Action plan to implement the key projects and reforms of the Strategic Government Programme for 2015–2019, update 2016
Government Publications 12/2016
Action plan to implement the key projects and reforms of the Strategic Government Programme for 2015–2019,update 2016
Government Publications 12/2016
Published by DESCRIPTION PRIME MINISTER’S OFFICE October 2016 Authors Type of publication Report Commissioned by Prime Minister’s Office Date of appointment
Title Action plan to implement the key projects and reforms of the Strategic Government Programme for 2015–2019,update 2016 Abstract The Government action plan is a programme of restructuring. The action plan is an elaboration of the ways and means for achieving the key objectives detailed in the Government Programme. The Government is fully committed to its implementation. This is the Government’s second, revised action plan. Several new schemes have been launched in the area of employment and competitiveness in an effort to create the necessary preconditions for business growth and job creation, particularly in the SME sector. The main milestones, supportive actions and financing of the key projects and reforms are defined in more detail in the Government’s action plan. In the autumn of 2015, the Government decided to make a one‐off appropriation of EUR 1 billion for these key projects in the General Government Fiscal Plan for 2016–2018. This Government action plan will be implemented within the framework of said funding, the existing authorised spending limits and the other provisions of the General Government Fiscal Plan. The action plan for the implementation of the key projects and reforms defined in the Strategic Government Programme involves a large number of extensive operational changes designed to reform Finnish society and underpin the efforts to create favourable conditions for economic growth. This document does not cover the full content of the Government Programme. Its aim is to focus the Government’s collegial efforts on key inter‐administrative measures to follow through the necessary changes with a view to achieving the Government’s vision. The action plan is structured according to strategic priorities. Government‐initiated reforms to improve competitiveness and employment will pave the way for corporate renewal, growth and internationalisation. Competitiveness will be strengthened by a set of coordinated actions to foster entrepreneurship in order to facilitate business. Reforms to unemployment security will encourage people to accept work without undue delay. Labour administration will be overhauled to promote employment more effectively. In the area of knowledge and education, the Government will overhaul education system from comprehensive schools to universities and intensify interaction between educational institutions and working life. These measures will help improve the standard of skills, reduce the number of young people at risk of social exclusion, boost the impact of research and innovation and bolster education exports. In the area of health and wellbeing, steps will be taken to achieve an extensive integration of services, IT systems and information to ensure access to coordinated services. Additionally, substantial reforms will be carried out in the social security system accompanied by a new policy of coordinating services and benefits. By these actions, the Government will consolidate public finances and contribute to a smooth and timely provision of comprehensive services and facilitate the public’s transactions with government agencies. Bioeconomy and clean solutions foresees actions to replace imported fossil fuels by clean domestic energy, promote the use of timber and achieve greater added value. Additionally, bioeconomy‐related research and innovation will be initiated and profitability in the food production sector improved. This will make it possible to achieve the 2020 climate objectives during the current electoral period and create new jobs. Finland’s ambition is to be a pioneer in the bio‐ and circular economy and cleantech. In the area of reform of current practices, the Government’s policy is to do away with unnecessary regulation, streamline administrative procedures through digitalisation and accelerate renewal by means of an experimental approach. At the same time, steps will be taken to improve management and execution. Public services will become user‐oriented and primarily digital. The Government will create a favourable operating environment for digital business. The actions will make people's daily life easier, boost business and improve efficiency in public administration. Reforms are designed to reshape public‐sector services and structures to respond to future challenges. Cutting costs in municipalities, regions and across the entire public sector play a major part in these reforms. The reforms are expected to improve the sustainability of public finances by a total of EUR 4 billion. Aside from the foregoing priorities, the action plan consists of 11 linchpin projects. While highly important, they are not included in the key projects discussed in this report.
Keywords priority, government strategy process, key project, government action plan, restructuring programme Publication title and number ISSN ISBN (print) Government Publications 12/2016 2323‐962X Total number of pages Language Confidentiality rating ISBN (PDF) 96 English Public 978‐952‐287‐291‐3 Published by Layout Prime Minister's Office Prime Minister’s Office Publication as a PDF: www.vnk.fi/julkaisut Government Strategic Secretariat Additional information: [email protected]
CONTENTS
INTRODUCTION ...... 9 1 EMPLOYMENT AND COMPETITIVENESS ...... 11 Key project 1: Strengthening competitiveness by improving conditions for business and entrepreneurship ...... 12 Key project 2: Incentive traps preventing acceptance of work will be removed and structural unemployment reduced ...... 24 Key project 3: Company-level bargaining will be promoted and barriers to employment removed 25 Key project 4: Reforming labour administration to support employment...... 27 Key project 5: Increased housing production ...... 31 2 KNOWLEDGE AND EDUCATION ...... 33 Key project 1: New learning environments and digital materials to comprehensive schools ...... 34 Key project 2: Reform of vocational upper secondary education ...... 37 Key project 3: Acceleration of transition to working life ...... 40 Key project 4: Improved access to art and culture ...... 42 Key project 5: Cooperation between higher education institutions and business life will be strengthened to bring innovations to the market ...... 45 Key project 6: From the youth guarantee towards a community guarantee ...... 50 3 HEALTH AND WELLBEING ...... 53 Key project 1: Services based on customer needs...... 54 Key project 2: Health and wellbeing will be fostered and inequalities reduced ...... 56 Key project 3: Restructuring programme to address child and family services ...... 57 Key project 4: Home care for elderly people will be developed and informal care enhanced for all age groups ...... 59 Key project 5: Employment opportunities for people with impaired capacity for work ...... 61 4 BIOECONOMY AND CLEAN SOLUTIONS ...... 63 Key project 1: Towards coal-free, clean and renewable energy in a cost-efficient way ...... 64 Key project 2: Wood on the move and new products from forests ...... 65 Key project 3: Breakthrough of the circular economy and clean solutions ...... 68 Key project 4: Economically viable food production, balanced trade and thriving bioeconomy ..... 72 Key project 5: Nature policy based on trust and fair means ...... 75 5 DIGITALISATION, EXPERIMENTATION AND DEREGULATION ...... 77 Key project 1: Public services will be digitalised ...... 78 Key project 2: A growth environment will be created for digital business operations ...... 81 Key project 3: Streamlined regulation ...... 84 Key project 4: An experimental culture will be introduced ...... 86 Key project 5: Better management and execution ...... 88 6 REFORMS ...... 89 Reform 1: Health and social services reform ...... 90 Reform 2: Reduction of costs in municipalities, regions and across the entire public sector ...... 92 Reform 3: Municipality of the future ...... 93 Reform 4: Regional reform ...... 94 Reform 5: Central government reform ...... 95 7 LINCHPIN PROJECTS OF THE GOVERNMENT ...... 96 7 VISIO FINLAND 2025 built together
DIGITALISATION, EXPERIMENTATION, PRIORITIES AND KEY PROJECTS NORMS ▪ Digitalised public EMPLOYMENT KNOWLEDGE services AND COMPETITIVENESS AND EDUCATION ▪ Growth environment ▪ Competitive conditions for ▪ New learning environments for digital business business activities and digitalisation operations ▪ Incentive traps and structural ▪ Vocational upper secondary ▪ Streamlined legal unemployment education reform provisions ▪ Company-level agreement and ▪ Transition to working life ▪ A culture of barriers to employment ▪ Access to arts and culture experimenting ▪ Labour administration reform ▪ Cooperation between higher ▪ Leadership and execution ▪ Housing construction will be education institutions and the increased business community ▪ From youth guarantee to community guarantee REFORMS ▪ Health and social services reform HEALTH AND BIOECONOMY ▪ Reduction of costs in municipalities, regions and WELLBEING AND CLEAN SOLUTIONS across the entire public sector ▪ Customer-responsive services ▪ Carbon-free, clean, ▪ Municipality of the future ▪ Health, wellbeing and disparity renewable energy ▪ Regional government reform ▪ Programme to reform child ▪ New products from forests ▪ Central government reform and family services ▪ Circular economy ▪ Home care for older people and clean solutions and informal care ▪ Food production ▪ Work for those with impaired the blue bioeconomy LINCHPIN capacity for work ▪ Nature policy PROJECTS
8 INTRODUCTION
The Strategic Programme of Juha Sipilä’s Government defines Finland’s vision for the future as follows: In 2025, Finland is an inventive, caring and safe country where we all can feel important. Our society is based on trust.”
The Government aims to put the Finnish economy on a path of sustainable growth, boost employment safeguard funding for public services and social security. With its five strategic priorities, the Government is taking steps to follow through with essential reforms. The strategic objectives are implemented in the form of 26 key projects. The Government will also overhaul the pension system, implement a health and social services reform, reduce the amount of duties and obligations in local government, and reform central and regional state government.
This is the Government’s second, revised action plan. The Government finds that its programme, action plan and economic policy as a whole are sound. Since spring 2015, the biggest single change in the Government’s operating environment is the dramatic increase in immigration. To respond to the sharp rise in the number of asylum seekers, the Government has adopted a new asylum policy. Additionally, the Government is preparing a programme for the integration of immigrants.
The Government’s objective to achieve a 72 per cent employment rate is extremely ambitious. To attain it, the Government is launching a range of new measures related to the strategic priority of employment and competitiveness. They will help create favourable conditions for business growth, renewal and job creation, particularly in the SME sector.
In other respects, the updated action plan includes a large number of less extensive additions and revisions as compared to the plan published in spring 2015.
This action plan provides a more detailed description of the timetables, measures and financing of the key projects. It is a restructuring programme to which the Government is strongly committed. This document does not cover the full content of the Government Programme. Its aim is to focus the Government’s collegial efforts on key inter-administrative measures to follow through the necessary changes in an attempt to achieve the Government’s vision.
In autumn 2015 the Government decided to allocate a one-off appropriation of EUR 1 billion for the key projects to be implemented during 2016–2018. This Government action plan will be implemented within the framework of these resources and within the existing central government spending limits and the other parameters of the General Government Fiscal Plan. The funds allocated to each measure being implemented as part of the key project is indicated in the text. Other sources of funding may also be available.
The Government oversees the implementation of the key projects at its regular strategy sessions. A minister responsible for implementation is designated for each key project and a ministerial working group for each strategic priority. The progress made in the implementation of the action plan can be viewed on the vn.fi website. Every year in the spring, the Government will assess the implementation of the key projects and reforms in connection with the updates to the General Government Fiscal Plan.
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1. EMPLOYMENT AND COMPETITIVENESS In the year In Finland, doing work and providing work are always profitable. Finland is a competitive country in which entrepreneurship, 2025 ownership and investment are more profitable than at present. GOVERNMENT-TERM OBJECTIVES FOR THE PRIORITY AREA Safeguarding the funding of welfare The employment rate has The reforms increase services and income transfers has been increased to 72 per labour supply, been implemented by reforms that cent and the number of entrepreneurship and bring better incentives to work, make people in employment has the diversification of the employment appealing, enhance the risen by 110,000. Investment business structure, and operation of labour administration, exceeds depreciation, and strengthen public finances and create more competitiveness. labour input has grown. by over one billion euros.
KEY PROJECTS Boost competitiveness by improving conditions for business and entrepreneurship ▪ Acclelerate international growth of companies by revamping the operation of Team Finland ▪ Reinforce the financial position of businesses ▪ Boost growth and fuel competition ▪ Regional innovations and experiments 1 ▪ Revise agreements on land use, housing and transport (MAL Agreements) between central and local government ▪ Better legislative package to promote entrepreneurship ▪ Increase innovative public procurement ▪ Make Finland a forerunner in harnessing genome data ▪ Create a road map for digital business 121 MEUR
Incentive traps that discourage acceptance of work will be removed and structural employment reduced ▪ Reform unemployment security and eliminate incentive traps discouraging the acceptance of work 2 ▪ Creation of an inclusive social security model ▪ Introduce more restrictive conditions for the job alteration system
Local agreement will be promoted and barriers to employment removed ▪ Projects to promote company-level agreements ▪ Enable fixed-term job contracts without a specific reason for employment relationships that last less than a year ▪ Longer probationary periods ▪ Improve the operation of the labour market by adjusting working hours 3 ▪ Ease the obligation to re-employ a worker ▪ Improve restructuring protection for employees in case of mass redundancy ▪ Amend sick leave provisions in the Annual Leaves Act ▪ Implement a comprehensive reform of the Working Hours Act and Annual Leaves Act ▪ Work-related migration that improves employment and boosts public finances
Reform labour administration to support employment ▪ Regional experiments in the provision of ▪ Clarify the role of the employment and economic customer-responsive employment services development offices by shifting the focus to labour exchange services 4 ▪ The use of private employment services particularly for the most employable workers will be increased ▪ Implement an employment programme for growth companies Look into the potential of introducing a ‘job skills demonstration’ service 30 MEUR
Housing construction will be increased ▪ Increase state-subsidised housing production to target those with the greatest need for affordable housing 5 ▪ Facilitate the production of right-of-occupancy housing ▪ Increase affordable rental housing production in the Helsinki region
11 Key project 1: Strengthening competitiveness by improving conditions for business and entrepreneurship
Minister of Economic Affairs Olli Rehn
The measures foreseen as part of the key project to improve competitiveness constitute a set of coordinated actions that support enterprises in the various stages of development. The goal is remove barriers to entrepreneurship and improve the potential of companies operating in the domestic and world market. The measures extend the internationalisation services offered by Team Finland, strengthen the funding instruments of businesses, reduce regulation and licensing processes, and open the market for competition. Most of the measures agreed upon last autumn are already in the works or have already been implemented. The new actions and additional measures will intensify the impact of the coordinated actions to support entrepreneurship.
Measure 1: Accelerate the international growth of companies by renewing the Team Finland operating model
Minister of Economic Affairs Olli Rehn and Minister for Foreign Trade and Development Kai Mykkänen
Expand and consolidate the domestic service model
In Finland, public internationalisation services will be provided by the Team Finland customer teams formed by Tekes, Finpro, the Centres for Economic Development and Transport, Finnvera, the Ministry for Foreign Affairs and the Finnish Patent and Registration Office in accordance with the Team Finland service model adopted in August 2015. A customised service proposal (in accordance with the one-stop-shop principle) will be prepared for companies in support of their internationalisation efforts. Companies will be encouraged to create new forms of cooperation and funding for the various target markets. The goal is to prepare a total of 350 service proposals and hold 1,500 corporate meetings during 2016. Determined efforts will be made to improve the quality of service offered to companies by eliminating redundancies, expanding the customer teams and developing the skills and capabilities of the experts operating at the customer interfaces.
Close cooperation between the partners will help identify companies showing genuine interest in and capacity for international growth. Collaboration with regional development agencies, chambers of commerce, trade associations and other business networks will be stepped up to improve the capabilities in view of international expansion. A cooperation model will be developed to integrate the services generated and described by the partners into Team Finland’s range of services for companies. The task is due for completion in October–December 2016.
Efforts will be made to intensify Team Finland’s operations by involving members of relevant parliamentary committees in export promotion activities in markets where political flank support is likely to improve export prospects.
12 A data platform (April-June 2016) presenting international business opportunities will be established for use by companies and the Team Finland network (OppSpace). The information will be produced jointly by the Ministry for Foreign Affairs, Tekes, Finpro and companies as well as acquired from third-party sources.
Team Finland growth programmes will be targeted to support the efforts to achieve the objectives established for the key projects related to the internationalisation and exports of bioeconomy, cleantech, health technology and digital economy products, and to promote foreign investments in Finland. Of the subsidies granted by October-December 2015, 70 per cent were primarily related to the foregoing themes. Growth programme funding will be redirected to support companies’ in-house capabilities and shift the focus from the number of participants to quality and impact. Currently, the nearly 40 growth programmes involve over 1,000 companies while the total funding available for 2014–2018 amounts to EUR 74.1 million. A third-party assessment of the impact of the growth programmes will be commissioned during autumn 2016 (October-December 2016) to provide a basis for determining continued funding and allocation.
Team Finland House, shared systems and intensified efforts. The relocation of the head offices of Finpro, the Finnish Funding Agency for Technology and Innovation Tekes, Finnvera (autumn 2016), and Finnish Industry Investment Ltd (2017) to the Team Finland House in Ruoholahti, Helsinki, will enable improved one-stop-shop services. With the integration of external communications and support functions concurrently with the relocation, it is possible to increase awareness of Team Finland’s services and achieve cost savings. The roll-out of shared information systems (Customer Data Bank and CRM) will coincide with this (October- December 2016), improving the level of service and making it easier for companies to liaise with these agencies.
The extent to which the Team Finland objectives are achieved and the impact of the actions will be followed up by means of regular performance monitoring and the jointly designed Team Finland scorecard and indicators due to be adopted step by step as of January-March 2016.
An international comparative analysis will be carried out by October-December 2016 to evaluate Team Finland type solutions and cooperation models and the best practices being applied in inter-administrative activities. For benchmarking, the study will use models implemented in Sweden, Denmark and the Netherlands where external economic relations are managed using the network format.
Allocate resources to growth and bring together the public corporate services available abroad
Public services available to companies abroad will be brought together to form a cost- effective and easily accessible entity by merging the services provided by the foreign mission network and other Team Finland actors wherever possible. The aim is to offer one-stop-shop services abroad as well. Interaction between domestic and foreign service processes will be intensified. The task is due for completion in October–December 2016.
13 The Foreign Service, Finpro and Tekes will continue to increase the resources available specifically in respect of the countries that are of growing economic importance to Finland. Commercial and financial resources have been expanded for 2016–2018 both at expert centres and Finland’s foreign missions. The costs of the project will total around EUR 5+5 million (due for completion in October-December 2016). The project’s impacts will be reviewed at the end of the Government’s term.
The Ministry for Foreign Affairs and the Ministry Economic Affairs and Employment will reinforce their mutual cooperation in an effort to promote trade and development in the growing markets of the developing countries. Companies will be encouraged to seize the business opportunities offered by developing countries through the BEAM Programme launched jointly by the Ministry for Foreign Affairs and Tekes; the Team Finland growth programmes; the funding available from Finnfund and Finnpartnership; and other financing instruments used in development cooperation. As part of the cooperation in the Team Finland context, new concepts and solution-centred operating models will be developed for export promotion missions.
Attract more foreign investments to Finland by renewing activities and creating a consistent, shared operations model abroad
Review Finpro’s Invest in Finland activities to increase foreign investments. New cooperation models and tools will be put in place for operations in other countries by making full use of the private and Foreign Ministry networks. The task is due for completion in October– December 2016. On the domestic front, efforts will be made to intensify cooperation with regional Invest-in-Finland actors based on the forms of cooperation developed in connection with the Golden Bridge and MOCT growth programmes, amongst others.
Support the growth of the tourist industry by renewing operations and making use of the efforts to enhance Finland’s country image
Visit Finland activities will be reviewed to support the growth and renewal of the Finnish tourist industry. The international marketing and image-enhancing efforts of Team Finland actors, companies and regions will be harnessed in promoting Finland as a tourist destination. The task is due for completion in October–December 2016.
Key project funding For funding, see Measure 2.
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Measure 2: Reinforce the financial position and equity capital of businesses
The Government’s commitment to Finnvera’s EUR 300 million junior loan programme was revised in December 2015. Finnvera will be able to start extending junior loans to companies in April 2016, if not earlier. Authorisations: EUR 300 million to Finnvera for mezzanine financing in 2016.
