten)
A social democratic strategy for alleviating unemployment will be
the keynote issue of Prime Minister Gro Harlem Brundtland's
message to the summit of the EU's heads of state or government
today and tomorrow. Norway, Sweden, Finland and Austria are
attending for the first time, in the capacity of applicant states,
to sign their membership treaties in a solemn ceremony. The
Norwegian Prime Minister will take this opportunity to tell how
Norway has got its economy under control while reducing
unemployment. At the same time, she will emphasize that price
stability and low budget deficits are not the only way to create
more jobs, but that investments, education and environmental
measures are also necessary in the effort to get more people back
to work.
MOLAND PUTS PRESSURE ON INTEREST RATES (Arbeiderbladet)
The Norwegian Federation of Trade Unions blames Governor of Norges
Bank Torstein Moland for dropping hints that create negative
anticipations and lead to higher interest rates. The unions wonder
where the bank Governor's support for the positive trends in the
economy is. Mr. Moland recently stated that the final version of
the revised national budget has cut Norway off from a golden
opportunity to tighten up the economy, provoking anger in the
trade unions. "An overly nervous financial market has become even
more nervous," says Federation of Trade Unions economist Eystein
Gjelsvik. He ascribes the recent unexplainable interest rate surge
in large part to the central bank Governor's pessimism.
WORTH NOTING:
- Representatives of the guerillas and the Guatemalan government
reached agreement at the last minute on the creation of a "truth
commission".
- Hospitals around the country are threatened with strikes
beginning on Tuesday, after a request was filed for arbitration in
the conflict between the Norwegian Association of Local
Authorities and health workers organized in five different unions.
- Between 135,000 and 180,000 new jobs will be created in the
entire municipal sector up until 2007, according to a report
prepared by Econ Analyse for the Norwegian Association of Local
Authorities.
- Thorbjoern Jagland takes the view that Labour should keep
sitting in government even if the Storting does not follow the
counsel of the people on the EU accession issue.
- A decision on a new police services bill dealing, among other
things, with the right of police officers to go on strike, has
been postponed indefinitely.
TODAY'S COMMENT:
Finance Minister Sigbjoern Johnsen has signalled that an increase
in value-added tax rates may be considered if Norway joins the
European Union. He views a VAT hike as a means to keep total
consumer spending under control. Mr. Johnsen points out that there
are indications that growth in consumer spending will be higher
this year than anticipated, and membership of the EU - with EU
prices on farm products from day one - will mean an additional NOK
5-6 billion in private purchasing power. Mr. Johnsen stresses,
however, that diverting all of the economic benefits consumers
stand to gain from membership of the EU is out of the question. Of
course the benefits of EU membership should not be cancelled out
by immediate tax hikes. If the Finance Minister does not
straighten out his signals, it will be even more difficult for
many people to understand why we should join the EU. More
important than taxing any possible consumer gains from EU
membership, the Government should mount a guard against excessive
growth in debt-financed spending. Raising the general VAT rates in
order to reign in buying power would be a questionable move,
particularly if this step is taken as important household goods
become cheaper. The fact of the unequal social impact of a VAT
hike also makes it appropriate to warn the Finance Minister right
now against raising the VAT under the justification that food will
become cheaper. Those who are struggling hardest to make ends meet
are just the ones who would be a little better off if the prices
of important farm products could stay down. (Aftenposten)
DATE: 27 June 1994
"BLUECHER" CAN EXPLODE (Klassekampen)
If the oil is drained from the fuel tanks on board the "Bluecher",
a German cruiser lying at the bottom of the Droebak Sound, the
wreck could become a bigger menace than ever before. The
"Bluecher" was sunk during World War II as it entered the Oslo
Fjord. "There is a large quantity of old, unstable ammunition down
there - between 520 and 900 tonnes. Emptying the fuel tanks could
conceivably cause the wreck to shift or break apart, and a
tremendous explosion could be the result. This would set off a
large flood wave and substantial local tremors. So far, the threat
of major oil leakages is what has attracted most attention - and
there is no doubt, it is a major problem," says Colonel Erik
Ianke, press spokesman for the Headquarters Defence Command
Norway. "Operation Bluecher" may thus prove to be more complicated
than the public discussion has indicated so far.
STATOIL'S NEW BUDGET SCANDAL (Aftenposten/Dagens Naeringsliv -
Saturday editions)
According to a preliminary Statoil estimate, expansion of the
Norwegian state oil corporation's refinery in Kalundborg, Denmark,
will cost NOK 3.5 billion, or approximately NOK 1.1 billion more
than originally anticipated. Moreover, the project is one year
behind schedule. Statoil chief Harald Norvik takes full
responsibility for the budget overruns. He still has the full
confidence of the board. "It is the responsibility of Statoil's
board of directors to regain control of the Kalundborg project.
The cost overruns will not have any consequences for the board,
but they are regrettable," says Minister of Industry and Energy
Jens Stoltenberg.
