Response to interpellation 2022/23:230 on the municipal step as the next step in the green transition
Translated from Swedish by AI; the translation may contain errors. The Swedish text is the original.
Summary AI, written in advance
KD argues that the new industrialization in the north requires a reorientation of authorities and municipalities 1. KD believes that the municipalities are responsible for their own finances and that the tax equalization system should be built upon 2. KD emphasizes that increased production of emission-free electricity is the most important issue 2 and that the state takes a commitment by giving the county administrative board assignments. S argues that the equalization system does not meet the acute needs in municipalities such as Boden and Skellefteå 3. S advocates for a "municipal step" with state grants, credit guarantees, and green credits to share the risks with the municipalities 4 5. S argues that the government must act with concrete measures to facilitate for municipalities with heavy investments 6.
Written by AI in advance and may contain errors. The numbers lead to the speech a statement builds on; check against the text below.
Statsrådet Erik Slottner (KD)
Madam Speaker! Fredrik Lundh Sammeli has asked me how I intend to act to ensure that the host municipalities for society-transforming industrial establishments shall have reasonable conditions to meet the needs that this creates in the local community.
In Norrbotten and Västerbotten, an extensive new industrialization is underway. When new sustainable industries establish themselves in northern Sweden, this part of the country can become a leader in the global climate transition. The new situation has required a reorientation of the way municipalities, regions, and state authorities work.
The Government's coordinator for the business sector's sustainable transition and the societal transformation in Norrbotten and Västerbotten counties, Peter Larsson, reports in his report from November 2022 the enormous steps that have been taken, the extensive societal transformation that is taking place, as well as, among other things, how the industry's opportunities and challenges look ahead, for example when it comes to infrastructure, housing, educational opportunities, and skills supply. Against this background, and to enable a good handover of the work, the government has extended the coordinator's assignment.
The transition is expected to lead to significant population growth in the affected municipalities. Population growth in itself can have positive effects for a municipality, but during a transition period, it can also pose challenges to grow significantly in a short period of time. The Government intends to promote equal economic conditions for municipalities and regions. In the municipal economic equalization system, the impact of significant population growth is taken into account. The equalization compensates for such structural conditions, which should therefore benefit these municipalities in the longer term.
In the directives to the ongoing parliamentary committee with the mandate to review the equalization system, the development in northern Sweden is highlighted and that several municipalities and regions there face a profound transition with an expected very large population growth. The committee shall, throughout its work, analyze the equalization system's impact on growth and development.
I also want to mention that the county administrative boards in Västerbotten County and Norrbotten County have been tasked with offering planning support to those municipalities facing major planning challenges as a result of larger industrial establishments, paying out financial support for innovative and sustainable community construction projects in Norrbotten and Västerbotten counties, as well as developing methods and forms of cooperation for consultations regarding projects aimed at reduced environmental and climate impact.
A number of government measures have therefore been taken aimed at facilitating for those municipalities covered by the ongoing development in northern Sweden to manage the challenges that the situation entails for them. The Government will follow the development and thereby monitor the need for further interventions.
Fredrik Lundh Sammeli (S)
Madam Speaker! Thank you, Minister, for the answer!
The climate requires that we transition to a fossil-free society. To carry out a just transition means to transition in such a way that one has strong popular support.
In northern Sweden, there are unique opportunities to transition to renewable industrial processes, and a sustainable transport sector can be implemented in such a way. Instead of placing the blame and responsibility on every single individual, the entire new industrialization shows that the transition can mean growth, added value, and more jobs.
The world's eyes are now turning towards what is happening in northern Sweden. Industry is investing large sums of money to transition their processes with green technology. This leads to the country's major growth peak being in my home county of Norrbotten and in other parts of Norrland. For the investments in fossil-free steel production, battery manufacturing, and hydrogen production to be realized, it is required that the public sector keeps up.
Norrbotten is first out. But many municipalities around the country will follow the same path and in the same direction moving forward as the entire Swedish industry undergoes the green transition that is so necessary for the planet. Municipalities that are to meet large establishments and transition in a very short time need the society's collective support.
Madam Speaker! I do not perceive the Minister's answer as an answer to the question I asked. To be honest, I am quite convinced that both the Minister for Civil Affairs and his officials are well aware that the equalization system being highlighted here is not the answer to the problem. That entire system is built on a large-city perspective where one has the muscles to transition, can grow, and can live with the fact that the compensation will come a few years ahead in time and in retrospect.
