 At the time, the government was spending NOK 1.4 billion annually on purchasing passenger transport from NSB. By introducing PSO, Skogsholm stated that she hoped the costs would be reduced, and that quality and safety levels would remain, or even improve. The counties have been allowed to issue PSO contracts on bus transport since 1994; and Skogsholm saw the competition in rail transport as a continuation of this. Following the announcement of the competition, CEO of NSB, Einar Enger, said that he did not see competition as a threat, but instead that NSB would introduce means to rationalize costs. In November 2002, NSB laid off 100 employees, and reduced its administration by a third. The administration of all local and regional trains was reallocated to Oslo. Skogsholm stated that the government had no plans to sell NSB.
