Norway: Banks announce huge profits while schools face closure

Emilie Enger Mehl, Minister of Justice for the (SP) Centre Party, admitted pupils will be badly effected by school closures (Photo: Wikimedia Commons)

Recently, DNB, a bank in Norway with both private and state ownership, reported quarterly earnings of NOK 15.2 billion (around £1 billion sterling), attributed largely to significant increases in mortgage repayments for workers and pensioners. The notion that a single bank can generate a net profit of 15 billion in a mere three months is astounding. This sum surpasses what Norwegian municipalities may require addressing their financial challenges. It’s noteworthy that this figure represents only one bank’s earnings, and that too, just for a quarter of the year.
75 Schools to close

Because of the cuts to the regional and local council budgets by the previous conservative government, about 78 regional or local council schools are looking at the closing of some (VGS) grammar schools. The (H) Conservatives are blaming falling youth population, especially in rural areas. We in the CWI in Norway recognized that council cuts would be a problem many years ago when it became apparent that the (H) Conservatives took NOK 48 billion about (£4.8 billion) from the budgets of the regional and local council budgets.

The current government in Norway is made up of the Labour Party,  that formed a minority coalition government with the Centre Party. The government relies on the support of the Socialist Left Party in order to secure a majority. Emilie Enger Mehl, who is the Minister of Justice and from the (SP) Centre Party, attended one of the schools which are now to be closed and admitted: “Young people are forced to move when they are 15-16 or spend up to four hours on a bus every day. Closing local schools destroys leisure activities, volunteer work and more.”

According to a ​​survey conducted by the NRK (the Norwegian state-owned Radio and TV Company) at least 78 schools are threatened with closure. The reason given is poor municipal finances.

Trade unions

There are two main education trade unions in Norway, with a few more small niche unions. The biggest trade union is the (Utdanningsforbundet) NEU. The last time there was big teacher and/or council worker layoffs, the unions just negotiated for early retirement, and or voluntary leaving. The trade unions have not given any clear lead in as to how to combat these latest closures. Some students and a few teachers in one school went on an afternoon strike (3 hour walk-out) but this was not followed up by the any major trade union action. One leader of a smaller trade union even condemned the students’ action. Apparently, the students were embarrassing this leader by showing how to combat cuts!

The trade unions should demand a programme of building student housing, specially in rural areas, creating jobs in the rural areas, and reversing the exodus to the big cities. The trade unions should also demand the reversing of all the cuts and a full reversing of closed schools. There is money in Norway, but it’s in the hands of the banks and multinational companies.

The populist right

The (H) Conservative leader Solberg talks about the school cuts in the districts of Norway: that they are tough, but necessary, and we can expect more.

The Progress Party (Frp), a right wing populist party, is growing partly because the Norwegian Labour Party has left communities and workers to fend for themselves. But the right wing populists are wrongly blaming the cuts on lazy council workers and high wages of the same workers. In some circles these populists are seen as the radicals.

The leaders of the NLP do not care or have decided to overlook the plight of the councils; a quick fix would have been to reverse the cuts made to the councils. The NLP managed to find millions when it came to supplying weapons to NATO, but apparently helping local councils fund their schools, hospitals, etc. is not possible. The NLP will be punished in the polls next September (2025).

The smaller parties nominally to the left of the NLP – (SV) Socialist Left, (MDG) the Greens, and (Rødt) and the old communist party  – all have one thing in common; they have voted for cuts in the council chambers (none have taken a principled position unlike the socialist led Liverpool Labour council in Britain in the 1980s.)

The CWI in Norway says:
Reverse government cuts at council level.
Build more student housing, especially in rural areas.
More and better public transport in rural areas.
The introduction of electric high speed trains, reducing the reliance on airplanes etc.
Make the rich pay for the cost-of-living crisis.
Nationalise the banks and insurance companies, under democratic workers’ control and management.
Renationalisation of the energy industry.
Huge government investment at regional and municipal levels, so that all the jobs lost can be re-gained, and affordable and properly functioning public services resumed.
A 30-hour working week, without loss of pay.
For workers’/trade unions’ led mass campaigns to reverse climate change.

Voters would welcome all these sorts of measures, alongside a full programme for socialist change. For a new strong left party based on the working class and independent socialist policies!

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