The guest speaker at the Builder's Day held in Helsinki on October 18 was Environment and Climate Minister Kai Mykkänen, who talked about the government's actions in the difficult economic situation of the construction industry and the implementation of the goals of the government's program for the sector.
"We cannot pour money in buckets to solve the cyclical crisis in the construction industry," Minister Mykkänen began his speech. The reason is both the state's tight budget framework and the general economic picture. This time, the economic situation is more manageable than in the recession of the 1990s, and a similar downward spiral of the entire economy is not expected.
However, Mykkänen stated that the blow to the construction industry will be severe, which is why the government decided in September's budget rush to take specific measures to smooth out the cyclical downturn in construction. Of these, the increase in the maximum amount of the Asp interest subsidy loan is progressing on a fast schedule and already this week it was issued for a statement. The maximum amounts are proposed to be increased by 15 – 000 euros.
With regard to Ara production, the powers of long and short interest subsidies will be combined, so that they can be utilized more flexibly to the maximum. The aim is to speed up Ara's processing processes, and preparations include, among other things, a survey for Ara builders to identify problem areas. The granting of interest subsidized loans for Aso apartments will not stop this year, but they can be granted until 2024.
Ara production has picked up during this year, but according to Mykkänen, about half of the authorizations are still unused. However, there is a long queue of projects being processed. In the future, Ara production will focus on meeting the housing needs of special groups and low-income people. The focus of housing construction will be on market-based production, which "also needs to be made to work like a glove for the sake of regulation".
A series of revisions to the Regional Use Act and the Construction Act
The board's program includes several entries concerning the construction sector, the implementation of which Mykkänen explained. The easing of the capital transfer tax at the general level has already progressed, and the changes will come into effect at the beginning of next year. The aim of the MAL negotiations is to reach an agreement next spring, when government investments in infrastructure projects in urban areas could be brought forward to mitigate the economic situation.
The reform of the Regional Use Act is about to start, and a working group will be set up during October. The reform also includes the goals presented by RT, among other things, the landowner's right of initiative at the general and site plan level, the registration of the possibility of partnership zoning in the law and the review of appeal rights. The aim is to get the government's proposal on the revised land use law passed in the spring of 2025.
A set of amendments is coming to the Construction Act, which was separated from the Land Use and Construction Act. For example, the climate report is being re-examined. There is no compromise on the climate and circular economy goals, but the government wants to make sure that there are no implementation bottlenecks due to unreasonable demands and extra bureaucracy. The amendment to the law is intended to come into force at the same time as the actual law, i.e. at the beginning of 2025.
In turn, the study group is considering the development needs of Ara production and the future of the State Housing Fund. Ara production is to be targeted even more precisely to those who need it, also taking into account the fight against homelessness.
I will collect Ilkka Salo asked Minister Mykkäni why there is no promise to speed up renovation construction, even though it is of great importance. According to Mykkänen, there are no more energy repair grants in the budget, but a guarantee system for energy-efficient repair of buildings with the European Investment Bank is about to start, which is hoped to make it easier for housing associations to obtain loans.