Ministry of Employment and the Economy of the Repu : Working group: Development of Eastern and Northern Finland benefits the whole of Finland

11.01.2013 09:25

Determined, long-term and co-ordinated development of Eastern and Northern Finland, on the basis of their special characteristics and strengths, will bring benefits to the economic development of the whole Finland. In practical terms, regional development measures require broad-based commitment and cooperation among various actors. On 11 January, the working group for developing Eastern and Northern Finland, led by MP Jouni Backman, submitted its final report to Minister of Economic Affairs Jan Vapaavuori. 

The working group presents 36 proposals for follow-up measures and pilot projects; these are based on the outlines prepared by the group in the summer of 2012. It is vital for the future development of the whole country that investment be made in both conditions and expertise within Eastern and Northern Finland, based on their special characteristics. Such conditions and expertise include: 

- Arctic competence and development of tourism (especially sustainable tourism)

- Utilisation of the regions' natural resources and increase in related expertise, alongside    innovation- and development-related activities and education

- New possibilities for utilising wood and the related research, including bioenergy

- Taking environmental factors and sustainable development into account in all economic     activities, and better reconciliation of nature-related values with other economic activity

- Development of world-class competence in key areas of expertise

- Development of diversified solutions, especially in energy production and service provision

- Harnessing of the potential to be found in Russia 

More comprehensive Arctic competence, developing wood-related expertise into an asset for Eastern Finland

To take advantage of Arctic competence, the working group proposes that a broad-based Arctic Innovation programme to be launched in collaboration with universities and other actors in the area.

The University of Eastern Finland could be developed into an international research, education, and innovation cluster. Situated in Varkaus, the bioprocessing research environment could be utilised for exploring new uses of wood and the related business opportunities.

Knowledge of Russia as a cornerstone of regional development

The working group would better leverage the significance of Russia in business. For development of both tourism and other business activities, investment should be made in acquiring skills in the Russian language and culture, as well as improving business expertise. The working group also draws attention to the issue of employment of Russian-speaking immigrants.

Tourism and cultural events as pilot projects

In the working group's view, the status of tourism in industrial policy should be strengthened. This would require implementation of the Government resolution on tourism policy. Pilot projects to develop a model for sustainable tourist centres could be carried out in Tahko, Levi, Ruka, and Ylläs. The Savonlinna Opera Festival could serve as a platform for piloting ways in which tourism and cultural and sports events could be better harnessed in economic terms.

Better reconciliation of the natural resources and mining industry with nature values

The working group proposes that the University of Oulu would develop mining expertise, jointly with other experts in the industry. More starting places are required at all levels of education, to ensure sufficient number of competent workers. In addition, interests of mining industry in the area and nature values should be better reconciled. To safeguard nature values, the working group proposes that the ELY centres be granted additional resources, especially for enhancing the monitoring of environmental permits.

A regional capital investment fund, to strengthen expertise in the region

The working group proposes that existing expertise in the region be strengthened through greater cooperation among the actors. In addition, the group proposes that Structural Fund resources be used to establish a regional capital investment fund, to increase funding related to business development.

Continued need to facilitate telecommuting and provide transport aid

The working group would improve telecommuting opportunities in the area by creating distance service points in tourist centres and increasing the tax deduction for working from one's own home.

While the working group would continue to support payment of transport aid, it does not put forward other proposals for improving transport connections.

The seven regions involved

The working group examined seven regions: South Savo, Kainuu, Central Ostrobothnia, Lapland, Northern Karelia, North Ostrobothnia, and North Savo. In total, this area covers approximately two thirds of Finland and is home to around one quarter of the Finnish population.

Some of the measures proposed by the working group can be rapidly executed, while others require further work. As many of the measures proposed are related to business development in the relevant area, the working group sees the development measures as naturally falling under the responsibility of the Ministry of Employment and the Economy.

The submission of the final report of the working group for Eastern and Northern Finland is broadcast live online and will be available as a recording for viewing afterward, at www.vn.fi/live.

The final report, called Look North: Proposals for Measures (MEE reports 2/2013), and the working-group outlines, entitled Look North, serving as the basis for the report,along with the related background memorandum, are available online at www.tem.fi/itajapohjoissuomi (in Finnish).

For more information, please contact:

Jouni Backman, Chairman of the working group for Eastern and Northern Finland and Member of Parliament, tel. [phone]

Marikki Järvinen, Ministerial Adviser, Ministry of Employment and the Economy, tel. [phone]