Government promises quick aid to communities hit by paper industry cutbacks

Pekkarinen: Kajaani region “quite a big challenge”

Mauri Pekkarinen

Matti Vanhanen

Jyrki Katainen

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The government promised on Wednesday to take rapid action and to provide funding for communities suffering from cutbacks announced by the forest industry. Crisis groups have already been set up in the areas, and steps have been taken to find new jobs for those who are affected.
     At its Thursday session, the government added the regions of Kajaani and Imatra to the “areas of sudden structural change” until the end of 2010. The region of South Pirkanmaa will have its time as a structural change zone extended by a year until the end of 2009.
     Areas with such a designation are entitled to state funding to help create new jobs. The government is prepared to provide additional funding for the areas in addition to the EUR 30 million earmarked for the purpose in the government’s budget proposal.
     
The precise amount of additional funding was not disclosed. Minister of Finance Jyrki Katainen (Nat. Coalition Party) said that money would be provided depending on what kinds of projects are developed in the areas.
     The ministers emphasised the positive experiences that the government has had in similar situations. Most of the 11 regions declared structural change zones have seen an improvement in the employment situation.
     Minister of Economic Affairs Mauri Pekkarinen (Centre Party) warned, however, that the Kajaani region is “quite a big challenge”, especially now that economic prospects are difficult. The government is planning special measures for the Kajaani region, but there is no precise information on what those measures might be.
     
Pekkarinen suggested that a plant producing biodiesel, or other wood-based fuels could be considered. He emphasised that investment plans by Stora Enso indicate that the forest industry “believes in Finland”.
     However, when asked, Prime Minister Matti Vanhanen (Centre) and Pekkarinen said that they did not have the kind of information that would suggest that the cutbacks in the forest industry would be over.
     To ease the wood shortage of the forest industry, the government plans to continue to cut forest taxation. Finance Minister Katainen also insisted that the government has done all it can in its negotiations with Russia on that country’s imposition of export tariffs on wood.
     
Opposition Social Democratic Party leader Jutta Urpilainen says that the cuts indicate that forest companies are disappointed in the policies of the government.
     “The wood tariff dispute has not been solved, and sales of wood have not began as well as should have been the case”, Urpilainen said on Wednesday.


Previously in HS International Edition:
  UPM: Russian wood tariffs could reduce paper production already this year (6.2.2008)
  Stora Enso pulp mill closed down in Kemijärvi (28.4.2008)

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