OSLO - Norway's incoming left-of-centre government will permit oil drilling in the Arctic and raise spending on welfare under a policy platform to be unveiled on Thursday, Norwegian media said.
The three-party government of new Prime Minister Jens Stoltenberg, which won an election on Sept. 10 to oust the tax-cutting centre-right coalition, would also reduce troop numbers in Afghanistan.
After weeks of talks, Stoltenberg's Labour Party, the Socialist Left and the Centre Party are due to announce details of their policy platform for the world's number three oil exporter at 4 p.m. (1400 GMT) on Thursday.
"I think that we will deliver everything we have said," Labour Party Secretary Martin Kolberg said. "Everything will be clear at four."
Stoltenberg campaigned on promises to raise spending on education, jobs and health and accused the outgoing government of Prime Minister Kjell Magne Bondevik of undermining equality by handing out tax cuts that benefited only the rich.
Media reports said the Socialists would lose a battle to ban drilling for oil and gas in the Arctic Barents Sea. The Socialists say any spills could damage the fragile environment.
The government would, however, ban oil drilling off the scenic Lofoten islands and the Vesteraalen region on the edge of the Arctic Circle at least until 2009, the daily Aftenposten said.
Bondevik's government has stayed on as caretaker and is set to stand down on Friday after presenting a draft 2006 budget, with revenues swollen by oil prices above $60 a barrel. The budget will be heavily re-written by Stoltenberg's team, which will formally take over on Monday.
LIMIT OIL CASH
NRK public radio said that Norway would stick to existing parliamentary guidelines limiting spending of oil cash to four percent annually of a fund worth about $180.6 billion.
It said that Socialist Left leader Kristin Halvorsen, who favours far higher spending of Norway's oil wealth, would be Finance Minister.
Norway would raise spending on kindergartens and local authorities under the new government but it was unclear where cuts would be made.
Oil companies, including Statoil and Norsk Hydro, want more drilling in the north, arguing that finds are becoming scarce further south.
The daily Dagbladet said Norway would not renew participation in the US-led operation for special forces in Afghanistan under a commitment lasting until early 2006. Officials declined to say how many soldiers are involved.
Norway separately has about 350 troops in a NATO-led operation in Afghanistan, which would continue. Stoltenberg has previously said that Norway will pull out a tiny contingent of about 10 officers from Iraq.
REUTERS NEWS SERVICE
