NordenBladet — On 30 December, the Government issued a Decree on chargeable services by the ELY Centres, TE Offices and KEHA Centre for 2021. The Decree lays down which services are chargeable, which services will be charged based on the cost price or a lower price, and which services will be priced on a commercial basis.
The content of the Decree corresponds to the Decree on chargeable services for 2019–2020, which is currently in force. Based on an amendment to the Act on the Protection of the Built Heritage, which will enter into force on 1 January 2021, one chargeable service was added to the Decree.
According to Section 10a of the Act, the ELY Centre may, at the request of the owner or holder of a building or property, and subject to the conditions set by the ELY Centre, grant permission to derogate from a decision on protection. The decision is a chargeable service, regardless of its outcome.
The Decree will enter into force on 1 January 2021 and remain in force until 31 December 2021.
NordenBladet — The European Border and Coast Guard Agency Frontex will have a new operational standing corps starting on 1 January 2021. The standing corps will support the EU Member States in managing the Union’s external borders and the return of third-country nationals. The President of the Republic approved the amendments on 30 December. The new amendments will enter into force on 1 January 2021.Members of the standing corps will participate in joint operation teams dealing with border security, migration management support and return activities. They will also be deployed to rapid border interventions, return interventions or other related operational activities in Member States or non-EU countries.
The standing corps will be put together in stages and involve a total of 10,000 people by the end of 2027. In 2021, Finland will second to the standing corps eight long-term (2 years) officials, 72 short-term (4 months) officials and 30 officials reserved for the rapid reaction pool.
Standing corps members to assist in reception and registration of applicationsIn future, a member of the European Border and Coast Guard standing corps may, when necessary, assist the Finnish police and border control authorities in the reception and registration of asylum applications.
The Aliens Act includes provisions on the Non-Discrimination Ombudsman’s duty to participate in the monitoring of forced return of asylum seekers also enforced by the authorities of other EU Member States. Such monitoring may also be requested from Frontex to Finland if necessary.
From now on, it will also be possible to provide Frontex with personal data relating to return and voluntary return.In future, Member States’ national authorities responsible for returns make part of the European Border and Coast Guard
In December 2019, the European Union adopted a European Border and Coast Guard Regulation, which also required amendments to the Finnish legislation. The regulation will reinforce the operational capacities of the European Border and Coast Guard Agency (Frontex), support return operations while respecting fundamental rights, and incorporate the European Border Surveillance System (EUROSUR) into the European Border and Coast Guard framework.
In future, the European Border and Coast Guard will be composed of Frontex and the national authorities responsible for border management, as well as the national authorities responsible for returns.
NordenBladet — On 30 December 2020, the Government issued a decree that will extend the validity of the temporary amendments to the Government Decree on Discretionary Government Transfers to Develop Business Operations. The amendments entered into force earlier in the autumn. The decree applies to business development aid granted by the ELY Centres. The temporary amendments allow the granting of business development aid in the form of temporary State aid for a maximum of EUR 800,000 and the granting of aid to small companies that have been in difficulties before 1 January 2020.
The amendments to the decree are based on the European Commission’s communication on the temporary framework on State aid measures, the General Block Exemption Regulation and Finland’s State aid scheme. The State aid scheme involves a temporary easing of State aid rules due to the coronavirus epidemic. The aid scheme aims to help companies continue and develop their operations and start investment plans during and after the crisis. Another objective is to keep people employed. Initially, the temporary amendments were intended to be in force from 19 October to 31 December 2020.
However, the Commission decided on 30 November 2020 that Finland’s State aid scheme would remain in force until 30 June 2021. With the extension of the State aid scheme amid the prolonged coronavirus epidemic and the difficult economic situation, it has been deemed necessary to extend also the validity of the temporary amendments to the decree until 30 June 2021.
Granting of business development aid as temporary State aid to continue
From 19 October 2020, ELY Centres have been able to grant business development aid in the form of temporary State aid in accordance with Finland’s State aid scheme, including in cases where basic business development aid is granted to companies for development measures or investments. The maximum amount of aid that can be granted as temporary State aid is EUR 800,000 per company.
The business development aid can still be granted as de minimis aid. De minimis aid refers to small amounts of aid that may be granted to companies for a maximum of EUR 200,000 over three fiscal years.
Extension of business development aid to small companies in difficulty before 1 January 2020As a result of the extension of the temporary amendments, under Finland’s State aid scheme, business development aid may until 30 June 202, be granted to small companies that have been in difficulties before 1 January 2020. Granting business development aid to a small company in difficulty is subject to the condition that the company is not involved in bankruptcy or restructuring proceedings at the time the aid is granted and that it has not received rescue aid or restructuring aid. In this context, a small company is defined as employing fewer than 50 employees and having an annual turnover or balance sheet total of less than EUR 10 million.