To secure public funding for export companies, the Government submitted a proposal to Parliament for a legislative amendment permitting a substantial increase in export financing authorisations (December 2015). The plan is that the increases in authorisations take effect on 15 April 2016.
A report and Government Proposal for extending the use of the liquidity limit are being prepared. The proposed legislative amendment is to be submitted to Parliament during the spring session 2016. The plan is that the legislative amendment should take effect in December 2016 as originally foreseen in the Government Programme.
Finnvera is putting together a nation-wide financing programme in collaboration with The Federation of Finnish Enterprises to facilitate transfers of business (with due regard for regional differences). The goal is to develop a model for financing small-scale corporate acquisitions. A change of ownership pilot was launched in Satakunta in April 2016 and will subsequently be extended (practically) across the country. Due for completion in December 2016.
Tekes funding has been reallocated with due regard to the objectives defined in the Government Programme (start-ups, SMEs, bioeconomy, cleantech, health technology and digitalisation). It was decided that Tekes Venture Capital Ltd will provide initial capital to funds entering the market that promote the commercialisation of innovations based on public research provided that they meet the specified investment criteria. An additional appropriation of EUR 10 million was allocated for this purpose in the 2016 Budget.
Finnish Industry Investment Ltd, together with employment pension insurance companies, will establish an FoF Growth III Fund when the investment period of the current FoF Growth II Fund comes to an end. To finance Finnish Industry Investment Ltd’s portion of the FoF Growth III Fund, central government needs to make a EUR 35 million equity infusion to the company in 2018. Initial preparations for the project were begun in early 2016. The FoF Growth III Fund will be established in December 2018.
Utilisation of EU funding
Completed: To make more efficient use of the EU funding available, an ESIF Investment Advice Service was established in October 2015 catering for Finnish companies and other organisations.
Finnvera’s application for acceptance as an intermediary organisation for the provision of EIF/EIB/ESIF funding is pending (due for completion during April-December 2016). Together with the EIF, Tekes Venture Capital Ltd is currently investigating a business angel financing scheme expected to be operational in 2016.
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Crowdfunding act and bonds and debentures
The Ministry of Finance is preparing a legislative proposal for a crowdfunding act. Seven EU Member States have enacted national crowdfunding laws while three others are planning to do so. According to the information currently available, the Commission is not contemplating any EU legislation on crowdfunding. As the government proposal was given in April 2016, the acts should enter into force in July 2016.
A working party appointed by the Ministry of Finance is looking into the need to develop the bond and debentures market. The working party is preparing legislation on the bondholder representatives setting out provisions concerning entrepreneurs committed to honour representation agreements for the account of all the bond holders. The proposal is designed to improve the operation of the bond market, facilitate corporate financing, diversify the financing market and improve investor protection. Appointed in March 2015, the working party is to bring the project to completion by June 2016. The Government Proposal is likely to be given in spring 2017.
Neutral tax treatment of investments in private equity funds by foundations and non-profit organisations
The purpose of this measure to increase the supply of private growth funding for SMEs. The greatest problem related to growth funding lies in the scarcity of private capital. Numerous legislative barriers restrict the availability of private capital for the growth and internationalisation of companies.
From the Government’s point of view, removing barriers and restrictions limiting access to private capital would be the most affordable way of increasing growth funding for companies while promoting the development of the private equity market. This would increase tax revenues and create new jobs as a result of ensuing economic growth.
The market value of investment assets held by foundations and non-profit organisations is some EUR 20 billion. If only a few per cent of these assets were to be invested in growth companies, it could infuse hundreds of millions of euros in new capital to the market.
Steps will be taken to amend the Income Tax Act so as ensure that investments in private equity funds, existing in the form of limited partnerships, by non-profit organisations (such as foundations and associations), the universities referred to the Universities Act and the Church Central Fund/Pension Fund would be treated neutrally relative to other asset classes, such as investments in listed equities. A study will be carried out based on the following statement in the Government Programme: “A study will be made during the government term on the taxation of capital income, the taxation of property, and the tax treatment of different forms of investment”. The study will be commenced in 2017.
16 Key project funding 2016: Team Finland new-growth programmes (most productive to be implemented): EUR 8.5 million. Finpro (reinforcement of the foreign mission network): EUR 2.0 million. Foreign Ministry, experts in commerce and finance: EUR 1.66 million. Tekes (infusion of capital for a fund investing in research-based start-up companies): EUR 10.0 million.
2017: Team Finland new-growth programmes: EUR 8.5 million. Finpro (foreign mission network): EUR 2.0 million. Foreign Ministry, experts in commerce and finance: EUR 1.66 million. Compensation for Finnvera’s losses (mezzanine financing: junior loan programme): EUR 3.0 million.
2018: Team Finland new-growth programmes: EUR 8.0 million. Finpro (foreign mission network): EUR 1.0 million. Foreign Ministry, experts in commerce and finance: EUR 1.66 million. Equity infusion to Finnish Industry Investment Ltd (FoF Growth III): EUR 35.0 million. Compensation for Finnvera’s losses (junior loan programme): EUR 4.0 million.
Measure 3: Boost growth and promote competition
Competition programme for the home market Preparations commenced in October 2015.
As part of deregulation, shops’ opening hours will be liberalised Completed: Shop opening hours were liberalised as of January 2016.
For large industrial projects, a fast-track licensing procedure will be introduced and a notification procedure put in place for routine licensing
A pre-project advisory procedure was adopted in December 2015. Options in the provision of one-stop-shop services will be determined by May 2016. Government Proposal for amending the Environmental Protection Act to revise the list of licensed facilities, December 2016. Government Proposal for amending the Environmental Protection Act to streamline the licensing procedure (pilot for potential changes in 2016/2017) and to include the notification procedure in the Act.
Revision of competition laws Preparation by the working party commenced in September 2015. First Government Proposal due during the 2016 autumn session of Parliament.
Overall reform of the public contracts legislation Government Proposal due in June 2016. Completion: Entry into force of amended public contracts legislation in January 2017.
17 Business services and subsidies A comprehensive study of the business services provided by the central and local government will be carried out to serve as a basis for a new division of duties and services. Comprehensive study on services completed in January 2016.
The start-up funding system operated by the Employment and Economic Development Offices and other services offered to new entrepreneurs will be redirected to support the Government’s objectives of promoting entrepreneurship For start-up funding, see Key Project 2, Measure 2 (inclusive social security).
Efforts to reform the business support system and related principles and national policies will be continued. (Ministry of Economic Affairs and Employment, Ministry of Transport and Communications, Ministry of Finance, Ministry of Agriculture and Forestry; August 2015– January 2016). The Government Proposal for a act on the general criteria for granting subsidies for economic activities was given on 3 March 2016. The act is due to enter into force on 1 July 2016 at the latest.
Measure 4: Commence regional innovations, trials and experiments
Anticipation of structural changes in the regional economy Negotiations with regions on the allocation of resources for implementation of anticipatory actions were completed in February 2016. Regions have prepared contingency plans for anticipatory action due for implementation as of February 2016. Follow-up and assessment 2017–2018. Due for completion: December 2018.
Strategic cooperation agreements between the state and the Helsinki area, other cities and growth corridors Commencement of talks on the agreements in March 2016. Fulfilment of the agreements to commence in May 2016. Due for completion: Quality review of the agreements by December 2018.
Key project funding Initial funding for regional innovations, trials and experiments 2016: EUR 10.0 million. 2017: EUR 10.0 million. 2018: EUR 10.0 million.
Total: EUR 30 million.
18 Measure 5: Revise the agreements on land use, housing and transport (MAL Agreements) between the central and local government in the urban regions of Helsinki, Tampere, Turku and Oulu
The Government established the objectives for the negotiations at the meeting of the Ministerial Finance Committee in October 2015. The plan is to define the Government’s commitment to the agreements in more detail in connection with the spring spending limits discussions after which the potential final agreements can be signed. The Government is due to pass a blanket resolution on all the agreements in April.
Measure 6: Confirmation of the legislative package to promote entrepreneurship
The legislative package to promote entrepreneurship will be expanded by the inclusion of measures designed to help new entrepreneurs by giving due consideration to the rising micro- entrepreneurship and other new forms of doing business. The work will be carried under the supervision of the Ministry of Economic Affairs and Employment in extensive cooperation with other ministries, entrepreneur organisations as well as the private and third sectors. The legislative package to promote entrepreneurship will constitute a set of coordinated actions that will be updated throughout the Government’s term. Many of the measures will focus on relaxing regulations and streamlining licensing procedures.
Key measures included in the legislative package to promote entrepreneurship:
The threshold for hiring the first employee will be lowered by offering pay subsidies, start-up grants or other incentives. A pilot will be carried out based on the findings of a feasibility study, which is due for completion in October-December 2016.
The corporate financing services offered by the Ministry of Economic Affairs and Employment and the services offered by the employment and economic development offices (TE Offices) by combining them into a coherent set of services. As part of the reform of regional government, the customer-orientation and effectiveness of corporate and the employment and economic development services will be reinforced by combining them to become a public growth service. Phase 1 is due for completion in October-December 2016.
A pilot to test the innovation and service voucher will be carried out based on the findings of a feasibility study. The voucher will be an addition to the range of employment and competitiveness incentives offered by the public sector. For example, the voucher could be used for purposes such as launching joint projects in collaboration with higher education institutions and research institutes, assessing and developing business concepts or commercialising new ideas and inventions. The exact value of the voucher will be determined separately. Typically, the value of individual service vouchers will range from EUR 2,000 to EUR 10,000. The experiment will be carried out in collaboration with Ministers Rehn and Grahn-Laasonen.
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As part of the efforts to develop appropriate structures for harnessing and commercialising research findings, an innovation bank will be established to contribute to the more efficient utilisation of innovations and patents. It will bring together the creators of research-based ideas and those making use of new solutions. The process to build up the innovation bank will be launched as an experimental project funded by Tekes. The innovation bank pilot based on close cooperation between research organisations will be launched in April-June 2017.
A new approach will be adopted to identify immigrants’ entrepreneurial potential and special expertise in the efforts to promote the internationalisation of Finnish companies. Due for completion in April-June 2017.
The bottlenecks in the permit processes in connection with the recruitment of foreign experts will be identified and legislation amended to allow smoother recruiting. Special attention will be paid to start-up companies that are attractive to experts for reasons other than just pay. Steps will be taken to ensure that targeted advice and information will be available not only from the Immigration Service but also from the Centres for Economic Development, Transport and the Environment and Tekes. Due for completion in October–December 2016.
Steps will be taken to make it possible to grant residence permits based on start-up entrepreneurship, regardless of the legal form of the company. An endorsement from Tekes could be required as a precondition for such a permit. Starting a company in Finland will be made as easy for foreign founder entrepreneurs as for Finns in other respects as well, for example when it comes to opening the bank account required for establishment. Due for completion in October–December 2017.
Preparations will be made following a feasibility study to amend the unemployment security system to promote self-employment on a full-time or part-time basis, give greater consideration to the various forms of gainful employment and facilitate a smooth transition from entrepreneur to wage-earner – and vice versa. One of the objectives is to make it easier to start a business on a part-time basis while still unemployed. The feasibility study will also look into the extension of unemployment security to self-employed persons and the possibility of taking out insurance for work carried out both as an entrepreneur and employee as a precaution in view of future unemployment (e.g. composite insurance). The study is due for completion in April-June 2017.
Key project funding Commercialisation of research findings (innovation bank). 2016: – 2017: EUR 2.0 million. 2018: EUR 2.0 million.
Total: EUR 4.0 million.
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Measure 7: Increase the share of innovative procurement in all public contracts
The objective is that innovative procurement accounts for 5 per cent of all public contracts.
The total value of public contracts is approximately EUR 35 billion per year. When the public sector’s purchasing power is used for supporting new solutions, companies have more incentives to develop innovations while at the same time gaining references for export markets and receiving a boost for growth.
Companies will be offered advice and hands-on guidance that would not be limited to just legal and technical issues but would also cover purchasing and operation as a consortium of bidders. It is important to create mechanisms that ensure the efficient operation of the procurement market as a whole. Models should be created for a market dialogue and good practices should be disseminated. The advice service should serve as an active link between purchasing units and companies.
A decision will be made to establish an advisory unit for innovative public procurement or to integrate innovation-promoting activities with other procurement advice. The advice provided by procurement authorities would improve skills and competence and support innovative procurement, particularly in the Government’s five strategic priority areas. The preliminary cost estimate is EUR 1 million per year.
Major investments in the future by cities and municipalities (including joint municipal authorities) will be used as a testing ground for innovations and as model projects for promoting exports. This objective will be promoted by means of growth agreements to be concluded between the state and large cities while making use of the Tekes’ Smart Procurement programme. Resources will be made available for developing innovative procurement by companies, the preliminary cost estimate being EUR 1 million per year.
The programme services and funding provided in the context of Tekes’ Smart Procurement programme (2013–2016) will be utilised to provide concrete support for the implementation of the measures designed to promote innovative public procurement. Steps will be taken to ensure that continued support and financing for smart procurement will be provided by Tekes even after expiry of the Smart Procurement programme.
Methods of monitoring and measuring public procurement performance will be monitored through the Government’s analysis, assessment and research activities (2016–2017).
21 Measure 8: Make Finland a forerunner in harnessing genome data
Ministers Hanna Mäntylä, Juha Rehula, Olli Rehn and Sanni Grahn-Laasonen
Finland has every potential to evolve into a pioneering country and internationally preferred partner in healthcare, world-class research and global business that utilise genome data. Strong coordination at the national level and joint efforts by the actors involved are a prerequisite for the full utilisation of the unique social services and healthcare data resources, sample resources of the biobanks and new genome data.
The objective is to respond to the challenges facing the healthcare system and attract investments and top researcher as well as to increase exports by creating favourable conditions for harnessing genome data and promoting cooperation with world-class research communities, business life, government agencies, providers of health and social services in the new autonomous regions and expert institutions.
The measures are an integral part of the inter-administrative implementation of the national growth strategy for national healthcare research and innovation and national genome strategy and closely linked to the reform of the health and social services system and regional government. The Ministry of Social Welfare and Health will be responsible for preparation and implementation together with the Ministry of Economic Affairs and Employment, Ministry of Education and Culture and other actors.
To achieve a position of a pioneer in this field, the necessary investments in infrastructure will be made, national agencies for harnessing genome data established and cooperation between existing and future actors intensified. Due consideration in the legislative process will be given to fostering an atmosphere favourable to innovation as well as to the fundamental rights of the citizens.
A national genome centre will be established to assume responsibility for creating and developing the national genome database and the necessary infrastructure and making full use of the database in the treatment of patients, scientific research and in innovation and commercialisation activities. The Ministry of Social Affairs and Health will assume the leading role in June 2016 in preparing the proposal for the establishment of the genome centre (including the necessary code of ethics, legislative process, formation and maintenance of the reference databases required in the early stages of the project) with a view to implementation during 2016–December 2108.
Public biobank activity will be enhanced by standardising operating methods and ensuring effective cooperation with the genome centre to be established. The Ministry of Social Affairs and Health has mandated the National Institute for Health and Welfare to look into the preconditions for the establishment of a joint operator of the biobanks. The working group is due to submit its proposal in June 2016. Led by the Ministry of Social Affairs and Health, the Ministry of Economic Affairs and Employment, the Ministry of Education and Culture and other actors will prepare a proposal for streamlining the activities of Finnish biobanks (including legislative drafting, legal advice, standardisation of procedures, overall IT architecture and administration) during June 2016 with a view to implementation during 2016–December 2018.
22 A national cancer centre will be established. The national cancer centre will be a key actor in the efforts to utilise genome data for advanced cancer treatment and research and for developing medicines and health technology. The proposal prepared by the Ministry of Social Affairs and Health (February 2016) is due for implementation during 2017–2018 (including establishment of national and regional coordination points, harmonisation of and improved efficiency in operations, and pilot projects).
Measure 9: Create a road map for digital business
Platforms are quickly transforming value creation systems on a global scale. Most of the emerging platforms are controlled by American players. In Europe, there is only a handful of companies rated as significant players in the platform economy: two in Sweden, none in Finland. Finland and the rest of Europe for that matter have an urgent need to close the gap to benefit from the dynamics of growth and improved employment. National platform and sub-platform solutions will be put in place to create value, new skills and competence and jobs in Finland.
Quick steps will be taken to assemble Finland’s best talent to put together an innovative yet concrete road map for digital business with the aim of generating a new type of platform- based business. Companies possessing the necessary potential for accomplishing this will be identified and any actions required on the part of the authorities determined. It is necessary to work out a concept that will help Finland build up a new-generation consumer business and so provide a basis for the export of digital services.
As a result of the competition effect, the project will trigger an evolution of platform economy that goes beyond the resources allocated for this purpose. In the course of implementation, links will be established to the on-going privately initiated projects and innovation research projects related to the platform economy launched by Tekes, including the information base created in the process, while drawing upon the Government’s key project to develop the digital business environment. The project will be closely associated with the ‘digital business environments’ efforts foreseen in the Government Programme, the preparations being made by industrial organisations and in skills development schemes. The parties involved, choices to be made and other issues not yet clearly perceived at this point will be defined in more detail in the course of preparations. While the range of options is extensive, the most important thing is to generate entrepreneur-driven activities where progress is tested in the marketplace. The road map for digital business will be completed by the end of 2016, with the timeframe for implementation determined on this basis.
23 Key project 2: Incentive traps preventing acceptance of work will be removed and structural unemployment reduced
Minister of Justice and Employment Jari Lindström
Objectives for the reform of the social and unemployment security system: incentives for quick acceptance of new work, shorter periods of unemployment, reduced structural unemployment and savings in public expenditure. Unemployment security will be reviewed, incentive traps preventing the acceptance of new employment removed and a model to deliver inclusive social security created.
Measure 1: Reform unemployment security and eliminate incentive traps discouraging the acceptance of work
The principles for renewing the earnings-related unemployment security system were determined in October 2015. The Government Proposal to this effect is to be submitted to Parliament in spring 2016.
Preparations have been made under the direction of the Ministry of Economic Affairs and Employment to redefine the conditions for access to unemployment security by introducing more stringent requirements regarding acceptance of work, regional and professional mobility and the obligation to participate in the programmes designed to facilitate employment. Negotiations have been conducted with labour market organisations and the Government Proposal for legislative amendments now being prepared will be given in autumn 2016. The new laws are scheduled to enter into force in January 2017.
The report on measures required to eliminate income traps is to be completed in spring 2016. If the Government finds that the report provides a basis for proceeding with the matter, a more detailed proposal for the necessary measures will be prepared by the end of 2016. The Government Proposal, if any, will be submitted to Parliament in autumn 2017.
Measure 2: Create a model for inclusive social security
A Government Proposal for using unemployment benefits to finance pay subsidies and start- up grants will be prepared for submission to Parliament in September 2016. The foreseen legislative amendments are to take effect at the beginning of 2017.
A Finnish model for inclusive social security will be created on the basis of a study to be carried out as part of the Government’s analysis, assessment and research activities. Researchers are called upon to submit preliminary proposals for the Finnish model by the end of October 2016 and the final proposals by the end of 2016. The Government will determine further action on the basis of these proposals. If the new model requires legislative amendments, the Government Proposal to this effect will be prepared in autumn 2017.
Inclusive social security is one of the options to be evaluated in connection with the basic income study. Measure 3: Introduce more restrictive conditions for the job alteration system Completed: The legislative amendments entered into force at the beginning of 2016.
