| ALSO IN THE 3/2011 ISSUE OF PRIMA: | |
| • | An export miracle from Eura – ETS-Lindgren’s low profile global business |
| • | Commissioner Olli Rehn expects big reforms from the EU during the summer |
| • | Universities need faster money |
| • | Finns hooked on champagne |
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• Pekka Lundmark, President & CEO of Konecranes:
FUTURE JOBS IN DANGER
”While jobs in the export industry are flowing abroad, politicians are slowing down the creation of new jobs by weakening the attractiveness of Finland as a place in which to invest,” warns Pekka Lundmark, Vice Chairman of the Confederation of Finnish Industries EK, Chairman of Technology Industries and President & CEO of Konecranes, in the edition of Prima magazine published on 28 April by the Confederation of Finnish Industries EK.
According to Lundmark, Finnish industry is facing serious threats, the most recent of which is the forthcoming directive concerning sea traffic.
”I’m afraid that many industrial companies are being forced to move their production away from Finland because the planned limits for sulphur emissions in sea traffic greatly increase the costs of sea deliveries which are critical for us, and distort competition. A lot of jobs will be lost,” says Lundmark, expressing the fears of industry.
At worst, the additional costs to Finnish sea transports will be more than EUR 1 billion per year since the costs of sea freight will increase by 30–50 per cent. Costs are also increasing on land.
The new requirements, effective in 2015, are based on the decision of the International Maritime Organization (IMO) to reduce the sulphur emissions of ships. Due to the request of mainly Finnish and Swedish politicians and civil servants, the Baltic Sea has been considered as an area where the emissions limits must be considerably stricter than elsewhere.
”We are doing all we can to ensure that the directive does not decide the numbers at this phase but would leave the door open so that the decision might be postponed further in the IMO. We clearly need more time to be able to find the suitable means to reduce the effect of the directive,” says Lundmark.
”In addition, when we remember, for example, that Finnish industry pays energy taxes many times higher than its competitors in most western European countries, it is no wonder that many of our companies are being forced to move their production to a more favourable operating environment,” continues Lundmark.
Lundmark emphasises a good overall picture in environmental protection.
”The protection of the environment is an extremely important goal which is supported by all of us. However, at worst, the limitations, which are even tighter than in our European competitor countries, are pushing the production of our companies to countries which pollute the environment significantly more. This will cause a negative overall effect on the environment, which is a slap in the face of the original good intention.”
”We cannot take the path where we simply pay the additional payment which erodes our competitiveness. This means we would destroy the future of this country. The export industry is funding half of Finland’s well-being,” says Lundmark.
• COMPETITIVENESS WEAKENED BY THE GROWING COST BURDEN
According to Prima magazine, the Finnish export industry is troubled by growing costs, already before the more expensive sea transport. Increasing salaries, taxes and energy costs, an inflexible labour market and the large number of illegal strikes are weakening competitiveness.
Because of its high salary costs, Finland has succeeded poorly in international comparisons. According to the European Commission, labour costs in Finland in 2000–2010 increased 3.3% per year while the increase in the euro area was 2.5%.
The average corporate tax rate in the OECD and EU countries has decreased since the 1990s. Of the current EU countries, only Finland and Hungary now have a higher corporate tax rate than in 1995, and Hungary has decided to lower the tax to ten per cent. Because of this, the target of the Confederation of Finnish Industries EK is to reduce the corporate tax rate from the current rate of 26 to 20 per cent.
Constantly growing energy costs are eroding competitiveness. Among European countries, Finland has one of the most vigorous energy taxation policies.
The inflexible Finnish labour market structure limits the productivity of companies. In Finland, there are still fields in which the possibility for local agreements is non-existent, even though the employer and the personnel would like to mutually agree on certain matters.
• Ole Johansson, Chairman of the Confederation of Finnish Industries EK:
A SUPERIOR PRODUCT MUST HAVE A COMPETITIVE PRICE
Ole Johansson, Chairman of the Confederation of Finnish Industries EK, commented on the economic discussion before the Finnish parliamentary elections.
”The discussion on economics was marked by one topic above all others, the common concern about the balance of economics and the financial sustainability deficit.”
”Everyone seems to have a simple solution for these problems: economic growth will remove all problems. Few have dared or wanted to think the matter further – how to create growth.
Simply, the answer is work. The longer explanation means investments which create jobs. They produce products and services on competitive terms, for which there is a lot of demand around the world.”
”A competitive product also must have a competitive price. This requires that costs, including salary costs, do not increase faster than competitors’ costs.”
• LEGAL JUNGLE IS GROWING RAPIDLY
”Cooperation between ministries must improve so that regulation can be improved in Finland.
Regulation has increased and become harder to understand. Many laws seem to cause more harm than good,” says Tuomas Pöysti, Auditor General of Finland, in the latest Prima magazine.
”This is caused by, for example, political pressure to do something good quickly. Passing a law is an easy way to show that a social problem has been understood. But, when the law is passed quickly, there is no time to assess its consequences.”