Although the amendment to the decree provides for the possibility of granting development aid to a company in difficulty, the decree does not change the general conditions for granting aid under the Government Decree on Discretionary Government Transfers to Develop Business Operations. The granting of aid will continue to require that the company is assessed to have the conditions to continue profitable operations, that the aid is estimated to have a considerable impact on the implementation of the project and that the project is considered significant for the development of the company’s operations.
Business development aid supports regeneration of SMEsELY Centres grant business development aid throughout the year to SMEs for their development measures and investments. These companies include start-ups or those looking to reform or grow. A particular focus is on internationalisation.
Business development aid may be granted to SMEs that are equipped to run profitable operations and have sufficient resources for measures to improve their competitiveness. Companies cover a significant part of the development project costs.Finland’s Structural Funds programme provides a part of the funding for business development aid. This means that for a project to be eligible for business development aid, it must meet the objectives and criteria of the structural funds programme. Applications may be submitted at any time before the start of the project.
The amendments related to the granting of business development aid that are valid until the end of June 2021 concern the granting of aid in the form of temporary State aid and the possibility to grant aid to small companies that have been in difficulties before 1 January 2020. The amendment to the decree therefore does not provide for a new form of aid.More detailed information on applying for business development aid on ELY Centre website (in Finnish)
NordenBladet — The Government issued a decree on regional transport subsidy for 2020–2022 on 30 December 2020. The content of the regional transport subsidy will remain largely unchanged from the previous decree on transport subsidy for 2018–2019. The regional transport subsidy aims to reduce the additional costs of long transport journeys by companies operating in sparsely populated areas, and thereby improve the conditions for business activities in these areas.
Transport subsidy may be granted for goods transport in Finland if the product has been manufactured in one of the following regions: Lapland, Kainuu, North Ostrobothnia, Central Ostrobothnia, North Karelia, North Savo or South Savo, or the municipal area of Saarijärvi-Viitasaari.
Level of subsidies to remain unchanged
Depending on the length of the journey, the amount of transport subsidy is between 9% and 20% of the transport charge for road or rail transport. The shortest distance eligible for subsidy is 266 km. If the transport has been granted a subsidy for port operations, the shortest distance eligible for subsidy is 101 km. The subsidy for port operations is determined on the basis of the weight of the consignment and is either EUR 1 or EUR 2 per tonne depending on the location of the port.
Transport subsidy is a discretionary government grant. Subsidy may not be granted, for example, in situations where the product in question is considered not to be an actual processed product or where the degree of processing is not considered sufficient. The subsidy also may not be granted if it is considered to distort competition at a more than negligible level.
Transport subsidy is a form of State aid
Transport subsidy is a form of State aid and the granting of the subsidy must comply with the European Union’s State aid rules.
An appropriation of EUR 6 million has been allocated to regional transport subsidy in the 2020 budget. In the draft budget for 2021, the Government has also proposed an appropriation of EUR 6 million for the subsidy.
The number of companies receiving the subsidy is estimated at 240. The ELY Centre in North Ostrobothnia makes the decisions on transport subsidies.
The decree will enter into force on 1 January 2021.
NordenBladet — The Act on the placing on the market of conflict minerals and their ores will improve the transparency of supply chains. The Act will bring Finland’s conflict minerals regime into line with EU regulations.
The Government submitted the Act for approval by the President of the Republic on 30 December 2020. The Act will enter into force at the beginning of 2020.Conflict minerals originate in conflict and high-risk areas and include tin, tantalum, tungsten and their ores as well as gold. These minerals are widely used in phones, computers, cameras, airplanes, medical devices and jewellery, for example.Conflict minerals and their production offers a great deal of development potential, but they also involve problems. In some areas, the proceeds from the sale of the minerals are used to finance violent conflicts or human rights violations, for example.
In order to reduce these problems, the European Union has established a system for supply chain due diligence that imposes new obligations on importers of conflict minerals. The system will impose new obligations on companies importing minerals. With the help of responsible business activities, natural resources can be used to support the development of these areas.
The Finnish Safety and Chemicals Agency (Tukes) is the competent authority in Finland. In addition, Customs will be given tasks related to the implementation of the Act. Tukes should also, within the limits of the provisions on public access to information, ensure the widest possible public access and examine the possibility of publishing the information in register format on its website.
NordenBladet — The local government pilots on employment will begin on 1 March 2021. During the pilots, certain tasks of TE Offices will be transferred to local governments. The pilots aim to increase the effectiveness of employment services by integrating central and local government resources, skills and services. A total of 25 areas and 118 municipalities will participate in the pilot projects.
