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– This is an admission by the government parties that they have not previously met with the nightlife industry in Oslo, Oslo city councilor Raymond Johansen tells Børsen.
250 million
On Wednesday, it was announced that the ruling parties agreed with the FRP to grant municipalities with high unemployment an additional NOK 250 million in this year’s budget.
The money can be used to compensate local businesses affected by the pandemic.
FRP’s fiscal politician Hans Andreas Limi points out that the party now guarantees a faster payment of money to companies that are struggling and need urgent help in anticipation of the extensive compensation scheme.
– Of course, it is entirely possible that municipalities, in addition to contributing their own funds, help companies, he says, according to NTB.
53 different municipalities will benefit from the funds. The summary shows that Oslo, where there are almost 23,000 unemployed (5.8 percent), keeps about a third of the funds, 78.5 million NOK.
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Bergen gets 32 million, Stavanger 16 million and Drammen 11 million.
Blame it on Erna’s speech
– Little change
In Oslo, the amount is believed to be too low. In November, the city council leader presented what he described as an emergency call on behalf of core businesses in Oslo.
He did not hear the cry for help from the Storting. Johansen believes that the new money for local businesses is now, however, an admission that compensation packages so far have not affected the nightlife industry. But the new measure is not an answer to the call for help.
Throughout the crown pandemic, Oslo has been the county with the highest proportion of unemployed and we now have 35,000 unemployed. Although we are happy with the financial support for Oslo’s business community, this is first and foremost little money in the face of the huge challenges facing the nightlife industry, says the city council leader.
Bergen: – I need more
In Bergen, the tone is perhaps a little less harsh, but even there Erlend Horn (V), Councilor for Finance, Industry and Real Estate, is clear that the 32 million that Bergen receives in this scheme are not enough by themselves.
– We want to thank the Storting that in connection with the new era they have managed to find money, which we will use very well. But this must be the start of something, not the solution that saves a hard-hit industry, Horn tells Børsen.
– Considering the size of the crisis and the number of places that are struggling, it is clear that we expected an even greater sum.
He hopes that in Bergen he can start paying for the support to the most affected companies already in the New Year.
– This means that some can stay afloat a little longer, says Horn.
In Stavanger, which receives 16 million crowns, Mayor Kari Nessa Nordtun (Labor Party) says the big concern now is next year.
– Many companies are now on the border. 16 million can quickly become small compared to actual need. 2021 can be very demanding for businesses and individuals – we see current income taxes this fall trending down and the number of welfare recipients is increasing, Nordtun tells Børsen.
Prayers for Oslo Package
At least for unemployed
In Oslo, it is also noted that although they receive by far the largest amount of money, they are the large city that receives the least for unemployed.
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In November 2020, there were 22,920 unemployed in Oslo. Oslo receives a total of NOK 78.5 million, giving NOK 3,425 per unemployed person. The corresponding sums for Bergen and Stavanger are NOK 4,387 and 4,805, respectively.
– We have around 1,300 licensed liquor nightclubs in Oslo, and if we funnel all the money to these places, it will amount to around 60,000 support crowns for each venue. I doubt it’s enough for Oslo’s restaurants and nightclubs that are now in danger of going bankrupt or being sold to big commercial players, says Johansen.
– 2021 will be much worse than many think
It indicates that other more affected companies, such as hotels and transport companies, have been excluded.
– Many will probably experience this as a drop in the bucket, and far from good enough to deal with the troubles facing the nightlife and tourism industry in Oslo, says Johansen.
He promises that the city council will do everything possible to get the money out as quickly as possible, but at the same time says that it will take some time to implement a scheme that guarantees equal treatment and objective criteria.
On Wednesday, NHO released a recent survey among its member companies. Plus, it was a depressing read for the capital.
– This is very bad. Wherever we look, this is bad news. And it’s very bad for Oslo, says NHO director Ole Erik Almlid.
