Government support for abrupt structural change situations in Jämsä and Utsjoki

On 16 December 2021, the Government has granted EUR 4 million for the abrupt structural change situation in Jämsä and EUR 300,000 for the situation in Utsjoki. The funding will support the sustainable growth and vitality of the regions.

EUR 4 million for Jämsä to create new businesses and jobs

The funding granted to the Jämsä region is intended to manage the structural change caused by the closure of the UPM Kymmene Kaipola paper mill. The funding will be allocated to coordinating structural change and developing the operating environment in order to create new businesses and jobs in the region. 

The EUR 4 million allocated to the Regional Council of Central Finland is the final instalment of the approximately EUR 8.7 million in total funding agreed in the autumn 2020 budget session. In autumn 2020, the Regional Council of Central Finland was granted a business aid authorisation and regional development funding totalling EUR 4.5 million.

 “The outlook for Jämsä has changed significantly due to sale of the paper mill area and new activity that is revitalising the area. The key is to turn the interest shown in the area into practical measures. It is precisely this development and regional renewal that the funding will support,” says Minister of Economic Affairs Mika Lintilä.

EUR 300,000 to Utsjoki to promote sustainable business

The funding granted to the Regional Council of Lapland is intended to manage the change in the local business community caused by the Utsjoki fishing ban and to promote coordination and sustainable business activity. 

Finland and Norway have jointly made the exceptional decision to prohibit fishing temporarily on the River Tenojoki, covering the entire life cycle of the Tenojoki salmon from the sea to the river. The reason for the restriction is the rapidly deteriorating state of the River Tenojoki’s salmon stocks. 

The decision aims to secure fishing opportunities and viable salmon stocks in the River Tenojoki in the future. The ban on salmon fishing will adversely affect the economy of the Tenojoki Valley. The tourism industry and joint owners of fishing waters, in particular, will suffer losses of income from tourism and fishing permits. Tourism in the region has been strongly built around fishing, and the restrictions will have significant indirect effects on fishing tourism. The employment effects of the exceptional situation will fall directly on tourism and service providers and indirectly on the municipality and other service providers. There is a strong cultural tradition of salmon fishing in the region and the effects of the changed situation cannot be assessed on economic grounds alone. The effects are local and will particularly impact the vitality of the municipality with its small population.

 “Securing salmon stocks at a sustainable level is important. It is also essential to develop business and tourism in a sustainable way, both in the short and long term. New initiatives are also needed to revitalise local business activity and respond to the changed situation. The central government funding can be used to ensure regional coordination of measures and, for example, make analyses to promote the launch of new businesses,” says Minister Lintilä.

Inquiries:
Jenny Hasu, Special Adviser to the Minister for Economic Affairs, tel. +358 40 658 3510
Petra Stenfors, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 29 504 7282