The President of the Republic approved the Act on municipal experiments to promote employment (Laki työllisyyden edistämisen kuntakokeilusta) on 30 December 2020. The Act will enter into force on 1 March 2021, and pilots will run from 1 March 2021 to 30 June 2023.The pilots aim to increase employment among unemployed jobseekers and to direct them to training and education more effectively. Another objective is to create new solutions to ensure availability of skilled labour. The purpose of the pilots is, in particular, to improve access to the labour market by the long-term unemployed and those in a more vulnerable position.
“The pilots will integrate employment, education, social and health services more closely together. Many unemployed jobseekers need multi-sectoral services and comprehensive personal support. With the help of the local government pilots, such services can be offered more extensively and to more people,” says Minister of Employment Tuula Haatainen.
Instead of a strict service model, municipalities can develop services based on the needs of jobseekers and employers in their area. The participating municipalities will arrange pilot projects to test different ways of providing employment services and to identify best practices for renewing service structures. The Government will decide on a permanent structure for employment services during its term.
“The state and municipalities have a strong common interest in promoting employment. The new Act provides an opportunity to improve and develop cooperation between the state and municipalities and between municipalities. I encourage all participants to cooperate and share information as that will enable us to make swift use of best practices. The aim is to utilise the results of these pilots when we plan the service structure of the future,” Haatainen adds. About 230,000 current TE Office customers will transfer to services organised by municipalities
During the local government pilots on employment, municipalities will take responsibility for around 230,000 TE Office customers, which accounts for 36% of all TE Office customers. Of all unemployed job seekers, 50% will transfer from TE Services to the pilots.
Unemployed jobseekers, persons in work placement and persons participating in employment-promoting services who are not entitled to earnings-related unemployment allowance will transfer to the pilot projects in the areas. In addition, all jobseekers under the age of 30 and all immigrants and foreign-language speakers who are either unemployed, in work placement or in employment-promoting services will transfer to the pilots. The respective pilot area will be based on the person’s municipality of residence.
Municipalities participating in the pilot projectsNew tasks of local governments
During the pilot, the participating areas would be responsible for providing information, advice and services to customers to promote employment; tasks involved in the granting of certain discretionary benefits; and issuing certain employment policy statements.
The legislative changes do not affect employers who are customers of TE Offices. TE Offices will continue to provide employer and business services in the pilot areas, but they will cooperate closely with the municipalities in the coordination of employer services. The municipalities participating in the pilots can publish and share information about open vacancies according to the employer’s instructions and introduce suitable jobseekers to the employers. The Regional State Administrative Agency for Western and Inland Finland will monitor the pilots nationally. The Regional State Administrative Agency has the power to address any deficiencies or shortcomings in compliance with the Act.
Local government pilots to be monitored through statistics and impact assessment
The pilots aim to provide information on the effectiveness of combining state and municipal funding, skills and customer service.Continuous statistical monitoring and a joint impact assessment by the Government will be used to monitor the pilots. The monitoring will provide information about the development of employment and the use of employment services in the pilot areas. Monitoring data will be used as a tool for peer learning and coaching, and it will be available to the public. The application period for the assessment study for researchers is currently ongoing and the preparation of the study will begin in February 2021. The first interim report on the local government pilots will be submitted in autumn 2021.
Preparation of amendments required by Parliament in progress
At the time of the adoption of the Act, Parliament required that the Government prepare provisions for the broader transfer of tasks related to unemployment security from TE Offices to the pilot areas. Parliament also required that the Government prepare provisions enabling customers to transfer from the pilot area to the TE Office. The legislative drafting at the Ministry of Economic Affairs and Employment has already began. The amendments currently under preparation will not affect the starting date of the local government pilots.
NordenBladet — The President of the Republic has approved the Act on Broadband Construction Aid on Wednesday 30 December 2020. The Act will enter into force on 1 January 2021.
In the 2021 Budget, five million euros have been earmarked for broadband aid. The aid scheme will target areas where no broadband will be available before 2025. The aim is to bring 10,000 new households within the reach of high-speed broadband connections.Aid can be applied for the construction of high-speed broadband connections for permanent and holiday residences and for business and public administration premises. The minimum connection speed to qualify for aid and the contributions required from municipalities to the broadband project would be laid down by a government decree. The aid scheme is a continuation of the High-Speed Broadband aid scheme, which was in use in 2010-2019.
