Background information

To mitigate the effect of rising energy costs due to the war in Ukraine, the government of Finland has decided on a temporary fuel compensation for land transport companies. The government justifies the amendment by stating that the rise in fuel prices has put transport companies in a difficult situation, which could also have an impact on Finland's security of supply.

The parliament passed the Act on Temporary Fuel Cost Support for the Transport Sector [Lakikuljetusalan yritysten määräaikaisesta polttoainetuesta] 763/2022 on 4 August, 2022. The act will be in force between 1 September and 31 December, 2022. The aid is also subject to the Act on Government Aid [Valtionavustuslaki] 688/2001.

Content of measure

The support measure is targeted to the transport of goods and passengers by road. The companies can get 5% of their fuel costs compensated for during the period February to April, 2022. The law would apply to all forms of fuel and electrical energy except fuel oil, which is banned for transport use. Each company or group can receive a maximum of €400,000 in support. Applications for support amounting to less than €250 will not be considered.

The application for the aid is expected to open latest in November, 2022. The support is administered by the State Treasury [Valtiokonttori]. The government has earmarked €75 million to the aid.

Use of measure

Around 150,000 people earn their living in the road transport sector in Finland. There are around 9,000 companies in the road goods transport business, with a total turnover of €6 billion. There are around 800 bus and coach transport companies, with a total turnover of €1.1 billion.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Sector specific set of companies	Does not apply to citizens

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Any other form of consultation, institutionalised (as stable working groups or committees) or informal	Any other form of consultation, institutionalised (as stable working groups or committees) or informal

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: Peak or cross-sectoral level

Involvement

Social partners were consulted in the formulation process of the temporary Act.

Views and reactions

The Finnish confederation of Industries (EK) has commented on the government’s proposal stating that even though they endorse the goal of the measure, the eligibility criteria is questionable as the spike in fuel prices have hit many sectors other than land transport.

The trade union for taxi services Suomen Taksiliitto has criticised the measure, as taxi services were excluded form the measure and the support will in practice be targeted to larger transportation companies.

Sectors and occupations

This case is not occupation-specific.

Sources

• 02 July 2021: Temporary cost support for transportation companies)(Kuljetus­yrityksille määräaikainen polttoainetuki) (www.hs.fi)
• 08 June 2022: Statement from the Finnish Confederation of Industries regarding the fuel cost support (www.eduskunta.fi)
• 22 June 2022: Parliamentary response 83/2022 (Eduskunnan vastaus EV 83/2022vp) (www.eduskunta.fi)