It is not the reality for the municipalities I am speaking of where the green transition is now taking place. It is about Boden, Skellefteå, Luleå or Mariestad. It is not only in Norrbotten that it is happening. All around the country, municipalities will be in a position where they have to do something that Kommunsverige previously has not done. Each individual municipality's ability to carry out the transition determines whether the green transition around the country will be possible or if one becomes a bottleneck that hinders that development.
My question to the Minister is whether the Minister intends to act to ensure that the host municipalities for the society-transforming industrial establishments will have reasonable conditions to meet the needs it creates in the local community if the equalization system is not the solution. It is a model that is not built for this situation.
It is the municipalities that are facing enormous challenges here and now. They need help to share the risks and our common public support to make the transition possible. It is not about being able to have a tax equalization in hindsight that replaces what a large city does in a growth phase.
Linus Sköld (S)
Madam Speaker! Thank you, Minister, for the opportunity to debate a question so crucial for the country as the green transition in the north!
Many of us were delighted in January when the government presented a debate article in Dagens industri. There, the government wrote that there is a golden opportunity for northern Sweden to lead the new industrial revolution. Then, a number of points were broken down that would be included in a strategy for northern Sweden.
One of the points that was split in the debate article concerned community services. I thought to quote the government representatives who signed the debate article: "An increased rate of immigration can in the short term constitute a strain on the municipal economy because the need for investments in community services and infrastructure can quickly grow. That the expansion of community services in the form of schools, healthcare, and elderly care of the highest standard follows population growth is absolutely crucial for a successful re-industrialization."
I think this means that the government has taken exactly the same position as Fredrik Lundh Sammeli. The public sector must keep up when the business sector is to expand. If the public sector does not have the capacity to keep up, the business sector's expansion will not happen, and the green transition will falter or be deficient.
This is what the government says. If one looks at what the government is doing so far regarding the conditions for the green transition, it can be summarized as follows: The government has phased out the investment support that would lead to the construction of housing. The government has cut hard into the opportunities for adults to educate themselves and in the labor market policy that could facilitate the supply of skills. The government has also made it more difficult to build offshore wind power, which had the best conditions to meet a rapidly increasing energy demand.
The answer to the interpellation does not ensure that the government has understood what the public sector needs to do to facilitate the green transition. If one adds that the largest party in the government's basis has taken positions on stopping the Hybrit pilot project - and furthermore, that a number of Moderate debaters during the week have supported exactly the same line - it does not reassure me. Despite the government saying that there is a golden opportunity in northern Sweden, it acts in contradiction to that and clashes with people who do not seem to think that it is an opportunity with the green transition in northern Sweden.
An answer is still needed to Fredrik Lundh Sammelis' question. The municipalities need the conditions to meet the demands of the new industrialization. It is absolutely crucial. How will the Minister act to ensure that it happens?
Statsrådet Erik Slottner (KD)
Madam Speaker! To begin with, I want to say that it is a fantastic development that we are seeing in Västerbotten, Norrbotten and many municipalities, something that we only a few years ago thought was completely impossible. It sounds like it is a great leap that northern Sweden has and that it is a pity for those who now have a lot of industrial establishments that want to come to them and that they see a great growth ahead of them.
What is now happening in parts of Norrbotten and Västerbotten is a dream for very many municipalities in Sweden. I still want to take off from there so that we do not make the development sound all too negative. But it naturally brings with it great challenges.
This is not a new problem. It is a well-known problem that very large growth creates great challenges. I know this myself, as I have a background as a municipal politician in Sweden's capital. Rapid and large growth can lead to great challenges and, not least, a large investment need. We also know that stagnation creates very great challenges. In the long run, it is completely devastating for the residents' future.
A prerequisite for industrialization to succeed is the supply and production of electricity. Norrbotten will need the electricity they themselves produce going forward. We have for a very long time relied on the northern part of Sweden to provide the production of electricity which is then to be transported down to the southern parts of Sweden. This is over.
The northern parts of Sweden will need their own electricity production. We will need to increase electricity production in Sweden and not least in the southern parts. It is a task that the government has initiated in a very active manner. During the past weeks, we have seen several examples of actors who have now said they want to build new nuclear power in different places in Sweden. We have also seen two decisions that came quite recently regarding the expansion of offshore wind power. It is something that is very positive for these industrial establishments to be possible.
Then we have the investigation on the tax equalization committee. One can object and say that it means nothing, but one parameter in the tax equalization system is precisely to compensate for the costs a municipality may incur during very rapid and extensive growth that leads to large and radically increased investment needs in the municipality. Even if this does not compensate fully, it at least compensates to some extent, and there is now an investigation that is currently reviewing the entire tax equalization system. This is a parameter that should be reviewed, and in the investigation directives, the growth in the northern parts of Sweden is specifically mentioned.
