Norway government split may be good news for salmon industry

The split may well have major – and not unwelcome – consequences for the country’s huge salmon farming industry.

 

The relationship between the two political parties has been uneasy for weeks, not over aquaculture, but around three European Union energy directives.

 

Labour and its Prime Minister Jonas Gahr Støre wants to implement the directives around renewable energy and energy efficiency before the general election due in September.

 

The Finance Minister and senior Centre party figure, Trygve Vedum, the man who conceived and introduced the salmon tax, says “no way”.

 

Vedum resigned and his party formally resigned from government yesterday after more than three years sharing power.

 

He declared: “What we were clear about all along is that beginning the process of linking ourselves more closely to the EU’s dysfunctional electricity market and energy policy is completely out of the question.

 

“We cannot be in government with the Labour Party without taking a different energy policy course.

 

He added: “The clear message from the parliamentary group, also to me, is that continuing to link ourselves to that market and giving up more national control over energy and power policy is the wrong way to go.”

 

Vedum believes the government should wait until after the election in September before a decision is taken. He also claims such a move will raise electricity prices.

 

A snap general election is thought unlikely as both the Labour and the Centre Party are behind in the polls with the next government likely to be formed jointly by the Conservative and the more right wing Progress Party. Single party governments are rare in Norway.

 

In UK terms, it would be as if the Conservative and Reform parties formed a government. Relations between the two right of centre Norwegian parties are much more amicable, than is the case for their UK equivalents.

 

They have a broadly similar approach to fish farming and say they will dramatically reduce the salmon tax if elected, scrap the equally hated Price Council and carry out major reforms to the salmon traffic light system which is also deeply unpopular. 

 

They would also undo other Labour aquaculture measures, which they say would free up the industry.

 

The Centre Party doesn’t intend to bring down the government, saying last night that it wanted Jonas Gahr Støre to continue as Prime Minister.

 

“We will be a factual and constructive opposition party. But we will be very clear that we want a change in electricity and energy policy, a party spokeswoman said.

 

Meanwhile, Støre said he wanted to continue to include the Centre Party in the government.

 

There are a number of small parties in Norway ranging from ultra left to Christian Democrats and their role may be crucial in the months ahead.

 

Meanwhile, the salmon industry is keeping its fingers crossed that Labour’s unpopularity deepens.