Behind closed doors at the Storting, an intense tug-of-war is now taking place over this year’s national budget. The government has submitted its revised proposal, but needs SV’s support to gain a majority in the Storting. Changes in oil policy, new climate measures and more money for those who are hit hardest by the sharp rise in prices. That was SV’s demand when the negotiations started. news has spoken to a number of sources close to the negotiations that are now taking place in the Cabinet Chamber at the Storting. There is broad agreement that it is climate that is now the most difficult. Near the top of SV’s list of demands before the start of negotiations was getting something done with the oil policy, which news has mentioned. It is important for SV to slow down the speed of Norwegian oil extraction, in order to ensure cuts in climate emissions. Therefore, the party wants to protect vulnerable areas, close off oil activity in the far north and scrap the particularly favorable conditions for the industry in the controversial oil tax package. But according to what news is experiencing, there is a strong reluctance in the governing parties to give SV a new victory in oil policy, such as increased taxes or a halt in exploration. Several sources flatly reject that SV will get such a victory. NEGOTIATOR: SV’s Kari Elisabeth Kaski and finance committee leader Eigil Knutsen (Ap) at the Storting when the talks started. Photo: Hanna Johre / NTB “Great impact” There are several reasons for this. From the government’s side, it is an important principle that the framework for the oil industry should not be changed in negotiations on a revised national budget. In addition, the need for predictability for the industry is highlighted as an important point. At the same time, it is pointed out from the government that SV has previously received what is described as major breakthroughs in oil policy. Above all, it applies to the decision that there will be no 26th licensing round for new oil exploration during this entire period of the Storting. In addition, last spring, SV received approval that it should not be opened for oil exploration in three individual fields in the so-called TFO round (predefined areas). But the negotiations continue on Sunday, and the picture may change in the run-up. SV’s negotiation leader Kari Elisabeth Kaski does not want to comment on news’s information from the negotiations. – SV has shaped and will shape oil policy going forward, she says. – For us, it is important to succeed with a fair green transition where we build up new, green industries and reduce oil activity. The government also knows that they have to deliver on that. REQUIREMENTS: SV’s Kari Elisabeth Kaski must come out of the negotiations with both green and red victories. Photo: Kai Rune Kvitstein / news Must have a green victory At the same time, the SV government came to a meeting on an important point in its own budget proposal last autumn. Then the much talked about oil tax package, which SV is strongly against, was made less favorable for the oil companies. Thus, SV may have to look at other ways to get a green victory that can lead to increased emissions cuts. The goal is to move Norway closer to the climate goal of cutting 55 percent domestically by 2030. But exactly where this SV victory will come from, news’s sources currently have no clear answer. And many “low-hanging fruits” have already been adopted by the government in climate policy. Increased allocations to Enova and increased investment in renewable energy are possible clues. But it is an important point for SV that what is adopted in the budget must provide documented emission cuts. Measures that limit emissions from car or air traffic may be on the table. The governing parties have rejected increased petrol and diesel taxes, but the parties have previously reached an agreement on increased investment in biofuels to cut emissions. And SV brings a gloomy picture with it into the negotiation room: Norway is not on track to reach its climate goals in 2030. This week, fresh figures showed that emissions were reduced by just 0.4 per cent last year. Dyrtid The backdrop for the negotiations is an unusual revised budget that the government has presented. Last autumn, Finance Minister Trygve Slagsvold Vedum (Sp) grossly missed the forecast for price growth this year. This led to the government having to add 56 oil billion in the budget update. The other major area for SV is social inequality and help for people who struggle with expensive food, petrol, electricity and other living costs. In this area, it will be easier for the three parties to reach an agreement, according to news’s sources. The reason for that is that the wishes of the three parties go in the same direction. The proposal already included a sharp increase in spending to compensate for increased price growth. SV advocated something similar already last autumn and then warned that too strict spending would mean an unnecessarily tight economy for most people. SV has demanded both an increase in large benefits such as child benefit and disability benefit, but also in schemes such as social assistance and housing benefit. The hospitals’ finances should also be strengthened, SV believes. According to news’s understanding, the parties are now discussing whether it might be possible to increase child benefit and social assistance. While it is probably easier to find money for specific measures such as housing benefit or social assistance, it will be more difficult with universal and far more expensive schemes such as disability benefit and child benefit. And as always, it is a difficult question where the money for new SV ventures will come from. In their proposal, the governing parties use 3 percent of the value in the oil fund. That is the limit the politicians themselves have set to limit the use of oil money over the annual budgets. The problem in the negotiations is that, among other things, SV wants to cover its investments through tax changes or its own cut proposals. The governing parties are not willing to change the taxes in a revised budget. As a result, the money has to be obtained elsewhere. From what news understands, there is room to spend a few more oil kroner, without spending more than 3 percent of the oil fund. The new deadline for the finance committee to complete its work on the revised national budget is Wednesday at 10 a.m. But the very last deadline is not until Friday. The budget must then be adopted in the parliamentary chamber – on the last day of the spring session.
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Rejects SV victory on oil – news Norway – Overview of news from various parts of the country
