ISSN 0804-709X
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THE ROYAL MINISTRY OF FOREIGN AFFAIRS, Oslo
Press Division
NORWAY DAILY No. 250-253/94 OeW/KJ
DATE: 27 December 1994
SEASON'S GREETINGS FROM THE TAX OFFICE (Dagens Naeringsliv-
Saturday edition)
Norges Bank Governor Torstein Moland received a letter last
Monday informing him that his tax assessment for 1990 will be
adjusted. The Oslo tax office requests additional information
concerning his investment in the Airbus A320 limited
partnership. This letter is the last step of the investigation
before the Oslo tax office submits a recommendation on
additional taxes or penalty taxes to the tax assessment board.
Mr. Moland must provide information on his involvement in the
affair within three weeks.
BURDEN OF PROOF ON MOLAND (Dagbladet-Saturday edition)
"If Norges Bank Governor Torstein Moland is assessed a penalty
tax, he has two options. Acceptance of the penalty tax would
amount to an admission of illegal conduct, in which case it
would be out of the question for him to remain in office. If
he still insists he is innocent, he will have to take the
matter to court for a final decision. If he goes to the
courts, the burden will be on him to prove his innocence,"
says Dag Jostein Fjaervoll (Chr.Dem.), spokesman for the case
in the Stortinget.
CONSERVATIVES REQUEST ANSWERS FROM TAX DIRECTOR (NTB)
Finance policy spokesman for the Conservative Party Per
Kristian Foss has requested Director General of Taxation Willy
Ovesen to submit a written account of the Tax Directorate's
handling of the Airbus affair. "I think Mr. Ovesen should have
a full account prepared by the close of the Christmas
holidays, with a full disclosure of all the facts. And he
should try to recall all meetings that have taken place.
Regardless of whether or not it is within its legal rights,
the Ministry of Finance should not get involved in specific
cases being handled by the Tax Directorate," says Mr. Foss.
NORTHERN NORWAY UNPREPARED FOR NUCLEAR ACCIDENT ON KOLA
PENINSULA (Aftenposten)
Norway is not prepared to tackle the consequences of a nuclear
reactor accident on the Kola Peninsula, according to Chief
Medical Officer Svein Aasten Dommerud at the Norwegian Joint
Medical Service, who issues this warning: "We know what could
happen, and we know it would have drastic consequences. Yet we
have no survey of resources, nor has any coordinated plan of
action been drawn up against the day disaster could strike. We
are not talking about 1,000 refugees in the event of a serious
reactor accident. It's more likely that between 10,000 and
30,000 people would come pouring across the border, in
addition to several tens of thousands of residents that would
have to be evacuated from Finnmark County."
RUSSIAN CRUISER BLOWN ASHORE ON FINNMARK COAST (Aftenposten)
The last thing any one wanted for Christmas hit the rocks near
Soervaer on the coast of Finnmark on Christmas Eve. The 211 m
long decommissioned Russian cruiser "Murmansk" was en route to
India, probably for dismantling, towed by the tugboat
"Marineskov". The "Marineskov" slipped its lines and left the
cruiser to the forces of nature. Drifting unmanned for 130
nautical miles, the derelict crashed ashore right below a
Norwegian military radar installation two days later. The
Coast Guard has escorted the "Marineskov" to Hammerfest where
the police have placed it under arrest. The "Marineskov" has a
crew of 40.
TELECOM ENLISTED TO ENFORCE TV LICENCE PAYMENT (NTB)
The Norwegian Broadcasting Company (NRK) has enlisted the aid
of Norwegian Telecom to collect licence fees owed by the
250,000-300,000 viewers who do not pay their fees. According
to Georg Apenes, Director of the Data Inspectorate, this sort
of link between registries is problematic. "The procedure is
irregular, and the legal basis pursuant to the legislation
dealing with registration of personal data is open to
question. Information from a register of persons - telephone
subscribers - is being used for a purpose other than that for
which it was intended," says Mr. Apenes.