24 Key project 3: Company-level bargaining will be promoted and barriers to employment removed
Minister of Justice and Employment Jari Lindström and Minister of Economic Affairs Olli Rehn
The objective is to introduce a comprehensive reform of the regulation of labour relations in order to promote company-level bargaining. Social partners are encouraged to adopt company-level bargaining practices in the workplaces supported by legislative measures designed to improve the necessary preconditions for such bargaining.
Measure 1: Projects to promote company-level bargaining
The Government is pleased to note that the central labour market organisations are committed to promoting company-level bargaining through collective agreements while at the same time giving shop stewards a greater role. The Government finds it encouraging that the labour market organisations are prepared to reach agreement on the resilience clause, devolve final decision-making powers on company-level agreements to workplaces, and to introduce working time banks. From now on, unorganised employers will have the same rights and obligations as organised employers.
Where legislative amendments are required for promoting company-level bargaining and strengthening the position of employees, they will be prepared in collaboration with the social partners in a working group led by Director General Pekka Timonen.
Measure 2: Fixed-term employment contract of less than 12 months without cause will be allowed
Preparations by a specific working group and the Seamen’s Affairs Advisory Council began in October 2015. The draft Government Proposal was circulated for comments in January 2016 with the deadline set for 12 February 2016. The proposal will be submitted
Measure 3: The probationary period will be lengthened
Preparations by a specific working group and the Seamen’s Affairs Advisory Council began in October 2015. The draft Government Proposal was circulated for comments in January 2016 with the deadline set for 12 February 2016. The proposal will be submitted to Parliament in spring 2016.
Measure 4: Improve the operation of the labour market by adjusting working hours
A study will be carried out to determine whether jobs losses can be avoided during cyclical changes by adjusting working hours based primarily on contract negotiations between employers and employees. A study will be prepared in collaboration with the social partners by June 2016 to determine whether it is advisable to allocate public funding for the purpose of promoting such solutions.
25 Measure 5: Relax the regulations regarding the obligation to re-employ
A review by a specific working group and the Seamen’s Affairs Advisory Council was initiated in September 2015. The draft Government Proposal was circulated for comments in January 2016 with the deadline set for 12 February 2016. The proposal will be submitted to Parliament in spring 2016.
Measure 6: Improve restructuring protection for employees in case of mass redundancy
The issue was included in the Government’s legislative package on competitiveness. Statements and opinions on it were received in January 2016. A political decision was made to anticipate the conclusion of the negotiations on the social contract between the labour market organisations. The timing of the proposal will depend on the outcome of these negotiations.
Measure 7: Amend sick leave provisions
The Act entered into force on 1 April 2016.
Measure 8: Implement a comprehensive reform of the Working Hours Act and Annual Leaves Act
The working group was delayed by the busy schedule of the working group on company-level bargaining. Work to implement the overall reform of the Working Hours Act will begin in spring 2016, to be followed by the overall reform of the Annual Leaves Act.
Measure 9: The Government promotes work-related migration to enhance employment in Finland, boost public finances, improve the dependency ratio and contribute to the internationalisation of the economy
Steps will be taken to ensure access to and the supply of labour including skilled labour and to increase demand for labour and amplify its positive effects in terms of economic growth and the dependency ratio. A plan will be prepared to promote work-related migration:
Residence permit procedures will be streamlined, accompanied by other measures to increase Finland’s appeal and induce a greater commitment to Finnish society.
Steps will be taken to improve the integration services available to employees and post- graduate students who have completed their degrees in Finland and their family members.
Further measures will be taken to promote amicable ethnic relations and non-discrimination, and to prevent racism. Accessibility, diversity and non-discrimination in the labour market will be ensured.
International labour exchange will be improved and EURES services extended.
26 Key project 4: Reforming labour administration to support employment
Minister of Justice and Employment Jari Lindström
The objectives are to address the mismatch of jobs and workers in the labour market, eliminate demotivating measures, harmonise the interpretation of regulations across the labour administration and to focus resources on activation measures.
The Government will prepare a proposal and necessary measures for a comprehensive reform of employment services.
Measure 1: Clarify the role of the employment and economic development offices by shifting the focus to labour exchange services. The dialogue and collaboration between public employment services and employers will be strengthened. The reform will highlight the jobseeker’s own role in finding employment while at the same time ensuring effective enforcement of the sanctions provided for in the current legislation.
Companies’ possibilities for the recruitment of labour will be improved by developing online services and introducing new forms of cooperation with companies.
An assessment of the business-oriented approach by employment and economic development services (Publication 5/2016 of the Ministry of Economic Affairs and Employment) is now completed and its findings will be used for reinforcing corporate cooperation.
Two regional pilots were launched in February 2016 to promote new models for the provision of business services and cooperation in collaboration with regional business service providers. A pilot project is being carried out in Pirkanmaa to create a model for coordinating the services provided by employment and economic development services and the activities of the Team Finland network.
Follow-up will be provided to ensure that vacancies are filled.
The reporting and analysis tool adopted in early 2016 will be used for gathering up-to-date information on the vacancies filled and the reasons why they were filled.
The online services provided by employment and economic development services will be reviewed and operations digitalised as extensively as possible.
A new CHAT service will be launched in April 2016. A new open labour market service will be launched in May 2017. The new online employment and economic development service will be rolled out in October 2018. Due for completion: December 2018.
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An automated search engine for all public and private sector vacancies and jobseekers will be put in place. The existing site for employment and economic development services (TE- palvelut.fi) will also be upgraded into a new type of site that makes efficient use of the Big Data available in the new system and supports personalised service models.
The efforts to underline the jobseeker’s own role and engagement will be continued on the basis of the report on the effectiveness of employment plans.
The impact assessment of employment plans was completed in March 2016 (not yet published). The proposals for renewing the employment plans were completed in June 2016. Monitoring of jobseekers’ active efforts to find work: IT system upgrades will be completed by 1 July 2017. The procedural changes and legislative amendments, if required, will be implemented in 2017 and 2018.
Efficient enforcement of the sanctions available under unemployment security regulations will be ensured.
Key project funding Digitalisation of employment and economic development services. 2016: EUR 10.0 million. 2017: EUR 10.0 million. 2018: -
Total: EUR 20.0 million.
Measure 2: Regional experiments in the provision of customer-responsive employment services
A number of trials and experiments will be carried out during 2017–2018 to put in place a comprehensive inter-administrative and cost-effective operations model tailored for jobseekers and employers for implementation after 2019 (“Finnish model for employment services”).
In the areas where the trials will be carried out, the responsibility for the provision of employment and business services will be reassigned to a regional operator. The objective is to support the establishment of the foreseen autonomous regions. Legislative amendments will be implemented to make it possible to derogate from the existing legislation in the trial areas regarding public employment and business services, unemployment security, active social welfare policy, disclosure of information, integration and potentially education in accordance with the policy line to be determined in spring 2016.
The Ministry of Employment and the Economy will assume responsibility for directing and coordinating the preparations for the pilot which are to be carried out in close collaboration involving the Ministry of Economic Affairs and Employment, Ministry of Finance, Ministry of Social Affairs and Health, Ministry of Education and Culture, Prime Minister’s Office (Pilots and Experiments), and the Association of Finnish Local and Regional Authorities. The trial will be carried out in close strategic partnership with municipalities, companies, the third sector and
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the Social Insurance Institution of Finland KELA. In the course of the trial, full use will be made of the potential offered by digitalisation, research and service design expertise. First priority may in the various regions be given to the development of services intended for immigrants, young people or persons with impaired capacity for work.
The trial will be part of the reform to cut costs in municipalities, regions and across the entire public sector and the related local government trial. The trial with the customer-responsive employment services designed to reshape the existing ways of working will seek to achieve a 10 per cent saving in costs relative to the current total cost of unemployment to the state.
The trial will be carried out in anticipation of the post-2019 situation when responsibility for the provision of employment and business services will be assumed by the regions and said services can be provided in collaboration with municipalities and private and third-sector operators.
The trial will be supported, its impact monitored and a comprehensive assessment made using research funding available from the Prime Minister’s Office. In the course of the trial, the potential for combining it with the inclusive social security pilot will also be explored.
The Government Proposal for the legislative amendments required by the pilots will be submitted to Parliament during the 2016 autumn session. At the earliest, the trial will be launched at the beginning of 2017. To accomplish this, the areas where the trial will be carried out need to be selected in May 2016 at the latest.
Measure 3: The role of private employment services particularly for the most employable workers will be increased
The guidelines for purchasing these services were completed in February 2016. The studies regarding the role of private service providers in complementing the public labour exchange services and the utilisation of private services in the provision of public employment services were completed in March 2016. The findings of the studies have been used in planning and preparing new pilots. A total of thirteen new employment and business service pilots were launched in February 2016. Of these, seven are performance-based purchased services pilots, in which private service providers are free to determine how to best improve the jobseeker’s employment prospects or, alternatively, the potential for becoming an entrepreneur.
Key project funding Increased supply of private employment services through the purchase of services from private providers. 2016: EUR 5.0 million. 2017: EUR 5.0 million. 2018: -
Total: EUR 10.0 million.
29 Measure 4: Implement an employment programme for growth companies
The measure is designed to improve growth companies’ access to skilled labour. At the same time, this fixed-term employment programme is geared to reduce structural employment. The measure will be carried out by encouraging growth companies to adopt a recruitment policy of hiring highly educated skilled employees with a long history of unemployment through the provision of training, apprenticeship contracts or employment subsidies (or even without any subsidies). The programme for improving growth companies’ access to labour will run until the end of 2019.
The programme will require human resources from the departments responsible for the implementation of employment policy including some of the funding allocated for this purpose. Savings will be achieved as a result of the reduced cost of unemployment security and other benefits and increased tax revenues. The costs and benefits will depend on the success of recruitment. If successful, the programme could help find work for 4–8 per cent of the highly educated long-term unemployed, or 1,000–2,000 people. At this volume, the total cost to be incurred for the approximately 6-month training or support period or equivalent apprenticeship is estimated at EUR 7–15 million, which will be covered through reallocations.
A decision on the implementation of the employment programme will be made in March 2016. The guidelines for implementation will be completed in April 2016. The programme period is May 2016–December 2019 and will include statistical monitoring.
Measure 5: Look into the potential of introducing a ‘job skills demonstration’ service
The potential for introducing a ‘job skills demonstration’ service and conducting a related experiment will be investigated. ‘Job skills demonstration’ would be a voluntary service intended for unemployed jobseekers that would not establish an employment relationship between the employer and prospective employee but would offer the jobseeker the opportunity to show his or her skills and competence and demonstrate what added value they could offer to the employer if hired. Job skills demonstration would mean a short period of work in duties assigned by the potential employer.
The work may include training, coaching or other support that improves employment prospects. For employers, the service would give the opportunity to assess the suitability of the potential employee. Since the person giving a ‘demonstration of job skills’ would be claiming unemployment benefits, the introduction of this service would probably require legislative amendments. Preparations can be commenced in April 2016, to be followed by a trial in January 2017 at the earliest.
30 Key project 5: Increased housing production
Minister of Agriculture and Forestry Kimmo Tiilikainen
The Government’s objective is to encourage housing construction. To accomplish this, the zoning and permit systems will be streamlined to facilitate and accelerate construction with the aim of boosting economic growth and employment; increasing the supply of housing; renewing the housing stock; responding to demand for housing; promoting competition in the construction industry; increasing the freedom of choice in housing; and responding to changes in the housing needs. The Government will vigorously pursue its housing policy.
Measure 1: Increase Government-subsidised housing production to target those with the greatest need for affordable housing
A legislative proposal has been drafted for a new short-term interest subsidy scheme based on the proposal prepared by rapporteur Rossilahti. Developers will no longer be required to meet the ‘public interest’ requirement in state-subsidised new housing production. The legislative proposals to this effect will be submitted to Parliament on 26 May 2016.
The restrictions on the use and sale of state-subsidised housing stock will be relaxed if the capital so released is used for state-subsidised housing production or carrying out repairs on said building stock. The Ministry of the Environment has issued a circular to this effect to The Housing Finance and Development Centre ARA, which has applied the new guidelines in its decision making as of the beginning of 2016.
Measure 2: Facilitate the production of right-of-occupancy housing
The objective is to facilitate additional construction of right-of-occupancy dwellings in situations where the construction of housing for special groups or regular rental housing production subsidised by the Housing Finance and Development Centre fail to the meet the targets and appropriations are still available for this purpose.
The allocation plan for the approval of interest-subsidised loans and guaranteed loans will be amended to allow the mixed use of interest subsidies in respect of right-of-occupancy housing in 2016 subject to Government approval (May 2016). This same policy will be applied to the 2017–2019 allocation plans.
31 Measure 3: Increase affordable rental housing production in the Helsinki region
The objective is to substantially increase the production of affordable rental housing in the Helsinki region and support the implementation of the agreements on land use, housing and transport.
The authorisation to grant start-up assistance for the implementation of the land use, housing and transport agreements will be increased by EUR 10 million per year during 2016– 2019 in respect of the regular 40-year state-subsidised housing production (July 2016). With regard to 2016, the increase will be effected in the second supplementary budget to be submitted to Parliament on 26 May 2016. As a result, the amounts of start-up assistance will be consistent with the volume of production of affordable rental housing foreseen in the agreement on land use, housing and transport, which ensures that the implementation of the agreement will not be prevented by insufficient funding authorisation.
32 2. KNOWLEDGE AND EDUCATION
Finland is a country that encourages people to keep learning new things. In the year The level of competence and education of Finns has increased, supporting the regeneration of Finnish society and equality in regard to opportunities. 2025 Finland is a leading country in education, expertise and modern learning. GOVERNMENT-TERM OBJECTIVES FOR THE PRIORITY AREA Learning environments have been modernised and The number of young people who have dropped the opportunities offered by digitalisation and new out of education or working life has fallen. The pedagogical approaches are grasped in learning. drop-out rate in education has declined.
Dialogue between educational The quality and effectiveness of Education and research have institutions and working life is research and innovation have become more international and more active. begun to improve. obstacles to education exports have been removed.
KEY PROJECTS New learning environments and digital materials to comprehensive schools ▪ Update the comprehensive school system to the 2020 standards ▪ National expansion of the ‘Finnish Schools on the Move’ project 1 ▪ Increase and diversify language studies 121 MEUR
Vocational upper secondary education reform ▪ Reform of vocational upper secondary education 2 ▪ The financial and teerings system of vocational upper secondary education will be formed into an integrated package
Acceleration of transition to working life ▪ Accelerate transition from the upper secondary level to universities ▪ Facilitate university studies 3 ▪ Promote digital learning environments in higher education institutions, provision of online teaching and digitalised cooperation in education ▪ Qualification requirements in the public sector will be updated
Access to art and culture will be facilitated ▪ Access to basic art education and children’s culture, which is currently not available to all in every part of the country, will be improved 4 ▪ The one per cent principle for art will be expanded 10 MEUR
Cooperation between higher education institutions and business life will be strengthened to bring innovations to the market 155 MEUR ▪ A proposal for the distribution of responsibilities and closer collaboration between faculties and research units will be required from higher education institutions and research institutes. 5 ▪ Research resources will be pooled and centres of excellence strengthened ▪ The harnessing and effectiveness of research will be reinforced and the commercialisation of innovations will be revamped ▪ Barriers to education exports at all levels of education will be removed From the youth guarantee towards a community guarantee 10 MEUR ▪ The youth guarantee will be developed into a one-stop-shop model and youth oureach work will be bolstered ▪ A student place will be guaranteed for all those who complete comprehensive school 6 ▪ Health and social services and mental health services for young people will be improved and access to education will be guaranteed ▪ Jobseeking operations will be strengthened and young people’s pay subsidies and the Sanssi card will be developed
33 Key project 1: New learning environments and digital materials to comprehensive schools
Minister of Education and Culture Sanni Grahn-Laasonen
The objective is to make Finland a leading country of modern learning and inspiring education.
Measure 1: Update the comprehensive school system to the 2020 standards
The reform will be carried out in three areas: new pedagogy, new learning environments and the digitalisation of education. The goal is to improve learning results, respond to future skills and competence needs, renew pedagogy through experimental schemes and inspire lifelong learning.
This key project will be implemented by making full use of teachers’ skills and experiences while giving them extensive pedagogical latitude. Local solutions, creativity and experimentation will be encouraged. The objective is to make Finland into a world-class laboratory of new pedagogy and digital learning.
As part of the key project, efforts will be made to promote school peace and ensure a psychologically, physically and socially safe and secure school day for every pupil and student. Additionally, the National Board of Education will establish an ‘experimental centre’ to coordinate the experiments and to ensure the efficient dissemination of best practices. A unit for modern learning facilities will also be set up to assist education providers in upgrading their facilities.
The introduction of digital materials and new learning environments will be facilitated through digital-pedagogic supplementary training. Every Finnish teacher will be offered access to competence-based supplementary training geared to the personal skills level.
Basic and supplementary teacher training will be reformed. The Teacher Training Forum will prepare and launch a development programme for basic and supplementary teacher training. The Forum’s term and assessment of the development programme will end in December 2018.
Experimental schemes and workshops on pedagogy, digital learning and new learning environments will be instituted. Due consideration in the course of the trials and workshops will be given to the diversity of learning environments. Full use will be made of the existing networks and peer learning. Due for completion in December 2018.
34 Key project funding Teachers’ competence leap through teacher training. 2016: EUR 8.5 million. 2017: EUR 20.0 million. 2018: EUR 21.5 million.
Facilitation of the adoption of digital materials including experiments with and further development of digital learning. 2016: EUR 6.0 million. 2017: EUR 16.0 million. 2018: EUR 18.0 million.
Total: EUR 90.0 million.
Measure 2: National expansion of the ‘Finnish Schools on the Move’ project to ensure that all pupils engage in physical exercise for an hour per day
The objective is to get every school-age child and young person to engage in physical exercise for one hour per day. This will be accomplished by extending the ‘Finnish Schools on the Move’ project across the country. The goal is to make the school day more active and pleasant. Each school is free to organise physical activities as they see fit. Important aspects of the school activities and the implementation of the programme are pupil engagement, learning, more physical activity and less sedentary work. Schools on the Move involves a comprehensive change in attitudes and culture. A trial to test the programme in secondary education will start in 2017.
Schools on the Move will be implemented through extensive inter-administrative collaboration involving the public and third sector. All the key government departments (sports, education, social welfare and health, youth, environment and transport) will be involved. The programme will be implemented during 2016-2018.
Key project funding 2016: EUR 7.0 million. 2017: EUR 7.0 million. 2018: EUR 7.0 million.
Total: EUR 21.0 million.
35 Measure 3: Increase and diversify language studies
The goal of early language teaching is to support learning, motivate students and diversify the range of languages taught. The measure will be enabled by granting special subsidies to education providers for the purpose of organising regional experiments with a view to introducing the first foreign language in early childhood education and in the first year of school.
A regional experiment will be launched introducing the first foreign language in the first year of school. Special assistance may be granted to education providers offering language teaching beyond the minimum weekly hours with the first foreign language being introduced in the first year and teaching continued thereafter as an A2 language course in subsequent years. When the experimental schools are selected, special attention will be paid to the diversity of languages offered, which may be one of the criteria for selection. Priority will be given to education providers’ regional joint projects with a designated coordinator. No legislative amendments are required for the experiment. The language teaching experiment will begin in August 2017 and end in December 2018.
