Register for Governmental Approval of Financial Obligations
Encyclopedia
The Register for Governmental Approval of Financial Obligations (in Norwegian Register om betinget godkjenning og kontroll, often shortened to ROBEK) is a Norwegian
government register of municipalities and counties
who have not submitted a balanced budget
. The consequence of being in the registry is that resolutions of incurring debt, or entering long-term rental contracts must be approved by Norwegian Ministry of Local Government and Regional Development
in order to be valid. Budgets must be approved by either the ministry or the County Governor
.
The registry was introduced in 2001. Prior to this, all counties and municipalities were required to have any debt and long term contracts approved. The new law narrowed this to local divisions with an economic imbalance. Since not being in the ROBEK registry gives the municipality much more economic freedom, the councils usually aim to stay out of the registry. The registry has sometimes been described as a blacklist
. Municipalities often cut costs by reducing public services, and conducting lay-offs to get out of the registry. Increasing revenue through property tax
es have generally been opposed by the local politicians.
The rules determining whether a county will be entered into ROBEK are described in §60 of the law of municipalities and counties. According to this law, a county or municipality will be entered into the ROBEK registry if at least one of the following four criteria are met:
As of August 2010, there are 48 municipalities in the ROBEK registry.
Budgetary troubles which land a municipality in the ROBEK registry are sometimes due to incurred losses from a large event, for example Vågsøy
winded up on the ROBEK registry in 2009 following losses after hosting a port-of-call for the Tall Ships' Races
, and Narvik
and Hattfjelldal
were entered into ROBEK after the Terra Securities scandal
.
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
government register of municipalities and counties
Counties of Norway
Norway is divided into 19 administrative regions, called counties . The counties form the primary first-level subdivisions of Norway and are further divided into 430 municipalities...
who have not submitted a balanced budget
Balanced budget
A balanced budget is when there is neither a budget deficit or a budget surplus – when revenues equal expenditure – particularly by a government. More generally, it refers to when there is no deficit, but possibly a surplus...
. The consequence of being in the registry is that resolutions of incurring debt, or entering long-term rental contracts must be approved by Norwegian Ministry of Local Government and Regional Development
Norwegian Ministry of Local Government and Regional Development
The Royal Norwegian Ministry of Local Government and Regional Development is a Norwegian ministry established in 1948. It is responsible for the housing and building, regional and rural policy, municipal and county administration and finances, and the conduct of elections...
in order to be valid. Budgets must be approved by either the ministry or the County Governor
County Governor
County Governor is a Norwegian government agency represented in 18 of the Norwegian counties responsible for a number of supervision and management duties. The Governor is the representative of the King and Government of Norway in each county, functioning as the connection between the state and...
.
The registry was introduced in 2001. Prior to this, all counties and municipalities were required to have any debt and long term contracts approved. The new law narrowed this to local divisions with an economic imbalance. Since not being in the ROBEK registry gives the municipality much more economic freedom, the councils usually aim to stay out of the registry. The registry has sometimes been described as a blacklist
Blacklist
A blacklist is a list or register of entities who, for one reason or another, are being denied a particular privilege, service, mobility, access or recognition. As a verb, to blacklist can mean to deny someone work in a particular field, or to ostracize a person from a certain social circle...
. Municipalities often cut costs by reducing public services, and conducting lay-offs to get out of the registry. Increasing revenue through property tax
Property tax
A property tax is an ad valorem levy on the value of property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state or a municipality...
es have generally been opposed by the local politicians.
The rules determining whether a county will be entered into ROBEK are described in §60 of the law of municipalities and counties. According to this law, a county or municipality will be entered into the ROBEK registry if at least one of the following four criteria are met:
- a) The municipality or county council pass a budget where not all expenditures have been covered.
- b) The municipality or county council pass an economy plan where not all expenditures have been covered.
- c) The municipality or county council resolve that an account deficit will be covered in future budget years.
- d) The municipality or county do not follow their plan for covering a deficit.
As of August 2010, there are 48 municipalities in the ROBEK registry.
Budgetary troubles which land a municipality in the ROBEK registry are sometimes due to incurred losses from a large event, for example Vågsøy
Vågsøy
Vågsøy is a municipality in the county of Sogn og Fjordane, Norway. It is located in the traditional district of Nordfjord. The municipality's administrative center is the town Måløy. Vågsøy is also the name of the main island in the municipality with an area of...
winded up on the ROBEK registry in 2009 following losses after hosting a port-of-call for the Tall Ships' Races
The Tall Ships' Races
The Tall Ships' Races are races for sail training "tall ships" . The races are designed to encourage international friendship and training for young people in the art of sailing. The races are held annually in European waters and consists of two racing legs of several hundred nautical miles, and a...
, and Narvik
Narvik
is the third largest city and municipality in Nordland county, Norway by population. Narvik is located on the shores of the Narvik Fjord . The municipality is part of the Ofoten traditional region of North Norway, inside the arctic circle...
and Hattfjelldal
Hattfjelldal
Hattfjelldal is a municipality in Nordland county, Norway. It is part of the Helgeland traditional region. The administrative centre of the municipality is the village of Hattfjelldal. Other villages include Grubben, Svenskvollen, and Varntresk...
were entered into ROBEK after the Terra Securities scandal
Terra Securities scandal
The Terra Securities scandal was a scandal that became public in November 2007. It involved highly speculative investments by eight municipalities of Norway in various hedge funds in the United States bond market. The funds were sold by Terra Securities to the municipalities, while the products...
.