WORTH NOTING:
- Nearly one-third of all the stock in Norwegian companies
quoted on the Oslo Stock Exchange is in the hands of foreign
investors. Acting through front men, large unidentified
investors have acquired some NOK 25 million worth of Norwegian stock.
- Sales of personal computers hit record highs in 1994.
December sales have exceeded all expectations.
- Norwegian suppliers of goods and services are just as good
or better than their foreign competitors, according to a
survey conducted by the respected consulting firm A.T. Kearney AS.
- Every ninth person charged with a crime last year was a
woman. Female crime of the 1990's is drug-related, and crimes
committed by women for personal gain are becoming increasingly
more serious.
- Liv Arnesen reached the South Pole at 8 PM on Christmas Eve
after an intense 50-day push through the icy wilderness on her
own. Another Norwegian team making a bid for the South Pole
expects to reach its destination sometime Tuesday evening.
TODAY'S COMMENT:
The Prime Minister has denied the allegations that she has
intervened in the Airbus affair, and to all appearances, she
is telling the truth. However, there are certain indications
that someone close to the PM may have had some involvement in
the matter. Since Dagens Naeringsliv in its 24 December issue
printed an actual conversation between Ingrid Tvedt, head of
the Oslo Tax Office and Jan Gotaas, head of the Oslo Tax
Assessment Board, the Government will nonetheless find it
necessary to acquiesce to the opposition's demand for a
written account of its handling of Mr. Moland's tax case.
DATE: 28 December 1994
CAUTIOUS OPTIMISM FOR 1995 (Aftenposten)
Finance Minister Sigbjoern Johnsen states in an interview with
NTB that he is optimistic that cost and price trends in Norway
will be lower in 1995 than the average for Norway's trading
partners. When asked how a renewed wage and price spiral may
be avoided, he replied, "The more we utilize our capacity, the
greater the challenge. The conventional danger signals are
what we must be on the lookout for, however. I will not get
involved in this year's wage settlements, but viewing things
in a historical perspective, one will see that socially
responsible settlements have brought the results we are
looking for." Mr. Johnsen believes that 1994 will turn out to
be a good year for the Norwegian economy because a consistent
economic policy has been maintained for a number of years.
Governor of Norges Bank Torstein Moland cautions against wage
increases in excess of two per cent, as anything over this
figure will weaken our competitiveness in the coming year. The
unions are given their share of Mr. Moland's praise when he
explains why the future outlook is good. He does not believe
in miracles, however - he views the recovery that peaked in
1994 as a result of long-range policies. He believe that the
expansive budget policies between 1989 and 1993 combined with
resolute efforts to achieve stable exchange rates are chiefly
responsible for renewed confidence and lower interest rates.
FEWER BANKRUPTCIES IN COMMERCIAL SECTOR (Dagens Naeringsliv)
The Norwegian business scene shows clear indications that the
Norwegian economy is in better shape now than it has been in
for a long time. 3,366 firms were declared bankrupt last year,
a 16 per cent decline from 1993. A surge in economic activity
in response to the international upswing and a sharp increase
in demand has pushed the volume of sales up. Low payroll and
other cost increases have allowed operating profits to grow,
and low interest rates have enabled heavily indebted
enterprises to lower their financial costs. These are the
foremost reasons for the decrease in bankruptcies.
EXPENSIVE OIL PLATFORM REMOVAL (NTB)
Sometime within the first quarter of 1994, the Storting will
have to take a stand on how oil platforms are to be cleared
from the North Sea fields. A number of them are on their last
legs, so to speak, and according to the Petroleum Act, oil
rigs that have not produced oil for two years must be removed.
There are now around 70 oil installations on the North Sea. If
all are removed sooner or later, and the average cost of
removal is NOK 200 million per installation, the total cost of
removal will add up to NOK 15 billion. The Norwegian
government's share of this bill is NOK 7 or 8 billion.
