European Commission DG Regional Policy Avenue de Tervuren 41 B-1049 Bruxelles

Finnmark fylkeskommune Henry Karlsens plass 1 N-9815 Vadsø

Consultative statement from County Authority concerning the EU Green Paper on Territorial Cohesion

Finnmark County Authority welcomes the EU initiative on territorial cohesion. Finnmark has a lot to offer the European market in the way of resources such as minerals, fish, and oil and gas. To ensure that people will want to live and work here, however, certain considerations must be shown with regard to the geographical challenges we face.

The Green Paper highlights three types of that face special challenges in respect of territorial cohesion, island regions, mountain regions and sparsely populated regions. The Norwegian County of Finnmark may be said to contain elements of all these types.

Finnmark is a peripheral territory characterised by being

• a large with a small and widely spread population • a mountain region with a coastal zone • a region bordering and • a region with an climate • a region that is home to ’s largest indigenous population

As a consequence of these conditions, both private and public services are more expensive here than in other parts of Norway. The limited amount of business that does exist is rather vulnerable to demographic change. Furthermore, there is growing awareness that regions such as Finnmark are particularly exposed to climate change. If territorial cohesion is to become a reality for regions such as Finnmark too, these conditions must be taken into account in the implementation of the EU’s territorial cohesion policy measures.

It is important to make sure that special soft and adaptive support schemes to regions that may be characterised as island regions, mountain regions or sparsely populated regions are not at the detriment of the economic growth and well-being of other regions. Rather, the ability of all regions to exploit their own resources will also benefit other regions. Norway’s district and regional policy signalises this understanding well, and Finnmark County Authority recommends that the Norwegian Ministry of Local Government and Regional Development conveys these experiences to the EU.

In the opinion of Finnmark County Authority, the EU is open to study the importance of sectoral policy on regional development. The title of the Green Paper, “Turning diversity into strength”, would tend to indicate a high level of ambition in this context. Finnmark County Authority has therefore urged the Ministry of Local Government and Regional Development to take great pains to produce a thoroughly researched submission to the EU Commission.

Finnmark County Authority’s reply to the questions posed in the Green Book

In its Green Paper, the EU asks for suggestions as to how territorial cohesion may be defined. In addition, a number of questions are raised in respect of the content of territorial cohesion policy, and its governance. In the following, Finnmark County Authority will provide some suggestions which the Commission is advised to take into account when working with the development of territorial cohesion policy. The structure of this consultative statement follows the questions posed in the Green Paper.

1. What is meant by the term territorial cohesion?

In its Green Paper, the EU asks for suggestions as to how the term territorial cohesion may be defined. In the opinion of Finnmark County Authority, the purpose of territorial cohesion policy is to promote regional development for all regions in Europe. This shall primarily be achieved by encouraging more cooperation between regions, and by enabling all regions to compete on the European market. In the view of Finnmark County Authority, territorial cohesion does not conflict with the European Union’s economic and social cohesion policy; rather it complements these by including a territorial dimension.

Finnmark County Authority recommends that the definition of territorial cohesion must include all of the EU’s central sectoral policy areas that have a bearing on the territories. Particular attention must be paid to territories faced with special geographical challenges. The reason for this is that different types of territories require different approaches in order to ensure the exploitation of potential resources in all regions.

2. Territorial action, limitations to or opportunities for cooperation

The EU has asked for suggestions about which role the European Union may play as an international stakeholder in fostering improved cooperation between local, regional and national authorities. In the opinion of Finnmark County Authority, increased cooperation across regional and national borders is necessary in order to develop territorial cohesion. Strengthening cooperation across levels of government (multilevel governance) is one possible way of promoting improved cooperation. In the opinion of Finnmark County Authority, the principle of subsidiarity should form the basis of all decisions made. A strong regional level is a prerequisite for achieving a successful territorial cohesion policy. In the view of Finnmark County Authority, the EU can provide advice, guidance and economic programmes. If the EU is to have legitimacy as a possible “advisor”, it must pave the way for a comprehensive study of territorial policy measures in the national states and the effects of such policy measures. In this context EU Commission should initiate work on a White Paper on territorial cohesion.

The EU may possibly assume greater responsibility for common global challenges such a global warming. Specific measures should be implemented in the territories with a view to securing against extreme weather conditions. In particular, this applies to territories where there is least pollution but where the effects of climate change are felt most strongly. In this context, coastal and Arctic regions are particularly exposed to such problems.

Further, the EU would like to know whether territories faced with special geographical problems require special policy instruments in order to promote regional development. The most central geographical challenges in Finnmark with regard to territorial cohesion are 1) a small and sparse population, 2) long distances to markets and 3) a harsh climate. In addition, Finnmark has 4) an indigenous population that requires special considerations.

Norway has long traditions in developing appropriate regional policy measures, and Finnmark County Authority has recommended that the Norwegian Ministry of Local Government and Regional Development communicate these to the EU. In the opinion of Finnmark County Authority, a number of measures have functioned well in Finnmark. For Finnmark, the continuation of policy instruments in the Action Zone after 2013 will also be crucial to the continued development of the region. Finnmark County Authority asks the Norwegian Ministry of Local Government and Regional Development to base its consultative statements on policy measures in Arctic areas on Report no. 8 to the Storting (2003–2004): “Rich diversity in the North. On the Action Zone of Finnmark and North-”.

