JHL (26.03.2014 - Heikki Jokinen) Privatisation of fully state owned companies such as Destia and Altia is again under discussion. Such measures are being considered as a way to cut the state budget deficit. JHL vehemently opposes privatisation.
Destia is a major road and railway construction and maintenance company with a market share of some 60 per cent of road-building work in Finland. Altia is a wine and spirits company, which was a part of the state alcohol monopoly until 1999.
JHL has published a joint statement together with the Finnish Food Workers' Union SEL, rejecting any such proposals. The unions say that there is absolutely no justification whatsoever for privatisation that would stand up to close scrutiny.
To sell off the infrastructure builder Destia would be a major risk. It could lead to the concentration of infrastructure building into the hands of a few private builders. Diminishing competition would raise, in an intolerable way, the price the state and municipalities would have to pay.
Destia has a know-how that state cannot afford to loose. With privatisation profits would also inevitably find their way into the pockets of foreign investors.
"With their skills state owned Destia and its committed employees guarantee good transport connections and keep the wheels of the national economy rolling", says Jarkko Eloranta, the JHL President.
Selling off Altia would probably lead to a transfer of alcohol production and jobs abroad, say the unions.
"To keep the ownership in Finland is the only way to keep jobs in Finland and guarantee that the products are made from Finnish farmers' produce", says Veli-Matti Kuntonen, the SEL President.
Selling state owned companies would not solve the structural problems facing the national economy. On the contrary, any such measures pose serious risks, as the state would lose revenue and strategic know-how.
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Privatisation of the road-builder Destia is again on the agenda (26.08.2013)