”When more and more matters are prepared with tight schedules, the principles of better regulations are realised less well,” says Pöysti.
According to Pöysti, the assessment of the effects of new laws should be improved and, first of all, the assessment of consequences on corporations should be increased.
FUTURE JOBS IN DANGER
”While jobs in the export industry are flowing abroad, politicians are slowing down the creation of new jobs by weakening the attractiveness of Finland as a place in which to invest,” warns Pekka Lundmark, Vice Chairman of the Confederation of Finnish Industries EK, Chairman of Technology Industries and President & CEO of Konecranes, in the edition of Prima magazine published on 28 April by the Confederation of Finnish Industries EK.
According to Lundmark, Finnish industry is facing serious threats, the most recent of which is the forthcoming directive concerning sea traffic.
”I’m afraid that many industrial companies are being forced to move their production away from Finland because the planned limits for sulphur emissions in sea traffic greatly increase the costs of sea deliveries which are critical for us, and distort competition. A lot of jobs will be lost,” says Lundmark, expressing the fears of industry.
At worst, the additional costs to Finnish sea transports will be more than EUR 1 billion per year since the costs of sea freight will increase by 30–50 per cent. Costs are also increasing on land.
The new requirements, effective in 2015, are based on the decision of the International Maritime Organization (IMO) to reduce the sulphur emissions of ships. Due to the request of mainly Finnish and Swedish politicians and civil servants, the Baltic Sea has been considered as an area where the emissions limits must be considerably stricter than elsewhere.
”We are doing all we can to ensure that the directive does not decide the numbers at this phase but would leave the door open so that the decision might be postponed further in the IMO. We clearly need more time to be able to find the suitable means to reduce the effect of the directive,” says Lundmark.
”In addition, when we remember, for example, that Finnish industry pays energy taxes many times higher than its competitors in most western European countries, it is no wonder that many of our companies are being forced to move their production to a more favourable operating environment,” continues Lundmark.
Lundmark emphasises a good overall picture in environmental protection.
”The protection of the environment is an extremely important goal which is supported by all of us. However, at worst, the limitations, which are even tighter than in our European competitor countries, are pushing the production of our companies to countries which pollute the environment significantly more. This will cause a negative overall effect on the environment, which is a slap in the face of the original good intention.”
”We cannot take the path where we simply pay the additional payment which erodes our competitiveness. This means we would destroy the future of this country. The export industry is funding half of Finland’s well-being,” says Lundmark.
• COMPETITIVENESS WEAKENED BY THE GROWING COST BURDEN
According to Prima magazine, the Finnish export industry is troubled by growing costs, already before the more expensive sea transport. Increasing salaries, taxes and energy costs, an inflexible labour market and the large number of illegal strikes are weakening competitiveness.
Because of its high salary costs, Finland has succeeded poorly in international comparisons. According to the European Commission, labour costs in Finland in 2000–2010 increased 3.3% per year while the increase in the euro area was 2.5%.
The average corporate tax rate in the OECD and EU countries has decreased since the 1990s. Of the current EU countries, only Finland and Hungary now have a higher corporate tax rate than in 1995, and Hungary has decided to lower the tax to ten per cent. Because of this, the target of the Confederation of Finnish Industries EK is to reduce the corporate tax rate from the current rate of 26 to 20 per cent.
Constantly growing energy costs are eroding competitiveness. Among European countries, Finland has one of the most vigorous energy taxation policies.
The inflexible Finnish labour market structure limits the productivity of companies. In Finland, there are still fields in which the possibility for local agreements is non-existent, even though the employer and the personnel would like to mutually agree on certain matters.
• Ole Johansson, Chairman of the Confederation of Finnish Industries EK:
A SUPERIOR PRODUCT MUST HAVE A COMPETITIVE PRICE
Ole Johansson, Chairman of the Confederation of Finnish Industries EK, commented on the economic discussion before the Finnish parliamentary elections.
”The discussion on economics was marked by one topic above all others, the common concern about the balance of economics and the financial sustainability deficit.”
”Everyone seems to have a simple solution for these problems: economic growth will remove all problems. Few have dared or wanted to think the matter further – how to create growth.
Simply, the answer is work. The longer explanation means investments which create jobs. They produce products and services on competitive terms, for which there is a lot of demand around the world.”
”A competitive product also must have a competitive price. This requires that costs, including salary costs, do not increase faster than competitors’ costs.”
• LEGAL JUNGLE IS GROWING RAPIDLY
”Cooperation between ministries must improve so that regulation can be improved in Finland.
Regulation has increased and become harder to understand. Many laws seem to cause more harm than good,” says Tuomas Pöysti, Auditor General of Finland, in the latest Prima magazine.
”This is caused by, for example, political pressure to do something good quickly. Passing a law is an easy way to show that a social problem has been understood. But, when the law is passed quickly, there is no time to assess its consequences.”
”When more and more matters are prepared with tight schedules, the principles of better regulations are realised less well,” says Pöysti.
According to Pöysti, the assessment of the effects of new laws should be improved and, first of all, the assessment of consequences on corporations should be increased.