Finnair, Fortum, and Neste Oil to remain under state control
State ownership in other companies to be reduced in a controlled manner
|
|
|
The Finnish state is to retain control of three listed companies: the airline Finnair, the energy company Fortum, and the oil refiner Neste Oil.
Minister of Defence Jyri Häkämies (Nat. Coal.), who is also responsible for state control in companies in which the state has a holding, says that the three companies are ones in which the state needs to retain a majority.
Häkämies would be willing to relinquish ownership in other companies either partly or completely owned by the state - "on a case-by-case basis, in a controlled manner".
Häkämies has not drawn up a list of companies to be sold, nor has he envisioned what kinds of sums of money would be realised through cutting ownership.
"Decisions vary according to what the interests of the state and the taxpayer are in each case", Häkämies says.
He points out that the stock market value of state holdings in listed companies rose from about EUR 14 billion to EUR 27 billion over the last Parliamentary term. At the same time, the state sold shares worth about EUR 5 billion.
The money was spent on matters such as traffic investments and the support of research and product development.
Häkämies agrees with this policy: "Revenue should not be used for covering running costs. Instead, we should prepare for the needs of the upcoming decades."
From 1991 the state has earned EUR 15 billion from the divestment of companies that it holds.
The funds have been used mainly for paying off the state debt. "In the long run, this has been justified. It has given us healthy room to manoeuvre in the budget", Häkämies says.
The current Speaker of Parliament, Sauli Niinistö (Nat. Coal.), recommended during the government formation talks that the state should sell off minority holdings it has now, while stock market prices remain high. He says that this is a way to generate money for the payment of the state debt.
No such direct goals were written into the government programme. However, it does state that when revenue from the sale of shares exceeds EUR 400 million, up to a quarter of the amount that goes over the EUR 400 million mark, but no more than EUR 150 million, can be used for one-off investments, which promote knowledge, innovation, and economic growth.
Parliament will discuss state corporate ownership policy in the autumn, when plans for amendments to legislation on the matter come up for debate. Häkämies hopes to get a greater commitment from Parliament by giving it an annual report on ownership policy.
"It is easy to go through the solutions with 20/20 hindsight. If someone in that building has a crystal ball, and a clear view of market development over the next four years, I am certainly ready to take advice. Eyes and ears are open", Häkämies says to the opposition.
On Wednesday, a new unit run by Pekka Timonen was set up as an "operative fist" of state corporate ownership.
Many wondered at the decision to place matters related to state-owned companies under the authority of the Minister of Defence. Häkämies said that Prime Minister Matti Vanhanen(Centre) is the person who should be asked why this was done.
"At least they are safe here", Häkämies joked.
Helsingin Sanomat
|
| 3.5.2007 - TODAY |
 Finnair, Fortum, and Neste Oil to remain under state control |
|