WITH THE EU AGAINST CRIME (Arbeiderbladet)
Minister of Justice Grete Faremo believes Norwegian membership of
the European Union would be a big help to the Norwegian police in
their fight against the growing threat of international organized
crime. It would be naive to believe that Norway could evade the
activities of the international crime syndicates. "The fight
against crime is a major area of effort in the EU. Knowing how
widespread drug-related crime is around the world, the fact that
the EU has given top priority to fighting this type of crime is
important to me," says Ms. Faremo.
OUR VOICE WAS HEARD (Aftenposten - Sunday edition)
Prime Minister Gro Harlem Brundtland feels the other countries
listened to Norway's call for giving employment higher priority at
this weekend's EU summit. She points to the summit's closing
declaration, which, in her view, was a clearer statement than ever
before on the issues of full employment and a better environment
in Europe. "This goes to show that Norway is being heard, and does
not stand alone on these issues," she said in summing up her
impressions from the two-day Corfu summit.
WORTH NOTING:
- Borrowers have been leaving the Norwegian State Housing Bank in
droves for the past year and a half. Since 1993, a quarter of all
clients have transferred their mortgages away from the bank.
- Recent research indicates that the number of jobs in the
national government will go down approximately 7 per cent, or
11,000 - 12,000, up to the year 2000.
TODAY'S COMMENT:
The Norwegian economy is again showing signs of growth, and the
Government is quick to take the credit - as governments do when
things are looking up. When things go wrong, though, the fault is
generally ascribed to the preceding government, or placed abroad.
Yet no sooner have we absorbed the news of our changing fortunes
than the Government moves to stifle the impending upturn before it
has had a chance to get a firm footing. The Finance Minister has
even given notice of a value-added tax (VAT) hike to keep consumer
spending down. This will be especially necessary, we are told, in
the event that we join the EU, because membership of the EU will
lead to lower prices, particularly on food. So the VAT has to be
raised in order to curb spending. Disregarding the fact that in
doing so, Sigbjoern Johnsen has given the anti-accessionists an
unexpected boost, we do not understand the logic of issuing such
strong austerity signals so soon. (Dagbladet)
DATE: 28 June 1994
HOSPITAL STRIKE STARTS TUESDAY (NTB)
Nurses will go on strike at 38 of Norway's biggest hospitals on
Tuesday morning. The Norwegian Association of Local Authorities
and the Norwegian Nurses' Association rejected the state
mediator's proposal of voluntary arbitration. The authorities will
keep an eye on the situation. "If the strike escalates, we may
have to consider compulsory arbitration," says State Secretary
Erik Orskaug of the Ministry of Local Government and Labour. There
is no way of telling how long the strike will be allowed to
continue before the Government steps in. The last time nurses went
on strike, in 1988, the Government took action after eight days.
SUPPORT FOR ACCESSION STILL DOWN (Aftenposten)
The Government did its best in the negotiations with the EU. So
far, however, this does not seem to be good enough. "Just wait
until the negotiations are over - then opinions will come around."
This was the constant refrain of many advocates of accession to
the EU around the turn of the year. Yet the upturn in support for
accession has yet to materialize. Nonetheless, not a single
accessionist has even remotely hinted that the Government may be
at fault. By and large, the intensive membership negotiations are
considered to have been a success, but this has not led to a
change of opinion in the Norwegian population.
HELICOPTER CARRIER EXPANDS (Aftenposten)
Norsk Helikopter Service counts on becoming a global giant through
a phased takeover of the British Bond Helicopters. Each of these
two helicopter carriers, best known for shuttling personnel to and
from oil installations in the Norwegian and British sectors of the
North Sea, is a sizeable helicopter service on a global scale it
its own right. Between them, they boast 156 helicopters, 13
planes, nearly 1800 employees and an estimated annual sales volume
of NOK 2.5 billion. According to the agreement between the two,
after a three-year fusion period, Helikopter Service, a listed
company, will hold the entire stock in Bond Helicopters, which is
still mostly in the hands of a single family. Helikopter Service
will pay around NOK 800 million for the company, with transfer of
49 per cent taking place this fall and the rest in three years.
SICK LEAVE DOWN (Dagens Naeringsliv)
A central sick leave register may be up for a trial run sometime
this year. This register will show that employees are less often
absent from work due to illness. Paid sick leave was down 10 per
cent during the first three months of this year compared with the
same period last year. "A heightened focus on sick leave is one
reason for these good results, and there is room for further
reduction," says Director Helge Fredriksen of the Confederation of
Norwegian Business and Industry.
WORTH NOTING:
- The Government is holding back the refugee report until after
the EU referendum, claims Socialist Left representative Paul Chaffey.
- Arsonists must be stopped. Acts of arson cost society at least
NOK 360 million last year. Approximately 20 per cent of all fires
are thought to be the work of arsonists.
