#NordicNews on Norway
Balanced fairness in competition and protection of the domestic bus industry
The Norwegian government is tightening regulations on foreign coaches in response to growing concerns about their impact on the domestic coach industry. The issue affects foreign coaches and drivers offering tours within Norway, posing a challenge to local operators. Although this was technically speaking not allowed before either, the lack of clarity in the regulations has so far made such activities possible until now.
The European Union (EU) regulates the legality of these operations through rules that stipulate that the use of coaches in a country that is not the operator's home country should only take place on a "temporary basis". A rather flexible term. It is precisely the uncertainty surrounding the interpretation of the term "temporary" that is now leading the Norwegian government to tighten the regulations:
As of January 1, 2024, the Norwegian government has restricted the transportation of passengers in foreign buses on Norwegian roads. Foreign buses may only transport passengers in Norway for a maximum of 20 consecutive days and a total of 30 days per calendar year. This measure is part of the government's broader initiative to combat wage dumping in the transport sector.
The issue of cabotage, which involves transportation between two locations in a country outside the operator's home country, has long been a concern for the industry. A 2018 survey by NHO Transport identified 1764 different foreign buses on Norwegian roads, mainly from Poland, Lithuania, Germany and Sweden.
Similar procedure in Denmark
Denmark has already introduced national regulations that limit the number of consecutive cabotage days for foreign tourist bus drivers to seven before they have to leave the country. This has led to discussions about the possible introduction of similar regulations in Norway.
Although the EU has criticized Denmark for this approach, the Norwegian government emphasizes the need for fair competition between domestic and foreign bus companies. Transport Minister Jon-Ivar Nygård emphasizes that Norway has set stricter regulations than those approved by the EU in order to create a level playing field for all operators. To enforce these regulations, the government has allocated an additional NOK 40 million for control measures in the budgets for 2023 and the following years. These funds are intended to strengthen the Norwegian Road Administration's monitoring activities.
In addition to regulating the duration of foreign bus companies, other competition-related issues are also being addressed. These include the evasion of VAT by some foreign companies operating in Norway and ensuring that foreign bus drivers receive the Norwegian minimum wage when working in the country.
The Federation of Trade Unions is pleased with the government's decision and emphasizes the importance of defining the term "temporary" in order to protect the interests of the domestic bus industry.
More on the cabotage rules in Norway can be found at the government's website
and the union editorial office (in Norwegian).
Header: © Juan Encalada Unsplash
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