Thetis urges committee to reject increase in public lab funding

The private testing laboratory Thetis has asked the Finance Committee not to increase funding for the testing laboratories run by Heilsufrøðiliga starvsstovan, a government agency that also oversees businesses, KVF reports.

Thetis says competition for routine business tests should be genuinely fair, with the agency charging prices that cover the cost of carrying out the tests.

The government’s proposed 2027 budget would raise the agency laboratories’ net allocation from 5.5 million to 6.1 million kroner. The microbiology department has annual expenses of 6.05 million kroner and revenue of 4.05 million, leaving the state to cover a two-million-kroner shortfall each year.

In its letter, Thetis says other laboratories offer the same tests without receiving public funding. It also points out that the agency both regulates businesses and provides services to companies it supervises.

Thetis recommends separating the agency’s commercial activities from its regulatory work in the accounts, so it is clear which costs are covered by the state. The government is seeking savings in its 2027 budget proposal, and Thetis says this is an area where savings could be made without reducing service levels.