Social Democrats took hard line on agriculture in working group on globalisation

Antti Kalliomäki

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Helsingin Sanomat has learned that at one stage during the work of a task force which recently produced a report on the implications of globalisation for Finland, a Social Democratic member of the group called for sharp cutbacks in agriculture in Finland.
      A paper submitted to the working group for consideration advocated a "clear programme for the gradual reduction of subsidies".
      The proposal also called for a programme aimed at bringing the social security of farmers to the same level as that of other entrepreneurs. This would amount to a reduction in the pension and holiday benefits now enjoyed by Finnish farmers.
      Furthermore, the paper calls for taking the resources that now go to agricultural research and administration and channelling them to other sectors of the economy.
      Similar views were expressed, but in a somewhat more subtle manner, by Minister of Finance Antti Kalliomäki (SDP) in a speech at a seminar on globalisation held in October. He mentioned OECD assessments of Finland’s agricultural subsidies.
     
Disadvantageous climatic conditions have long been used as a justification for high agricultural subsidies in Finland. However, the Social Democrats’ paper took a different view: "The problems inflicted on agriculture by Finland’s climatic conditions are not a reason for public support, but rather for directing resources at economic activities better suited to us."
      There was also a numerical argument: although the number of farmers has decreased by 30% during Finland’s membership in the EU, the amount of subsidies has remained the same.
     
The paper was presented to the other members of the working group by Pertti Rauhio, a special aide of Finance Minister Kalliomäki. It apparently did not get much support in the working group.
      The final report mentions agriculture only briefly, pointing out that the number of farms in Finland continues to decline, and that plans to liberalise world trade in agricultural products, as well as the enlargement of the European Union, are causing pressures for change in Finnish agriculture and agricultural subsidies.
      The report of the working group, headed by Anne Brunila, director general at the Ministry of Finance, was published just over two weeks ago. It puts forward proposals for how Finland can cope with increasingly tough international competition.


Previously in HS International Edition:
  Prime Minister and President disagree on globalisation policy (10.11.2004)

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