FEW ON DUTY (Aftenposten)
Peace on earth reigns over the Norwegian defence forces. Not
since the period between the World Wars have so few soldiers
been on duty. "Norway used to have the highest state of alert
in the entire NATO alliance. Not even the members of the
Warsaw Pact were up to our alert level," says Col. Erik Ianke
at Headquarters Defence Command Norway. Not everyone is on
leave, however. A few soldiers are patrolling the border with
Russia, the King's Guards are on duty in Oslo, and the F-16
units, rescue helicopters and Coast Guard are in a normal
state of alert.
WORTH NOTING:
- The market analysis firm FIBA Nordic Securities has assessed
the market value of the Statoil group at NOK 85.2 billion, NOK
5.5 billion higher than last time FIBA assessed Statoil.
- Per Farstad of the salvaging firm Berging AS, of Aalesund,
calls for a single person to be in charge of security along
the entire Norwegian coast. His demand was prompted by the
incident of the Russian cruiser that drifted ashore west of
Hammerfest on Christmas Eve. Responsibility for surveillance
and operative readiness is spread among 17 different
institutions at present.
- The Customs Administration has confiscated drugs worth a
total street value of NOK 230 million in 1994, NOK 6 million
more than the previous year.
- Nonpayment of bills for cellular telephone services has
become a major problem. Telemobil, Norway's biggest cellular
telephone operator, is losing NOK 40 million every year to
delinquent customers.
- The Norwegian Antarctic expedition calling itself "Unarmed"
reached the South Pole yesterday evening. The name of the
expedition refers to team member Cato Zahl Pedersen, who is
now the first disabled person to reach the South Pole on skis.
TODAY'S COMMENT:
The Government cannot escape the fact that it is worthy of
criticism for being too cautious in reining in public
expenditures. In order to meet future economic contingencies,
a state must build up reserves during periods of economic
buoyancy when it is best able to accumulate the resources
which will enable it to fulfill future obligations. There is
no reason why the Government cannot adjust its 1995 fiscal
policy to yield a budget surplus. Considering that a major
portion of the reduction of the deficit achieved between 1993
and 1995 was accomplished by transferring money from the
central bank and the Government Bank Insurance Fund to the
Treasury, Finance Minister Sigbjoern Johnsen and the rest of
the Government can hardly boast of having strengthened the
Norwegian economy against future periods of economic decline.
(Aftenposten)
DATE: 29 December 1994
FISHERIES MINISTER REACTS TO SHIPWRECK (NTB)
The shipwreck near Soervaer in Finnmark on Christmas Eve will
give rise to a discussion of coastline security, according to
Minister of Fisheries Jan Henry T. Olsen. Mr. Olsen is reacting
to the fact that the Norwegian Armed Forces had been aware of
the Russian trawler's towing problems several days before the
shipwreck. "What happened was inexcusable. I feel that it is
worthwhile to examine this specific situation in order to learn
how we, the authorities, can improve our preparedness," says the
Minister of Fisheries. Background: On Christmas Eve a 17,000 ton
Russian cruiser ran aground off Soeroeya near Hammerfest. The
captain of the tugboat "Marineskov" admitted that his boat had
let the cruiser go two days before without informing the
authorities. The cruiser drifted 130 nautical miles before
running aground.
NEW SITUATION FOR NORWEGIAN FARMERS (NTB)
Lower food prices, decreased Government funding, increased
competition and stricter demands for productivity: this is the
new situation for Norwegian farmers now that we are outside the
EU, according to Minister of Agriculture Gunhild Oeyangen. The
EU referendum is a thing of the past, but Ms. Oeyangen insists
that the need for restructuring in the Norwegian agricultural
sector is at least as great now as it would have been had Norway
joined the Union. Many farmers have been so concerned with the
EU that they have forgotten that GATT also presents challenges.
"We are entering a new period which will be essentially
different for Norwegian agriculture. We will no longer be able
to prohibit imports that compete with Norwegian products," she
said in an interview with NTB. "In certain respects, Norwegian
membership of the EU would have resulted in more rapid
adjustments. Outside the EU, however, our opportunities for
development are more limited, because the Norwegian market in
itself is so small," says the Minister of Agriculture, who is
now preparing for new negotiations with the EU to counteract the
consequences of the higher duties that Sweden will have to pay
for Norwegian agricultural products when it accedes to the Union
as of 1 January 1995.
