The gloomy economic situation was reflected in Maarakennuspäiväs 2015. The state is attacking the repair debt, but at the same time investments are frozen. The risk of under-investment threatens, unless the economic effects of infrastructure can be broken down better than at present. A better picture of the benefits of infrastructure would also bring private money to the projects.
"The state budget brings 600 million euros for the maintenance of the basic road for the years 2016-2018. We also internally transfer money from development projects to basic road maintenance. It is not possible to start new rail investments in 2016–2017, with the exception of the Helsinki railway yard. The funds available for 2018–2019 are also very small", Director General of the Finnish Transport Agency Antti Vehviläinen downloaded at the opening of the Construction Day.
Vehviläinen's worm figures concern budget-based financing. If new financing models are obtained, the situation will change, he reminded.
Until now, the agency has been a purely budget-financed unit. Finding new models is about to start.
Now the Finnish Transport Agency is responding to the lack of money by utilizing digitization and information modeling and by developing procurement models. Experimental projects are underway: a test area for autonomous vehicles will be opened in Tunturi-Lap, and the experiment will later be expanded to the Tornio–Kilpisjärvi road section. Vehicles that talk to each other are being tested in southern Finland. A thousand test cars will soon be moving on the Turku highway and the ring roads of Helsinki, informing each other about the obstacles and slippery conditions on the road. Automation is also spreading to road maintenance.
"The industry must be actively involved in this kind of development," Vehviläinen reminded.
Infrastructure attracts investments
Chief Economist of Construction Industry RT Sami Pakarinen according to the report, the strong trend in construction continued until July. The government program was also quite positive for the construction industry. According to RT and INFRA ry's infrabarometer, there are cautious expectations of an increase in work towards the end of the year.
"However, the order backlog is thin and the differences between the regions have grown large," Pakarinen said in Maarakenkuspäiväs.
The state's weak investments raise concerns in companies. In practice, more than a billion will be cut from investments. Since 2010, the municipalities have invested more in civil engineering than the state.
"At the same time, urbanization continues. Infrastructure investments are in the most important position here, as infrastructure construction increases the value of land and attracts private investments. This must now be recognized and acknowledged. Infrastructure is an asset that attracts investments," Pakarinen reminded.
The recent intensification of internal migration in Finland is in itself a good omen. Already since the beginning of the 1900th century, migration has always slowed down during recessions. Under the boom, internal migration has revived, bringing dynamism to the economy.
On the construction day, we were reminded of "Finland's most profitable infrastructure investment", the Raide-Joker, which improves cross traffic. When one million is invested in the railway project, 34 new apartments will be obtained.
"According to our calculations, Raidejokeri brings back 25 times the money invested in it as tax revenue," reminded SAK's economic policy expert Sauli Hievanen from the audience.
Infrastructure construction generates housing and labor mobility. A tighter community structure, on the other hand, increases economic activity. When, for example, a company needs a partner or an expert, it is more certain to get access to the best in the field - close by.
"Calculate the benefits better!"
Director general Tuomas Pöysti The National Audit Office saw a chronic public finance deficit as a threat. "Before the financial crisis, there was a long period of stable growth. Social policy has been financed according to this positive long-term trend."
The debt development does not seem to have improved and the situation is very dark. Even the state's economic planning is now based on a gloomy forecast. It means that all reforms must be financed by reallocating expenses. There can be no new expenses.
"This also applies to infrastructure. The growth effects of infrastructure should be brought out more clearly. Now we should also boldly seek growth, and this is where we come into infra. It is important to highlight its effects, because the risk of under-investment clearly exists. The effect of strengthening the production potential between different projects must be made clear," Pöysti insisted.
The effects of infrastructure projects should also be examined in more detail, not just from the point of view of goods logistics. From the point of view of digitalization, the bus infrastructure is a platform for services such as logistics and travel.
Infra's 2,4 billion repair debt is bad, but so is the financial debt. Pöysti reminded that the IMF recommends a higher investment level for the public sector. In addition, genuine private money must be included in the infrastructure.