The state has decided to stop the growth of the road network repair debt. At the same time, growth-creating infrastructure investments are completely frozen, even if properly placed growth center projects would bring back the investment many times over in tax revenue.
In recent years, the appropriations for basic road maintenance have only been sufficient for the most necessary: winter maintenance, patching and small improvements. Now there is a 2,5 billion euro repair debt bomb in the streets, the dismantling of which is one of the government's top projects.
Infrastructure developers welcome the government's policy with joy, but are also worried about the fate of new construction projects. The money for improving basic road maintenance will be taken from growth-creating investments, which Finland desperately needs now. In the coming years, only the Helsinki railway yard will receive investment money, other projects are on hold.
"By 2030, 500–000 people will move to cities in Finland. We need infrastructure investments in order to be able to develop the land use of the relocation winning municipalities to meet the demands of urbanization", business segment manager Harri Kailasalo Reminiscent of Lemminkäinen.
He mentions Raide-Joker and Länsimetro as examples of growth-creating investments. "They enable the construction of numerous new residential and workplace areas. Since about 40 percent of the price of building a house is returned to society as taxes, correctly placed infrastructure projects like this pay for themselves. It is extremely important to realize this leverage effect.”
Ole Norrback: a similar situation in the 1990s
Municipalities and the state also planted the seeds of growth in the crisis of the 1990s. "At that time, significant investments were made in infrastructure and research. This government has not yet done the same, but the challenges are exactly the same. In bad times, the investment costs are also small," the minister Be Norrback says.
Norrback also complains about the bureaucracy and the permit jungle. "The general plan is first made for a dozen years, but if someone thinks they have seen a flying squirrel, work on it is boring. The bureaucratic process prevents growth and development."
Harri Kailasalo has drawn attention to the same thing: "Even billions of projects stand still because of complaints, even though the projects could otherwise proceed entirely with private money."
Kailasalo and Norrback spoke at the Confederation of INFRA ry in Vaasa on November 6. INFRA is the industry and employer association of private infrastructure builders and part of Rakennusteollisuus RT.
Additional information
Harri Kailasalo
business segment manager
Lemminkäinen Oyj
chairman
INFRA ry
+ 358 400 401 538
Paavo Syrjö
managing director
INFRA ry
+ 358 40 560 1803