Government to establish a ministry of employment and industries

The new organisation is to enter into force on 1 January 2008. The new ministry structure has been taken into account in the division of duties among ministers in the new government.

Ministry of employment and industries

The most comprehensive reform is the establishment of a ministry of employment and industries. The ministry will be formed of the current Ministry of Trade and Industry, the Ministry of Labour and the units responsible for regional development in the Ministry of the Interior. The new ministry will have two ministers.

The greatest challenge facing Finnish society is to simultaneously invest in labour and its availability, productivity and innovations. There are also major structural changes occurring in energy policy. The new ministry structure gives the government better tools with which to tackle these challenges.

By incorporating business and regional development and industrial and labour market policy into a single ministry, their level of influence can all be enhanced. Businesses can be provided with services as a single entity. Job applicants can be served more effectively. This comprehends government programme reforms to labour policy. These reforms are designed to address unemployment at as early a stage as possible and prevent alienation. Resources are directed at the most influential measures geared toward employment. These government policies are supported by a policy programme, which is drafted in co-operation with labour market and entrepreneurial organisations.

In innovation schemes the goal is to considerably enhance the measures taken, which allows for the creation of new government programme policies and an extensive supplementation of resources for these measures. Technology and labour organisation innovations are integrated into a single entity. Employment development initiatives headed by the current Ministry of Labour and Ministry of Social Affairs and Health are combined in co-operation with the current Ministry of Trade and Industry Technology Department and Tekes – the Finnish Funding Agency for Technology and Innovation.

The currently fragmented and heavy administration of the EU structural funds can now be integrated in a single ministry. Matters at the ministerial and central administration levels concerning both the European Regional Development Fund (ERDF) and European Social Fund (ESF) will be consolidated in a single Ministry unit. This will allow for considerable coordination and influence benefits.

The new ministerial structure will simplify regulatory matters related to regional development and the Employment and Economic Development Centres. The reform will eventually also have an impact on the internal organisation of Employment and Economic Development Centres. In government negotiations it was also decided that the business service system would be reformed in line with the Yritys-Suomi model.

The objective of organisational reform is to introduce new, modern operating approaches and management organisations. The comprehensive reform of the ministry organisation will be realised quickly, flexibly and in cooperation with personnel. Existing personnel will retain their positions.

Development of regional administration

In connection with the central government reform also regional administration will be developed and democratised. The division of duties between State Provincial Offices, Employment and Economic Development Centres and Regional Councils will be redefined. Division into regions will also be reassessed. Responsibilities of the current provincial state administration will be reorganised. Regional state administration will bundle up licensing, surveillance and legal protection duties. Development policy competence will be steered through a more democratic model.

Public administration and local government duties

Basic duties related to the development of public administration will be referred to the Ministry of Finance. The duties and organisation of the Department for Municipal Affairs and the Regional and Local Administration Unit of the Department for Development of Regions and Public Administration of the Ministry of the Interior will be transferred in connection with this reorganisation. In the Ministry of Finance, the Public Management Department and the Personnel Department will for the most part go with the same entity. These will be directed by a minister of public administration and local government.

This procedure will promote the implementation, for example, of the Paras project. Cooperation between the state and local administration will be intensified and citizens’ service centres established.

Immigration issues

An entity responsible for immigration and integration issues will be established in the Ministry of the Interior. The Immigration Department and the Directorate of Immigration functioning under its auspices will be parts of the new entity, as well as duties related to asylum and immigration policy from the Ministry of Labour. The Ministry of the Interior’s capabilities to promote comprehensive integration of immigrants will be strengthened.

In the new government immigration issues will be the responsibility of a minister of immigration and European affairs.

Åland Islands

Cooperation within the Government related to the Åland Islands will be reorganised. Ministry of Justice will be the competent ministry and secretariat for affairs concerning the Åland Islands.