The overall picture of the last budget session of the government term was mixed for the construction industry. Important measures were taken for renovation construction and, to some extent, for transport infrastructure, but decisions regarding housing construction and boosting the housing market remained sparse.
Now is a good time to summarize not only the decisions made by the government but also the long-term advocacy work that RT has done over the past year.
Following the budget decisions last spring, the Ministry of the Environment appointed a study group to examine the housing financing situation from the perspective of the housing market, housing construction and housing renovation, and to analyze various recommendations for measures to remove identified bottlenecks. RT actively participated in the work of the study group. During the work, a financing group formed by representatives of member companies supported RT's position.
Over the past year, we have also had an exceptionally close dialogue with decision-makers, officials and various stakeholders on how to enable a turnaround in the industry. Our message has been consistent: to accelerate economic growth, measures are needed to get the housing market and construction moving. The public debate held in connection with Riihi showed that the importance of construction and private consumption for the economy and growth has been recognized more clearly than before.
The government has little room to maneuver in a tight framework
We understand the extremely difficult economic situation of the state and the drastic adjustment needs of public finances. Against this background, it is positive that the construction sector received a growth package from the framework agreement. The decisions targeting renovation construction in particular were welcome. Renovation construction has been in decline for a long time and at the same time the renovation debt of the building stock has increased significantly. In addition, the obligations of the Energy Efficiency Directive to be implemented will come into force in the near future.
The measures aimed at accelerating renovation construction are cost-effective from a state finance perspective. They generate jobs, tax revenues and investments throughout Finland, supporting employment in the sector and helping to achieve Finland's climate goals. The government deserves praise for these decisions.
Launching new transport projects and additional funding for already decided investments are also necessary actions. At the same time, cuts in funding for basic road maintenance are worrying. A well-maintained road network is the basis of Finland's competitiveness, and the repair debt should not be increased further.
The situation in the housing market and construction will not change with expectations of a turnaround. We need quick-acting measures that open blocked retail chains, increase household confidence and lower the threshold for buying a home. For example, the temporary abolition of the transfer tax is a justified measure in this situation.
The framework competition was once again an important demonstration of the importance of systematic advocacy. Not all goals were achieved, but the importance of construction as an enabler of growth, employment and the green transition has become increasingly important in decision-making and public debate. In terms of the green transition, we have emphasized, together with the rest of the business community, strengthening Finland's competitiveness through smooth permitting and a predictable operating environment.
The framework campaign was an important milestone in the advocacy work, but not the end point. The work continues towards the autumn budget campaign and the upcoming parliamentary elections.
Read more
- Read the media release on RT's positions on the decisions
- RT's summary of the results of the framework strike (pdf)
Aleksi Randell
CEO
aleksi.randell@rt.fi +358 9 129 9201Confederation of Finnish Construction Industries (CFCI)
Assistant: Lotta Räty
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