A regional experiment will be launched to extend the range of languages offered in accordance with the resolution approved by Parliament. The legislative requirements for the implementation of the regional experiments for the diversification of languages without the obligation to study the second official language will be determined. The Ministry of Education and Culture has identified the necessary amendments to the relevant legislation. Additionally, there are a number of other issues related to the realisation of fundamental rights that the Ministry will examine in consultation with the Ministry of Justice. The legislative requirements will be determined by September 2016 and the project brought to a conclusion in December 2018.
Key project funding 2016: - 2017: EUR 5.0 million. 2018: EUR 5.0 million.
Total: EUR 10.0 million.
36 Key project 2: Reform of vocational upper secondary education
Minister of Education and Culture Sanni Grahn-Laasonen
The objective is to reform vocational education by creating a competence-based customer-oriented system and to improve efficiency. Additionally, on-the-job learning and individual learning paths will be promoted and detailed regulation and redundant functions eliminated.
Measure 1: Reform vocational upper secondary education to respond to the skills and competence requirements of the future
Unnecessary overlaps in education will be eliminated. The barriers between vocational education for young people and adults will be removed and the provision of education, its funding and management will be merged to create a coherent whole under the auspices of the Ministry of Education and Culture. Provision of vocational education will be restructured and operational processes overhauled.
Efforts will be made to raise the employment rate and support quick employment by improving the labour market compatibility, collaboration and synergy of unemployed people's traning and self-motivated training and integration training. Steps will be taken to ensure that vocational education and the skills development services it offers respond to the fast-changing competence needs of the labour market. Such services may also be offered by parties other than the existing licensed education providers.
The legislation on vocational education will be reformed and redundant functions eliminated by combining the existing acts on basic vocational education and vocational adult education to enact a new law providing for competence and customer orientation.
Vocational education will be reformed and the regulation and administration related to the qualification system streamlined and simplified by extending the scope of qualifications, reducing the number of individual qualifications as well as by adopting a single system of demonstrating skills and competence and their assessment. At the same time, the processes enabling more personalised training will be clarified to make them suitable for all customer groups.
Additionally, student admission to vocational education and application services will be revised. A new model contract for education and training will be introduced to permit greater flexibility in the provision of workplace training and completion of qualifications in a more hands-on manner. Immigrants will be selected as one key target group in this context. The Government Proposal for legislative amendments to vocational education will be submitted to Parliament in January 2017. It will be linked to legislative amendments governing the funding of vocational education for which the same timetable applies. The amended legislation will enter into force in January 2018. The measure will be brought to conclusion in December 2018.
37 A programme will be launched to develop the current education provider structure to safeguard the capacity of the service provider network and improve access to and regional coverage of education. Education providers will be encouraged to enter into voluntary mergers with due regard to the principle of neutrality. The efforts to renew the provider structure will additionally be supported by waiving compensation for the fair value of the properties surrendered by the state free of charge provided that the proceeds from the sale of the properties or any fair value due to changed circumstances are primarily used for developing vocational education. The Ministry of Education and Culture undertakes to process the applications promptly. The programme to develop the education provider structure will be launched in March 2016 and an interim assessment made by June 2017. Final completion is scheduled for December 2018.
The operational processes and learning environments of vocational education providers will be renewed and digitalised. A development programme for greater competence and customer orientation will be launched to update the functional processes of vocational education; improve the efficiency of the operations of education providers; streamline administration; and reinforce the skills and competence of teaching staff (cooperation with the labour market; learning environments; services conducive to recognition and personalisation and adoption of skills; teaching materials and simulators; digitalisation of apprenticeship training processes; provision of guidance for education providers and improved efficiency in operation).
A central integration service for study rights and credits catering for the needs of the citizens and the various administrative sectors will be put in place as of 2018 in accordance with the planned timetable. The labour market orientation of vocational education will be developed and quick transition to the labour market facilitated by diversifying on-the-job training programmes and improving related guidance through close cooperation between teachers and workplace instructors. Apprenticeship training for young people will be increased, the administrative and financial burden of the provision of training on employers reduced, and the quality of the training provided in the workplace improved. Cooperation between education providers and youth workshop activities will be expanded as part of the reform of vocational education in order to create personalised learning paths and a diversified range of learning environments. A wide range of digital services and learning environments supporting these goals will be developed and adopted, and the skills and competence of the teaching staff enhanced.
The programme to develop the operational processes was launched in April 2016 and an interim assessment will be made by June 2017. Final completion is scheduled for December 2018.
38 Measure 2: Upgrade the financial and steering system of vocational upper secondary education to create an integrated whole
The funding system of vocational education will be centralised by combining the existing funding systems for basic vocational training, supplementary vocational training, apprenticeship training and specialised vocational institutions. Additionally, funding for labour force training aiming at a specific qualification as well as part of other labour force training will be included in the funding system. Said part of funding will be allocated for training to be provided for the customers of the employment and economic development services. The effectiveness and outcomes of the training and education as a criterion for the funding granted to education providers will be highlighted while at the same time relaxing regulations complicating the provision of efficient customer-responsive services.
The regulation and supervision of vocational education will be reformed by introducing a single license for all vocational training and education. The control system will be revamped by focusing on outcomes, quality and impact, and the regulatory guidance given to education providers will be streamlined.
As part of the reform of the regulatory and supervisory system, access to vocational education by those without any secondary education in special learning environments – such as prisons – will be improved. Studies suggest that the education of prisoners is one of the most cost- effective ways of reducing recidivism and the costs incurred by society.
Steps will be taken to increase the appeal of apprenticeship and workplace training to employers, education providers and students.
The Government Proposal related to the implementation of the savings to be made in vocational education in 2017 and the first phase of the reform of the funding system will be submitted to Parliament in September 2016. The Government Proposal related to the second phase of the reform of the funding system will be submitted to Parliament in January 2017. The reform of the regulatory and supervisory system will be linked to legislative amendments governing vocational education with the proposal to this effect to be given concurrently in January 2017. The new funding legislation will enter into force in its entirety and the foreseen measures implemented by January 2018.
39 Key project 3: Acceleration of transition to working life
Minister of Education and Culture Sanni Grahn-Laasonen
The objective is to prolong careers and provide for flexible learning paths to facilitate the transition to advanced studies by young people. Flexible learning paths make it possible to complete degrees and reconcile work and studies.
The Ministry of Education and Culture will carry out negotiations with universities in 2016 to agree on the objectives for the quicker transition to working life for the period 2017–2020. These efforts will be supported by funding from strategic schemes.
Measure 1: Accelerate transition from the upper secondary level to universities
The Ministry of Education and Culture will initiate a process with the universities to renew entrance examinations in order to reduce unnecessary gap years and the average age at which university studies are commenced. Funding will be redirected to encourage universities to abandon arrangements requiring long-term preparation for entrance examinations, which will substantially reduce the need for preparatory courses. The Matriculation Examination Board and universities will jointly prepare an action programme for better utilisation of the matriculation examination in the student admission process. The report of the working group on the action programme to make use of the matriculation examination in student intake by universities is due out in August 2016, and the impact assessment of the reforms to student intake procedures carried out during 2010–2015 will be completed in December 2017.
Transition to university studies will be accelerated by expanding cooperation between upper secondary and higher education by making it possible to complete university courses and language studies during upper secondary studies as well as by intensifying contacts with employers and developing student guidance services. Pilot projects will be launched to explore the potential for closer cooperation between upper secondary schools and universities, and best practices will be disseminated.
Measure 2: Facilitate university studies by enabling year-round studies and wider recognition of prior skills and competence
The Ministry of Education and Culture supports measures by the universities to improve, increase and diversify summer education, network learning (see Measure 3) and intensive courses. The provision of summer education will be monitored to determine the progress made in this respect. Support will be provided for the introduction of exam aquariums at all universities (see Measure 3).
Greater recognition of the skills and competence acquired while working will be ensured. Work experience that takes place while studying may also be recognised and credited. The progress made in the recognition of prior skills and competence will be monitored. The assessment of the recognition of prior skills and competence by the individual universities and the identification of areas where improvements are called for are due for completion in December 2017.
40 Measure 3: Promote digital learning environments at the universities, the provision of online teaching and digitalised cooperation in education to facilitate progress in studies and quicker transition to university
Steps will be taken to create favourable conditions for improving inter-university cooperation. Universities will develop an extensive range of online learning opportunities to offer students more flexibility that transcends the boundaries between the individual institutions. A simple administrative device will be created to have studies completed at other universities credited and included in the degree, and universities will be encouraged to provide the necessary data links and shared databases required for this purpose. The objective is that universities create a range of shared online teaching on a pedagogically sound basis and that they agree on mutual cooperation and division of duties in web-based learning. Instruction may also be offered openly without any entry requirements, enabling for instance upper secondary level students to get acquainted with university studies. Databases and IT systems will be developed during 2016–2018.
Steps will be taken to encourage a versatile use of digital tools in education, diversify assessment procedures using digital systems, equip classrooms with aids that support digital teaching methodology and promote educational cooperation between universities by disseminating good practices between universities during 2015–2017. Support will be provided for the development of the EXAM aquarium application during 2016–2017 and its source code will be made available to all in 2017.
The digital literacy of the teaching staff will be improved and learning analytics developed in support of studies and guidance through workshops to be held between 2016 and 2018 to promote shared practices.
This way teaching and education will become more efficient, students will have a wider range of opportunities, and access to education by upper secondary level students will become viable. At the same time, basic computer skills necessary for successful digitalisation will be taught to all university students by making full use of ubiquitous forms of education. The objective is that students in all fields and at all levels of study master basic ICT skills.
The measure is due for completion in December 2018.
Measure 4: Update qualification requirements in the public sector
A working group led by the Ministry of Finance has agreed on the measures to be taken as part of the programme to reduce the responsibilities and obligations of local authorities (Theme 2 Introduction of more flexible requirements regarding qualifications and personnel).
41 Key project 4: Improved access to art and culture
Minister of Education and Culture Sanni Grahn-Laasonen
The objective is to incorporate culture into children’s daily lives, support the creativity of children and young people, and make art and culture easily accessible to all.
Measure 1: Improve access to basic art education and children's culture currently not available to all in every part of the country and promote creativity among children and young people
Children and young people will be offered equal opportunities to take an active part in art and cultural pursuits, and to improve their creative skills, cultural competence and potential for learning. Cooperation will be expanded between providers of early education and comprehensive school and those providing basic art education, art and culture professionals, institutions and other actors, libraries and third-sector parties. Access to children’s cultural services will be ensured across the country. Regular art and cultural activities and the pursuit of children’s free- time hobbies in school premises will be increased also outside school hours. Efforts will be taken to make it possible for children and families to spend more time together (children’s long afternoons, family time) and to promote the integration of immigrant children (recreational activities make it easier for children to make friends and from the immigrant families’ point of view, the school is the best place to engage in such activities).
The main actors will be institutions providing basic art education, comprehensive school education providers, children’s cultural centres, art institutions, museums, libraries, heritage associations and other actors in the field of art and culture. Due consideration will also be given to informal learning environments.
Structured club activities and cultural pursuits organised for children by schools will increase the provision of basic art education and other art and cultural activities. Operational models will be created for enhancing cooperation between various actors and fields of art. The potential offered by digitalisation will be harnessed, particularly in disseminating digital cultural content and productions and in interactive production (social media channels, e- learning environment, mobile solutions). The provision of basic art education and the arrangement of other club activities by actors in art and culture in the school premises in the afternoons will be expanded.
The activities of the children’s cultural network will be extended across the country to ensure that each municipality will have access to the necessary expertise and the art and culture services offered by the centres.
Innovative models and tools will be developed for use by education providers, families and cultural institutions for the purpose of inspiring children and families to engage in arts, culture and cultural heritage.
42
A trial and development project will be launched to promote the multiliteracy skills of pre- school-age children. A key objective of the project is to create a learning environment conducive to multiliteracy in the context of early childhood education. It will also strengthen the structures and operational culture of early childhood education and support the efforts of libraries and actors in the cultural sector in promoting multiliteracy. Multiliteracy refers to a range of skills needed for the interpretation and production of various texts (comprehension of written and spoken language, ability to understand mathematics, images, media literacy and digital literacy). Special efforts will be made to address the need to improve the multiliteracy skills of Finnish and immigrant children by highlighting the importance of multiliteracy and linguistic awareness. The actions will also intensify cooperation between early childhood educators and families and contribute to greater engagement by families in the efforts to advance multiliteracy.
Due for completion in December 2018.
Key project funding Children’s access to hobbies and art and cultural pursuits will be improved and diversified through basic art education. 2016: EUR 0.8 million. 2017: EUR 1.0 million. 2018: EUR 1.0 million.
Children’s cultural services will improve access to hobbies organised in school premises by art and culture actors, expand the network of children’s cultural centres and help develop and disseminate innovative models to encourage children and families to take an active interest in art and cultural heritage. 2016: EUR 1.2 million. 2017: EUR 2.0 million. 2018: EUR 2.0 million.
Total: EUR 8.0 million.
43
Measure 2: The principle of investing up to 1 per cent of the construction costs of public buildings in the acquisition of artwork will be expanded in cooperation with the health and social services sector in order to amplify the wellbeing effects of the arts
A new approach linked to the current 'one per cent rule' will be created to facilitate the acquisition of art- and culture-based wellbeing services in the health and social services sector. Aside from visual arts, it would also encompass other fields of art (e.g. music, dance, theatre, literature) and culture in the widest sense of the term (e.g. reminiscence). The long-term objective is to permanently incorporate art- and culture-based wellbeing services into the health and social services structures and the monitoring of wellbeing.
The appropriation will be used for assisting municipalities, joint municipal authorities and other actors in developing existing good practices or new approaches, also by making use of digital content and technologies, and so expand the provision of a wider range of art and cultural services and improve access to art within the health and social services system. One of the methods to be used in the implementation of this measure is experimentation, meaning the exploration and testing of new approaches by means of trials. Due for completion in December 2018.
Key project funding 2016: EUR 0.6 million. 2017: EUR 0.8 million. 2018: EUR 0.6 million.
Total: EUR 2.0 million.
44 Key project 5: Cooperation between higher education institutions and business life will be strengthened to bring innovations to the market
Minister of Economic Affairs Olli Rehn in collaboration with Minister of Education and Culture Sanni Grahn-Laasonen
The objective is to make maximum use of scientific and research resources and to boost education exports.
Measure 1: Higher education institutions and research institutes will be required to prepare a proposal regarding their respective responsibilities and intensified cooperation between faculties and research units. Additional capital resources for higher education institutions to be provided
The structural development of universities, their strategic choices and division of duties will be developed as part of the performance target negotiations with the universities for the period 2017–2020. The development efforts will be supported by the strategic development funds included in regular university funding. Funding will be provided by the Academy of Finland to create distinct profiles for the universities. The proposals to be submitted by the higher education institutions and research institutes will be compiled by the Ministry of Education and Culture and the decisions presupposed by these proposals prepared in collaboration with the competent ministries during 2016.
During 2016–2018, key project funding from the Academy of Finland will primarily be allocated to young researchers still in the early stages of their career for the purpose of harnessing research findings.
Higher education institutions and research institutes will allocate resources to centres of excellence of their choice with due regard to the strategic priorities specified by the Government.
Additional capital resources will be made available to universities and universities of applied sciences (Ministry of Education and Culture). Steps will be taken to intensify the impact of research and promote the commercialisation of results. The share of private money to be put out to open tender will be increased in university funding. Of the various criteria for the provision of additional capital resources, special attention will be paid to the ability to raise external funding as well as the productivity, quality and impact of operations.
Key project funding 2016: - 2017: - 2018: Universities to receive a capital infusion of EUR 46 million and universities of applied sciences EUR 24 million.
Total: EUR 70.0 million.
45 Measure 2: Research resources will be pooled and centres of excellence reinforced
By sectoral and geographical centralisation of competence, the efficiency and impact of RDI as well as Finland’s appeal as a home for experts and location for knowledge-intensive companies can be increased. To achieve this objective, full use will be made of the skills advantages offered by open science and research and digitalisation. Regional hubs will make use of local skills and resources while industry-specific hubs will accumulate expertise to create areas in which Finland can lead the way.
Public and private resources will be drawn upon to put in place high-impact strategic projects and promote a national division of duties in research, development and innovation efforts by employing the measures outlined in the multiannual process of intensified cooperation between higher education institutions and research institutes as well as in the EU’s Horizon 2020 research and innovation programme, the European Regional Development Fund (ERDF) and the European Fund for Strategic Investments (ESFI).
Cooperation between higher education institutions, research institutes, businesses and cities will be increased in an effort to develop and commercialise new products and services. The investments in the future made by urban areas will serve as development platforms generating demand for innovative solutions.
The coordinated actions to support the centres of excellence call for the following measures: Advanced internationally recognised research will be supported by re-allocating part of the resources of the higher education institutions and research centres (incl. research infrastructure) to centres of excellence and corporate cooperation with due regard to the individual profiles of the centres and the strategic priorities defined by the Government.
Existing and new RDI programmes will be aligned to promote centres of excellence. To achieve competence-based growth and create centres of excellence of international standing and to uphold the standard of quality and impact of research, the Academy of Finland’s range of funding instruments has been diversified and the amount of funding increased (Profi funding, key project funding). Use will be made of the new ‘Research Benefit’ joint research vehicle of Tekes to harness the most promising research findings in business. Appropriations for the key projects will be made available by December 2018.
Construction of infrastructure and development environments to promote growth in areas of strategic importance (such as cleantech, the bioeconomy, other technology industries, healthcare and the service sector) will be supported. Steps will be taken to ensure that the existing infrastructures are updated and centres of excellence encouraged to allocate resources to the efficient utilisation of research infrastructures transcending sector boundaries through advanced division of duties and cooperation. Financing will be provided to open the infrastructures to all actors in an effort to maximise the use of resources, improve their impact and effectiveness as well as to restructure the economy. Companies’ needs for shared use and utilisation of research and development environments will be analysed and their potential for investing in the development of these environments determined by March 2017.
46 Ecosystem initiatives launched jointly by higher education institutions, research institutes and companies will be supported to provide a platform for the commercialisation of research and competence, the establishment of new businesses and the creation of international business in select prioritised areas. In these business ecosystems, full use will be made of digitalisation, RDI programmes and the principles of open scientific research. Tekes announced a call for applications for a bio-business ecosystem pilot in November 2015. The indicators required to identify ecosystems will be defined by March 2017.
A road map for a growth strategy in research and innovation in the health sector will be updated and implemented and the related measures for 2017–2018 defined (including a proposal for any additional funding required) in order to create an internationally competitive operating environment and increase investments and exports in this field. Road map updated in April 2016.
Support will be provided for the division of responsibilities between the regions and regional competence hubs that reinforce smart specialisation through the growth agreements between the central government and urban regions (2016–2018). Both the growth agreement and the Innovative Cities programme (2014–2017) will encourage urban regions to adopt innovative public procurement schemes in order to generate world-class references. The objective is to create clusters competitive enough to succeed in the global markets.
Major investments in the future by cities and municipalities (including joint municipal authorities) will be used as a testing ground for innovations and as a lead market in promoting exports. At the same time, cooperation between cities and municipalities will be expanded to create a larger lead market and disseminate best practices. The agreements valid until December 2018 will be approved in May 2016. An action plan will be created in consultation with Tekes to make more extensive use of public procurement contracts.