SND FOCUSES EFFORTS ON CENTRAL REGIONS (Dagens Naeringsliv)
The division for equity capital in the Norwegian Industrial and
Regional Development Fund (SND) will continue to focus on
central regions rather than on outlying areas in Norway.
Regional director Erik Kotte-Eriksen of the Confederation of
Norwegian Business and Industry in Finnmark calls this "a
paradox". Since its inception, the division has invested NOK 365
billion in share capital in Norwegian companies. Only 2.6 per
cent of this amount has been invested in the four northernmost
counties of the country.
ONE OF FOUR MUNICIPALITIES UNWILLING TO RECEIVE REFUGEES
(Aftenposten)
Of the country's 435 municipalities, 131 expressed an
unwillingness to accept refugees from asylum reception centres.
Minister of Local Government and Labour Gunnar Berge is
nevertheless satisfied. "I think that this is a very good
result. It means that 300 have given a positive answer. Not all
municipalities have the resources to deal with refugees," says
Mr. Berge. A total of 10,500 refugees have been given a place to
live this year. Thus, the authorities did not manage to keep
last year's New Year's resolution to find homes for 12,000 to
15,000 refugees this year.
WORTH NOTING:
- Peace negotiations between URNG guerillas and the Government
in Guatemala have broken down. Norway wants to increase pressure
on both parties.
- Norwegian Statoil is the largest oil producer in Europe,
controls the most extensive oil reserves and has the second
largest gas reserves in Europe, according to Enerfinance's
ratings of the 30 largest oil companies in Europe.
- The Norwegian State Housing Bank has experienced a decline in
loans this year despite an increase in housing construction. At
the end of 1994, NOK 2 billion in unused funds remain in the Bank.
- Minister of Justice Grete Faremo will start the New Year
without having found a solution to the heated police conflict.
Still she refuses to back down, and questions whether the police
feel solidarity with other occupational groups.
TODAY'S COMMENT:
Norges Bank Governor Torstein Moland advises against wage
increases next year. If wages increase by more than two per
cent, the low inflation rate could be doomed, resulting in a
loss of competitiveness. This could have serious consequences,
emphasizes Mr. Moland. Of course he is right. However, when he
calls on the labour movement to display a sense of
responsibility, he could just as well have directed his remarks
to the Government and the Storting majority, who celebrated
Christmas by raising VAT and other duties, thereby contributing
to inflation. If the framework of the wage settlement is to be
kept as the Government and Mr. Moland hope, we would in fact
have to accept a zero settlement this spring, which is
completely unrealistic. Large groups within the public sector,
in particular, have expressed their dissatisfaction and
impatience recently. It is inconceivable that these groups would
voluntarily cancel their wage negotiations. The chances of this
happening are even slimmer now that the authorities have
initiated the duty increase. (Dagbladet)
DATE: 30 December 1994
OPSETH CONTROLS NSB (Aftenposten)
The board and administration of the Norwegian State Railways
(NSB) should be allowed to take their own decisions. Minister of
Transport and Communications Kjell Opseth and his staff have to
stop controlling NSB, according to former chairman of the board
Arne Rettedal. ''I was not given free rein, and Jan Reinaas will
also be curbed. The new chairman's personal qualities may well
enable him to make the board more effective than I did, but
without a real clarification as to who is in command at NSB, the
state-run company will not be able to operate on a commercial
basis,'' he says. ''Arne Rettedal is contradicting himself,'' says
Minister of Transport and Communications Kjell Opseth. He denies
the claim that NSB is controlled.
NORWAY - THE TAX HAVEN OF THE NORDIC REGION (Nationen)
Several studies reveal that Norway is the tax haven of the
Nordic region. Both a new OECD report and a study made by the
taxpayers' association in Sweden confirm this impression when
measuring income tax rates. The studies indicate that Norway has
a low income tax compared with our Nordic neighbours.