The region has also had positive experiences with the public procurement of bus, ferry and air transport services, and Finnmark County Authority considers such measures as essential in order to maintain public transport in the region. The EU may also be interested in hearing about Norway’s experience of the municipal revenues system, which expediently secures necessary services for peripheral populations.

As regards energy policy, Finnmark County Authority would like the need for regional policy solutions to be taken into account. For example, Finnmark County Council has resolved that it is desirable to establish an oil fund derived from property tax revenues from the industry. Such a fund would benefit the entire population of the county, and not only individual municipalities where oil production occurs.

As regards the perspective of the indigenous population, special considerations have been taken by Norway. Several studies have shown that Sami-focused policies enable the channelling of considerable policy instruments to Sami areas with good effects on regional policy.

3. Improved cooperation and governance

The Green Paper poses questions concerning governance of the territories’ cooperation across national borders, and which role the EU Commission should play in order to encourage and support cooperation between territories.

In the opinion of Finnmark County Authority, existing forms of territorial cooperation should be studied. Finnmark has experience of transnational sectoral cooperation and overarching regional cooperation, e.g. in connection with the administration of watercourses along borders, cooperation on nuclear safety, supplier development, infrastructure cooperation, the Northern Area Cooperation and Barents Cooperation. EU should continue to focus on transnational development programs such as Interreg and ENPI, since such funding programmes have encouraged regional cooperation over national borders.

Finnmark County Authority would like to see greater focus in the Green Paper on territories along the external borders of the EU, and has asked the Ministry of Local Government and Regional Development to raise this matter in its submission to the Green paper. Finnmark enjoys good cooperation with Arkhangelsk and Murmansk in the field of culture and sports. This cooperation is broad-based and is considered to be highly successful. The County of Finnmark faces continuous challenges in respect of other forms of cooperation, including visa regulations, exports of fish, customs procedures, work permits etc. The introduction of the new Kolartic ENPI CBC 2007–2013 programme has shown that Russia essentially lacks legislation that would pave the way for Russian participation in cross-border regional programme cooperation with the EU and Norway. Signing of the new funding agreement between the EU and Russia has taken a long time, and it is still not in place. A new evaluation of EU demands on Russian territories involved in this programme may be expedient in order to get Russia to participate.

As regards the need for the development of new administrative tools in order to facilitate cooperation between regions, Finnmark County Authority welcomes measures such as the EU action plan aimed at creating a borderless maritime transport area. Less bureaucracy will simplify cooperation between regions.

4. Improved coordination between sectoral and regional policies

The Green Paper raises a number of questions regarding the coordination of regional and sectoral policies, and whether additional sectors should be given consideration in connection with regional policies.

Finnmark County Authority welcomes improved coordination between sectoral and regional policies. A lot of work has been done in order to study the effects of national sectoral policies on regional development in Norway, e.g. the work carried out under the auspices of the Effect Commission (Norwegian Official Reports 2004:2), where it is clear that many sectoral policy measures are crucial to ensuring positive regional development. In the opinion of Finnmark County Authority, Finnmark requires a differentiated policy. Specifically, it is the opinion of Finnmark County Authority that the national states should coordinate sectoral policies in their countries with the ministry responsible for the development of regional policy. In Norway, it may be possible to develop the role played by both the Ministry of Local Government and Regional Development and the Ministry of the Environment in respect of coordination and as a planning authority. Sectors that should give consideration to regional effects include health and social policy, transport and communications policy, municipal revenues systems, business development, higher education policy, defence policy and cultural policy.

Another question is how the regional policies of the EU and national states could better be combined in order to stimulate territorial cohesion. The EU should be open to different regions having different financial support schemes. A mutual exchange of knowledge and opinions regarding such support schemes would be expedient, but Finnmark County Authority would recommend that the national states be free to govern these themselves in consultation with each territory.

5. New territorial partnerships

The EU raises questions about the need to establish new partnerships and cooperative organisations. Finnmark County Authority recommends that existing partnerships between, for example, business and industry, research environments and regional authorities be strengthened, rather than establishing new partnerships, particularly in the case of cross- border cooperation between regions. Within the regions, stronger cooperation between regional state and the county Authority may be useful. Finnmark County Authority sees no problems in commissioning experts from NGOs or voluntary organisations, as advisers, in cases where they possess knowledge or expertise.

6. Indicators to measure territorial cohesion

The European Union invites suggestions for new qualitative and quantitative indicators to measure trends in territorial cohesion. In this connection, it could be said that Finnmark faces major challenges despite its high Gross Regional Product compared with the average in Europe if we include in the accounts export revenues from the sale of LNG gas. In the opinion of Finnmark County Authority, economic indicators do not therefore serve as good indicators to measure territorial cohesion. This applies in particular to regions with special geographical and demographic challenges in relation to competing in a larger market. It is the view of Finnmark County Authority that there is a very clear need for other indicators to measure territorial cohesion. This may include indicators such as distances to central markets, demographic changes, age demographics, changes in the educational level of the population, developments in employment, changes in infrastructure and the degree of innovation.

Besides resources such as oil, fish, gas and minerals, the County of Finnmark has plenty of unspoilt nature and cultural diversity. It is also desirable to include development of the tourist and adventure travel industry as indicators in order to measure territorial cohesion.

Yours sincerely

Runar Sjåstad Mayor of the County Authority of Finnmark