Measure 3: The financial base supporting the impact and utilisation of research will be reinforced and the service structures and regulatory framework for the commercialisation of innovations revamped
To intensify cooperation between research organisations and companies and to enhance the impact of research, it is necessary to expand the funding base to increase direct company funding to universities; at the same time, it is important to include incentives in university funding for improving the impact and utilisation of research and for engaging in closer cooperation with business and industry. Public funding will be allocated and measures taken to promote in-house or joint projects by companies, universities, universities of applied sciences and research institutes based on advanced expertise and research in order to support the commercialisation of research and knowledge.
University funding will be revised to increase the impact and utilisation of research and expertise. Higher education institutions will be encouraged to cooperate with companies and intensify the impact and efforts to commercialise the research findings through guidance and public funding by ensuring that they are strategic choices by the universities and universities and that the goals are ambitious. In support of these efforts, data
47 gathering by universities will be developed to make it possible to assess the impact of the cooperation between business and higher education institutions and to evaluate the exploitation and commercialisation of research. The proposals for legislative amendments required for the revision of funding models will be submitted to Parliament in spring 2016. Gathering of complementary follow-up data on the impact of research will begin in January 2017.
To increase the impact of RDI investments, the OECD will be commissioned to assess Finland’s research and innovation policy. The OECD’s preliminary recommendations are due for completion in January 2017 and the final report in June 2017.
Tekes’ existing instruments for commercialising research (e.g. From Bench to Business) will be developed and new instruments adopted (Challenge Finland, a challenge-based solution-centred research programme, and Innovation Scout) to provide a better match between the needs of businesses and public research and to increase researchers’ awareness of the commercial potential of research and entrepreneurship. The first call for funding applications was announced in December 2015. All the key project funding will be exhausted by 12 December 2018.
Key project funding from the Academy of Finland will primarily be allocated to young researchers still in the early stages of their career for the purpose of harnessing research findings. Cooperation between Tekes and the Academy of Finland has been reinforced, for example by creating a coordinated and mutually complementary system of funding for all key projects.
Renewal of the service structures, processes and career advancement models conducive to the exploitation and commercialisation of research will be implemented as part of the multi-year process to deepen cooperation between higher education institutions and research institutes. Research organisations will be encouraged to develop shared innovation and commercialisation services for specific fields of expertise or business sectors. A pilot project on joint commercialisation services will be launched in June 2017.
Universities will be encouraged to develop alumni activities to advance cooperation with business and industry.
The need for any legislative amendments to the Act on University Inventions will be assessed and amended where necessary. Should the need for amendment arise, the Government Proposal to this effect will be submitted to Parliament in December 2016.
Access to venture capital by research-driven start-up companies will be improved through fund investments by Tekes Venture Capital Ltd. The first investments will be made by June 2017.
48 Key project funding Ministry of Economic Affairs and Employment: Support for RDI activities; Challenge Finland, Research Benefit, Innovation Scout. 2016: EUR 12 million. 2017: EUR 18 million. 2018: EUR 25 million. Total EUR 55 million.
Ministry of Education and Culture: Cooperation between the Academy of Finland and Tekes to harness expertise; Academy of Finland’s contribution. 2016: EUR 2 million. 2017: EUR 8 million. 2018: EUR 20 million. Total EUR 30 million.
Total: EUR 85.0 million
Measure 4: Barriers for education exports at all levels of education will be removed
Barriers to tailored education will be eliminated. Similarly, barriers to exports of upper secondary education services will be removed.
Tuition fees will be introduced for students from outside the EU/EEA. As of the beginning of 2016, universities and universities of applied sciences may charge tuition fees from students from outside the EU/EEA studying on programmes leading to a Bachelor's or Master's degree when instruction is provided in a foreign language. The tuition fee regulations must be applied by the universities in respect of students commencing studies on or after 1 August 2017.
Access to education by low-income students from outside the EU/EEA will be facilitated by a specific grant system. Incentives will be created to persuade students to remain in Finland upon graduation.
The road map detailing government action for the promotion of education exports and removal of barriers was announced in March 2016.
According to a Tekes survey (2015), the total value of Finland’s education exports is approximately EUR 268 million. The new target is to increase the volume to EUR 350 million by 2018.
The measures outlined in the Future Learning Finland will be complemented by means of the Team Finland network, etc.
49 Key project 6: From the youth guarantee towards a community guarantee
Minister of Education and Culture Sanni Grahn-Laasonen in collaboration with Minister of Justice and Employment Jari Lindström and Minister of Family Affairs and Social Services Juha Rehula
The objective is to support young people’s life management skills, learning paths and employability. Additionally, cooperation in the efforts to assist young people will be intensified and best practices disseminated across the country.
Measure 1: The youth guarantee will be developed into a model in which the responsibility for a young person in need of support is allocated to a single place and outreach youth work will be strengthened. Cooperation between the public, private and third sectors in supporting young people will be intensified. Full use will be made of the good practices and projects under the youth guarantee scheme by incorporating the best elements into nationwide programmes
To help young people facing difficulties, a range of one-stop-shops established with ESF funding in the context of the youth guarantee will be expanded and the network extended across the country. The one-stop-shops will be operated jointly by public, private and third-sector actors in the spirit of the youth guarantee. One-stop-shops and youth outreach activities will hone their services with due regard to the growing number of immigrant youths.
Of the existing models, the best or most promising elements will be identified and adopted across the country. This will help create efficient standardised services customised to local conditions that young people can engage in and commit to. The objective is to reinforce proven forms of activity, disseminate the best practices across the country and implement system-level changes ensuring that responsibility for young people in need of assistance is assumed by a single agency.
Outreach youth work will be intensified by drawing upon the positive experiences gained from the youth guarantee and by expanding the trustee model. The trustee model for one-stop-shops and outreach youth work will be implemented jointly by Ministry of Education and Culture, the Ministry of Economic Affairs and Employment, and the Ministry of Social Affairs and Health. In localities with no one-stop-shops, steps will be taken to expand the role of the statutory youth guidance and service network in coordinating the various services available to young people.
Local multidisciplinary cooperation is supported and outreach youth work intensified by developing the trustee model (April 2018). All the one-stop-shops financed with national ESF funding will be operational by April 2018. Additionally, one-stop-shops have been set up with regional ESF funding and national operating grants. Currently, there are 32 one- stop-shops in operation and new ones are being planned. One-stop-shop activities will be established on a permanent contract-based footing and financed jointly without ESF funding by December 2018.
Key project funding 2016: EUR 2.0 million. 2017: EUR 1.5 million. 2018: EUR 1.5 million. Total: EUR 5.0 million.
50 Measure 2: Guarantee further education opportunities for all comprehensive school leavers
Flexible comprehensive school education in years 7–9 aims to prevent students from dropping out. By expanding flexible comprehensive school education (JOPO) in school years 7–9, it is possible to help students prepare for further studies and ultimately make it easier to find employment and, in extreme cases, prevent social exclusion. This positive trend can be achieved by early intervention to ensure that also those who are granted a residence permit attain the objectives of the core curriculum and can advance to upper secondary education. The purpose is to provide additional support to young people who are potentially at risk of dropping out when moving from lower secondary school to secondary education.
A study will be initiated on the implementation of flexible comprehensive school education and progress made in its implementation monitored.
Key project funding 2016: EUR 0.4 million. 2017: EUR 0.3 million. 2018: EUR 0.3 million.
Total: EUR 1.0 million.
Measure 3: Improve health and social services and mental health services for young people and guarantee access to rehabilitation
The health and social services reform is the single most important vehicle for improving young people’s access to these services. Important work is also being carried out in ESF-funded projects and other key projects, particularly in the context of the programme to address child and family services.
As part of the youth guarantee, the Ministry of Social Affairs and Health will announce a call for tenders in spring 2016 designed to improving the wellbeing of young people threatened by social exclusion due to lack of education and work. The plan is to establish a permanent operating model based on partnership between the various actors to support young people’s own active initiative. The Social Insurance Institution of Finland (Kela) provides services for young people threatened by social exclusion because of illness or disability. One of the priorities in the Kela-driven projects is to develop discretionary rehabilitation services is to prevent social exclusion among young people. The call for applications will be completed in October 2016 and the measure fully implemented by December 2018.
Key project funding 2016: EUR 1.5 million. 2017: EUR 1.5 million. 2018: EUR 1.0 million.
Total: EUR 4.0 million.
51 Measure 4: Jobseeker activities will be strengthened, pay subsidies for young people developed and the Sanssi card will be revamped to encourage working
The pay subsidies system has been revised and made more user-friendly for employers. Pay subsidies serve to lower the employment threshold for university graduates and people who have just completed their vocational training. The use of the Sanssi card will be made more widespread and more closely linked to corporate services. Young people are expressing great interest in apprenticeship training (pay-subsidised for the unemployed). Young unemployed people with no vocational qualifications are offered suitable training, for example in the form of apprenticeship training. The appeal of apprenticeship training to employers can be increased by introducing various operating and financial models across administrative boundaries and in collaboration with actors in working life. Being able to complete even just a short preliminary period of training lasting a few months is important because it helps determine the right training path as quickly as possible with due regard to individual capabilities. Closer links to labour and corporate services are called for. Greater attention will be paid to familiarity with the labour market and jobseeking skills. Assessment of the reform in December 2018.
Aside from pay-subsidised work, entrepreneurship is a viable employment option. Entrepreneurial workshops will be provided throughout the country for young people who are interested in starting a business. The entrepreneurial workshop model will be adopted throughout the country. The aim is to encourage young people to become entrepreneurs. The workshops offer business advice, sparring, start-up grants, training and mentoring by employing operating models specifically tailored for young people. The employment and economic development administration will purchase services intended for young people from private service providers based on their track record. The service providers will focus on individual guidance, coaching, skills assessment and job searching. Phases 1, 2 and 3 will be carried out subject to the availability of employment appropriations (budget item 51). The model will be adopted by January 2017.
To promote the digitalisation of services, digital guidance services will be developed for all young people (web services, telephone and video guidance) and integrated into electronic search services (Studyinfo.fi). This work has been initiated jointly by the Ministry of Economic Affairs and Employment, Ministry of Education and Culture, and Ministry of Social Affairs and Health as an ESF-funded project. However, to put it on a permanent footing, additional joint efforts will be needed, such as cooperation with the Ministry of Finance.
52 3. HEALTH AND WELLBEING
People in Finland are healthier and in better control of their lives. In the year They feel that they can have an influence, make choices and take responsibility. Health and social services focus on preventive action, and the clinical pathway is smooth, personnel are coping well and information systems work well. Through 2025 reform, joint resources can be used to foster better health and wellbeing. GOVERNMENT-TERM OBJECTIVES FOR THE PRIORITY AREA Social protection has been overhauled to Support is provided to people of all ages, to encourage participation and employment. enable them to take responsibility for their own Health promotion and early support have been state of health and lifestyles. The public service bolstered in inter-administrative decision-making pledge is defined within the parameters of processes, services and working life by means society’s financial resources capacity. People in of legislative amendments and better execution. different life situations have more choices. Differences in health and wellbeing have narrowed.
The wellbeing and individual The focus is on home services The health and social services resources of children and for older people. Informal care reform has improved basic families have been enhanced. has been reinforced. public services and information systems.
Inclusive social security that encourages Participation in organisations and voluntary acceptance of employment activities has been facilitated and people’s engagement increased by cutting red tape.
KEY PROJECTS
Customer-responsive services ▪ Reform the operating processes in health and social services ▪ Evaluation of expedient allocation of residence-based social security 1 ▪ Carry out a basic income pilot study 37 MEUR
Health and wellbeing will be fostered and inequalities reduced 2 ▪ Facilitate lifestyles supporting health and wellbeing 8 MEUR
Programme to reform child and family services 3 ▪ Programme to child and family services will be implemented 40 MEUR
Home care for older people will be developed and informal care enhanced in all age groups ▪ Revamped home care 4 ▪ Informal and family care will reshape the structure and range of services 30 MEUR
Career opportunities for people with impaired work capacity ▪ Introduce reforms in the service system and at workplaces to make it easier 5 to employ people with impaired capacity for work ▪ Incentive traps relating to disability pension and earned income will be abolished 15 MEUR
53 Key project 1: Services based on customer needs
Minister of Social Affairs and Health Hanna Mäntylä, Minister of Family Affairs and Social Services Juha Rehula
The objective is to provide customer-responsive operating processes conducive to independent living in the context of health and social services, and to ensure an appropriate level of social security. A project to reform the operating processes of health and social services and social security will be launched. The various functions will be fused to provide customer-responsive service regimes. The tools offered by digitalisation will be utilised and red tape reduced. The customer’s initiative and capacity for unassisted living will be supported and shared access to information provided.
Measure 1: Reform the operating processes of health and social services by placing the customer centre stage
The reform will result in customer-responsive, accessible, multi-professional electronic services tailored to customer needs and capabilities. Care and service plans are prepared to ensure timely and coordinated access to care and/or services. In developing and directing the services, due consideration will be given to customer experiences and feedback.
Implementation will be coordinated through a restructuring programme which calls for broad- based inter-administrative cooperation in accordance with the national service architecture. The key project will be coordinated with the digitalisation measures defined in the Government Programme.
The public service pledge will be defined. The regulatory framework will be prepared as part of the legislation on the health and social services reform by 12 December 2016. The overall timetable will be defined in more detail in the course of preparation.
An operating model for experience expertise and customer participation will be defined. Ready for roll-out in December 2017.
New online health self-management services will be developed and implemented. Due for completion in December 2018.
A service voucher experiment will be carried out in extended form in accordance with the legislative amendments required by the health and social services reform. An electronic service permitting search for and comparison of service providers and IT system solutions supporting freedom of choice will be implemented. An assessment of the experiment will be made. Due for completion in December 2018.
Key project funding 2016: EUR 2.0 million. 2017: EUR 6.5 million. 2018: EUR 6.5 million. Total: EUR 15.0 million.
54 Measure 2: Assess the allocation of social assistance under the residence-based social security system
The criteria for commencing and terminating eligibility for residence-based social security for those entering and leaving Finland will be re-assessed. Finland’s key objectives for the reform of the EU legislation on the coordination of social security will be clarified.
A study will be carried out on the creation of an integration system for those who have been granted asylum. Government Proposal for legislative amendments to the Unemployment Security Act and the Act on the Promotion of Immigrant Integration will be given in May 2016.
Analysis of the costs of immigration. The number of people entering and leaving Finland for various reasons and the impact of benefit disbursements on the social security system will be investigated. A multiple study will be carried out based on existing studies on immigration and its costs. Due for completion in May 2017.
An assessment will be made of the criteria for eligibility for the benefits paid under the Finnish residence-based social security legislation including the breakdown of claimants and the expediency of the regulations. A study will be carried to determine whether access to the Finnish residence-based social security could be graduated. A Government Proposal for legislative amendments to residence-based social security will be submitted in October 2018.
Key project funding 2016: EUR 1.0 million. 2017: EUR 1.0 million.
Total: EUR 2.0 million.
Measure 3: Carry out a basic income experiment
An experiment will be carried out to determine whether income poverty, non-access to services and red tape related to welfare benefits and taxation can be reduced and incentives for employment increased within the framework of sustainable public finances.
The report on experimental basic income models has been completed. The Government will determine its policy line in April 2016 on the basic income experiment that encourages to accept work. Government Proposal in November 2016. The basic income experiment will end in December 2018. The results will be assessed and a decision on further action made in May 2019.
Key project funding 2016: EUR 0.5 million. 2017: EUR 9.5 million. 2018: EUR 10.0 million.
Total: EUR 20.0 million.
55 Key project 2: Health and wellbeing will be fostered and inequalities reduced
Minister of Family Affairs and Social Services Juha Rehula
The goal is to promote healthy lifestyles, such as physical exercise, improve the mental health of all Finns in their daily lives, reduce the detrimental health effects of buildings, and to alleviate inequalities in health and wellbeing.
Measure 1: Change everyday environments to facilitate lifestyles supporting health and wellbeing
The health and wellbeing of exposed groups will be improved to achieve greater equality in this respect. This will be achieved by addressing the key factors resulting in inequalities in health and wellbeing. The factors affecting health and wellbeing include physical exercise, nutrition, alcohol consumption, smoking, mental health skills, living conditions and socio-economic circumstances. To accomplish such changes, effective practices need to be employed more efficiently, new approaches developed and people’s ability to assume responsibility for their own lives supported.
The changes will be achieved in people's everyday surroundings as part of the services provided through effective inter-administrative cooperation. Good practices will be widely disseminated by organisations, municipalities and expert institutions. People will be engaged in the search for solutions. Ministries will create permanent means for inter-administrative cooperation to promote health and wellbeing and reduce social differentials to incorporate them into the action taken by all administrative sectors. Innovations in services and investments encouraging choices conducive to health and social wellbeing will increase.
The key project will be implemented in the form of three sub-projects each of which will be individually assessed. The most effective practices will be adopted on a permanent basis.
Proven operating models that have been found to promote the health, wellbeing and assumption of responsibility of the most exposed groups most effectively will be adopted by the public, private and third sector. This will include trials and dissemination of information in the context of the ‘Adoption of Good Practices’ project. Due for completion in December 2018.
The Healthy Buildings project will generate new data on health effects, provide guidelines for timely assessment of building health issues as well as offer training and give information on building-related health risks and their management. Due for completion in December 2018.
Cross-administrative decision making and preparation in the context of the efforts to promote health and wellbeing and provide early intervention support will be reinforced in collaboration between the ministries and expert bodies. The model for inter-administrative cooperation will be finished and implemented by June 2017.
Key project funding 2016: EUR 1.5 million. 2017: EUR 3.5 million. 2018: EUR 3.0 million. Total: EUR 8.0 million.
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Key project 3: Restructuring programme to address child and family services
Minister of Family Affairs and Social Services Juha Rehula
The goal is to create services that better respond to the needs of children and families, focus on prevention and are more effective. The fragmented system of providing services for children and families will be reorganised within a new regional and municipal framework. A comprehensive reform will be carried out to shift the focus to universal preventive services and early support and care. A new evidence-based culture based on children’s rights will be instigated in decision making and the provision of services.
The reform will address children’s rights and the diversity of families, focus on children and families, reinforce the resources available to children, young people and parents, promote engagement and draw upon user expertise. Access to services by minor asylum seekers entering Finland unaccompanied or with their families will be ensured.
Measure 1: Programme to restructure child and family services will be implemented
Key activities to be coordinated include, for instance, health and social services (Ministry of Social Affairs and Health); education, teaching and cultural services as well as youth work (Ministry of Education and Culture); matters related to immigration, asylum-seekers and refugees, and matters related to violence and abuse (Ministry of the Interior); issues related to youth employment and family-friendly workplaces, integration of immigrants (Ministry of Economic Affairs and Employment); conscript service issues (Ministry of Defence); custody issues where divorce or separation is involved and services for young offenders (Ministry of Justice); and the activities of organisations and parishes operating in these fields.
The restructuring programme enables a cost-effective response to the needs related to the wellbeing of children, young people and families in the context of diminishing appropriations. The reform aims for a 10 per cent reduction in the cost of corrective services by 2025 relative to the 2014 levels. Every effort will be made to curb the rise in expenditure on corrective measures by 2019. To support the restructuring programme, regional start-up grants will be provided and municipal pilots and trials carried out to create new coherent services and implement good practices.
