“Svalbardpakke 2” is the second Norwegian package of corona backing for companies in Longyearbyen that have suffered economically from the pandemic. The package includes 40 million Norwegian crowns (4 million Euro) and it was brought on the way by the Norwegian parliament on 23 February because many local companies, especially tour operators, were suffering from an acute liquidity crunch. But the allocation of the funds reveals a two-class society with discrimination of some companies who are “not Norwegian enough”.
Longyearbyen Lokalstyre, the community administration, stated in a press release on 09 March (this author’s translation): “Mayor Arild Olsen mentions that the administration will emphasise criteria that support general Norwegian Svalbard politics. This will obviously include good working condition, but also the affiliation of the company. For example that the responsible companies are 100 % in Norwegian ownership and that the public limited companies are at least 34 % owned by Norwegian citizens and pay taxes in Longyearbyen. Alternatively, companies are included that have been active in Svalbard for at least five years.”
This was just a press release and not a legally binding text. Later, the minimum period of local activity was increased from five years up to ten for those those companies that are not in Norwegian ownership as described. This is now causing difficulties for several companies.
To prevent any misunderstandings: this is in any case exclusively about Norwegian companies that are registered in the Norwegian Brønnøysund registre and that are based and active in Longyearbyen, and not about companies from elsewhere.
The Spitsbergen Treaty emphasizes the equal treatment regardless of nationality, but sometimes, some are more equal than others (Norwegian national day, 17 May, in Longyearbyen)
But acccording to the current handling of the recent package of corona aids, the nationality of the owners is to play a decisive rule. This includes cases where non-Norwegian citizens have founded a company in Longyearbyen years ago, who live and work in Longyearbyen, create local jobs and pay local taxes, al according to local regulations. It is not about preventing abuse and fraud, but about excluding companies owned, partly or fully, by non-Norwegians.
It does not surprise that some who are concerned feel discriminated. Marcel Schütz has been active with his company Spitzbergen Reisen in her present shape since 2016 after having started with the precedessor in 2012, as he told Svalbardposten. He has invested substantially in Longyearbyen, amongst others in local accommodation of his clients, created several permanent plus several seasonal jobs and pays local taxes. Not being included because of nationality when tax money is returned to companies in need does doubtless not create good feelings, after having contributed to the development of the local economy for years.
Five or six out of 76 companies that are registered in Visit Svalbard may be excluded because of the ownership regulations. Schütz demands the relevant paragraph to be revised and ideally to be fully removed.
Mayor Olsen said that Svalbard, in contrast to mainland Norway, is not part of the European Economic Area and thus more free to make local decisions, and that paragraph 5 is meant to support Norwegian Svalbard politics, which generally aim at a Norwegian focus of local activities.