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Labor Supply A baseline study of socio-economic effects of Northland Resources ore establishment in northern Sweden and Finland Local trade and industry in Pajala and Kolari Lena Rantakyrö Luleå University of Technology Department of Human Work Sciences 2008 Universitetstryckeriet, Luleå A baseline study of socio-economic effects of Northland Resources ore establishment in northern Sweden and Finland Local trade and industry in Pajala and Kolari Lena Rantakyrö Department of Human Work Sciences Luleå University of Technology 2 Summary This report gives a description of the local trade and industry in the municipalities of Pajala in Sweden and Kolari in Finland. The description of the local trade and industry concerns structure, relating and supporting industries especially to the mine industry. The study shows that there is a diversified local trade and industry in the municipalities of Pajala and Kolari. In both municipalities there are service companies offering service and goods that ordinary people need for their living. Tourism is a significant business in especially Kolari municipality, especially in the Ylläs area, while Pajala has a more diversified business structure where forestry and manufacturing stands for a large part of the local business. The two municipalities cooperate in several joint projects concerning local and regional development. The latest project started in March 2008, a vision of one common community across the border. 3 4 Table of Content Table of Content......................................................................................................................... 5 1. Introduction ............................................................................................................................ 7 2. Extent and Delimitations........................................................................................................ 7 3. Methods.................................................................................................................................. 7 4. Results .................................................................................................................................... 7 4.1 Local trade and industry in Pajala.................................................................................... 7 4.2 Local trade and industry in Kolari.................................................................................... 8 4.3 Commerce and Private Service in Pajala ......................................................................... 9 4.4 Commerce and Private Service in Kolari......................................................................... 9 4.5 Tourism in Pajala ........................................................................................................... 10 4.6 Tourism in Kolari........................................................................................................... 10 4.8 Mine related industries in Kolari.................................................................................... 11 5. Cooperation between Pajala and Kolari ............................................................................... 12 6. Conclusions .......................................................................................................................... 12 7. Key Indicators ...................................................................................................................... 13 8. Stakeholders ......................................................................................................................... 13 References ................................................................................................................................ 13 Appendix 1 .............................................................................................................................. 15 Table 1: Businesses in Pajala, 2006 ........................................................................................... 8 Table 2: Businesses in Kolari, 2006........................................................................................... 9 5 6 1. Introduction This report gives a description of the local trade and industry in the municipalities of Pajala in Sweden and Kolari in Finland. The description of the local trade and industry concerns structure, relating and supporting industries especially to the mine industry. The study is a sub-project within a socio-economic baseline study accomplished on request of Northland Exploration Finland OY. The sub-project was carried out by Assistant professor Lena Rantakyrö. 2. Extent and Delimitations The geographic delimitation in this study is Pajala municipality in Sweden and Kolari municipality in Finland (see Appendix 1). The study is only outlining the current conditions and do not take into consideration plans for the future or give any suggestions or recommendations. 3. Methods Facts and figures are collected from information on the Internet. Supplementary details were collected by interviews with representatives for the municipalities, representatives for Pajala Utveckling AB and Tuomas Qvist, Hotel Ylläshumina. 4. Results First in this section is the local trade and industry in Pajala and Kolari outlined, followed by a presentation of commerce and private service, tourism and finally the mine related industry in each of the two municipalities. Mine related industry refers to businesses within trades that are supposed to be subcontractors in the mining industry such as transportation, construction, machine shops and so on. 4.1 Local trade and industry in Pajala On October 31st 2006, 264 privately held businesses were registered in Pajala municipality “Business Register”. Most of the businesses are self-employed (166) and micro-businesses with less than 5 employees. Ten businesses have 5-10 employees, one has 15-20 and, two have about 30 employees. The largest business is a saw mill with 40 employees (www.pajala.se). The largest line of business in Pajala municipality is the public sector including health, social care and education. Pajala municipality and Norrbotten County Council employ about 44 % of the labor. The largest line of business within the private sector is forestry and farming and, related industry such as saw mills and wood manufacturers. 7 Most of the 264 companies are located in Pajala village (157 companies) and in the larger villages in the rural district. 27 companies are located in Tärndö, 24 companies in Junosuando, 20 in Korpilombolo and 16 companies in Kangos (for location of the villages, see Appendix 1). Rest of the companies are located in several smaller villages in Pajala municipality (http://www.palaja.se) The table below shows privately held businesses in Pajala municipality classified by industry 2006, based on Pajala Utveckling AB, “Business register”. Table 1: Businesses in Pajala, 2006 Number Industry of companies Activity, tourism 16 Administration 3 Agriculture and forestry 28 Commerce 36 Construction 10 Consultants 10 Culture and art 6 Education 2 Electricity, water and sewage 13 Food industry 6 Ground preparation 4 Handicraft 10 Health 6 Hotels and restaurants 11 Manufacturing industry 27 Private service 21 Real estate 1 Timber industry and carpentry shops 14 Transportation 26 Other industry and unclassified 14 4.2 Local trade and industry in Kolari According to Statistics Finland there were 347 companies in Kolari in 2006. Almost a fifth of them (19%) were hotels and restaurants, which indicates the significance of the tourism for the municipality. In 2006 there were 46 retail trade units in Kolari employing 116 persons (http://www.stat.fi). The table below shows companies in Kolari, classified by industry 2006 (http://www.stat.fi). 8 Table 2: Businesses in Kolari, 2006 Number Industry of companies Agriculture, hunting and forestry 5 Construction 49 Electricity, gas and water supply 1 Financial intermediation 1 Health and social work 7 Hotels and restaurants 67 Industry unknown 3 Manufacturing 26 Mining and quarrying 2 Other community, social and personal service activities 30 Real estate, renting and business activities 61 Transport, storage and communication 48 Wholesale and retail trade; repair of vehicles, motorcycles, personal and household goods 47 The classification of companies differs between Finland and Sweden. Nonetheless, the lists above give an idea of the diversity of local trade and industry. The lists show the relative importance of tourism in the Kolari area (Ylläs area) with 67 hotels and restaurants and 61 real estate and renting companies in comparison to Pajala municipality with 11 hotels and restaurants and only one real estate company. Among the 16 companies in Pajala municipality classified as “Activity, tourism” there is one company working with tourism activities and also renting out cottages for tourists. 4.3 Commerce and Private Service in Pajala The commerce and private service in both Pajala and Kolari are diversified and cover most of the day-to-day needs for ordinary people. Most of the shops in Pajala municipality are located in Pajala village, where you can find retail shops providing paint, construction equipment, flowers, apparels, sports equipment and so on. There is also a liquor store, pharmacy, two banks and postal service. Grocery stores are located in Pajala and in the larger villages in the rural district (http://www.pajala.se). There are eight companies providing passenger services including five taxi and three coach companies. (http://www.pajala.se). Pajala-Ylläs
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