Sunday, May 22

SV and the government will start a full review of corona support

Kari Elisabeth Kaski announces the start of a thorough review of all support schemes, as soon as the financial support packages have been completely phased out.

Kari Elisabeth Kaski, fiscal policy spokesperson in SV, we that they should find out how the corona support has worked and what ripple effects it has had.

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SV and the government agree that the corona support schemes should be evaluated, says fiscal policy spokesperson in SV, Kari Elisabeth Kaski, to E24.

The wording the three parties agree on states that “such an evaluation of the economic crisis policy should assess the socio-economic consequences, and what could have been done differently”.

– I hope that we get a better overview of what Norway looks like after two years of pandemic, and the management of it, says Kaski.

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She believes it is important so that one can learn from it and use the experiences in a new crisis, and to see how the various compensation schemes work and what ripple effects it has had.

– In sum, we still know too little

She points out that there are indications that the differences in Norway have increased, but she does not want to advance any conclusions.

– In sum, we still know too little about how it has affected and what the picture looks like today, she says.

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It has not yet been decided who will carry out the evaluation, or how long they will have. What is clear is that it will not start until all financial support packages have been phased out, and she hopes the evaluation will be thorough.

– There is no rush work. It must be the basis that they will spend a lot of time, she says.

Kaski does not believe that they will have time to reach the conclusion before next year’s state budget is presented, as some financial support measures have been extended to both summer and August.

On Friday, Kaski stated that the compensation and wage support scheme has been given an end date: 28 February. Since then, both the opposition, business organizations and companies have reacted. Several believed that it was a prerequisite that the infection control measures were also repealed.

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Kaski hopes that the actors see that one can not continue with “that kind of state support forever”.

– There is reason to remind that large parts of the Norwegian economy are doing so well, and there is little need to put government money into the economy, she says.

– Will never be the perfect time

The government’s infection control management is now entering a new phase, where the transfers from the state will not be as large, but she emphasizes that the municipalities will receive funds so that they can support their business community where there is a need.

– I think it is reasonable when we enter a new phase, she says.

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Since the pandemic started, the state has contributed “very large sums” to the business community, Kaski believes.

– It will never be the perfect time for every industry for when we will end it, she says.

At the same time, she points out that there is a risk involved in running a private business.

– Businesses must take that risk, and I think that to a very high degree must be the case in the future, she believes.

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The new compensation scheme, which was reintroduced after strict infection control measures in December last year, had some adjustments from the first.

– Will be important in the future

The criticism of the scheme has, among other things, come after E24’s review of the scheme. It showed that half of the companies that had received corona support did better in 2020 than the year before, companies took out more dividends than the year before, foreign owners took 722 million in dividends, and more could repay support without going into deficit.

The Labor Party has previously announced that they would have a full review of the scheme, if they were given government power. The then Minister of Finance Jan Tore Sanner welcomed this, but he also pointed out that it was “easy to forget what enormous uncertainty we had in the spring of 2020”.

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When the evaluation is complete, Kaski envisages that it will be useful for both those in politics and the state administration, so that they know more about what Norway looks like after the pandemic.

– It is important, and will be important when we make plans for Norway’s development in the years to come, whether you look at how it has affected the economic differences, restructuring, and in the debates around state budgets in the years to come, says Kaski.

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