Finland Times

 

Prime Minister Juha Sipilä (Middle) Finance Minister Alexander Stubb (Right) and Chairman of the Finns Party Parliamentary Group, Sampo Terho at a press conference on the government´s state' ownership policies in parliament on Thursday. Photo Lehtikuva.

The government on Thursday finalised its new ownership steering policy with a provision for floating shares of a number of state-owned companies on the stock exchange markets to offload the state’s shares in those companies.

 

A meeting of the Ministerial Committee on Economic Policy finalised the policy and the resolutions on the new ownership steering policy are scheduled to be adopted at the plenary session in parliament on Friday, said an official press release.

 

According to the new policy, initially the state ownership of the Posti Group Corporation, Altia Plc, and Arctia Ltd will be reduced to 50.1% from the existing 100%, while the state’s stakes in Ekokem Oy, Kemijoki Oy, Neste Corporation, Nordic Morning Plc, Raskone Ltd, and Vapo Oy will be reduced to 33.4%.

 

The new policy seeks to ensure that the corporate assets held by the state are put to more efficient use to boost economic growth and employment, observed the committee.

 

File Photo Lehtikuva.

 As an owner and shareholder, the state should stake out evolutionary paths for the companies in which it holds interests in order to generate growth. 

 

To achieve this, it is proposed that a specific off-budget Business Development Company is established. 

 

This arrangement would make it possible to use the released capital reserves to generate new business, reinforce the capital base of the companies held in the development company’s portfolio, and implement corporate restructuring schemes more efficiently.

 

“The vision declared in the government programme obliges us to use state ownership as a tool for active reform of Finnish society. Capital reserves need to be put to more efficient use, and current holdings need to be managed more actively,” said Prime Minister Juha Sipilä, who is also responsible for the state ownership steering, adding, “It’s imperative that we generate new economic activity in this country.”

 

He said investments in the platform economy may foster new private business and create opportunities for assuming a leading role in new areas. 

 

This, in turn, will contribute to the attainment of the government’s long-term employment objectives, he added.

 

File Photo Lehtikuva.

The government’s ownership policy involves a long-term approach that calls for a parliamentary commitment spanning several electoral periods. 

 

To ensure managed implementation and to reinforce the role of parliament in this context, it is proposed that a Parliamentary Advisory Council be established in the Prime Minister’s Office for this purpose. 

 

It would serve in an advisory capacity, reviewing the government’s ownership policy, evaluating the general principles of ownership steering and more generally determining the limits of changes in government holdings for which parliamentary authorisations are required. 

 

The policy also proposed that the severance packages offered to executives on termination of employment be halved.

 

In the state’s view, future executive contracts of employment to be concluded by listed companies and comparable unlisted companies should not specify levels of compensation where the pay for the notice period and the severance package combined exceeds the regular 12 months’ pay.