Father and daughter fear for family business – NRK Norway – Overview of news from different parts of the country
– She has experience from working in a coffee shop, and I have collected a lot of retroting from the 1960s and 1970s. And we love the Old Town, says Frode Mortensen.
Together with his daughter Nora, he decided to open a café and vintage shop in the capital. It has now been in operation for a year and a half.
But with a pandemic and wild electricity prices, it is demanding to get the company Arv Kaffe & Retro to go around.
– Does not take out salary
– Despite the fact that we are centrally located in Oslo, we are on the margins when it comes to earnings. And the increased electricity prices are what can lead to us not surviving this period, he says.
Mortensen says that there is no room for any dividends, and explains that it is expected in a start-up company.
– But it is clear that now, after 1.5 years, we hope to be able to get something to just pay public taxes, electricity bills and employer contributions, he says.
Record expensive electricity prices
The café owner from the Helgeland coast is not alone in worrying about the next electricity bill.
The war in Ukraine and the West’s economic sanctions against Russia have led to tremors in world markets. Among other things, this has helped to put further pressure on the energy markets in Europe.
This week a new price record was set. In Oslo, Kristiansand and Bergen, it now costs NOK 10 per kilowatt hour, including taxes.
The Conservatives are now demanding that the government take action.
– Gets no answer
– We are calling for the government to come on board with a form of support for the smaller companies in Norway, says Tina Bru, fiscal policy spokesperson for the Conservative Party.
So far, the government has secured electricity subsidies for households, agriculture and volunteering. But the business community must still manage on its own.
– Now there are many who are simply afraid that they will have to close the doors, warns Bru.
She criticizes the government for not yet putting in place an electricity subsidy scheme for companies.
The Conservatives themselves propose to set aside NOK 2 billion for an application-based compensation scheme for the business community.
The government receives NHO refs – still no electricity support for companies
No power support right away
According to Minister of Trade and Industry Jan Christian Vestre (Labor Party), it is so far not relevant for the government to assist companies.
– Companies are used to prices going up and down. This applies to a number of brands, such as raw materials, electricity, shipping and currency. The question then becomes whether the state should compensate for such fluctuations or not, he says.
He adds that the government must constantly assess the boundaries between what is the responsibility of companies and the state.
– There is no doubt that there is an extraordinary situation with high power prices in parts of the country. We have reduced the electricity tax, and around one billion of this reduction will benefit companies.
But several companies say that reduced electricity tax has not contributed much.
The Confederation of Norwegian Business and Industry (NHO) is also among those who are trying to get the government to quickly establish an electricity subsidy scheme.
Vestre does not rule out that other measures may come to the table.
– The government is following developments closely and we do not rule out that it may be relevant to consider new measures, he concludes.