The objective is that local, regional and state authorities commit to a culture of promoting children’s rights in decision making and in the provision of the services. A showcase child-friendly municipality will be developed. The skills and tools available to professionals working with children, young people and families will be refashioned to support the reform.
Nationwide steering, legislation and management will be reorganised to support the process of change towards greater child, adolescent and family orientation through inter-ministerial cooperation and network management. Coordination will also be improved in areas related to international family law and immigration.
57
A range of accessible services will be introduced to support parenting by making use of the potential offered by digitalisation, such as online consultation and other forms of cooperation and by using digitialisation to bring services closer to people.
When providing services for adults, the role of children will be given greater emphasis and steps will be taken to prevent domestic violence. Reconciliation services will be extended in case of divorce and separation. A model for a family-friendly workplace will be put in place.
Efficient structures and contracting procedures will be created at the regional and municipal level for cooperation with child and family associations and parishes both in the provision of services and in the coordination of activities with voluntary organisations.
As part of the efforts to promote a culture of protecting the rights of children, a system for child impact analysis will be developed and tools provided for child-oriented budgeting as well as for monitoring the wellbeing of children and young people and the provision of related services. The child and family impact analysis models and the child-oriented budgeting model will be simulated and adopted in May 2017. The models will be disseminated as part of the project.
Easily accessible services will be networked using a family centre model. Due for completion in October 2018.
Services requiring the highest levels of expertise will be brought together and networked by establishing regional competence and support centres not only to provide advanced services but also to develop consultation activities. Due for completion in October 2018.
An inter-administrative network management model for child and family policies and services will be created and adopted by means of collaborative efforts by the ministries. Adoption of the wellbeing monitoring and network management models. Due for completion in January 2018.
In each region and its municipalities, all services for children, adolescents and families will be pooled to provide a coordinated set of child- and family-centred services. Special attention will be paid to the interfaces between health and social services and municipal services (e.g. early childhood education, school, youth work, culture, library). Simulation and adoption of comprehensive services. Due for completion in December 2018.
Key project funding 2016: EUR 7.0 million. 2017: EUR 17.0 million. 2018: EUR 16.0 million.
Total: EUR 40.0 million.
58 Key project 4: Home care for elderly people will be developed and informal care enhanced for all age groups
Minister of Family Affairs and Social Services Juha Rehula
The goal is to provide elderly people, informal carers and family carers with more equitable, better coordinated and less costly service.
Measure 1: Home care reform
The system of services for the elderly will be revamped by adopting an integrated regional range of services. As part of this, a trial will be carried out to test centralised provision of customer and service advice. Home care models will be developed and tested. Both start-up grants and funding earmarked for trials will be used to launch the models. A national and regional steering and implementation mechanism (including agents of change) will help accomplish the changes and embed the new way of thinking. The outcome will be a customer-responsive, cost-effective and integrated service package focusing on services provided primarily at home.
Implementation of the reform will be ensured through inter-administrative cooperation between the Ministry of the Environment, the Ministry of Transport and Communications, the Ministry of the Interior, the Ministry of Economic Affairs and Employment and the Ministry of Education and Culture, supported by robust national-level steering and knowledge-based management. There is an ample amount of data available on the current situation.
Coordinated services for the elderly with due regard for regional differences will be modelled and their use will be embedded with the help of the agents of change in the course of the project in all the regions. Due for completion in December 2018.
A model for centralised provision of customer/service advice will be created and tested to make life easier for those seeking or receiving advice, assistance, support and services as well as to coordinate and facilitate access to services according to assessed needs. Home care will be developed by increasingly adopting evidence-based operating models that best support the various customer segments in their efforts to cope. Due for completion in December 2018.
The experiences gained in the adoption and testing of the models for centralised provision of customer/service advice and integrated services for the elderly will be assessed and reported. Due for completion in December 2018. The most effective home care models will be adopted starting in January 2019.
Key project funding 2016: EUR 7.8 million. 2017: EUR 7.8 million. 2018: EUR 7.0 million.
Total: EUR 22.6 million.
59 Measure 2: Diversify the structure and range of services in informal care and family care
New operating models for informal care and family care will be created in the course of the project. They will focus on supporting wellbeing (cf. occupational healthcare), coaching and rehabilitation. The wellbeing of informal carers and family carers will be supported through measures that increase the appeal of care work and make it easier to reconcile informal care and employment. Regional information and family care centres will be established to support informal and family care. As a result, the quality of life of customers of various ages who receive informal care and family care, and the quality of life of their careers, will be upheld. By the same token, the customers’ need for institutional care and other forms of 24-hour care will diminish.
Regional trials will be carried out to test the models. The most effective ones will be adopted using regional coordination networks under close knowledge guidance (see Measure 1, “Home care reform”) provided in the context of inter-administrative cooperation.
The models designed for supporting informal and family care will be simulated and tested. The trials will be assessed and reported. The most effective home care models will be adopted starting in January 2019.
Regional information and family care centres will be established to support informal and family care. The centres will be simulated and then operation will commence. And it will be assessed. Due for completion in December 2018.
Key project funding 2016: EUR 1.7 million. 2017: EUR 3.7 million. 2018: EUR 2.0 million.
Total: EUR 7.4 million.
60 Key project 5: Employment opportunities for people with impaired capacity for work
Minister of Social Affairs and Health Hanna Mäntylä
The goal is to significantly improve the ability of persons with impaired capacity for work to continue working as well as to help them find employment on the open labour market.
Measure 1: Introduce reforms in the service system and at workplaces to make it easier to employ people with impaired capacity for work
The key project will affect the position of people with impaired capacity for work in the labour market. This will be accomplished by modifying the service system to provide more efficient employment services for those with impaired capacity for work; improving the competence level of professionals through extensive training designed to achieve the change and increased cooperation; adopting the work ability coordinator model on a broad front and make it easier for SMEs to make use of the coordinator’s services; establishing systems for referring people to treatment and rehabilitation; identifying and embedding evidence-based models for the employment and social engagement of those with impaired capacity for work; promoting entrepreneurship among people with disabilities; and lowering the threshold for the employment of those with impaired capacity for work.
In the course of the key project, a large body of research data will be generated to use to identify the best practical solutions. The key project also involves a number of local government trials and pilots.
The outcome of this key project will improve the labour market position of those with impaired capacity for work because they will either be able to retain their job or be much better placed to find employment. This will bring more equality to them and improve their quality of life while also reducing the costs incurred by the state. Additional savings will be achieved thanks to a more efficient and productive service system. The measures foreseen in this key project will target people with impaired capacity for work, workplaces, employment and economic development offices, municipalities and the healthcare system. Efforts will be made to advertise the results of the project and ensure that they are implemented on an equal basis across regions.
The recommendations of the programme addressing the employment of people with impaired capacity for work, including the work ability coordinator model, will be implemented. The skills and competence of the professionals involved will be enhanced by providing training throughout the country. A web portal for professionals and those with reduced capacity for work will be set up and the range of tools available to employers extended. Due for completion in October 2018.
To maintain the existing capacity for work of those with impaired capacity for work, operating models will be put in place to determine the responsibility for coordinating the assessments of work and functional capacity, including referral to treatment and rehabilitation. Due for completion in September 2017.
61 Operating models and the operating culture will be updated to provide greater support for employment and social participation of those with impaired capacity for work and to improve access to services that those with reduced capacity for work need, legislation and the division of duties between the various parties involved will be clarified. Tried and tested models for the employment and social participation of unemployed people with impaired capacity for work will be adopted in the municipalities. Government Proposal due in June 2018.
Key project funding 2016: EUR 2.0 million. 2017: EUR 7.0 million. 2018: EUR 6.0 million.
Total: EUR 15.0 million.
Measure 2: Eliminate disincentives related to disability pensions and earned income
A linear model will be introduced to reconcile disability pensions and earned income. This will result in higher earned income, which in turn will increase total income. The disincentives inherent in the current system will be eliminated. Government Proposal due in January 2019.
62 4. BIOECONOMY AND CLEAN SOLUTIONS
Finland will be a pioneer in the bio and circular economies and in cleantech. In the year By developing, introducing and exporting sustainable solutions we have improved the current account, increased our self-sufficiency, created new jobs, and achieved our 2025 climate objectives and a good ecological state in the Baltic Sea. GOVERNMENT-TERM OBJECTIVES FOR THE PRIORITY AREA
Finland has reached the 2020 climate objectives The growth of cleantech enterprises, the already during the government term. Imported increase in the sustainable use of natural fossil fuel-based energy has been replaced by resources, pluriactive rural enterprises and an clean and renewable domestic energy. efficient circular economy have contributed to the creation of new jobs without compromising environmental protection.
The administrative burden that has slowed down Profitability of food regeneration has been significantly reduced. production has improved and the trade balance has risen by 500 million euros.
KEY PROJECTS Towards carbon-free, clean and renewable energy in a cost-efficient way ▪ Formulate a new energy and climate strategy aiming for the year 2030 1 and promote more use of clean energy 100 MEUR
Wood on the move and new products from forests ▪ Supply and versatile use of wood will be increased ▪ New products, services and business models in bioeconomy will be developed 2 ▪ Adoption of new innovations in the bioeconomy will be expedited 50 MEUR
Breakthrough of the circular economy and adoption of clean solutions ▪ Develop the regulatory framework and other solutions to promote recycling ▪ Increase recycling of nutrients and step up actions to protect the Baltic Sea and other watercourses 3 ▪ Experimental programme for contaminated soil reconditioning and soil recycling ▪ Promotion of cleantech solutions 63 MEUR
Finnish food production economically viable, balanced trade and thriving bioeconomy ▪ Make Finnish food production economically viable ▪ Open up export markets for Finnish food 4 ▪ Sustainable growth promoted by means of water-related livelihoods and expertise 100 MEUR
Nature policy based on trust and fair means ▪ Recreation and nature tourism will be increased 10 MEUR 5 ▪ A national park will be established in 2017 when celebrating the 100th anniversary of Finland’s independence ▪ Revive migratory and endangered fish populations
63 Key project 1: Towards coal-free, clean and renewable energy in a cost-efficient way
Minister of Economic Affairs Olli Rehn and Minister of Agriculture and the Environment Kimmo Tiilikainen
The goal is to sustainably increase the percentage of renewable energy out of total energy consumption to exceed 50 per cent in the 2020s. This will primarily be achieved by increasing the supply of bioenergy and other emissions-free renewable energy sources.
Measure 1: Prepare an energy and climate strategy and related measures extending up to 2030 to enable the attainment of the targets of the Government Programme and the obligations imposed by the EU
A new energy and climate strategy aiming for the year 2030 will be prepared to assess the energy system as a whole. Attainment of the targets defined in the Government Programme, including the necessary policy measures and resources, will be ensured in course of the implementation of the strategy. Aside from the bioenergy objectives established in the Government Programme, use of other alternative technologies and energy sources, such as electric car technology, will be promoted cost-effectively. Smart grids and a flexible response to demand will be improved. The strategy will also help meet the obligations of the EU’s 2030 climate and energy framework and put in place a national energy plan consistent with the Energy Union administrative model. Due for completion in December 2016.
The Government’s medium-term climate policy plan will be prepared in accordance with the Climate Change Act. Due for completion in May 2017.
Added appropriations for energy subsidies will be allocated to renewable energy investments by businesses and to major demo projects for new clean energy technology. The decisions on allocations will be made in 2016 (mostly done), 2017 and 2018.
A new energy subsidy system will be introduced (electricity and CHP). A draft Government Proposal for renewable energy subsidies will be submitted to Parliament in January 2017.
Use of renewable motor fuels will be promoted. Draft Government Proposal for biofuel to be given in April 2017 (implementation of the ILUC Directive, phase 2, by the end of 2017).
Key project funding 2016: EUR 20.0 million. 2017: EUR 40.0 million. 2018: EUR 40.0 million.
Total: EUR 100.0 million.
64 Key project 2: Wood on the move and new products from forests
Minister of Agriculture and the Environment Kimmo Tiilikainen and Minister of Economic Affairs Olli Rehn
The goal is to diversify and increase the use of wood and to raise its value added. Competitive and sustainable bioeconomy solutions to worldwide problems will be developed in Finland, which will create new business, jobs and exports.
Measure 1: Supply and versatile use of wood will be increased
Sustainable use of wood will be increased, forest industry investments promoted and accelerated particularly with a view to generating new business in the sawmill industry and developing products with high value added. The structure of forest ownership will be developed, succession with regard to forest holdings facilitated and an entrepreneur deduction introduced in forest industry. The Government Proposals will be given in September 2016; successions are in progress and the entrepreneur deduction will be adopted in January 2017. The Asset Transfer Tax Act will be amended to facilitate transition to corporate form; Government Proposal due in September 2017. The Act on Jointly Owned Forests will be amended to facilitate the establishment of jointly held forests; Government Proposal due in December 2017.
More efficient use will be made of the forest resource data, and online services for forest owners and actors will be developed. The amendment to the Act on the Forest Resource Data System of the Finnish Forest Centre will enter into force in January 2017. The entire project will be brought to conclusion by December 2018.
Use of wood in construction will be promoted by revising regulations for timber construction and by expanding the knowledge base. The preparation of legislative amendments was commenced in February 2016.
A design competition for an all-timber school will be organised. Due for completion in June 2017.
Key project funding 2016: EUR 4.0 million. 2017: EUR 5.0 million. 2018: EUR 4.0 million.
Total: EUR 13.0 million.
65 Measure 2: New bioeconomy products, services and business models will be developed
The implementation of the national bioeconomy strategy will be continued. The progress made and any need for a strategy update will be assessed. Assessment in September 2016.
Public research and innovation funding will be provided to the bioeconomy sector. More coherent operating models bringing together public funding providers will be created in key areas (e.g. new biofuels and bioproducts, renewable energy, biomaterials and biochemicals, timber construction, wood products industry). Development projects will also draw on the expertise and infrastructure of higher education institutions and sector research institutes. Due for completion in December 2018. The most promising outcomes of earlier research (particularly centres of excellence in the bioeconomy sector) will be identified and measures necessary for their further development determined together with businesses and public funding providers, for instance by using the Tekes Research Benefit funding model. Due for completion in December 2018.
Key project funding 2016: EUR 7.0 million. 2017: EUR 12.0 million. 2018: EUR 13.0 million.
Total: EUR 32.0 million.
66 Measure 3: Introduction of innovations in the bioeconomy sector will be promoted through experimental projects and innovative public procurement
Demand for products and services generated by the bioeconomy sector will be boosted by pursuing the goal defined in the Government Programme saying that 5 per cent of all public procurement should be innovative. Experimental projects and investments will be accelerated for instance by harnessing the potential offered by the European Fund for Strategic Investments (EFSI).
A joint funding programme of Tekes and Finnvera for pilot and demo projects will be launched for experimental and roll-out projects involving new technology and operating models, particularly in the BCD sectors. Commenced in March 2016.
Licensing procedures and other official requirements for experimental bioeconomy projects will be simplified by employing the measures outlined in the Reforms key project. Government Proposal for amending the Environmental Protection Act will be given in December 2016.
The VTT Bioruukki piloting centre will be upgraded into an internationally significant research and testing environment for new bioeconomy technologies and clean solutions. Phase 1 (gasification and pyrolysis) is already in progress, to be followed by Phase 2 (biomass centre) in May 2017.
Pilot, demo and reference projects will be carried out by key actors (local authorities, businesses, Tekes, Finnish National Fund for Research and Development Sitra, Technical Research Centre of Finland VTT, Finnish Environment Institute Syke, Natural Resources Institute Luke) in the context of programmes and projects. The objective is to commercialise innovations, develop concepts for export and create smart low-carbon cross-industry solutions. Due for completion in December 2018 when the programme is brought to a conclusion.
Key project funding 2016: EUR 3.5 million (authorisation EUR 5.0 million) (VTT). 2017: EUR 1.5 million. 2018: -
Total: EUR 5.0 million.
Tekes’ contributions to this measure are taken into account in Measure 2.
67 Key project 3: Breakthrough of the circular economy and clean solutions
Minister of Agriculture and the Environment Kimmo Tiilikainen and Minister of Economic Affairs Olli Rehn
The objective is to seize the growing opportunities offered by bioeconomy and clean solutions. Actions to improve the ecology of the Baltic Sea will be taken in collaboration with domestic and international actors. The amounts of nutrients and organic material leaching to the watercourses will be reduced, while the nutrient and energy self-sufficiency of agriculture will be enhanced. The volume of business related to the circular economy and clean technology will grow and exports will increase.
Measure 1: Develop the regulatory framework and other solutions to promote recycling
A government decree will be prepared for the use of waste materials in civil engineering projects by extending such use to new areas and types of waste while at the same time reassessing the environmental quality standards. The purpose of the decree is to simplify the licensing procedures for the reuse of wastes. The decree is due to be issued in March 2017.
An impact assessment on restricting municipal monopolies in waste management will be conducted, and the necessary amendments to the Waste Act will be prepared on the basis of the studies. Government Proposal in December 2016.
Actions to promote recycling of community waste will be explored and implemented in preparation of the National Waste Plan. At the same time, the objectives for nationwide waste management, waste generation and recycling will be established and measures to be taken for 2017–2022 defined, accompanies by other projects and trial with a view to promoting circular economy and recycling. Government Resolution due in December 2016.
A report will be prepared to determine the impact of the prohibition to dump organic waste in landfills, the waste fractions that will continue to be dumped in landfills, and the need for further regulation. Amendments to legislation will be prepared accordingly. The report is due for completion in 2017, to be followed by legislative amendments in December 2018.
The need for and impact of national end-of-waste (EoW) legislation will be assessed, accompanied by a study on the application and impact of such regulations in specific EU Member States. Following completion of the reports, national end-of-waste legislation will be prepared or other facilitating measures taken in respect of select waste fractions in the order of importance. Any Government Decrees will be given in December 2018.
Key project funding 2016: EUR 0.8 million. 2017: EUR 0.2 million. 2018: -
Total: EUR 1.0 million.
68 Measure 2: Increase recycling of nutrients and step up actions to protect the Baltic Sea and other watercourses
An experimental programme to fund product development and innovation related to renewable energy and nutrient recycling will be launched, including demo and reference projects. In the course of the programme, venture funding will be provided to farms, SMEs and processing plants, and industrial symbioses and innovations related to new uses will be promoted. To be launched in June 2016.
One or two pilot projects will be launched for building a full-scale test site for treating sludge from a waste water treatment plant serving a community of 20,000 to 50,000 residents to separate phosphorus from ash for the production of fertilisers and to process fermented sludge to recover phosphorus and nitrogen for use in fertilisers. Due for completion in December 2018.
Horse manure, like all manure produced by farm animals, should be duly processed in order to recycle the nutrients contained in it. A horse manure nutrient recycling project will be set up and the use of horse manure as a fuel facilitated. The programme was launched in January 2016 and is due for completion in December 2018.
In order to ensure the attainment of the Government’s nutrients recycling goals and to fully leverage the measures included in the Rural Development Programme, the Programme to promote recycling of agricultural nutrients (Ministry of Agriculture and Forestry)and the second phase of the Programme to promote recycling of nutrients (RAKI, Ministry of the Environment) (2016–019) will be implemented. Due for completion in December 2018.
