It is wisest to leave out highway funding when the government is looking for targets for state budget adjustment measures. "Maintenance of basic highways in particular has been the subject of cuts and reductions for most of the 2000s - so savings have been made on it for years to come. New cuts would seal the cycle of deteriorating infrastructure, from which it would be very expensive and even impossible to break free in the future," warns Paavo Syrjö, Deputy CEO of RT.
Savings have already been made on the highways, says Paavo Syrjö from RT. This is evidenced by the hefty repair debt, which according to the Finnish Transport Infrastructure Agency is already over 4,2 billion euros.
Funding for basic road maintenance in Finland has been insufficient for almost the entire 2000s. At the same time, the purchasing power of the funding has decreased.
One measure of funding adequacy has been paving appropriations. A couple of years ago, the least amount of roads were paved in 60 years. Before that, for about 15 years, an average of 3000 kilometers were paved per year, while stopping the repair debt would require 4000 kilometers.
"During Petteri Orpo's government, chronic under-budgeting was finally stopped and the growth of repair debt for roads was frozen. In reality, however, the construction site is only just beginning. For example, the repair debt for the rail network is still largely unresolved," Syrjö reminds.
"Instead of making cuts, it would be worth looking for ways to find additional funding. One cost-effective target would be the infrastructure research program. In an era of tight budgets and a skills shortage, ways to make construction even more efficient are needed. An annual investment of just five million in the infrastructure RDI program would create a foundation for new innovations."
Direct impact on safety, freight transport and employment
Neglect of traffic infrastructure is reflected in derailments, rear-end collisions and level crossing accidents. For Finland, which is sparsely populated and dependent on dispersed industry, a functioning road network is also a source of vitality. For example, for companies, the most important factor in freight transport is by far the most efficient maintenance of basic roads, says Traficom accessibility survey (2022).
Transport cuts weaken employment and economic growth. The euros spent on the domestic market and labor-intensive construction sector are spread widely throughout the economy. An investment of one million euros brings 11–14 person-years of work. More than a third of the money spent on transport infrastructure alone is returned to society in taxes and fees. Good infrastructure enables investments and growth in growth centers and regions. The cuts, in turn, discipline the entire construction sector, whose employment situation is already weak.
"The government is now on the right track. A return to the booming funding of basic road maintenance would be toxic to our society. Tightening the cash taps will not make the need for infrastructure repairs disappear: on the contrary, an even more difficult and expensive renovation is waiting around the corner," says Syrjö.
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