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Lost inventories must be compensated when corona measures result in closure

With the exception of the opportunity to run takeaways, the entire catering industry in the giant county of Viken was closed down this week. A number of municipalities elsewhere in the country have also introduced similarly strict restrictions. Oslo’s nightlife has in practice been closed since November last year.

Food and drink for huge sums have gone in the trash – or are about to go out of date in a short time. As far as booked as a loss. Losses, which can often be summed up to several 100,000 kroner for a business, according to the main organization Virke.

Geilo Mountain Lodge had bookings for one million kroner canceled within a few hours after the closure this week. Read the story here:

– Now Minister of Trade and Industry Iselin Nybø must get her finger out. We expect immediate follow-up of the Storting’s decision that costs for lost inventory as a result of corona measures will be covered, says the Center Party’s business policy spokesperson Sigbjørn Gjelsvik to Børsen.

He was one of the driving forces when the parliamentary majority instructed the government to ensure that lost inventories become part of the compensation scheme. Gjelsvik wonders about the silence that has followed since then – not least because the first crisis packages a year ago came about in a few days.

Breakthrough

On Tuesday 23 February, the Storting adopted the most recent crisis package for business and companies.

– An important breakthrough, was the feedback from crisis-stricken industries, the opposition and the employer side after the crisis package was expanded so that costs for lost inventory will now be included in the compensation schemes.

WAITING: Minister of Trade and Industry Iselin Nybø (V) can not say when expenses for lost inventories will become part of the compensation scheme.  Photo: Bjørn Langsem
ON HOLD: Minister of Trade and Industry Iselin Nybø (V) can not say when expenses for lost inventories will become part of the compensation scheme. Photo: Bjørn Langsem
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On top of it all, the decision had retroactive effect – from November last year – when Oslo introduced a liquor ban with a subsequent extensive closure of the capital’s nightlife.

– A little incredible

But the breakthrough is long overdue.

– Once again, at short notice, the government introduces new intrusive infection control restrictions that affect companies in large areas of Norway, without being accompanied by intensified economic crisis measures. The alarm signal that is now being sent from the business community is highly understandable and real, Gjelsvik tells Børsen.

Not only businesses in closed Viken are struggling. Here you can read a situation report from Hafjell:

Gjelsvik believes that it has been completely silent since the end of February when it comes to formalizing expenses for lost inventory as part of the compensation scheme, Gjelsvik:

– It is unbelievable that the government has not yet presented a solution for including costs for lost inventory in the compensation schemes, says the SP politician.

– Back all the time

The impatience is palpable in a crisis-stricken catering industry, says Rhiannon Hovden Edwards, leader of Virke culture and experiences.

– This takes far too long. We’re over a year into the pandemic. None of what is happening now should be apt to surprise. So this takes far too long, and the government is unfortunately always behind, she says to Børsen.

The Minister of Trade and Industry has chosen to let his State Secretary Lucie Katrine Sunde-Eidem answer Børsen’s questions about when expenses for lost inventory become part of the compensation scheme.

When the part of the question has not been answered in the e-mail from Nybø’s right hand:

– In Resolution Resolution no. 664 of 23 February 2021, the Storting asks the Government to include in the compensation scheme costs for lost inventory caused by the expiration date as a result of infection control restrictions in the compensation basis from the benefit month March. The government will do this, writes Sunde-Eidem.

ANSWER: Prime Minister Erna Solberg is asked about the 60th anniversary celebrations in Geilo.
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– The decision further requests that companies that can document large lost inventories as a result of infection control restrictions in the period November to February, should be able to apply for compensation for this. We are working on a solution for this as well, so that those who are hard hit during this period also receive compensation for this period, it is further stated.

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