How the government proposes to distribute billions from the crisis – NRK Norway – Summary of news from different parts of the country

• The cost of compensation for failures in turnover is estimated at NOK 5 billion. It applies to the period from September to February of the next year. With a few exceptions, the scheme applies to all types of businesses across the country. The scheme covers companies that have had an increase of more than 30 percent in turnover 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 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 be a reduction.
• Companies must be reimbursed for infection control costs
• One billion will be used to buy flights

Extend the days of care

The new scheme breaks with the government’s line of targeting new crisis measures on individual industries. Instead, the government wants to make it more general.

This includes more companies.

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

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

– We want parents to be entitled to a care allowance in case of quarantine or closure, said Family Minister Kjell-Ingolf Ropstad (KrF).

The rules for the care allowance 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.

You must make up for canceled events

According to Finance Minister Jan Tore Sanner (H), the government is willing 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. We don’t have much to go on. So it’s way down, Nybø said.

Among the measures that the government is now proposing is support for public events.

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

The government also proposes spending around NOK 1 billion on the healthcare sector, including a national emergency reserve for infection control equipment.

In addition, they propose to give municipalities NOK 7.3 billion for expenses related to the pandemic.

The money will prevent municipalities from having to reduce the offer of services for vulnerable groups, in kindergartens, schools or care for the elderly.

NOK 158 million will be used to ease social and mental tension due to the pandemic.

Calls to focus on the unemployed

The crisis package will now be discussed in the Storting. Terje Lien Aasland of the Labor Party is concerned that layoffs will also receive vacation pay next summer.

– It is important to create security for workers and companies. They must have a job to return to after the pandemic ends. With this package of crises, it is unfortunately true that there is still insecurity for many, says Aasland.

Red believes the government is failing workers.

– I have a flashback of the first crisis package that the government presented in March. Again, billions are prioritized for companies, while workers who lose their jobs are left with a growing bill, party leader Bjørnar Moxnes says in an email.

Rødt wants to expand, improve and broaden plans for the unemployed and secure income for those with a weaker connection to working life.

According to Kari Elisabeth Kaski of SV, it is necessary to increase the crisis package so that the differences in the population do not increase.

– This is a weaker variant of what the Storting and SV traded this spring. This despite the fact that we are in the middle of the second wave, says Kaski.

Worried the package might not get wide enough

Sigbjørn Gjelsvik of the Center Party believes that the government’s crisis package is uncomfortable and lacks a long-term perspective.

– There are still proposals to double the tourist VAT from January and reintroduce the tax on air passengers. This is particularly reckless for industries that have been hit hard by the crisis, says Gjelsvik.

Progress Party leader Siv Jensen says it is good that there is a comprehensive and comprehensive compensation scheme for companies.

– We are concerned that the crisis package is not good enough. Therefore, we will listen to feedback from business organizations and companies. Then we will do quick work to improve what needs to be improved, says Jensen.

Ivar Horneland Kristensen, CEO of Virke, calls on the Storting to put in place a plan of quick layoffs, wage subsidies and deferral of VAT and employer contribution for the most affected companies.

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 used up the money they had in their account in March. So they need more than 70 percent of their unavoidable fixed costs reimbursed, and they need the money in the account now, not next year, says Horneland Kristensen.