Construction industry RT gave 17.5. his statement to the Elinvoimainen Suomi negotiation group on the topic "means to promote sustainable and employable growth from the point of view of the industries represented by your organization".
General Construction has played a significant role in increasing employment in Finland during the past boom period. Construction created 30 jobs all over Finland during the previous government period. At the end of 000, construction employed just under 2018 people, including the construction product industry about 200. In total, about 000 people work in construction and property management and related services. One in five employees in Finland participates in construction and maintenance of the built environment. The employment effect of the industry is also great regionally. Recently, the shortage of skilled workers has hindered the growth of employment in the sector. There are jobs, but there are no workers.
The construction industry is a labor-intensive industry. The billion investment will create 15 jobs for a year. Half of the work input is done on the construction site and the other half in the product industry and within the industries that serve construction (construction, planning, trade, transportation, etc.). Construction is also a very tax-intensive industry. About 000 percent of the euro invested in construction is taxes and tax-related payments that accrue to society. According to the cyclical review of the construction industry, the cyclical trend is on the decline, but the following measures can be taken to strengthen the cyclical nature of the industry and thereby secure the industry's great impact on employment and added value for society as a whole.
- 150 new apartments must be built in Finland during this government term
- The owners of the existing building stock must be encouraged for energy-efficient renovation construction
- During the term of office, land use and building law reform must be carried out, which supports Finland's economic growth and the well-being of citizens by enabling the growth of society in an economically, environmentally and socially sustainable way
- High-speed rail connections between urban areas must be implemented, because they enable the expansion of working areas and thereby increase the employment rate
- A level increase of 300 million euros must be made to the annual appropriations for basic road maintenance, and in addition, the road investments required for industrial investments must be implemented, which enable the competitiveness of industrial operations to improve and the preservation of jobs in Finland
- Emissions from the built environment are reduced by developing the industry's technology and digitality - regulation must not prevent new innovations!
- When calculating the carbon footprint, emissions from the entire life cycle of the buildings must be taken into account
Housing policy
With urbanization, the demand for apartments continues to grow. Growth centers must be able to offer apartments for various needs to those moving for work.
- Around 150 new apartments must be built in Finland during the term of government, as well as new public transport connections between the growth centers within and between the growth centers. At the same time, land use must be made more efficient
Sufficient supply, both market-based and subsidized, guarantees more affordable housing and, at the same time, better functioning of the labor market and reduces housing support costs. The state must ensure sufficient formula production in the municipalities.
- The housing production goals of MAL agreements must be raised and the agreements must be made more binding and long-term than they are now
- MAL agreements must require municipalities to maintain at least a five-year buildable plot reserve for the needs of housing construction
The production support system for affordable housing production is an important means of maintaining housing production, especially in a downturn, and guaranteeing good housing for low-income and special groups. However, the most important thing is that the total amount of housing production is sufficient and that the goals of ARA production do not become a limitation of other housing production.
- The current relative housing production target for ARA apartments in MAL agreements must be replaced with a quantitative target
- During the term of office, funds from the state housing fund must be directed to infrastructure grants in urban areas that improve the conditions for housing production
- An increased state guarantee must be introduced in the construction of small houses
Let's make sure that the housing market works as efficiently as possible and promotes labor mobility.
- The transfer tax, which hinders migration, must be gradually abandoned
- The transfer tax exemption for the first home and the tax exemption for the profit from the sale of your own apartment must be maintained
Construction and the housing market are directly connected to household consumption. The majority of household wealth is tied up in apartments. In the next few years, Finland's economic growth and employment will largely depend on private consumption. In terms of economic growth, the stability of the construction and housing markets is important. It is important to curb household indebtedness, but the means must be considered carefully.
- New instruments aimed at macroeconomic stability must be carefully considered and must not increase the price of financing or cause market disturbances
- Legislation must not hinder housing construction and labor movement required by controlled urbanization
Land use
A dense community structure and sustainable land use are in a primary position in the fight against climate change. The reform of the Land Use and Construction Act enables more efficient operation in terms of society and the environment. Simplifying the planning process and regulation enables faster and larger housing production, as well as more affordable construction and living.
- In order to streamline the formula process, formula levels must be reduced and clarified
- Land owners and project implementers must have the right to project-specific plan preparation within the framework of the municipality's general plan
- The landowner's right of initiative must be recorded in the Land Use and Construction Act
- The municipalities retain the final decision-making power in zoning
- The right to appeal is preserved in the general plan for all municipal residents, but at the lowest level of the plan, the right is limited to the parties involved
With the help of digitization, citizens' opportunities for influence are improved. The predictability of planning and permit processes is improved by requiring service promises from the authorities.