A new operating programme for the management of the marine environment will be prepared and implemented along with new regional measures for the management of watercourses in order to determine any need for more efficient action. Projects to improve the state of the watercourses will be conducted to find new, effective ways of reducing nutrient and pollutant loads. The water management plans and the programme for the management of the maritime environment were completed in December 2015 with one third of the measures due for completion by December 2018.
Key project funding 2016: EUR 12.0 million. 2017: EUR 11.0 million. 2018: EUR 11.0 million.
Total: EUR 34.0 million.
69 Measure 3: Experimental programme for contaminated soil reconditioning and soil recycling
A national experimental programme for reconditioning contaminated land areas will be launched for the purpose of exploring the most critical at-risk areas, protecting groundwater areas important to water supply, increasing the reuse of soil and accelerating the development of domestic clean technologies (sustainable reconditioning methods). An experimental programme addressing rock aggregate supply and construction will be conducted to develop and introduce operating models and processes for a streamlined and resource-efficient rock aggregate supply system. Due for completion in December 2018.
Key project funding 2016: EUR 2.3 million. 2017: EUR 2.0 million. 2018: EUR 0.7 million.
Total: EUR 5.0 million.
Measure 4: Promotion of cleantech solutions
Demand for cleantech products and services will be increased by leveraging the 5 per cent target for innovative procurement established in the Government Programme. Experimental projects and investments will be accelerated for instance by harnessing the potential offered by the European Fund for Strategic Investments (EFSI).
Efforts to pursue the cleantech strategy will be continued. The progress made and any need for a strategy update will be assessed. Assessment in September 2016.
Research and innovation funding will be provided from public sources for developing cleantech solutions. Steps will be taken to ensure that due consideration is given to the innovations with the greatest potential made in the course of the Strategic Centres for Science, Technology and Innovation (CSTI) programmes. Due for completion in December 2018.
Full use will be made of the national materials efficiency programme and other public development schemes to improve the mutual exploitation of inter-industry material and raw material flows (‘industrial symbioses’) and create markets for recycled materials. Programme update in December 2017.
Steps will be taken to accelerate the utilisation of circular economy and cleantech solutions in the extractive industry and metals processing, for example by seeking EU funding through Raw Material KICs. Efficient use will be made of the image value of these projects to increase the export of products and services in the context of the mining industry growth programme. The growth programme is due for an update in December 2016.
70 Re-use and recycling of products, re-use, recycling and other exploitation of the side streams and wastes from production and consumption, low-carbon transport and energy systems (e.g. geothermal energy), smart grids, material- and energy-efficiency infrastructure construction and sustainable housing solutions will be developed in collaboration with municipalities, companies and research institutes. Full use will be made of these outcomes in creating new business and as references in the efforts to promote clean solutions exports. A range of circular-economy objectives will be incorporated into the agreements on land use, housing and transport. Due for completion in December 2018.
Key project funding 2016: EUR 8.0 million. 2017: EUR 8.0 million. 2018: EUR 7.0 million.
Total: EUR 23.0 million.
71 Key project 4: Economically viable food production, balanced trade and thriving bioeconomy
Minister of Agriculture and Forestry Kimmo Tiilikainen
The goal is to improve the profitability of agriculture and to strengthen the solvency of farms. No new obligations resulting in additional costs will be imposed during the government term. The domestic consumption and export of pure Finnish foods, fish and water resources will be promoted.
Measure 1: Make Finnish food production economically viable
Improving the profitability and competitiveness of Finnish food production requires investments to improve the production structure, cut costs and enable the introduction of new technologies and processes. Investments and their multiplier effects will improve the vitality of rural areas and diversify the entrepreneurial base.
Research and advisory services will focus on projects to reduce production costs and improve processes and environmental expertise. Advisory services and training will be provided for SMEs to develop their competence in applying food legislation.
Domestic food production will be evaluated in a food policy report to be submitted to Parliament to determine its competitiveness, responsibility, market and consumer orientation and its performance in terms of its ability to maintain emergency stocks of critical supplies.
The operating potential and competitiveness of agriculture and food businesses will be improved by removing costly barriers and regulations and simplifying and streamlining licensing and notification procedures. Risk-based monitoring and self-monitoring will be increased in agriculture and the food industry. The administrative burden on farmers and other entrepreneurs will be reduced by digitalising operations and eliminating duplication in information gathering. The legislative amendments will be carried out by December 2017 and the programme completed in December 2018.
Additional funding of EUR 90 million will be allocated to the Development Fund Agriculture and Forestry (Makera) to finance investments in agriculture. Funding will also be provided to finance other measures in support of the objective to ensure economically viable food production as defined in the Government Programme. Implementation during January 2016– December 2018, legislative amendments during January–April 2016.
Key project funding 2016: EUR 11.0 million. 2017: EUR 38.0 million. 2018: EUR 41.0 million.
Total: EUR 90.0 million.
72 Measure 2: Open up export markets for Finnish foods
New export channels will be opened in the food sector and market entry will be facilitated by helping SMEs to develop their export skills and by launching new market-entry projects. Attention will be paid to the regulatory reports and inspections required by the target countries as well as the negotiation processes and supervisory procedures associated with export projects. Export control systems designed to secure exports to Russia and China were put in place in January 2016 (to be completed by December 2016). The project to provide export advice and develop the exporting skills of SMEs is expected to be commenced in May 2016 (due for completion in December 2018). The project to facilitate market entry is expected to be launched in June 2016 (due for completion during December 2017–December 2018).
The Government Resolution on environment-friendly farming practices and promotion of livestock raising methods conductive to animal wellbeing in the public procurement of food and catering services will be given in August 2016.
Key project funding 2016: EUR 1.0 million. 2017: EUR 2.5 million. 2018: EUR 1.5 million.
Total: EUR 5.0 million.
Measure 3: Sustainable growth will be promoted by means of water-related livelihoods and expertise (blue bioeconomy)
A national blue bioeconomy development plan will be drawn up, identifying targets and key measures for exploiting water-related sustainable growth potential in keeping with the goals of maintaining watercourses in good condition (e.g. fisheries, water-borne biomass, energy, expertise, tourism, services and exports). The development plan will be prepared and executed in broad-based cooperation between the administration, businesses and NGOs. Due for completion in June 2016.
Previously identified measures offering the greatest potential for business returns will be commenced. The foreseen efforts include the development of administrative controls and investments in new innovations to boost domestic and international growth as well as to support the export of water-related expertise. The legislative amendments will be carried out by December 2017 and the programme completed by December 2018.
The act regarding state subsidies in support of entrepreneurial activities (9/2014) will be amended to allow support for the fish processing industry. Due for completion in January 2017.
The act on the excise tax on electricity (1260/1996) will be amended to reassign aquaculture to electricity tax category II. Due for completion in December 2017.
73 Key project funding 2016: EUR 2.0 million. 2017: EUR 2.0 million. 2018: EUR 1.0 million.
Total: EUR 5.0 million.
74 Key project 5: Nature policy based on trust and fair means
Minister of Agriculture and Forestry Kimmo Tiilikainen
The goal is to uphold the current level of environmental protection and to improve local acceptance of protection measures through transparent cooperation and involvement in decision making. National and international recreation and nature tourism will be increased.
Measure 1: Increase recreation and nature tourism
Barriers to business growth will be identified and resolved through inter-administrative programme cooperation (Ministry of Economic Affairs and Employment, Ministry of the Environment, Ministry of Agriculture and Forestry). An interim review will be held in November 2017 following completion of the research project.
An internationalisation programme for nature tourism – Outdoors Finland (Finpro) – that draws upon digital resources will be launched to improve the capabilities of businesses, develop services responsive to demand, provide comprehensive tour services and to communicate and market the services using multiple channels. Phase 1 will be completed by December 2016 and the entire programme by December 2018.
In the preparation of Metsähallitus’ ownership policies, due consideration will be given to the promotion of the tourist industry including the encouragement of investments (Ministry of Agriculture and Forestry). June 2016.
Measure 2: A national park will be established in 2017, the centenary year of Finland’s independence
A national park will be established in 2017 when Finland celebrates its 100th anniversary as an independent state. A decision has been made to establish the national park in an area comprising Hossa and Moilasenvaara, Suomussalmi, and Julma-Ölkky, Kuusamo. Additionally, a conservation area will be established by Government Decree in Porkkalanniemi and its coastal waters. Government Proposal for the national park in October 2016, final completion by June 2017.
Key project funding 2016: EUR 2.5 million. 2017: EUR 0.5 million. 2018: -
Total: EUR 3.0 million.
75 Measure 3: Revive migratory and endangered fish populations
Recovering fish populations will improve the potential for sustainable tourism and contribute to the breeding of migratory fish while promoting biodiversity and improving the Baltic Sea ecology to an acceptable standard.
The natural reproductive cycle of migratory fish will be restored at the critical sites listed in the National Fish Passage Strategy (pilot sites) by introducing new technology and procedures. The efforts to protect threatened fish species will be intensified.
The Government Decree on new regulations for the protection of migratory fish and the obligation to cut the fins of restocked salmon fish was issued in January 2016.
Measures addressing the critical sites selected on the basis of the National Fish Passage Strategy will be planned and scheduled and the related responsibilities allocated. Due consideration in the preparations of these measures will be given to the overall use and management of watercourses (good condition goals, management of flood and drought risks, recreational and tourism use and renewable energy). Establishment of regional cooperation groups, planning and commencement of implementation in May 2016.
The national salmon fishing regulatory system will be revised to align it with the salmon and sea trout strategy. Due for completion in January 2017.
New solutions for managing fish populations in harnessed watercourses will be developed and introduced in collaboration with local stakeholders.
Due for completion in December 2018.
Key project funding 2016: EUR 1.5 million. 2017: EUR 2.5 million. 2018: EUR 3.0 million.
Total: EUR 7.0 million.
76 5. DIGITALISATION, EXPERIMENTATION AND DEREGULATION
Finland has made a productivity leap in public services and in the private sector by In the year harnessing the potential offered by digitalisation, dismantling unnecessary regulation and cutting red tape. The flexible regeneration of Finnish society is supported by a 2025 management culture based on trust, interaction and experimenting. GOVERNMENT-TERM OBJECTIVES FOR THE PRIORITY AREA
User-based, one-stop-shop digital public services Public decision-making is innovative and has that improve productivity and efficiency have created a favourable operating environment in been developed with the help of determined Finland for digital services, Industrial Internet management. applications and new business models.
People’s everyday lives, business operations, Bold steps have been taken to reform agriculture, investments, construction, healthy management and implementation by competition and voluntary activities have strengthening knowledge-based decision-making been markedly facilitated by deregulation, the and openness and by making use of experiments reduction of the administrative burden and and methods that encourage civic participation. improvements to permit processes.
KEY PROJECTS Digitalised public services ▪ Principles for the digitalisation of all public services will be established ▪ Internal administrative processes 1 ▪ Tools and service model for information management and information management act 100 MEUR Growth environment for digital business operations 1 0 ▪ Promote the Internet of Things ▪ Build a digital service growth environment for transport 1 ▪ Formulate an information security strategy 2 ▪ Increase the use and development of robotics 0 ▪ Increase the use of large information reserves (mass data) 1 and business based on mass data, and starting experiments based on ’My Data’ 1
Streamlined legal provisions ▪ Red tape will be cut, regulations will be amended and revoked where necessary ▪ Permit and complaint processes will be made smoother and a public service promise will be made on such processes 3 ▪ The number of complaints between authorities will be minimised ▪ A body on impact assessment of legislation will be established
A culture of experimenting will be introduced 4 ▪ A culture of experimenting will be introduced
Leadership and execution will be improved ▪ More unified government and central government 5 ▪ Revamping existing practices in leadership and execution 77 Key project 1: Public services will be digitalised
Minister of Local Government and Public Reforms Anu Vehviläinen
Public services will be redesigned to make them more user-oriented and predominantly digital through the introduction of new procedures and ways of working. This is crucial to achieving the hoped-for productivity leap in central and local government. Digitalisation is an overriding theme in the Government’s strategy. A set of principles will be established for the provision of customer- oriented public services. The public sector as a whole will be encouraged to commit to the automation and digitalisation of their practices.
Measure 1: Establish principles for the digitalisation of all public services
The principles for customer-oriented digitalisation were announced in February 2016 on the digisuomi.fi site. The principles will be implemented and a model for supporting digitalisation and related testing in public government created in December 2016. Public-sector actors will be advised to focus on the digitalisation of their respective core services. Guidance and skills development services will be offered to the organisations involved.
The measure is due for completion in December 2017.
Measure 2: Digitalise internal administrative processes and discard outdated processes
The ideas for further development received in the course of the Digital Challenge 2015 project have been polished into concrete proposals ready to be funded. Key project funding in the amount of EUR 100 million has been earmarked for implementing the projects. Further funding decisions on the projects will be made during 2016.
By the end of February, funding had been approved for the following projects: - National Income Register (Ministry of Finance) - Self-management of Health and Digital Value Services ODA (Ministry of Social Affairs and Health) - Register of Housing Company Shares ASREK (Ministry of Agriculture and Forestry) - Software Robotics for the Financial and Human Resources Service Centre (Ministry of Finance).
Additionally, the ministerial working group on the renewal of practices has endorsed the following projects: - Licensing and Supervision (Ministry of Economic Affairs and Employment) - Chemicals Control (Ministry of Economic Affairs and Employment) - One-stop-shop Service Model (Ministry of Finance).
78 Further preparations are being carried out on the following projects: Utilisation of Geographical Information in Services and Supervision (Ministry of Agriculture and Forestry); Improving Automation and Reporting in Financial Administration (Ministry of Finance and Ministry of Economic Affairs and Employment); Improving Public Contracts (Ministry of Finance/State Treasury/Hansel); Extended Use of Digital Signatures (Ministry of Finance); Digital Factory in Support of Experimentation and Testing (Ministry of Education and Culture); and Management of Data on the Built-up Environment (Ministry of Finance and Ministry of the Environment).
Specific timetables have been defined for each digitalisation project.
The State Treasury will be tasked to support the implementation of the digitalisation projects (‘Digital Office’). The activities will commence in May 2016.
The proposals presented in the extensive ‘Digital Spurt’ report by the State Treasury assessing the digitalisation and productivity potential of government agencies will be ranked according to importance and subjected to a cost-benefit analysis before final selection for implementation. If necessary, the most important proposals may be financed out of key project funding.
A model for testing the digital municipality will be completed by December 2016. Of the Government’s key projects, the trial will incorporate elements from the Digitalisation of Public Services and Trials; and of the reforms, elements from the Municipality of the Future and the Reduction of the Duties and Obligations of Local Authorities.
Process automation and digitalisation in the administrative sectors and in local government will be funded out of operational expenditure. For digitalisation in the area of expertise and training, separate funding will be allocated from the priority area involved; hence, the resources presented here do not cover digitalisation proposals concerning expertise or training. Nor do the resources cover the IT system modifications required by the health and social services reform.
Key project funding 2016: EUR 30.5 million. 2017: EUR 34.5 million. 2018: EUR 35.0 million.
Total: EUR 100.0 million.
79 Measure 3: Data management tools and service model and Information Management Act
A set of shared tools designed to improve data management performance and a related service model will be created to ensure user-friendly access to key databases. New open interfaces for accessing the national service architecture will be developed to support the service model. Management of core data in public government will be improved and distribution of open-source data increased. Analytics and information management will be tested and financial data management processes and information management practices integrated in accordance with the operating model presented in the Kuntatieto (Local government information) programme in order to improve the knowledge base in the planning and control of public finances. Design of the information management model completed by December 2016, implementation by December 2017 and roll-out during 2018.
A proposal for an Information Management Act will be prepared (responsible body: Ministry of Finance / JulkICT). The new act will bring together the general provisions currently found in several acts concerning the management, publicity, use and archival of information. The new Information Management Act will establish a unified operating model for information management, use of databases and the exercise of citizens’ rights while at the same time enabling the digitalisation of public services. The legislative amendments will be submitted to Parliament in March 2017 and enter into force in March 2018.
80 Key project 2: A growth environment will be created for digital business operations
Minister of Transport and Communications Anne Berner
The aim is to create a favourable operating environment for the services and new business models. In this key project, a regulatory and operating environment will be outlined to foster innovation and new services. Big data and robotisation will be leveraged to create new businesses and new practices. Steps will be taken to ensure data security and make full use of the competitive edge offered by it.
Measure 1: Promotion of the Internet of Things
The digital infrastructure will be developed by investing in 5th-generation wireless communications systems and super-fast high-capacity and secure data transmission connections to create an operating environment for digital service platforms and ecosystems. An action plan complete with a detailed timetable will be defined to serve as a basis for Finland’s broadband policy. Trials and experiments will be carried out as part of this programme with due regard to the future requirements imposed by smart traffic. Full use will be made of the existing and new R&D and innovation programmes to develop digital services, business models and value networks. An assessment will also be made as to how to leverage the EU growth fund for financing platform and broadband projects.
The broadband action plan is due for completion in June 2016.
A new measure calling for the creation of a road map for digital business has been added to key project 1 ‘Strengthening competitiveness by improving conditions for business and entrepreneurship’ included in the Employment and Competitiveness priority area in order to generate a new type of entrepreneurial activity based on platform economy.
Measure 2: Build a growth environment for digital transport services
Barriers to market entry will be removed and introduction of new service concepts based on digital information will be facilitated. User needs will be taken into account by introducing new regulations on access and ease of use where necessary. Innovation and automation will be facilitated. Traffic regulations will be codified into a harmonised Transport Code to create the necessary preconditions for opening rail services to competitive bidding. Measures will be taken to reduce the repair backlog of transport corridors. The transport lab will be established as a permanent forum for promoting experimental projects and ‘mobility as a service’ in the archipelago and ‘smart countryside’ trials will be launched.
Phase 1 of Transport Code is due for completion in June 2016, to be followed by Phase 2 in 2017 and Phase 3 in 2018. The trials will commence during 2016.
81 Measure 3: Draw up an information security strategy to boost confidence in the Internet and digital practices
The strategy will address confidence-eroding developments such as violations of data security and privacy in networks and expand the range and increase the use of commercial encryption and security methodologies while at the same time improving the data security features of key information and communications commodities such as compatibility, transparency and verifiability. The strategy will reinforce the capabilities for detecting and resolving information security anomalies and help attract foreign companies to Finland that offer information security expertise and data security services crucial for Finnish businesses. The legislative amendments required by the EU Network and Information Security (NIS) Directive will be implemented and an assessment will be made of the impact of national legislation on the ability of citizens and businesses to use IT-enabled services and business models safely and to manage related risks.
The Ministry of Transport and Communications adopted the data security strategy on 10 March 2016 and has taken steps to implement it. The legislative amendments stemming from the EU Network and Information Security Directive will be incorporated into national legislation (Government Proposal to this effect will be given in November 2017).
Measure 4: Promote use and development of robotics in Finland
Expertise will be attracted to Finland by providing an experiment-friendly environment. Government is tasked to ensure that this is permitted under the existing legislation and to allocate existing funding to innovations that facilitate market entry by businesses. Cooperation between the public and private sector will be intensified. Steps will be taken in all administrative sectors to identify relevant forward-looking measures. The policies for promoting robotisation and automation in Finland will be adopted and the key administrative sectors will prepare plans to this end. As part of this, the skills needs existing on the national level and the potential for experiments and trials in the various administrative sectors will be charted and any legislative barriers identified.
