Bid to scrap price council delayed by political differences

With the Conservative and Centre parties committed to ending the body, although through different approaches, the proposal had been expected to go through in the Storting, Norway’s parliament, yesterday.

But in a surprise political move, the Centre Party said it could not support the Conservative plan.

Following a lengthy and at times passionate debate, the proposal was also rejected by the Finance Committee. The issue has now been shelved until next week when another vote is expected.

With a general election less than six months away, political tensions are running high in Norway with neither the left or right wanting to give way.

The Norm Price Council assesses a fair price for farmed salmon which is used as the basis for calculating the amount companies are deemed to have made for the fish they sell. This is used to help calculate their liability under the salmon tax (also known as the ground rent or resource rent tax). Industry and some political parties want to scrap the council, however, and use the actual market price of salmon to determine how much tax companies should pay.

Parliament has now asked the government to dissolve the council and submit a tax proposal of its own, based on actual prices.

The industry employer organisation Seafood Norway has consistently campaigned against the council on the grounds there is no single market price for salmon or trout. The scheme is also seen as bureaucratic.

Experience has also shown that many companies have paid more in tax than they should, compared with the prices they have actually achieved for their fish.