We also have the coordination person Peter Larsson, who has received an extended assignment. I think this is an important assignment, and we will see if there are any more interventions that we can make from a state level. But it is also, of course, limited what the state can do. We cannot step in and directly support certain municipalities based on different parameters in this way; it must be an objective perspective that we start from. The tax equalization system is an example of this. We also cannot step in and support private companies, as that would conflict with EU state aid rules and other such things.
This does not only affect the individual municipalities that have new establishments, but it is important that we cooperate and coordinate between municipalities so that also the surrounding municipalities around the municipalities with new establishments can reap the fruits of the large industrial establishment that is taking place.
Fredrik Lundh Sammeli (S)
Madam Speaker! In order to carry out this societal transition, which in itself becomes a prerequisite for making the climate transition possible without simultaneously eroding welfare locally or breaking the municipalities completely, I believe that the state needs to take a third step – the municipal step.
We as a society have already taken two important steps to support the so important climate transition. The reforms have been completely crucial to achieving the transition we are now seeing. Industriklivet and Klimatklivet have made the green transition possible within both industry and society as a whole. It is what we are now seeing happen in Norrbotten and Västerbotten and which will hopefully spread across the entire country.
This entails a societal transformation that needs to occur both quickly and sustainably. I mean that a municipal levy would be needed to provide an opportunity for these municipalities to receive both state grants to strengthen their work regarding permits and establishments and state credit guarantees for loans for necessary investments. These are investments that are necessary for the construction of sustainable societies linked to the green transition that is now taking place.
Madam Speaker! If we are to succeed with the climate transition, a whole societal transition needs to take place. We can already see that this is costing an enormous amount for the individual municipalities in Norrbotten. It is not okay to bear the green transition; we do it with joy. But it is important to see that we cannot risk Sweden's green transition and Sweden's potential in the area by making the transition a municipal issue. Very many municipalities that are in a position to be host or location municipalities for the investments do not have the muscles required.
As a country, we have been good at meeting downturns, warnings, and layoffs. We have batteries of measures to deploy from the state level in such situations. Now it is about turning the perspectives. The green transition within industry is made possible by the policy we have driven with industrial steps and climate steps under a Social Democratic government. But it also now requires large investments to take this further. A de-risking is needed, because both the pace, the scope, and the risk are too great for individual municipalities to match.
I think that Kommuninvest is a good model for some of the municipalities' everyday challenges. Here, some kind of state guarantees are needed, and here the Riksgälden has a role to play. We have created green credits for industry and to make this possible, and now green credits are also needed for the municipalities. The municipal equalization system compensates in retrospect, and it is good that it has that model to meet some of the challenges for growing municipalities. But the need that we see in the north and which is not specific to the individual municipalities but which will affect very many other municipalities requires actions here and now - not in several years.
Therefore, my question is: Is the government prepared to act to support the municipalities in the green transition?
Linus Sköld (S)
Madam Speaker! Initially: I agree with the Minister of Justice's conclusion that we are seeing a fantastic development in northern Sweden. That is absolutely so. I also agree with the government representatives who wrote on the debate page of Dagens industri that this implies an effort for the municipal economy.
One needs to invest in schools, roads, preschools and water networks. These are many heavy investments for the local municipality to bear. Healthcare staff, teachers, caretakers - yes, you know - must be employed. If this is to become good, the government must act. As I mentioned, we have so far seen fine words from the government in a debate article. Now action is needed.
My question remains: How will the government act to facilitate things for municipalities that are struggling with the investments? Will there be any municipal action, or will it remain at words?
Statsrådet Erik Slottner (KD)
Madam Speaker! I, and as a minister responsible for the finances of municipalities and regions, among other things, travel around and meet with municipalities and regions. This spring, I am also meeting all county administrative boards across Sweden. I then have the opportunity to speak with various municipal representatives from both large and small municipalities, from growth municipalities to depopulating municipalities, to hear about their challenges.
The challenges mentioned here concern, among other things, a large investment pressure on plumbing and the renovation of schools and elderly care homes. It is the municipalities that often have an old stock and that need to either invest in new buildings or renovate existing buildings. This is a problem for significantly many more municipalities than those covered by the new industrialization in northern Sweden.
