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135446
Large share of employed in public corporations
statistikk
2013-10-22T10:00:00.000Z
Public sector;Svalbard
en
offseksvalbard, Public sector on SvalbardPublic sector, General government , Public sector, Svalbard
false

Public sector on Svalbard2012

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Large share of employed in public corporations

38 per cent of the employed workforce on Svalbard works in public corporations. The corresponding share in mainland Norway is just 3.5 per cent.

Share of total employment per sector (per cent), Svalbard
20112012
Share of total employment on Svalbard
Central government (incl. social security funds)7.37.2
County authority0.00.0
Municipalities12.813.5
Enterprises owned by central government38.637.9
Enterprises owned by local government0.00.0
Private sector41.341.4

The government-owned coal mining company Store Norske Spitsbergen Kullkompani AS and its subsidiaries is the main reason for the high share employed in public corporations. About one in four employees work here. This is still a relatively low number compared to the period from the end of World War II to the end of the 1980s, when Store Norske and other coal mining companies employed most of the workforce on Svalbard.

Store Norske employs a smaller share of the workforce

From 1986 to 1989, the number of employees in coal mining on Svalbard was reduced by more than 50 per cent, and in the 1990s the number fell even more. The number of employees has increased through the 2000s, and in 2012 there were about the same number of employees in coal mining as in 1989. The total employment on Svalbard has doubled since 1989, so the share of employees in coal mining has been reduced accordingly. Both private and public sector employment have increased.

More business operations and less administration

Because of Store Norske, almost twice as many persons are employed in public corporations as in public administration; almost 40 per cent and about 20 per cent respectively. The situation in mainland Norway is completely different, with 5 per cent employed in public corporations and almost 30 per cent employed in public administration.

General government different from mainland Norway

Many of the large general government employers, such as The Armed Forces, The Norwegian Public Roads Administration, the Norwegian National Rail Administration and National child welfare services, do not have any employees on Svalbard. Public health care is also limited on Svalbard and less than 2 per cent of the employed workforce is employed in this sector. This is in contrast to mainland Norway, where the corresponding figure is about 4 per cent. On the other hand, the Governor of Svalbard is one of Svalbard’s biggest employers, with about 3 per cent of the employed workforce. The Governor has responsibilities, such as policing and conservation of the environment, that are placed under different agencies in mainland Norway. Other general government employers on Svalbard include The Norwegian Polar Institute and Statsbygg.

Longyearbyen Lokalstyre (LL) is classified as part of the local authority in our statistics because it has many of the same responsibilities as the local authorities in mainland Norway. One of the differences is that LL does not provide care for the elderly because people move from Svalbard to the mainland when they retire. This is the main reason for the relatively small municipal sector on Svalbard. Svalbard does not have a county authority.

The government’s administration of Svalbard: from large deficits to large profits?

The central government’s fiscal account shows the central government’s income and expenditure from the administration of Svalbard. Expenditure was higher than income in the years 1993 through 2008, but from 2009, increased tax revenues created a large surplus from the administration of Svalbard. Taxes have increased because a large private corporation registered parts of its operation on Svalbard. However, because of the lower tax levels on Svalbard, this has reduced the total tax revenue for the central government.

Higher productivity in Store Norske and general changes in the tax system for Svalbard have also increased central government revenues. Income from the administration of Svalbard was lower in 2012 than in 2011, but there was also a large surplus in 2012.

In 2012, the central government’s administration expenses for Svalbard totalled NOK 300 million. This is an increase of nearly 10 per cent from 2011. Longyearbyen Lokalstyre account for most of the increase and in 2012 spent 42 per cent of total administration expenses on Svalbard. The governor’s expenses were almost as high as this, but two thirds were spent on helicopter services.

Government expenditure other than administration

In 2012, the central government had expenditure of about NOK 350 million outside the Svalbard account. More than half of this amount was spent by UNIS and the Norwegian Polar Institute. This estimate has some shortcomings. Payments from NAV are not included, and the real figure is probably somewhat higher.