On Tuesday, Norway’s largest ferry company, Fjord1, was sold to two foreign funds. This means that all four of the largest ferry companies in the country have been sold to foreign owners in the last five years. Several are now raising the alarm that critical infrastructure along the coast is no longer in Norwegian hands. – This challenges the Norwegian model and the interaction in Norwegian society, says Tom-Christer Nilsen, who is head of business policy at the Bergen Business Council. He adds: – Decisions that were previously drawn here will be drawn away. Over time, this will affect investments, value creation and welfare. The former Fjord1 owner Per Sævik characterized the decision as a “painful” decision, which was “forced” by Norwegian tax policy. The wealth tax on working capital has been blamed for the fact that some of the country’s richest have reported moving to Switzerland. Photo: NTB – A warning that Norwegian owners are giving up NHO director Ole Erik Almlid calls it “a warning that Norwegian owners are giving up doing business in Norway because of the tax burden”. – Norway cannot afford to lose active, private owners. They are the ones who will ensure the green shift, he says. Last winter, industrial leader Roger Hofseth initiated a “Vestland uprising” to get rid of the wealth tax on working capital. At the same time, a new report from Menon Economics showed that, for the first time, foreign ownership (36 per cent) is greater than private Norwegian ownership (35 per cent), measured by share of value creation. – It is sad that we are losing control of such an important transport component, says Bjarte Helland, who is group leader in Vestland INP. Studies show that foreign ownership can disrupt the trust-based cooperation between employers and employees that has historically characterized the “Norwegian model”. Other studies show that countries with a lot of foreign investment have higher productivity growth than countries with less foreign “interference”. On Tuesday, Norway’s largest ferry company, Fjord1, was sold to two foreign funds. According to what Dagens Næringsliv has learned, the price is somewhere between five and eight billion kroner. Photo: NTB – Unfortunate that strategically important companies are not in Norwegian hands Alfred Bjørlo (V) in the Business Committee reads the “rapid and uncontrolled downsizing” of private Norwegian ownership into an insurance context. – Other countries in Europe have long ago realized the importance of facilitating good local and national ownership, and the danger that lies in strategic acquisitions from unfriendly countries such as China. Here, the government is completely behind, he says. In May, the so-called Bergen Engines case led to the government tightening the Insurance Act. In 2021, Bergen Engines was almost sold to a Russian-controlled company for 150 million euros. Since then, what has been characterized as “sloppy handling” of Norwegian defense technology has been the driving force in the political work to tighten the legislation. – It can be unfortunate that companies that manage critical infrastructure are not in Norwegian hands, says Torgeir Knag Fylkesnes in SV. Reactions to the ferry hall Bjarte Helland, group leader in Vestland INP – It is negative that we are losing control of an important transport component, and therefore it is very sad that such a large team of shipowners is being disposed of out of the country. INP wants international actors and national actors to be on an equal footing when they have to contribute to the community through taxation. Endre Borgen Mæland, head of policy and public relations in the Norwegian Naval Officers’ Association – What is important to us is that the owners respect and help to further develop the Norwegian model of working life. We expect that new owners will further develop Fjord1 in the face of new technology and new environmental requirements, into a future-oriented company for the benefit of employees, passengers and owners. Ole Erik Almlid, NHO director – Our position is clear: Dividend tax must be reduced from its highest level since it was introduced in 2006, and wealth tax on working capital must be abolished. We have to listen when Norwegian owners sell out or move from the country. It is a warning when private owners point to wealth tax as a major problem. The bottom line is that all four ferry companies in Norway are foreign-owned. Norway needs foreign investors. But when Norwegian owners give up doing business in Norway because of the tax burden, it can become serious for Norwegian private ownership. That the government doesn’t see that worries me. Norway cannot afford to lose active, private owners. They are the ones who must ensure the green shift, and they need a tax system that makes Norway an attractive place to create jobs. Torgeir Knag Fylkesnes, SV – It may be unfortunate that a strategically important company that manages critical infrastructure is not in Norwegian hands. But it is impossible for us to guess what is the reason for the Sævik family selling out. Norway does not have particularly high capital taxation compared to other countries. We believe that state ownership should play an important role in ensuring that strategically important companies are in Norwegian hands. The state-owned investment company Nynsø klimainvesteringar is, for example, on the owner side of Torghatten AS. Alfred Bjørlo, Liberal Party – It is a big problem that Norwegian business is being sold abroad bit by bit. Norwegian business needs varied ownership – under this both state ownership and foreign ownership. But the rapid and uncontrolled downsizing of private Norwegian ownership that we are now seeing, not least in the maritime industry where Norway today has a particularly strong Norwegian competence environment that we can build on, is unacceptable. There is a great danger that in the long term this will lead to investments, the competence environment and jobs being moved away from Norway. Tom-Christer Nilsen Head of business policy – It is a big challenge if Norwegian owners stop being active business owners because it costs the business too much. The consequences of increased owner taxes and uncertainty about the tax system are that Norwegian owners sell or move out. This means that ideas that could be realized here and create jobs will be realized elsewhere and create jobs there instead. Olve Grotle, Høgre – I am interested in local ownership, and believe that it is an advantage both for the operation and development of the company and not least the willingness to invest. Locally located ownership will also in itself represent valuable expertise and jobs, and further have a greater ability to see new investment opportunities locally. Having said that, it must be emphasized that having solid, long-term owners who have the ability to top up with growth capital when needed will likely be more important than what the owner sees. When it comes to Fjord 1, I have noticed that the trustees do not seem to be concerned about a change of ownership, but are more concerned that it is funds that become new owners and not competitors. Marie Sneve Martinussen, Raudt – Those who are concerned about little private ownership in Norway should support Raudt’s proposals to make it difficult to avoid the tax bill by fleeing to Switzerland. Unfortunately, the media buys the lament of the rich. The problem with the tax system in Norway is that the richest pay a smaller proportion of their income in tax than ordinary wage earners. Orkla sells Elkem to China National Bluestar Group Co. Ltd for 2 billion dollars in 2011. Photo: Afp – Problem that it is easier to be a foreign owner The County Council calls for a more active state ownership policy and rejects that Norway has particularly high capital taxation compared to other countries. – I would prefer to see Fjord1 come back into public hands, says Raudt manager Marie Sneve Martinussen. – In the next few years, ships all over the country will be replaced to become emission-free. Then the public sector must use the opportunity to take over the operation itself. To that, the right-wing side replies that the Fjord1 sale is the last judgment on the “daily consequences” of Norwegian owners having to pay a tax that the foreign competitors avoided. – It is a problem that it is easier to be a foreign owner than it is to be a Norwegian owner, says Frp representative Helge André Njåstad. – Local ownership is an advantage both for operation and development, says Olve Grotle in Høgre. He nevertheless clarifies that nationality is subordinate to having “solid, long-term owners who have the ability to top up with growth capital when needed”. – It would like to be more important than what the owner thinks. Then we have to remind ourselves that we have a large oil fund abroad, and that it would be strange if we did not welcome foreign investors.
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Alarm after sale of critical infrastructure abroad – news Vestland
