A resilient economy and growth as facilitators of strong basic services
Municipalities must focus on measures that reinforce growth and employment in order to ensure the provision of basic services. The financial situation in many municipalities is serious and they are facing fiscal adjustment measures. The reasons for this are growing costs, investment pressures, changes to central government transfers to local government, and a poor employment situation, which is significantly slowing the growth of municipalities’ tax income. The state’s financial contribution is at a historic low.
Wellbeing services counties are also facing difficult financial situations and fiscal adjustment measures are becoming a necessity for many, which in turn is making it even more challenging to achieve the aims of the health and social services reform. The deficit coverage obligation must be extended so that wellbeing services counties are able to develop their operations without short-sighted cuts that endanger services. On the other hand, preparing for wellbeing services counties to take on the right to levy taxes is not the right decision at the current time.
In order to mitigate the growth of costs in municipalities and wellbeing services counties, operations must be streamlined and improved. However, the state must fully cover all costs municipalities or wellbeing services counties incur as a result of the new obligations introduced.
We want to ensure that Finnish legislation, employment law, and collective agreements are adhered to in investments and procurements paid for with public tax funds. This will help safeguard employees’ position, strengthen employment and the competitiveness of Finnish companies, and prevent human trafficking.
Thriving municipalities
Municipalities’ operating practices must be reformed, with efforts made to ensure both municipalities and their residents can thrive. The EU’s Regional Development Fund and European Structural and Investment Funds’ procurement activities must be aimed at the development of municipalities.
Municipalities must invest in the functionality and streamlining of employment services and create new operating models that have a real impact. Employment services produced as purchased services must move towards a situation where rather than deliverables, payment is based on impact, i.e. people being employed and remaining in employment. The impact-based model must also be used more widely in other purchased services.
Employment and economic development services must be offered in accordance with the single contact principle, and they must meet the needs of the area’s jobseekers, entrepreneurs and employers.
Our aim is for everyone to be able to find employment that matches their abilities. Employment services must be developed to support both rapid employment and people’s individual needs. It must be possible to meet the needs of labour shortage sectors in collaboration with jobseekers, employers and training organisations.
Employment services must support companies in matters to do with employment and help them to also employ people in weaker labour market positions. New entrepreneurs must be offered mentoring for at least their first two years.
Integration plays a key role in employment. Work-based immigration and integration services must be developed in municipalities and the impact of services aimed at the initial stage of integration boosted, as well as ensuring that other services support people in settling and integrating in Finland.
Municipalities must invest in helping immigrants learn the Finnish or Swedish language, start studies and find employment without delay. Work-based immigration services must be centralised in one location in collaboration with other authorities. Immigration processes must be improved, but this also requires state support. An active approach must be taken to intervening in obstacles to the employment of immigrants, such as discrimination when jobseeking.
Municipalities must make particular efforts to promote the integration of immigrant mothers, as this increases social cohesion, employment opportunities and financial independence. Furthermore, integration of mothers strengthens families’ wellbeing and helps children cope and become part of society.
Municipalities must create a strong basis for entrepreneurship and work in close collaboration with companies, educational institutions and decision makers. Economic development and employment policy must focus on building growth, reinforcing the revenue base, and safeguarding services.
Municipalities must ensure that small companies are also equipped to succeed in competitive tendering. Sole traders, micro entrepreneurs and small-scale entrepreneurs must be better equipped by making the requirements of competitive tendering processes more flexible in terms of turnover, for example, or by dividing tenders into smaller parts. More calls to tender for small-scale procurements must also be launched.
Municipalities must work in close collaboration with employment areas to strengthen the availability of labour. Municipalities must promote a culture of experimentation and rapid adoption of new ideas.
In municipal land use, the opportunity to make investments, and in particular green investments, must be ensured, as these offer a significant opportunity to help municipalities thrive. Critical infrastructure, such as water supply, must remain in municipalities’ own hands. Municipalities must serve as good examples when it comes to the circular economy, utilising existing materials in maintaining their own properties or by loaning out other items at libraries. Sustainable development must be promoted in municipal procurements.
- Efficiency through the one contact principle for employment and economic development services.
- Work-based immigration services are to be developed and investments are to be made in particular in services that have an impact on the initial stage of integration.
- Economic development and employment policy must be particular focus areas.
- The criteria for public sector competitive tendering must be made more reasonable, so that sole traders, micro entrepreneurs and small-scale entrepreneurs are also able to participate.
- Making the integration of immigrant mothers more effective is to be a particular target area of municipal integration programmes.
- Municipalities must make particular efforts to ensure opportunities for green investments, and sustainable development must be promoted in their procurements.
Effective wellbeing services counties
We want wellbeing services counties to work better, so that we can safeguard important services instead of scrapping them. Practices that have been proven to be effective must be put to use more effectively than at the moment in wellbeing services counties. Wellbeing services counties’ cooperation must also be developed in particular in areas where it can help achieve cost savings.
Artificial intelligence can be used to a greater extent than it currently is in diagnosing illnesses and automated patient records. Care processes must be overhauled and streamlined in a comprehensive way. Fewer check-ups are needed in instances where they provide no significant benefit, or where the check-up can also be carried out as a basic-level service or fully remotely. In evaluating the introduction of new forms of treatment and medications, attention must be paid to the balance of effectiveness, benefit and cost.
A price cap system must be introduced for temporary agency workers, and staffing services companies managed by the wellbeing services agencies themselves should be the first port of call for temporary agency workers. The excessive concentration of private healthcare services, and the ensuing price hikes, must be intervened in more effectively.
The rules of play for competitive tendering in the public and private sectors must be tightened and experts must be given the opportunity to work overtime and do additional work within the public sector. The practice of paying medical students unhealthily high wages must be limited.
The funding of research, development and innovation activities (RD&I) in wellbeing services counties must be developed and also targeted at basic research. Structures for RD&I activities in wellbeing services counties must be strengthened.
The current system of payment for private healthcare services with Kela reimbursements does not support boosting the efficiency or effectiveness of healthcare. Reimbursements of travel costs must be transferred in their entirety from Kela to the wellbeing services counties.
- Each wellbeing services county to adopt proven good practices.
- Adoption of a price cap system for temporary agency workers in public healthcare.
- The Finnish Competition and Consumer Authority to be given better powers to intervene in the excessive concentration of private healthcare services, and the ensuing price hikes.
- Rules of play for competitive tendering in the public and private sectors must be tightened.
- The wellbeing services counties’ funding model must better support research, development and innovation activities.
- Reimbursement of travel costs must be transferred from Kela to the wellbeing services counties.