Next steps
The Finnish Transport and Communications Agency will carry out market analyses of the project areas proposed for the broadband aid by the regional councils. The Agency will also map the existing high-speed broadband connections and related construction plans in the regions. A regional council will then organise a competitive tendering process for the selection of a project area constructor. The selected network constructor may apply for aid from the Finnish Transport and Communications Agency.
The government decree on the minimum broadband connection speed and the municipalities’ contribution to the broadband project is to be adopted in early 2021.
NordenBladet — Minister of Defence Antti Kaikkonen has authorised the Defence Forces to procure life cycle support services for military aviation, naval defence, and intelligence, surveillance, and command and control systems from Combitech, Patria Aviation Oy and Insta Group Oy.
The support and maintenance contract between Combitech and the Defence Forces covers life cycle support services for military aircraft and systems, naval defence systems, intelligence, surveillance and C2 systems, as well as training and information security systems. The main part of deliveries from Combitech will take place in 2021, and the procurement is valued at about EUR 7.9 million (VAT 0%). The domestic employment effect will be approximately 40 person-years.
Procurements from Patria Aviation Oy are in line with the strategic partnership agreement made between Patria Aviation Oy and the Defence Forces. For their part, the procurements enable the Defence Forces to achieve performance targets related to the systems maintenance covered by the partnership agreements. High operational reliability and sufficient industrial capacity in normal conditions will ensure reliable system operability in all readiness conditions. The services will be procured over the years 2021-2025. The total value of the services is about EUR 59.4 million (VAT 0%). The domestic employment effect will be approximately 500 person-years.
The strategic partnership agreement with Insta Group Oy covers life cycle support services for the aircraft and systems in military aviation, naval defence systems, intelligence, surveillance, C2 and target acquisition systems, and training and information security systems. The procurement is valued at about EUR 25.3 million (VAT 0%), and the estimated domestic employment effect is about 50 person-years.
NordenBladet — Finland will apply for support from the European Globalisation Adjustment Fund (EGF) due to the redundancies announced by Finnair in October. Finland submitted an application to the European Commission on 30 December 2020. The application concerns a total of about 500 persons who were made redundant by Finnair or companies associated with it. Funding will be used for services promoting re-employment. The total budget of the project is estimated at approximately EUR 3 million, of which 40% will be nationally funded. The project will take place in the Uusimaa region.
“We want to respond to the situation in the aviation sector by applying for support from the EGF. It is important that the Finnish labour market can benefit from the diverse expertise of those made redundant by Finnair as soon as possible. EGF support will make it possible to offer customised services also for those who for one reason or another are not among the first ones to find new employment,” says Minister of Employment Tuula Haatainen.
Support measures for those made redundant ongoing since OctoberAccording to the EGF’s operating model, the support measures will start as soon as possible after the redundancy notice, even though preparing and processing the application itself is quite slow. Services for those made redundant from Finnair were launched immediately after the layoffs started in October 2020. The TE Office in Uusimaa has hired more than 30 new experts to serve job seekers from the aviation sector. All educational and other services for the job seekers have been designed in close cooperation with Finnair.
Prior EGF projects in FinlandTen projects supported by the European Globalisation Adjustment Fund have been implemented in Finland in 2007–2019. Seven of the projects have been in the ICT sector. The combined value of the previous projects is approximately EUR 70 million. So far, the number of beneficiaries has been around 12,000 and the employment rate in the projects has reached about 80%.
In EGF’s funding model, the EU’s funding share is 60% and the national contribution is 40%. In cases of major structural change, EGF support may be granted for active employment policy measures, such as different forms of training, education, promotion of mobility, pay subsidies and start-up grants.
NordenBladet — Ministry of Social Affairs and Health has updated its action plan implementing the hybrid strategy to manage the COVID-19 crisis in accordance with the Government Resolution adopted on 22 December 2020. The Ministry sent a circular to the Finnish Institute for Health and Welfare, municipalities, hospital districts and other joint municipal authorities, the Regional State Administrative Agency and the National Supervisory Authority for Welfare and Health.
The action plan of the Ministry of Social Affairs and Health of 7 September 2020, adopted under the Government Resolution of 3 September 2020, has guided the authorities responsible for the implementation of the Communicable Diseases Act in using the recommendations and restrictive measures in an appropriate manner with respect to the epidemiological situation. Because the global pandemic continues and the epidemic is again accelerating in Finland as well, the action plan has been updated for the period from January to May 2021. All measures must be epidemiologically justified. To this end, the action plan describes three phases of the epidemic that are used to assess the need and targeting of restrictions and recommendations and to support decision-making at regional and national levels. Some of the details of the three phases have been amended based on experiences during the autumn 2020. The action plan describes the statutory powers to implement measures, the roles and decision-making of different authorities and the nature and contents of measures.