Skip to main content

Finland reverses its plan to impose user-pay roads

The Finnish government has axed controversial plans to privatise the operation of a large number of major roads and turn them into user-pay infrastructure. But transport Minister Anne Berner also announced that the government would now keep a tax on new car sales. The tax was going to be scrapped as part of the move to make road users pay tolls. Berner had recently announced that the government would put the operation of major highways under a new stand-alone agency that would engage the private secto
January 24, 2017 Read time: 3 mins
The Finnish government has axed controversial plans to privatise the operation of a large number of major roads and turn them into user-pay infrastructure.

But transport Minister Anne Berner also announced that the government would now keep a tax on new car sales. The tax was going to be scrapped as part of the move to make road users pay tolls.

Berner had recently announced that the government would put the operation of major highways under a new stand-alone agency that would engage the private sector to maintain roads and recoup their costs through user-pay tolling.

The daily Helsingin Sanomat reported that the controversial reform lacked the support of the smaller political parties within the National Coalition and Finns Party.

Iltalehti, a daily tabloid newspaper, reported that a poll of 1,000 people, which it had commissioned, showed that 70% of the public were against the reforms. Still, more than half agreed that the current model of taxing motorists needed to be changed.

Finland has around 500,000km of main thoroughfares, most of them privately owned or forest tracks. Only about 78,000km of the roadways are state-owned, including 900km of highway.

Last October, the Helsinki Court of Appeal reduced some of the fines previously imposed upon paving companies relating to an asphalt cartel that had operated between 1994 and 2002. A statement by the company 3064 Lemminkäinen said that, where it was the only defendant, the Court of Appeal ordered Lemminkäinen to pay 18 claimants damages of around €6 million which is about €9 million less than a lower District Court had ordered.

“As regards the 12 other claims, where Lemminkäinen and other asphalt industry companies were defendants, the Court of Appeal ordered the defendants to pay eight claimants damages approximately €14 million in capital, which is approximately €5 million less than the District Court had ordered. In these claims, Lemminkäinen's liability to pay is partly joint and several together with other defendants.”

The case has been rumbling on since 2009 when a lower court ordered seven Finnish asphalt industry companies - Lemminkäinen, Valtatie, Skanska Asfaltti, NCC/ Interasfaltti, Rudus Asfaltti, SA-Capital and Super Asfaltti - to pay an infringement fine. The infringement fine imposed on Lemminkäinen was €68 million, according to the company.

Lemminkäinen is one of the largest paving operations in northern Europe. It employs around 4,800 people and had ales in 2015 of around €1.9 billion.

"We are satisfied with the decisions of the Court of Appeal to the extent our appeals were accepted. Our daily operations will continue as planned, focusing on step by step improving our operational result and competitiveness in all our operations," said Casimir Lindholm, president and chief of Lemminkäinen.

For more information on companies in this article

Related Content

  • Record attendance for Istanbul’s E&E conference
    June 14, 2012
    The Eurasphalt & Eurobitume 2012 event in Turkey has attracted record attendance figures, although final figures were not available at the time of writing.
  • New South Wales backpedals over WestConnex cycling bridge
    April 30, 2019
    Controversy has again hit Australia’s WestConnex project in Sydney with media reports the a planned cycle and pedestrian bridge is to be axed. In its place will be a new raised flyover running through the residential and parkland area, according to a report in The Age newspaper. The Pedestrian and Cycling Green Link was part of the original planning permission for the US$11.85 billion WestConnex project and was to rise above parts of the surface motorway in Rozelle and Lilyfield neighbourhoods. The
  • Golden opportunities in the MINT - Mexico, Indonesia, Nigeria, Turkey
    May 21, 2015
    Mexico, Indonesia, Nigeria, Turkey – Global Report offers up some food for thought about where smart money might be headed within the next several years – David Arminas writes China’s rate of growth may be slowing down, but other South East Asian companies are being quick to offer alternate investment opportunities, notably Indonesia. Nigeria, too, has had issues with security of investment. But there are signs that the government may be getting serious at last about tightening up rules and regulation
  • Costs revised for Denmark’s proposed Kattegat Bridge
    May 9, 2016
    A proposed bridge across the Kattegat Sea in northern Europe would be cheaper for the Danish government than previously expected, according to an engineering report. The bridge between Denmark’s Jutland and Zealand islands would need around €2.02 billion in government subsidies, noted the report from Danish engineering consultancy Rambøll. A previous report from the Ministry of Transport concluded that subsidies would have to be around €6.85 billion and need to be financed by loans. This caused the mi