Prime Minister: Structural change continues, but Finland will manage
Government to decide on highway improvements to ease wood transport
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Prime Minister Matti Vanhanen (Centre) says that Finland needs to prepare for a slower economy, but adds that it would be "considerable exaggeration" to talk about a recession or depression.
The structural change, as reflected in the shutdown of the Kemijärvi and Summa plants of the pulp and paper manufacturer Stora Enso, is a permanent feature in Vanhanen's view. He adds that more such decisions are likely to come, but that "Finland will survive them".
Kemijärvi will lose 200 jobs, but thousands of new jobs will emerge in Finnish Lapland in mining and tourism, Vanhanen notes.
"It is a typical example of structural change to move from one field to another. That is what we Finns have done for decades, as unpleasant as it is", Vanhanen says.
The government will meet in about a week to discuss economic policy. At that time it will assess whether or not the preparations for change have been sufficient.
"In recent years we have learned to react quickly, and people are no longer being left to wait for years. This need is a permanent one."
Securing wood supplies for the Finnish forest industry is a key priority for the government. He says that a million cubic metres more of wood need to be harvested rapidly from Finnish forests.
"We won't need to go into protected areas", Vanhanen insists.
He says that key measures would include recent proposals by a working group headed by Esko Aho.
The team proposed measures, including lifting taxes from income from the first thinning of a forest. Vanhanen says that the government will also decide on improvements to transport arteries with the needs of the forest industry in mind.
Aho's working group also proposed improvements to three rail lines which are important for pulp and paper mills, as well as repairs for public highways and private roads used by the industry.
"The transport network capable of carrying millions of cubic metres from the depths of the forests to the gates of the industry is important for wood acquisition."
Vanhanen adds that finding enough workers for felling, and for getting the wood out of the forest "at a reasonable price" is a problem.
According to Prime Minister Vanhanen, a national spirit of a working together is needed. "Forest owners should be persuaded to sell wood even at fluctuating stumpage prices", he says.
Vanhanen's first government prepared a proposal for municipal reform, which was not in the original government programme. He says that this government could launch a sufficiently extensive reform aimed at keeping people at work longer.
The first steps are already being taken. Solutions are expected in just under a year in January, when the government meets midway through its term to re-examine its policies.
In spite of the challenges of economic policy, Vanhanen is confident that the government will be able to implement the programme in its entirety - including the spending side.
In his view the most important thing now is not to increase spending. The waves of the world economy are beating at Finnish shores too, but Finland can put up "buffers", he says.
The United States economy is a big question mark, and has a special impact on the euro zone.
"We cannot influence the United States, so we must do our homework as well as possible. We must keep our heads cool and follow the real economy", Vanhanen says.
Cuts in income taxes can be decided quickly, if needed, Vanhanen says. However, he does not see a situation this year in which the cuts should be implemented immediately in the middle of the year, as was the case in 2003.
Prime Minister Vanhanen insists that he has no regrets over asking police to launch an investigation into the activities of the publisher of a book written by Vanhanen's former girlfriend about their relationship.
"Not for a moment! Not a bit. It was very carefully thought out", he said.
Press coverage of the invasion of privacy trial brought Vanhanen's private life back into the headlines.
The Prime Minister also said that he has made it a policy not to take part in public debate. He said that he will be willing to comment on the matter again once the court renders a decision on Wednesday.
Helsingin Sanomat
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| 3.3.2008 - TODAY |
 Prime Minister: Structural change continues, but Finland will manage |
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