Traffic policy
The government sets a long-term goal of increasing the public financing of transport infrastructure to a level that corresponds to one percent of the gross domestic product.
- A level increase of 300 million euros must be made for the financing of basic road maintenance right at the beginning of the government term
- One billion euros per year must be set aside for transport investments. Investments and budget increases improve the competitiveness of industry and create jobs for industrial companies when they do better in international competition. At the same time, this has a large regional employment effect.
- During its term, the government must draw up a 12-year transport system plan, which includes the investment projects to be launched in the 2019 election period and a longer-reaching investment plan
- The goal of the traffic system plan is to build two-lane and four-lane main thoroughfares
Fast rail connections improve the functionality of the labor market and are a prerequisite for achieving long-term climate goals. They also create attractive locations that attract investments, increase the value of the land and accelerate the supply of land.
- The government establishes project companies to implement rail investments
- The government must commit to implementing one-hour rail projects to Turku and Tampere
- The increase in rail capacity between Helsinki and Tampere must be implemented as an airport alternative - large investments must be made to increase the capacity of the Helsinki rail yard so that the growing traffic is not disturbed in the future
- The evaluation of the economic effects of transport projects from the MAL perspective must be continued and further developed
Finland aims to extend the EU's North Sea–Baltic nuclear network through Tornio to Kirkkoniemi in Norway and from Tornio to the Swedish side.
- The government must make better use of EU funding and create a clear vision of project priorities at the beginning of its term
Climate, environment and circular economy
In combating climate change, comprehensive planning of the built environment is aimed at, which takes into account the community structure, emissions during the life cycle of buildings and the existing building stock. The changes in weather conditions brought by climate change must be taken into account in construction regulations.
- Public procurement must promote the use of recycled materials that save natural resources
- In the field of the built environment, we must focus on the most cost-effective, material- and technology-neutral means of reducing emissions, but prevent the kind of regulation that would prevent the creation of innovations.
Repair construction currently already accounts for half of housing construction in Finland. As part of the EU building energy efficiency directive, Finland is preparing a long-term renovation strategy. Repair construction is more labor-intensive than new construction.
- As a follow-up to the long-term renovation strategy, a sufficiently resourced action program must be drawn up
Improving energy efficiency in the current building stock is the most cost-effective way to curb climate change.
- The area of application of the household deduction must be expanded to cover the energy repair measures of joint-stock housing companies
- Outside the growth centers, need-based financing or collateral means to finance renovation construction and demolition grants must be introduced
Waste materials from construction and at the same time various side streams from other industries (e.g. ash, slag, other mineral-based materials) can be used on a large scale in the manufacture of construction products and especially in infrastructure construction
- Legislation and other actions promoting the smooth use of these materials must be continued
Digitization
Finland is becoming a pioneer in the digitalization of the built environment in the world. The previous government's flagship KIRA-digi project was financed with 4,7 million euros, and almost half of the experiments financed by it continue. According to the Ministry of the Environment, the potential benefits for the real estate and construction sector are up to 5,5 billion euros. At the same time, the construction industry has financed a digital infrastructure professorship at the University of Tampere.
- At the beginning of the term of office, 25 million euros have been reserved for the continuation of the digital program in the real estate and construction sector, which promotes the development of new operating models and increased productivity
- In order for the productivity benefits of digitalization to materialize, it is
- public R&D investments in the real estate and construction sector should be increased
- increase the emphasis on the use of digitization in public procurement tenders
The real estate and construction sector has developed a digital job placement and continuing education pilot in cooperation with TEM's job market. The focus of the pilot is MyData, artificial intelligence applications and new methods of identification.
- The development of the digital pilot for the real estate and construction industry must be continued in cooperation with the ministries, utilizing the industries' real-time information systems
Skilled workforce and RDI
According to a survey by Rakennusteollisuus RT, the shortage of construction workers is one of the biggest obstacles to the growth of the construction industry. The most effective response to the skills shortage is by improving the passing of education and increasing the number of graduates. A sufficient number of contact teaching hours in vocational secondary education is of paramount importance in order to get sufficiently talented entrants to the workplace.
- Funding for education must aim at increasing the pass rate of higher education
- The teaching resources of universities of applied sciences must be increased – Work life-oriented conversion and continuing education must be increased
- Funding for secondary vocational education must be increased
Aleksi Randell
CEO
Confederation of Finnish Construction Industries (CFCI)
Statement in pdf format
Lauri Pakkanen public relations manager (on parental leave from May 15.5)