– The price of hesitation can be very high – VG

In Gap’s alternative budget, Jonas Gahr Støre proposes for the first time to use more oil money than the Solberg government uses in its regular budgets.

Nearly six billion will be used to secure income for the unemployed through the crown crisis, among other things, by reintroducing vacation pay for people receiving unemployment benefits.

The total cost of the Labor Party crisis cure:

• At least NOK 13 billion more in oil money than Prime Minister Erna Solberg (H) has announced so far.

– We were concerned about the government’s very optimistic estimates when the budget was presented on October 7, Støre tells VG.

– When we look at some of the industries that are exposed now, it is of little use to make plaster patches as if they were small wounds, when in reality there are industries such as waterfalls. I understand a government that has to weigh and maybe wait and see, but the price of hesitation can be very high for workers and companies, he says.

An alternative budget shows what a party would do if it ruled Norway today.

Disturbed corona plane

VG meets Støre at the Bristol Hotel in Oslo. The hotel industry is one of the most affected by the crown crisis.

Most importantly, according to Støre, is that people should have a job to go to even when the pandemic is over. So it may quickly become necessary to spend more than you suggest now.

– We propose measures that increase the use of oil money by 13 billion beyond what was announced by the government. Let me make an important proposition: from now on, we will spend 5.9 billion on fair income security for the unemployed. Most importantly, we reintroduce the vacation supplement for unemployment benefits. He cut off the government in 2014. We were against it, says Støre, adding:

– So not many people were affected, but next summer between 200,000 and 300,000 Norwegians will find out that they do not receive holiday pay from unemployment benefit and will be affected by this.

Remember that people who receive unemployment benefits do not receive vacation pay at the same time that we want a tourism industry that cries out for customers.

In addition, the Labor Party will:

• Expand support schemes for the unemployed and companies until at least the summer.
• 3.3 billion more for compensation plans for the business community, including tourism, which has been badly affected by infection control measures.
• 2,700 million more to create activity in various industries, 1,000 million in labor market measures and 500 million in extraordinary funds for hospitals.

The government has announced that it will present more economic measures at a press conference on Tuesday.

Dark clouds in Europe

In the fall of 2020, corona infection will again increase very rapidly in Europe and Norway, which could have a severe impact on the economy.

Støre understands that everything that happened in March was very fast. But now, half a year later, the government has had time to see what the business community needs and how the schemes work.

Thon Hotels: – Now we have to go to full layoff

– How much darker do you think it will be, than the government adds in what you call an optimistic budget?

– I acknowledge the government’s measures on infection. We support that. It is absolutely necessary to have powerful measures. I think Norwegians understand that even though we have a low number, the growth of the infection without control can come very fast. What we criticize is that infection control measures have not been followed in parallel with a clear message about finances and income security that provides security for the community to stand firm for the duration of the pandemic, Støre says.

– I am very careful that we do not paint a situation that is serious. It’s serious enough. It is not the role of the opposition to paint a darker picture than what we see. We must maintain the belief that we are making it, we must remain optimistic that we can get back up when we are on the other side and that the industries that are now struggling can start over.

– But I am critical of the government’s hesitancy in relation to the seriousness of the situation. I think a number of companies have exhausted a lot of reserves and margins, so they are much closer to having to close their doors.

Støre believes that it is now right to spend more from the Oil Fund.

– Yes, when we use the oil fund now, it is in line with the rule of thumb. There you can go beyond the three percent in crisis. Yes, you are losing that fund for the future. But the burden on that fund will be even greater if we allow unemployment to take hold and be persistently high, he says.

– Will spend more oil money than the government. It is a government that has already spent a record amount of oil money. Are we becoming too dependent on oil money in the Norwegian economy?

– This government has spent a lot of oil money this year where it was normally and well in the economy. Now there is a crisis in the economy. That’s when you should be able to push. Norway has a starting point with a pension fund that gives us opportunities to trade. So it’s our responsibility that when the economy gets going again, we must get back to a sustainable career. The Labor Party has done this before. We went well beyond our declared performance during the financial crisis and returned to a lower level when times were good. We can spend more in bad times and less in good times, he says.

– Incorrect

The head of the Storting’s finance committee, the conservative Mudassar Kapur, disagrees with Støre’s description of reality.

– The financial measures presented tomorrow are good proof that this is not true. The Labor Party has used many times in recent months to vote and question whether aid reaches jobs and people who need it. We have always said that we are continually considering specific measures for the industries that are most affected by the virus outbreak and to get people back to work. The last thing people and businesses need in a time of uncertainty is for the Labor Party to create uncertainty, Kapur writes in a text message to VG.

– So far this year a number of crisis packages have been presented, we are monitoring the situation closely and we are ready to do whatever it takes to get Norway out of the crisis safely, he says.

He also defends the use of oil money by the Solberg government.

– The government has followed the rule of thumb as we cut healthcare lines, contributed to more private sector jobs, strengthened police and defense, and accelerated construction of roads and railways across the country. At the same time, it is important to us that future generations have the same financial opportunities as us. It’s good for the economy and it’s good for the future. I fully agree with Støre that it is important and correct to spend more money in a crisis situation like the corona pandemic.