Diese verdammte Regierung

Those subsidies to shipping companies and forest product companies have been ongoing for decades, not really invention of the current government.

But it’s true that especially to shipping/cruise companies (like Viking Line or Eckerö), have quite significant subsidies compared to their revenue. Last year there was actually talk about cutting them, but the companies threatened that they would move the ships under Swedish or Estonian flag. That would have been politically difficult for government, as some of those jobs would have moved to neighbouring countries. Those companies probably pay close to zero total tax. But it is supported/justified by claiming that those logistic lines are really vital for Finland. In this field, it would make most sense to have cooperation with our neighbours/EU to prevent such a race to the bottom situation.

Forest industry companies like UPM-Kymmene also have had different subsidies for decades. But its important to note that they still pay quite lots of taxes. So subsidies only partially offset that, like in this case, parts of increased emission trading costs.

So its true that there are subsidies. And it is a valid point to be against them. Many of them are existing system that have been going on for a long time. And spesific lobby groups always support the status quo strongly if its beneficial for them. But that’s also quite economically liberal point in a way, to support that state shouldn’t interfere with free markets or prioritize industries. 

You know, take UPM-Kymmene as an example. In 2023 alone, it paid around €600 million in various taxes. The subsidies it received, about €150 million, were spread over six years, which comes to roughly €25 million per year. Even accounting for those subsidies, the company is still contributing on the order of €575 million annually in taxes.

And that’s only the direct impact. It doesn’t include the broader economic effects. Employees pay consumer taxes while they spend their wages on goods and services, which generates additional tax revenue. The same applies to contractors and partner companies that operate largely because they supply UPM. Those businesses also generate profits, employ people, and pay taxes.

So simply by operating, a large company like UPM contributes hundreds of millions of euros to public finances, both directly and indirectly, far exceeding the subsidies it receives.

If this perspective is new, it might be worth looking into the broader economic picture. It can be more nuanced than it first appears.

> On the other hand, UPM has reported profits and distributed dividends in each of the past six years. Last year, it earned an operating profit of nearly three-quarters of a billion euros.

Just incredible.