The policies to promote robotisation will be adopted by May 2016. A study of the skills and competence required for successful robotisation will commence in May 2016. The plans for further action in the various administrative sectors will be prepared in December 2016. Progress, market developments and impact assessment in December 2017.
82 Measure 5: Increase utilisation of big data and big-data based business in Finland and launch ‘My Data’ pilots
All use of personal data must be based on the benefits offered to citizens, informed consent for processing personal data and respect of privacy. Joint efforts to improve public confidence in privacy will encourage citizens and businesses to disclose their data to other businesses for use as input data for new types of business and services. New business can be generated by putting in place a more efficient and straightforward procedure for giving consent to access personal data.
Unnecessary barriers and bottlenecks in leveraging and distributing data will be identified and eliminated. The state will support these efforts by assessing the legislation regulating such business to determine whether it is up to date, and by encouraging the emergence of good practices and promoting pilot projects. Use of anonymised data will be facilitated through legislation.
An implementation plan based on networked cooperation was drawn up in October 2015. Policy Principles in April 2016; financial and legal report on the use of data by companies in April 2016; and enactment of legislative amendments during 2016 (including the Government Proposal for amending the regulations regarding the confidentiality of radio communications to allow the use of anonymised transmission data). Update and review of the actions during 2017. Completion by January 2018 followed by review in early 2018.
83 Key project 3: Streamlined regulation
Minister of Transport and Communications Anne Berner
The goal is to put in place enabling regulation, to deregulate and to reduce the administrative burden. Other objectives are to make people's daily life easier, boost competitiveness, facilitate market access and promote digitalisation.
Measure 1: Cut through red tape, deregulate where regulation is unnecessary and amend legislation as appropriate. Measure 1 is to be implemented in each ministry (administrative branch) under the direction of the responsible minister
The deregulation efforts will be coordinated by an inter-administrative executive working group. Criteria will be established for assessing the outcomes of deregulation. The necessary legislative amendments will be enacted quickly and systematically.
Legislative amendments and their effects are due out in June 2016, followed by semi-annual reports so as to ensure that the outcomes and amendments are completed by December 2018.
Measure 2: Simplify licensing and review processes and issue a public service pledge in respect of the processes
A public service pledge regarding licensing and review processes will be issued and applied as part of the performance management of government agencies. The executive working group on deregulation will prepare a draft service pledge in April 2016 and the ministerial working group will determine its final content in June 2016. Licensing and review processes will be simplified and related electronic services developed. Transition to a notification procedure will be promoted. The outcomes will be reported semi-annually as of June 2016. Due for completion in December 2018.
Measure 3: Minimise the number of mutual complaints between authorities, for example by adopting a prior negotiation procedure
As part of the process to streamline regulation, review and appeal processes will be systematically examined, and the necessary legislative amendments will be enacted. The legislative amendments will be carried out starting in June 2016 to ensure that they enter into force in December 2018. The outcomes will be reported semi-annually as of June 2016 at the same time as the reports in Measures 1 and 2.
84 Measure 4: Establish a Legislation Evaluation Council to ensure high-quality impact assessment of legislation
The principal task of the Legislation Evaluation Council is to evaluate financial impacts, including impacts on private individuals and businesses (administrative burden) and impacts on the duties and obligations of local authorities.
The Legislation Evaluation Council is an independent, permanent body of experts. A secretariat with competence in law drafting and impact assessment will be set up to assist the Council in preparation and presentation. One of the tasks of the Legislation Evaluation Council is to help the Government determine indicators for measuring and monitoring the financial impacts of the streamlining of legislation, simplification of regulations and deregulation (for indicators, see Measure 1). The Government Decree on the Legislation Evaluation Council entered into force on 1 February 2016. The composition of the Legislation Evaluation Council will be confirmed, the secretariat appointed and the operations commenced no later than April 2016.
85 Key project 4: An experimental culture will be introduced
Minister of Local Government and Public Reforms Anu Vehviläinen
Experimentation will aim for innovative solutions, improved services, the promotion of individual initiative and entrepreneurship, and the reinforcement of regional and local decision making and cooperation.
Measure 1: Introduce an experimental culture
Willingness and competence to experiment will be enhanced in order to foster an experimental culture. Experiments include an experimental programme and legislative amendments facilitating such experiments.
The experimental programme will function on three levels: 1) the strategic level (e.g. experiments entered in the Government Programme: basic income, language studies, service voucher system, service initiatives and local government trials); 2) the experiment cluster / partner level (experiments which promote the Government’s goals and require Government support but which are conducted by local authorities, regions, NGOs or businesses); and 3) the grass-roots level (the civic society).
The three-tier programme will be implemented on the umbrella principle: all actors are independent but provided with certain joint support, such as the services of an “experiment bureau”, a peer community, skills and competence improvement and communications. A function to support experiments and trials was established in the Prime Minister’s Office at the beginning of 2016.
Strategic experiments - The basic income project will be prepared during 2016 and implemented during 2017–2018. - The language teaching experiments will commence in the autumn term 2016. - Experiments with freedom of choice in connection with the health and social services reform are to be carried out in 2017. - One part of the reform to cut costs in municipalities, regions and across the entire public sector is the local government trials consisting of two types of experiments. First, a model for testing the digital municipality will be completed by December 2016 as part of the key project to digitalise public services. Additionally, a number of regional experiments will be carried out during 2017–2018 related to the provision of customer-responsive employment services as part of the key project to reform labour administration to support employment.
86 Currently there are some 100 trials and experiments related to the Government’s strategic priorities being carried prepared or completed in the various administrative branches (www.kokeilevasuomi.fi).
Experiments and trials will be facilitated by removing barriers arising out of the regulatory framework, etc. To enable the trials and experiments, a set of principles will be defined for the preparation of legislative amendments designed to accelerate and facilitate the process. Legislative amendments and review by the Government in June 2017.
A parliamentary advisory board was appointed in 2015 to encourage trials and experiments. Public procurement contracts will be used as an active tool for promoting experiments and reforms.
Following the completion of a study on an experimentation fund, decisions will be made on the principles to be applied and practical measures to be taken in offering funding for trials and experiments. The study was completed in March 2016. It will be followed by decisions on the principles to be applied and practical measures to be taken.
The measure is due for completion in December 2018.
87 Key project 5: Better management and execution
Minister of Local Government and Public Reforms Anu Vehviläinen
Government and central government management processes will be reconciled with the Government's strategy work. Knowledge-based management and implementation across administrative boundaries will be reinforced.
Measure 1: More unified Government and central government
A study on the applicability of a unified government model to Finland will be carried out (cf. Sweden where the model is already in use with the ministries forming a single agency). As part of this study, the authors will also evaluate the work and role of committees in the preparation of extensive legislative projects. Due for completion in December 2016.
The ministries' internal management systems will be overhauled to clarify and harmonise the management models and practices in order to promote a inter-administrative approach and improve the Government’s and ministries’ capacity for action. The proposals for reforming the ministries’ management systems are due for completion by December 2016. The reforms are to be implemented by the ministries by December 2017.
The capacity for action of a unified central government will be improved by determining the preconditions for adopting a corporation-type approach to operations. The State Treasury’s report on strategic human resources management (HR Management) is due for completion by October 2016. It will evaluate a corporation-style approach to central government, HR processes, a reform of the recruitment culture and improvement of digitalisation skills through training. Following completion of the report, a decision will be made on the establishment of the position of a state HR director.
Measure 2: Reform of management and execution procedures
State personnel across all organisational levels is committed to the reform of procedures and ways of working with digitalisation as a specific priority. Various management concepts will be tested to improve both customer satisfaction and resource efficiency. The goal is to generate good practices that can be applied as extensively as possible.
By 2017, all ministries will have in place management contracts for top management, including Permanent Secretaries, that will facilitate the administrative reform in central government.
A service pledge will be applied as part of the performance-based guidance of government agencies as of 2017. Additionally, a number of other reforms will be carried out in the context of the key project, such as the agency-specific trials related to the ”Work 2.0” process (to be launched in spring 2016).
88 6. REFORMS
GOVERNMENT-TERM OBJECTIVE at least The Government will strengthen the sustainability of public finances through the structural reforms npresented below. These solutions aim to generate economic effects totalling EUR 4 at least EUR 4 billion. Before the legislative proposals are submitted and implemented, the effects sought through the billion reforms will be assessed. impacts
REFORMS
Health and social services reform ▪ Structural reform of public health and social services 1 ▪ Broader freedom of choice and simplification of multisource financing
Reduction of costs in municipalities, regions and across the entire public sector 2 ▪ Reduction of costs in municipalities, regions and across the entire public sector
Municipality of the future ▪ The role, duties and new operating practices of local authorities 3 ▪ Reform of the system of central government transfers for basic public services
Regional government reform 4 ▪ Regional government reform
Central government reform 5 ▪ Central government reform
89 Reform 1: Health and social services reform
Minister of Family Affairs and Social Services Juha Rehula
The goal is to transfer the responsibility for providing public health and social services from local authorities to larger autonomous regions. A complete horizontal and vertical integration of services provided by these autonomous regions will be accomplished. The aim is to create a streamlined and coordinated chain of services vital to residents’ health and wellbeing. The reform will reduce health and wellbeing differentials in the population and bring costs under control.
Measure 1: Structural reform of public health and social services
In this reform, the responsibility for providing health and social services will be transferred from local authorities to larger autonomous regions (health and social services regions).
The reform will be implemented by establishing 18 autonomous counties with councils elected by direct popular vote. Each county will be responsible for providing health and social services in its respective area. Other health and social services will also be pooled as appropriate. Aside from the health and social services, the counties will also assume other duties.
The counties are free to determine how to provide the services for which they are responsible. They may provide the services themselves and/or outsource them to private and third-sector service providers. ICT and digitalisation will be leveraged in the provision of services. While funding for the counties will, at least initially, be provided by the state, a study will be carried out to determine whether counties should be authorised to levy taxes.
To complete the reform, a new act on the provision of health and social services is required, including a separate act for its implementation. A counties act will be enacted to enable the establishment of the counties. Amendments also need to be made to the Act on Transfers to Local Government and to tax legislation. Additionally, the reform will require amendments to dozens of other acts.
The purpose of the health and social services reform is to narrow down differences in health and wellbeing in the population and to curb costs. The aim is to create a streamlined and coordinated chain of services vital to people’s health and wellbeing in order to provide better basic public services. The organisers' capacity to provide the services will also be improved. This will have a significant impact on the sustainability gap of public finances.
The Government Proposal necessary for the implementation of the reform will be circulated for comments in summer 2016 and submitted to Parliament in late 2016. The counties will assume responsibility for the organisation of health and social services as of 1 January 2019.
90 Measure 2: Extension of freedom of choice and simplification of multisource financing
Concurrently with the system reform, freedom of choice in accessing health and social services will be extended and the multisource finmancing system for the services overhauled.
This will be accomplished by allowing people to choose the preferred service provider from among public, private and third-sector actors. The freedom of choice will be extended primarily in basic services but also in specialised services as appropriate. Currently, health and social services are financed through a number of sources and funding is raised and allocated to the individual services through many channels. The objective is to create a model for simplifying the multisource financing system and prevent potentially negative ‘partial optimisation’. A report by the working group on the extension of freedom of choice and simplification of the multisource financing system will be completed by 30 May 2016.
Investments With the implementation of the reform, the responsibility for providing health and social services will be assumed by the counties. As a result, local authorities will no longer be required to pay for these services. Consequently, they will not be responsible for financing the execution of the reform, either. The cost of the preparation and implementation of the reform will be paid out of state funds.
Because of the extent of the reform, preparation will require additional resources at the Ministry of Social Affairs and Health and the Ministry of Finance. Additional studies by third parties need also be commissioned by the relevant ministries.
Each county will set up an organisation to prepare the implementation of the reform. In preparing the transfer of responsibility, provisions must also be made for the transfer of personnel and properties, IT system interoperability and a revision of service and other agreements. For their first term of office, county councils will be elected by popular vote or by using some other appropriate procedure.
Coordination of ICT, digitalisation and best practices will be ensured in implementing the reform.
The costs of the project as defined above will be determined and decisions on funding made in the course of the preparations.
91 Reform 2: Reduction of costs in municipalities, regions and across the entire public sector
Minister of Local Government and Public Reforms Anu Vehviläinen
The objective is to reduce costs in municipalities and regions and across the entire public sector by a total of EUR 1 billion.
Measure 1: Reduction of costs in municipalities, regions and across the entire public sector
The operational programme for reducing the duties and obligations of local authorities was adopted in February 2016. Overview of estimated cost savings under the plan, and completion of cost savings estimates in April 2016. Preparation of Government Proposals by the ministries for submission to Parliament to ensure that new legislation can enter into force on a case-by- case basis as determined in the plan drawn up in Phase 2 (2016–2018).
Measures foreseen in the programme: - Relax the obligations governing the duties of the municipalities and allow greater flexibility. - Create the necessary preconditions for inter-administrative action and identify the service areas where implementation is hampered by sector-related barriers and inflexibilities and eliminate them. - Revise the principles underlying regulatory policies and local government steering. - Improve the local governments’ potential for raising revenues. - Revise the system of subsidised passenger transport. - Create a set of indicators for the production costs incurred by municipalities and establish an information system to gather data on individual services.
All the key projects and reforms will be assessed in terms of their positive impact on public finances in accordance with the decision of the Ministerial Finance Committee dated 16 February 2016 including the extent to which full use will be made of the benefits of digitalisation in central government. Additionally, the Ministry of Finance may select other themes for closer review; for example, there is a need to analyse cost efficiency in public construction more closely. Assessment of the cost savings offered by the key projects and reforms in June 2016. Final decisions to be taken at the Government spending limits discussion in March 2017.
Commencement of local government trials and advancement of trials and experiments. Processes will be initiated and new ways of working adopted to promote an experimental culture at the local government level. The digital municipality experiment will be launched. An assessment will be made to determine whether a Government Proposal is required for the local government trial. The measures will be carried out during 2016.
92 Reform 3: Municipality of the future
Minister of Local Government and Public Reforms Anu Vehviläinen
The goal is to define the role, position and duties of local authorities and the relationship of municipalities to the autonomous regions to be established. Additionally, the system of government transfers for basic services will be overhauled.
Measure 1: Role, tasks and new practices of local authorities
A vision of the municipality of the future in 2030 will be defined based on parliamentary preparations, to be followed by a preliminary study on the role, position and duties of municipalities once the counties have been established. The efforts will focus on the municipality’s role in promoting wellbeing, vitality, entrepreneurship and employment with due regard for municipal democracy. The necessary legislative amendments and adjustments to long-term municipal policies will be identified.
A parliamentary working group to address this issue was appointed in December 2015. Preliminary studies will be carried out as appropriate. The parliamentary working group’s preliminary principles for a vision of the 'municipality of the future' and an interim report on the role of local authorities in promoting vitality, entrepreneurship, employment and health and wellbeing. Comments will be invited on the interim report once completed. The interim report and preliminary principles will be completed by December 2016.
Report and principles for the role, position and duties of municipalities and related vision including an assessment of the necessary legislative amendments and adjustments to long- term municipal policies. Government’s policy document due in June 2017.
Preparation of legislative amendments based on the Government’s policies. Government Proposals to Parliament in April 2018. Legislative amendments due to enter into force in January 2019.
Programme to support local authorities in changing circumstances. The programme is designed to help municipalities assume a new role in circumstances that have changed. Preparation and implementation to be completed by March 2019.
Measure 2: Reform of the system of central government transfers for basic public services
With the changes in the role and duties of local government, the existing system of central government transfers for basic public services will be revised and updated. The Government Proposal for legislation concerning central government transfers for basic services that remain the responsibility of local authorities will be submitted to Parliament in compliance with the timetable for the preparation of the reform establishing the autonomous regions to ensure that the new transfers system is operational as of 1 January 2019. The financial implications for the individual municipalities resulting from the regional reform will be presented as part of the financial framework for the autonomous regions.
93 Reform 4: Regional reform
Minister of Local Government and Public Reforms Anu Vehviläinen
The goal is to coordinate the regional state government and regional government and facilitate the organisation of regional government (central government, regions and municipalities).
Measure 1: Regional reform
A separate decision has been made on the coordination of state and regional government to facilitate the organisation of regional government (central government, regions and municipalities). The preferred solution is to centralise the operations into autonomous regions with clear-cut duties and powers. A project will be established to prepare the regional reform.
The reform will focus on organisational models and the division of duties between the autonomous regions, central and regional state government and the municipalities. The existing Regional State Administrative Agencies will be combined into a single authority with nationwide powers while operating in regional branches and units.
The duties to be assigned to the autonomous regions were defined by the Government on 5 April 2016 with the aim of achieving a clear-cut division of duties.
The proposal for a Counties Act will be circulated for comments in summer 2016. The Government Proposal for the Counties Act will be submitted to Parliament in November 2016. The legislation on the transfer of duties will be prepared during 2017. The autonomous regions will become operational in January 2019.
94 Reform 5: Central government reform
Minister of Local Government and Public Reforms Anu Vehviläinen
The objective is to create a clearly structured central government administrative structure with definite steering and management systems as well as change and risk management capabilities offering customer-oriented, predominantly online services. The big picture will be managed across administrative and sectoral boundaries.
Measure 1: Central government reform
As foreseen in the Government Programme, the reform of the central government agency structure will be continued without delay based on the development principles adopted in the KEHU and VIRSU projects calling for 1. a clear structure and governance; 2. nationwide powers; 3. a customer perspective; 4. digital services; 5. change and risk management capabilities; 6. co-operation between government agencies in providing efficient customer service.
In implementing the reform, special attention will be paid to the clarification of the management system as well as efficient management that transcends administrative boundaries. The Government will implement the reform in compliance with good human resources policy.
The Ministry of Finance will launch the project to reform the central government in October 2016. The related legislation will enter into force in February 2019 if not earlier.
95 7 LINCHPIN PROJECTS OF THE GOVERNMENT
Project 1: Foreign and security policy report - Commenced in early autumn 2015, completed in June 2016.
Project 2: National programme implementing the global sustainable development action plan - Due for completion by the end of 2016.
Project 3: Finland’s development policy outline, including its links to the global sustainable development action plan - Adopted on 4 February 2016.
Project 4: Defence policy report - Commenced in early autumn 2015, due for completion in spring 2017.
Project 5: Implementation of the Defence Forces’ strategic capability projects - Project to replace navy warships: commenced in 2015, calls for tenders sent out in 2016, investment decision to be made in 2019. - Hornet fleet capabilities replacement project: commenced in 2015, calls for tenders sent out in 2016, investment decision to be made in 2018. Investment decision due in the following electoral period in 2021.
Project 6: Arctic strategy update - Commenced in October 2015, completed in spring 2016.
Project 7: Cybersecurity as the protector of the daily lives of citizens and contributor to business growth - Cybersecurity report and legislation (commenced in 2015).
Project 8: Legislative framework for cross-border and telecommunications intelligence - Commenced in October 2015, completed in June 2016.
Project 9: Implementation of the programme to reform the judiciary, including structural reform of district courts, merger of higher courts, judiciary agency - Implementation of the programme was commenced in 2013. Most of the projects included in the programme are under preparation, some already completed. Due for completion in 2025.
Project 10: Government report on the future - Commenced in autumn 2015, due for completion by the end of 2018.
Project 11: Government report on internal security - Commenced in September 2015, completed in 2016.
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ISBN PDF 978-952-287-291-3 ISSN PDF 2323-962X