Government Introduces New Crown Crisis Package – NRK Norway – Summary of news from different parts of the country

• The scheme is becoming more general and includes companies that have had a turnover failure of more than 30 percent compared to last year.
• By September and October, companies will be able to cover up to 60 percent of their fixed and unavoidable costs. For November and December, up to 70 percent is allowed. The government will make a new assessment of the level of support during the New Year.
• The scheme will be searchable during the New Year. It will be administered by the Brønnøysund Registration Center. Verifications are done in advance and the auditor and accountant must confirm the request before submitting it.
• Payments are limited to NOK 50 million. For payments over 30 million, there will also be a reduction.
• The cost of compensation for rotation failures is estimated at NOK 5 billion. It applies to the period from September of this year to February of the next year inclusive. With a few exceptions, the scheme applies to all types of businesses across the country.

General support

The new scheme recently breaks with the government’s line of targeting new crisis measures in specific industries.

– Instead of orienting the compensation plan towards individual industries, we now see, as with infection and infection control measures, that it needs to be generalized. In this way, many are covered and we can help more companies to overcome the crisis, Nybø tells NTB.

The compensation scheme is just one part of the crisis package to be unveiled on Tuesday. In total, the government will drain the oil fund of around NOK 17-18 billion to finance the measures.

The government is expanding the temporary schemes for unemployment benefits, sickness benefits and days of care.

– We want parents to have the right to care provision until June 2021 in case of quarantine or closure, said the Minister of Family Affairs, Kjell-Ingolf Ropstad (KrF).

• The rules for the care subsidy will run through June 2021, and the fees will double to at least 40 days for a family next year as well. In addition, both the regulations on sickness benefits in the event of contagion or suspected contagion and the temporarily increased unemployment benefit rate will be extended until March.
• At the same time, the government is spending a billion on changes to the loan guarantee scheme and increased appropriations for the purchase of air routes to aid aviation.

You must make up for canceled events

Among the measures the government now proposes to support are events open to the public, infection control spending for businesses and a billion for the purchase of flights.

According to Culture Minister Abid Raja, the government is extending the compensation scheme to events that are canceled as a result of all public requests, not just state ones. The scheme will apply throughout the year.

The government is proposing to spend around NOK 1 billion on the health sector, including a national emergency reserve for infection control equipment. And compensation to the municipalities and municipalities of the county, for additional expenses and lower income as a result of the pandemic.

In addition, they propose to give the municipalities 7.3 billion NOK.

According to the Ministry of Finance, the money will guarantee that municipalities do not have to reduce the offer of services for vulnerable groups, in kindergartens, schools or care for the elderly.

The government proposes that NOK 158 million be used to ease the mental and social strain caused by the pandemic.

He seems happy

Virke welcomes a more general compensation scheme.

– Tens of thousands of jobs are at stake. This is necessary on the part of the government, says Ivar Horneland Kristensen, CEO of Virke, the leading trade and service industry organization, in an email.

Calls on the Storting to put in place a plan for quick redundancies, wage subsidies, VAT deferral and employer’s contribution for the companies most affected. Also, Virke wants the plan to last for the duration of the pandemic.

– The government has produced the gunpowder, but now the Storting must use the grand cannon. Many companies have spent the money they had in their account in March and therefore need to cover more than 70 percent of their unavoidable fixed costs, and they need the money in their account now, not next year, says Horneland Kristensen.

– It is about avoiding confinement

During the press conference, Finance Minister Jan Tore Sanner (H) said the government is prepared to spend the necessary money, whenever infection control requires restrictions.

Trade and Industry Minister Iselin Nybø (V) called on Norwegians to follow infection control measures.

– Now it’s about avoiding confinement and we don’t have much to continue. So it’s way down, Nybø said.

Starting on November 10, there will be a full bar stop in Oslo. In addition, several social meeting places in the capital will be closed. Bergen also closes museums, bingo halls, gyms and swimming pools.

– They have to make sure we have compensation measures in place for the duration of the pandemic. Unemployment in Oslo exceeds 30,000. The situation is very dramatic for the tourism, hospitality and catering industry, Oslo city councilor Raymond Johansen (Labor Party) tells NRK.