Business organizations: The reform of the Land Use and Construction Act is going in the wrong direction – regulation is increasing and becoming more complicated

The reform of the Land Use and Construction Act is going in the wrong direction, say business organizations. If zoning and licensing are not flexible, for example, investments and traffic reforms will not speed up.

photo: Photo office Kuvio

The reform of the Land Use and Construction Act is one of the most significant legislative reforms of this government period. Its goal is, among other things, to streamline planning and permit processing. It is essential for company investments, for example. Investments, on the other hand, are crucially important for Finland's economic growth and employment.

Zoning has a significant impact on housing construction and the supply of housing, the location of jobs and the availability of services.

The reform is nearing its end. It seems that the goal has been completely forgotten: regulation is increasing and becoming more complex. The new law is therefore not fulfilling the expectations that the government set for it. This is stated by the Finnish Confederation of Industry, Energy Industry, the Confederation of Commerce, the Central Chamber of Commerce, the Confederation of Agricultural and Forestry Producers MTK, MaRa ry, Rakennusteollisuus RT, RAKLI ry, the Finnish Real Estate Association, the Finnish Entrepreneurs and the planning and consulting companies SKOL.

The show needs to be changed

In order to make zoning and the granting of permits easier, business organizations are demanding several changes to the presentation being prepared:

Zoning and the granting of permits must be speeded up. 

The predictability of official decision processing times is important for citizens and companies. Permit processes must take this into account better.

The authorities must be obliged to provide an estimate of how long the planning procedure will take.

The law also requires a deadline for permit processes.

Zoning should not be complicated. 

The urban regional plan should not be regulated by law, because it would stiffen the entire zoning system and make its procedures more burdensome. It is necessary to clearly define the legal effects of the green structure in order to know what kind of land use is possible.

In the future, the supervision of ELY centers should only cover nationally and provincially significant issues.

Public and private cooperation in planning must be promoted in the law. 

The property owner must be able to take the initiative regarding his project and prepare a plan for the municipality to decide.

In all cases, the control and decision-making power of zoning must still be retained by the municipalities. Utilizing the know-how and resources of private operators is an opportunity for municipalities to enhance the implementation of land use goals, not a threat.

Land use fees must be predictable and reasonable. 

The proposed land use agreement system does not give the landowner the means to assess the profitability of the project in advance. Costs must be predictable so that real estate and larger entities can be developed economically. Land use fees must correspond to the actual costs incurred by the municipality and be reasonable and transparent.

If these changes are not made, it will be difficult for companies to invest, grow, and offer work and vitality to municipalities. Finland needs a properly reformed law that offers the means to develop both sparsely populated regions and growth cities. In its current form, the reform does not provide the means for this.


See also

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Confederation of Finnish Construction Industries (CFCI)
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