The Minister of Trade and Industry’s furniture factory receives close to 100 million in public support despite the company having a solid economy. FRP is strongly critical.
The Labor Party and the Center Party have promised a more active state business policy. Most recently, we demonstrated this on Tuesday, when the new Minister of Trade and Industry Jan Christian Vestre (AP) stated to Klassekampen that the government is considering opening a state-owned hydrogen company.
Roy Steffensen is a member of the finance committee in the Storting for the Progress Party. A couple of weeks ago, Steffensen asked questions about a company in Eidskog municipality that is doing well and has a solid economy. Despite this, the company has received large grants from the public sector.
The company is now investing NOK 300 million and has received 5.8 million in support of Enova, 45 million from Innovation Norway and 44 millionr from the municipality, a total of 95 million. It should be said that the support from Innovation Norway is in the form of loans and grants, but it is not a completely random company we are talking about.
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Worth criticizing
It is the Minister of Trade and Industry’s own furniture manufacturer, Vestre AS, that benefits from large public subsidies. Jan Christian Vestre owns 70 percent of the family business, his mother the remaining 30 percent. The online newspaper recently estimated Vestre’s real fortune at more than NOK 100 million.
– What is reprehensible and interesting is whether the government believes this is a good example of active business policy, which they supported in the throne debate. It was also a central theme in the negotiations in Hurdal.
– But this is a company with a solid economy, which receives support and is subsidized by both Innovation Norway and Enova. They will distribute to the few companies they believe will succeed, says Steffensen to Nettavisen Økonomi.
Steffensen says about a possible state hydrogen investment:
– An active business policy should be to find ways to help those who are already good at hydrogen, not outcompete them.
Consequences
The municipal support to Vestre AS has taken place despite the fact that it will probably have consequences for a new swimming pool, new gymnasium and a new fire station in the municipality, according to Steffensen. He wanted to know from the finance committee’s new leader Eigil Knutsen (Labor Party) if this is an example of the new active business policy.
Knutsen replied that he did not fully understand the context of the question. But Knudsen believes we need an active business policy to achieve the climate goals, to position Norway in the green climate change and to get more young people into work
– If it is not a good example, it is sensational, because it is the Minister of Trade and Industry’s own company, Steffensen says.
Good roads
He and the Progress Party are not surprisingly a clear opponent of a more active state business policy. And Steffensen did not get much wiser from the answer he got from Knutsen.
– The best measures we can take for good business development are to ensure good roads, have lower electricity prices for industry as a competitive advantage and to reduce the wealth tax on working capital.
– And then we say no to a CO2 tax of 2000 kroner, while in Europe it is half, says the FRP politician. Eidskog municipality thus goes in and supports the new Minister of Trade and Industry with a significant amount.
Error
– Should the municipalities stay away from such investments?
– The municipalities must make their assessments. But I am terribly afraid that a more active business policy means that politicians will tip the winners in Norwegian business, and it will be wrong. See only when the state bought shares of Røkke, The loss was well over 4-5 billion, Steffensen answers.
The online newspaper has presented the criticism from Steffensen to Jan Christian Vestre. He will not answer whether he thinks the public support for his own company is a good example of an active business policy.
When asked what preconditions the state has for picking winners in the future, the Minister answers in an e-mail:
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Highest possible value creation
– We will use the community’s instruments as efficiently as possible to contribute to the highest possible value creation in a diversity of industries. When I say we should have an active business policy, it is not primarily about the state picking winners.
Vestre says it is about the state being an active partner that facilitates the business community itself to have the opportunity to promote the best ideas and compete for the projects they themselves believe in.
It is about everything from risk relief, grants and loan schemes, to infrastructure and good trade agreements. State ownership is relevant where it is most appropriate.
– This government has no ideological blinders in business policy. We will do what is smartest to help create profitable jobs, increase green investments, strengthen mainland exports and cut greenhouse gas emissions, Vestre writes in the e-mail.
Disappointing
Presented with the answer from the Minister of Trade and Industry, Steffensen answers that it is disappointing that the ministry can not or does not dare to say whether Vestre AS is a good example of active business policy. He believes it should not be so difficult to say whether this is the way companies should do more or less of.
– Personally, I think general tax relief, not special Norwegian taxes, not expensive CO2 taxes that are twice as high as in the EU, and continued investment in transport, are better business policy than giving subsidies to individual companies.
For the time being, Steffensen registers that the government mostly comes up with what he means big words when it comes to active business policy, without them seeming to fill the term with content.
– There will be another increase in the fees for most people, in exchange for a few receiving grants, followed by large media shows with the presentation of checks. Then the government can show how good they are at investing in business.
You who must row
– What signals do you want to send to the business community?
– My encouragement to business leaders is to listen carefully when socialists talk about active ownership. Politicians like to tell them that we are all in the same boat. But if they do not mention their company by name, they think it is your company and your employees who should calm down.
Steffensen is now waiting for the instruments that will be included in the so-called additional bill from the new government. This proposition will be added next week. Here, the Støre government will come up with proposals for changes from what the Solberg government presented in the state budget three weeks ago.
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