NITO in society
A man with a serious expression stands in a modern exhibition environment. NITO banner in the background suggests his central role in the organization.
Eddy Nynes, union representative at NITO. Photo: Bjarne Krogstad
NITO i samfunnet

- Norwegian shipyards lose contracts because the authorities do not make use of the room for manoeuvre

NITO union representative Eddy Nynes is impatient: "We have no time to lose," he warns.

- The authorities must take action to ensure that the maritime sector does not lag behind in the competition with other countries. We have no time to lose," says Eddy Nynes, chief union representative for Kongsberg Maritime AS and head of the group group in Kongsberg Gruppen ASA.

The background for the sigh of relief is new reports from the government showing that Norwegian shipyards are losing public contracts because the room for manoeuvre in the EEA Agreement is not used well enough in Norwegian tenders.

One measure NITO has proposed and which must now be put in place is an expert unit for public procurement in the maritime sector. 

Such an expert unit will be a knowledge centre that can contribute to general competence enhancement and help purchasers to prepare the right tender basis, so that they can make use of the EEA room for manoeuvre and tailor assignments to Norwegian shipyards. 

An expert unit will be one of the most important measures to secure assignments to Norwegian shipyards. Ensuring that Norwegian contracts go to Norwegian shipyards should be a high priority for the government.

Eddy Nynes, Head of the Group Group in Kongsberg Gruppen ASA.

"We must use the competitive advantages Norwegian shipyards have when assignments are to be put out to tender. This is a natural step forward in the work NITO has done in recent years. This is what Trond Markussen, president of NITO, says about the establishment of the expert unit.

Engasjert mann som står på en talerstol. Han har på seg stripete skjorte og brun blazer.
Trond Markussen, President of NITO.

 

Far behind Europe

A review of most shipbuilding assignments in EU countries shows that the national tenders go to national shipyards. The European average is that eight out of ten contracts are awarded in their own country. For Norway, the corresponding figure is only 68 per cent.

The reviews show that Norwegian contracting authorities do not take advantage of the opportunities that can make Norwegian shipyards prioritised. At the very top of the scale is France, where all 91 public contracts in the review have gone to suppliers in France.  

- I refuse to believe that the French have a much better maritime sector. On the other hand, they have managed to exploit their room for manoeuvre to the fullest. That is an example to follow.

Eddy Nynes, Head of the Group Group in Kongsberg Gruppen ASA.

NOK 110 million to the Netherlands

Nynes points to one example where Norwegian shipyards have lost major opportunities as a result of poor craftsmanship: In 2020, the government allocated NOK 110 million to the Institute of Marine Research's new research vessel. Although half of the bidders were Norwegian, it was decided to build the ship in the Netherlands. 

- The fact that NOK 110 million from a public contract goes to Dutch shipyards is a horror example. Unfortunately, this is not the only example we have of this practice," says Nynes.  

Political pressure

In 2020, the Solberg Government presented a white paper on the maritime industry, "Greener and smarter - tomorrow's maritime industry". Already here, NITO originally gained approval for the establishment of an expert unit for public procurement. The current government parties and the Socialist Left Party were also in opposition to the idea of such an expert unit. 

- We know that most politicians are in favor, so now it is only the will that is at stake, says Nynes. 

NITO President Trond Markussen agrees:

- The government underestimates the room for manoeuvre. Now they have to act and ensure good times for Norwegian shipyards," he says.

Letter to the Minister of Trade and Industry

In May, NITO and the Federation of Norwegian Industries joined forces in a joint letter to Minister of Trade and Industry Jan Christian Vestre.

Read the letter: The government must establish an expert unit for public procurement in the maritime sector

In the letter from Stein Lier-Hansen and Trond Markussen, the organizations demand that an expert unit be put in place and refer to the importance such a unit can have for the future prospects of Norwegian shipyards. 

"Now two of the major employers' and employees' organizations are united on the demand, so we naturally have a hope that the government will take action and ensure that Norwegian shipyards are prioritized.

Eddy Nynes, Head of the Group Group in Kongsberg Gruppen ASA.

New requirements for zero- and low-emission technology by 2025 for ferries and high-speed boats mean that the public sector will order many new vessels in the future. 

"Let's not fall into the trap of awarding public contracts to the Netherlands," Nynes concludes.

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