- The Norwegian State Railway must cut costs by NOK 200 million;
according to several independent sources, this is only the
beginning of a more comprehensive shakedown. Reduced operations
are unavoidable, and personnel cutbacks and leaner timetables are
probably in store.
TODAY'S COMMENT:
When membership of the European Union made it onto the agenda
again, Nordic cooperation had been faltering for two decades. Now
that the EU's negotiations with Sweden, Finland and Norway are
over, the interdependence of the Nordic countries, in no way
diminished by the revitalizing of the cooperative effort within a
broader European context, is again in focus. A Finnish and Swedish
people vote in favour of membership could swing the vote in our
own referendum in the same direction. As if to further underscore
the significance of the Nordic issue, there has been some talk in
Finland that the Riksdag may need a cooling-off period on behalf
of the people. The meaning of this is that the possibility would
be left open for the Finnish Riksdag to go against the express
view of the majority and reject membership of the EU if Sweden and
Norway choose not to join. A split Scandinavia, regardless of
where and how, would be a setback for each individual country as
well as for intra-Nordic collaboration. Viewing the issue from
this perspective, the argument for a Finnish cooling-off period is
every bit as well-grounded as the decision to hold the Norwegian
referendum after Finland and Sweden have clarified their
affiliations with the EU. (Aftenposten)
DATE: 29 June 1994
PM EXPECTS MAJORITY FOR ACCESSION (Arbeiderbladet/Aftenposten)
Prime Minister Gro Harlem Brundtland held her biannual press
conference yesterday, and as expected, EU membership and the
upcoming referendum were the dominating issues. The PM is still
counting on information on Norway's accession treaty with the EU
to convince doubters in the end. "I'm not sure how much people
know about the treaty. I do not think everyone is adequately
informed," she said. Ms. Brundtland has decided that she will
remain in government regardless of the outcome of the referendum
on 28 November, and she brushed off speculations on changes in the
Government roster in the event of Yes or No votes. However, she
said that if a parliamentary minority stands in the way of a
popular majority, Norway will be in a "deep political crisis". She
characterized this eventuality as a "lack of respect for the
people". The PM related that the EU states and Russia signed a
comprehensive cooperation agreement at the EU summit on Corfu.
"This is the most important agreement to be established between
Russia and Western Europe, and Norway - one of Russia's neighbours
- is not part of it. This is not as it should be, and to me, it
illustrates the point that if we are interested in getting
involved in the European cooperation, the EU is where it's
happening. The PM also underscored that the Government wishes to
make environmental cleanups and nuclear security in the northern
regions a joint European responsibility. "Events show that this is
best achieved within the European Union," she said.
COMPULSORY ARBITRATION NOT OUT OF THE QUESTION (Aftenposten)
The nurses are not keen on compulsory arbitration, and the
Ministry of Local Government and Labour will not take action at
this point, but State Secretary Erik Orskaug will not rule out the
possibility that the Government may step in if the strike
escalates and life and health are jeopardized. The Norwegian
Nurses' Association has escalation under consideration from day to
day. Prime Minister Gro Harlem Brundtland also made it clear
yesterday that compulsory arbitration was one of the Government's
options, but she emphasized that they would weigh the situation
carefully before taking this step.
UK SCRUTINIZES HELICOPTER MERGER (Dagens Naeringsliv)
The British Office of Fair Trading has initiated an inquiry into
the merger between Helikopter Service and Bond Helicopters. In
1992, the OFT blocked Bond's attempt to team up with British
International Helicopters. The same may now happen with Helikopter
Service. "We have already started looking into this merger,"
confirms Ray Hall, head of the OFT, who is handling the case from
the British side. He has not yet received any enquiry from the
Norwegian Competition Authority on the matter.
WORTH NOTING:
- The flags of seven nations will be raised at Jaattaa between
Stavanger and Sandnes today. After four years of preparatory
effort, the new NATO headquarters on Norway's southwest coast will
be formally opened. The NATO headquarters command at Kolsaas near
Oslo is being dismantled and will be reorganized in the UK.
- The Norwegian Competition Authority has granted Braathens SAFE
and SAS dispensation to continue their collaboration on air travel
ticketing. This arrangement offers travellers greater flexibility
in choosing airlines and departure times.
- The 1994 Para-Olympics showed a surplus of NOK 9 million.
Moreover, the organizers spent NOK 8 million less than the amount
appropriated by the Storting for the event.
TODAY'S COMMENT:
According to a press release issued by the Norwegian Nurses'
Association yesterday morning, "the strike morale of nurses
throughout Norway is excellent". By that time, the nurses' union
had received 600 applications for dispensations and had granted
around half. Patients have been sent home from a number of
hospitals, however. If the strike continues, additional patients
will be turned away. The situation in the public health care
services does not permit us the luxury of this strike. A
settlement on a par with that achieved by others must be reached
with the nurses, either through voluntary or compulsory
arbitration. (Arbeiderbladet)