The government proposes to increase the municipalities’ discretionary income by NOK 2.6 billion, on the assumption that cost growth in the municipalities is calculated at 3.7 per cent next year – which corresponds to NOK 16.4 billion. – The municipalities will notice that there is a tight budget, says Minister for Municipalities and Districts Sigbjørn Gjelsvik (Sp). As “comfort”, he pointed to the fact that Norwegian municipalities “are generally well equipped” and that they must have “a solid buffer”. “After several years of higher tax revenue than expected, many municipalities have built up larger disposal funds. Not least, 2021 was significantly better than expected, through unexpectedly high tax income towards the end of the year”, the ministry writes on its website. A description of the facts that does not immediately harmonize with the KS (the organization for the municipal sector). – After several years of higher tax revenue than expected, many municipalities have built up larger disposal funds, the government writes on its website. Photo: Kristian Skårdalsmo – Will give tough conditions – The expectations of what the municipal sector will solve are not in relation to the framework of the municipal economy, says chairman of KS, Gunn Marit Helgesen. She adds: – The framework for the municipal economy next year in the state budget proposal will provide tough conditions for the opportunities the municipalities and county councils have to provide residents with a good range of services. Bjørn Gudbjørgsrud is chairman of the Norwegian Council of Municipal Directors’ Forum. – It is understandable that the financial system is tight, he says. He points to increased costs linked to health and care services, higher energy prices and increased interest costs. – In such a situation, it is important that the government’s expectations of what the municipalities can fulfill from growth in services are not turned up, but are adapted to the economic conditions. Furthermore, it is unfortunate that it has not been established that the municipalities will be covered for the large extra costs they have had as a result of the corona in 2022. – The expectations of what the municipal sector will solve are not in proportion to the framework of the municipal economy, says chairman of KS, Gunn Marit Helgesen. Photo: John-André Samuelsen / news – Strong statement from twelve Ap mayors On Thursday morning, twelve mayors from the Labor Party took a strong stand against the government’s latest power tax measure “which moves money from the community in the municipalities to the community in the state.” – I think this mayor settlement is just the start of an even bigger rebellion, says director of Energi Noreg, Knut Kroepelien. He calls the proposal for the state budget “a climate-hostile municipal government which in practice takes NOK 50 billion from the municipalities”. – SP leader Vedum thus succeeds in coming up with a proposal that is very hostile to the district in his first budget, he says. Tom Georg Indrevik (H) is mayor of Øygarden municipality outside Bergen. – The whole budget bears the mark of the money being collected along the coast through increased tax on the farming industry, something that will go beyond the development of the municipalities along the coast, he says. – It may be that the municipalities have had good tax revenue at the end of 2021, but then in 2022 we have had growth in expenses on interest rate increases and corresponding losses on funds that the municipalities have standing, says Gunnar Silden (V), who is mayor of the city municipality . Photo: Jon Frogner – I like the review melody More positive is the mayor of Stord municipality, Gaute Straume Epland (Ap). – I like the profile where the review melody is redistribution. I am glad that the municipalities are prioritized and that the government is strengthening the income beyond what was outlined last spring. It was last Wednesday that the government announced that it will introduce ground rent tax on aquaculture and wind power. – Free ferries are of little help if there are no businesses left along the coast to use them, says business policy spokesperson in the Liberal Party, Alfred Bjørlo. In addition, they will halve the prices on all other ferries. The total price for this is NOK 420 million in 2023. – Our alternative budget will also be tight, but we must get a budget that is not as destructive to the districts, value creation and jobs in our district industries as the government says it is, says Olve Grotle (H), who represents Sogn og Fjordane in the Storting. – That means layoffs for us who build ships In 2022, 13 percent of Norwegian ferries will be built in Norway. Before 2015, by comparison, 82 percent of Norwegian ferries were “domestic”. Next year, the figure is expected to be 0 percent. This is shown in a new report from Norsk Industri. Hugo Strand is director at Fitjar mechanical shipyard. He says the aquaculture industry is “the biggest driver of Norwegian shipbuilding” and that the government “in its eagerness to redistribute wealth” will further weaken the shipbuilding industry. – That means redundancies for us who build ships, he says. Director of the Maritime Industry Association, Stål Heggelund, says to news that the proposal for a new state budget affects the aquaculture industry negatively in that several sea- and land-based projects “have been canceled or at best put on hold.” – This is a betrayal, says county deputy mayor in Vestland county, Natalia Golis (MDG). She adds: – If the government had dared to invest in emission-free ships, local companies in Vestland could start a new industrial adventure. Instead, we are in danger of being left behind.
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Strong reactions to the budget as “ruin for the districts” – news Vestland