When it comes to the specific investment funds now proposed here in the rostrum, I do not quite know what the proposals look like in detail. These are boundaries that become very adequate to make. Should investment support be given to municipalities that now have great needs, while other municipalities that for a long time have taken care of their properties and facilities are punished by not being given investment support? There are very many such large trade-offs.
We have tax equalization systems that compensate for structural deficiencies. I believe that it is rather what we need to build upon in that case.
The most important issue is once again to increase the production of electricity - emission-free electricity. This includes, for example, nuclear power, wind power, solar power and other electricity production. This government is working on this with full fervor.
The previous government with the Social Democrats and the Green Party contributed to the decommissioning of nuclear power plants in Sweden and thereby reduced our resilience and our preparedness for a new industrialization of the green industry in Norrbotten. It was a fatal mistake.
I am proud that this government, despite having been in power for such a short time – only a few months – has taken several steps forward to be able to pave the way for new nuclear power. It has also managed to approve several new wind power establishments.
At the core, it is the municipalities that have a responsibility for their own finances and their own investments. This is known. It is nothing new.
The municipal representatives I have met from the municipalities we are talking about, and who stand for the new industrial green revolution in northern Sweden, think, as mentioned, that this is a fantastic piece of work. They look towards the future with great confidence. They have challenges, but the problems I encounter primarily in municipalities that see a declining population, that see workplaces leaving their municipality, and that see a municipality where fewer people move in and where more and more choose not to stay.
To summarize, I can say that it is very good that this debate is being held. The Government is making some efforts so that the municipalities in northern Sweden can manage the challenges that industrialization and the large growth lead to. We have a sounding man for northern Sweden, Peter Larsson, who has been given an extended assignment to see if the state needs to do anything in terms of coordination to support these municipalities. The County Administrative Board has been given assignments regarding this in its regulation letters to see if it can also play an important role in this.
The government is, therefore, doing quite a lot. But we shall look with caution at these municipalities for the fantastic, bright future that I am convinced they are heading towards.
Fredrik Lundh Sammeli (S)
Madam Speaker! Much of what is being done is good. I am glad that the new government is continuing much of the work that we Social Democrats did during our years in government. But more needs to be done.
In the debate, it is easy to get the impression that this is a specific Norrland problem and a challenge for a few municipalities. Sure, they are the first ones out on the field. But what I have wanted to highlight with this interpellation debate is that this is not a specific problem for Luleå, Boden, and Skellefteå, but a general issue for all those municipalities that in a short time must manage to grow to house some of the industries of the future, which must not become bottlenecks in the green transition, and which all become a clear illustration of how our Swedish division of society into municipality, region, and state jeopardizes Swedish development.
This is a situation that needs a national solution. A model with risk mitigation is needed. Green credits for the municipalities are needed. I hope that the Minister takes this with them. Any day, we can solve a program in one of the towns, if the Minister needs more understanding of the challenges and opportunities. This is something that characterizes our time and which will be completely decisive for Sweden's competitiveness - but also for our opportunity as human beings, here and now, to take responsibility for our planet.
Statsrådet Erik Slottner (KD)
Madam Speaker! I would like to once again thank you for the debate, as I did in the previous contribution. This is an important issue, and it is a fantastic development we are seeing in the northern parts of Sweden. As I also said in an earlier contribution, it is a development that we did not believe was possible just a few years ago. It is absolutely fantastic. Many are probably taken by surprise by the growth power that now exists in the northern parts of Sweden.
This can also be the answer to many of the climate challenges we face with the electrification and industrialization that are to lead us to a more climate-friendly society. It is absolutely fantastic!
Thus, this is naturally not only a municipal or regional matter but also a state responsibility. It is also why the state takes a commitment by giving the County Administrative Board various assignments. The County Administrative Board is nevertheless the state's voice at the regional level, so it matters what tasks we give the County Administrative Board. The sounding man Peter Larsson has received an extended assignment. He is nevertheless the state's representative in this work.
Then I believe that we need to continue working with the permit processes. That is also something the government is doing at different levels. Another problem these municipalities have is that they cannot grow as fast as they could, that is to say that new establishments are difficult to achieve because permit processes take a long time. We have not raised that in the debate so far, but it is very important to work on.
I am happy to take in new good ideas. A number of ideas have been put forward here that we may have reason to return to. We shall see. But the fundamental issue is electricity production. Without electricity, we will not manage this development, and in that case, it is wise to have a policy where we do not shut down fully functioning nuclear power plants, for example, but instead invest in new developments regarding both nuclear power, wind power, and solar power.
Source: The Swedish Parliament. The speeches come from the open data of the Riksdag, translated into English by AI, which may contain errors.