Funding Cuts Threaten Public Transportation Services Across Finland
Wednesday 23rd October 2024 on 07:58 in
Finland
Publicly funded public transportation has declined in recent years, and this trend may continue. The rising costs of public transport coincide with a return of funding to pre-pandemic levels from 2019. Following the onset of the COVID-19 pandemic, passenger numbers plummeted. State funding, amounting to about 40 million euros annually, was used to secure transport services through regional centers. However, starting next year, these centers will receive only approximately 30 million euros for public transport.
Passenger numbers in regional transport have not yet recovered to pre-pandemic levels, forcing centers to cut transport costs by around 10 million euros annually. Public funding for transportation can support routes where operations do not cover costs, but demand must still exist to justify these services.
Markus Kivelä, a project manager at the Varsinais-Suomi regional center, describes the situation as critical. He notes that the budget for publicly funded transport has never been this strained during his nearly 20 years in the field. In Southwestern Finland, around 60 publicly funded routes have been cut in the past two years, with recent schedule reductions taking effect last August. Further reductions will occur on the Pori–Eurajoki–Rauma route in early November.
Next year, the savings target for public transportation in Southwestern Finland is projected to reach 1.2 million euros. Kivelä emphasizes the difficulty of meeting existing contracts, stating that initiating new transport services is nearly impossible.
The situation is equally dire in other regions, such as Eastern Finland, where weekend services have already been reduced. Satu Huttunen from the North Savo center highlights the need for meticulous review of all procurement processes.
Similarly, Kirsi Ylipiessa, a transportation expert from the Lapland center, explains that some services have already been curtailed, and not all existing contracts can be renewed. As public demand for subsidized transport remains strong, new service proposals continue to emerge. For instance, VR plans to introduce a train service to Kemijärvi, necessitating connections to northern tourism hubs.
Ylipiessa expresses a need for prioritization due to financial constraints, urging the government to allocate necessary funds. Additionally, the prices of public transport tickets are expected to rise next year due to an increase in value-added tax.