Nevertheless, State Secretary Oeygard of the Ministry of Finance
would not go so far as to call Norway a tax haven. ''Although
both personal and corporate tax rates are lower than those of
comparable countries, the expression `tax haven' should be
reserved for countries where national welfare is a much lower
priority than in Norway, and where tax levels are thus much
lower,'' he says.
MINISTER OF AGRICULTURE PRAISED FOR REFORMS (Aftenposten)
''Without a doubt, Gunhild Oeyangen will be remembered as the
main architect of the efforts now being made to break away from
previous agricultural policies. She is responsible for the
current market adaptation. It is also clear that the power of
the agricultural bureaucracy has been curbed with Ms. Oeyangen
as Minister,'' says Brynjulv Gjeraaker, who has almost completed
his history of the Norwegian Farmers' Union. Mr. Gjeraaker
believes that many of the Minister of Agriculture's achievements
have been epoch-making. Most important, he feels, are the GATT
agreement and the ensuing adjustments in import restrictions on
agricultural products.
MILLIONS IN MATERIEL DISAPPEARED FROM MILITARY STOREHOUSES
(Aftenposten)
Nobody knows what has become of NOK 3.3 million worth of
military materiel which has disappeared from the storehouses at
Gimlemoen in Kristiansand. After several years of inadequate
inspection procedures, extensive mismanagement in materiel
accounts has been revealed. The Norwegian Defense Establishment
rules out theft as an explanation for the disappearance of the
materiel. The Ministry of Defence is now assessing whether there
are grounds for instituting proceedings. However, on the
recommendation of Headquarters Defence Command Norway and the
regional command in question, Minister of Defence Joergen Kosmo
has decided to dispense with the question of criminal liability.
YES, I RECORDED THE CONVERSATIONS (Verdens Gang)
Oslo tax board chairman Jan Gotaas has confirmed that he
recorded the infamous telephone conversations with Oslo tax
director Ingrid Tvedt. Mr. Gotaas will hand the tapes over to
the police when he is summoned to witness in court after Ms.
Tvedt's report to the police concerning alleged wire-tapping. ''I
shall assess my own competence when Norges Bank Governor
Torstein Moland's case and the other Airbus cases are discussed
at the Oslo tax board. I think that Ms. Tvedt should give
serious consideration to her competence in this case - and she
should do so now,'' says Mr. Gotaas.
WORTH NOTING:
- Norway's oil assets increased by NOK 190 billion in 1994. New
finds and upgrading of older finds provided 1.6 billion barrels
in increased total reserves last year.
- The Postal Administration will shut down more than 300 post
offices during the next five years. The first names on the
''death list'' have already been decided.
- If the Norwegian stock market were to achieve a more stable
interest rate than this year, it would be able to climb by 10 to
15 per cent in 1995.
- Good news from Ted Hanisch, the new Director General of the
Labour Directorate: unemployment in 1995 will be even lower than
anticipated. According to new estimates, official unemployment
will be 100,000, or an average of 4.6 per cent, next year.
- The last lap of the EU race ended up costing the ''No to the
EU'' organization dearly. Their coffers are empty and they are
left with unpaid bills amounting to between NOK 4 and 5 million.
TODAY'S COMMENT:
It is not exactly news when Minister of Agriculture Gunhild
Oeyangen maintains that the need for restructuring in the
Norwegian agricultural sector is at least as great now as it
would have been had Norway joined the Union. Lower food prices,
decreased Government funding, increased competition and stricter
demands for productivity: this will be the new situation for
Norwegian farmers in the near future. It is highly probable that
the Minister of Agriculture will be accused of taking revenge on
the agricultural sector. Ms. Oeyangen, however, should stay calm
if confronted with such accusations. They are only a defense
mechanism on the part of EU opponents who have categorically
refused to acknowledge that it would be necessary to reduce
Government transfers to ensure our economic sustainability, and
they have found it convenient to forget about the great
challenges facing the agricultural sector as a result of the
changed conditions for world trade. Ms. Oeyangen deserves our
gratitude for accepting the considerable strain it undoubtably
is to implement the changes we cannot avoid. (Aftenposten)