Response to interpellation 2023/24:450 on support for green transition

Statsrådet Erik Slottner (KD)

Madam Speaker! Eva Lindh has asked the Minister for Finance if she intends to take any measures to support municipalities where the green industrial revolution puts the municipal economy under severe pressure, and if so, what measures. The interpellation has been handed over to me.

Swedish business shall be given the conditions to be leading in the green transition. Large industrial establishments and expansions are occurring all over Sweden, not least in Norrbotten and Västerbotten counties where many communities face an extensive expansion. The new situation entails that municipalities, regions and state authorities need to develop their ways of working.

The government's former 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 and the extensive societal transformation that is taking place. He also describes what the industry's opportunities and challenges look like moving forward.

The Government has subsequently tasked Tillväxtverket with coordinating the work at a national level to support the new industrialization and the societal transformation in Norrbotten and Västerbotten counties. The assignment means that Tillväxtverket shall promote the establishment of long-term forms of cooperation that, among other things, assist the affected regions and municipalities. Tillväxtverket shall also document and disseminate knowledge and experiences from the assignment to relevant target groups in order to create increased learning regarding methods for supporting larger company establishments and company expansions throughout the country.

To this end, the county administrative boards in Norrbotten County and Västerbotten County have been tasked with carrying out measures that contribute to managing conflicts of objectives that arise during the processing of cases due to the developments in northern Sweden. The assignment includes developing new methods of work and further developing existing collaborations.

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 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 strong 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. It concerns the fact 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.

A number of government measures have therefore been taken aimed at facilitating for municipalities with large corporate establishments and corporate expansions to manage the challenges that the situation entails for them. The Government will follow the development and thus monitor the need for further interventions.

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Eva Lindh (S)

Mr. Speaker! Thanks to the Minister for Civil Affairs for the answer! Creating new green jobs is Sweden's hope for the future. It creates a stronger economy while we secure the future of coming generations.

There are many countries and companies competing for new opportunities for the green transition. Most understand that it is crucial for our future. It is the countries at the forefront of the transition that will see the highest growth and the most jobs. For Sweden to be part of that, we must keep up. The public sector, politics, has an important role in creating the best possible conditions.

Mr. Speaker! To enable the emergence of new industry and new jobs, the Social Democratic-led government pushed for large investments to transition the industry. This has occurred through Industriklivet, which has involved large and important initiatives and support for the development of innovative and technology-shifting solutions. Green credit guarantees have been crucial for large industrial investments across the entire country.

These investments have made the green industrial revolution possible. Now, the green fossil-free steel is being produced here in Sweden. Battery factories are being built. It is a success, and it makes Sweden stronger with many new jobs. Tens of thousands of new jobs have already been created in Sweden. Through this, we can show the rest of the world how a faster climate transition not only tackles the climate challenges but also creates jobs and export opportunities.

Mr. Speaker! Svenskt näringsliv has realized that the future is green. Now this government, with SD as the government base, needs to deliver important decisions to provide the conditions for the transition. I will return to this a bit later.

So, to the question in the interpellation - for this is a background to what it is we see and live in. The transition and the green industrial revolution are most clearly noticeable right now in the northern parts of Sweden - in Skellefteå and Boden. Here there is green electricity, large areas of land, and other things.

For municipalities and regions, some of which have for a long time seen an out-migration and reduced economic resources, this naturally gives hope and faith for the future. But it also presents specific challenges. Investments are required in everything that provides the conditions: land, roads, sewage, housing, and people to meet the demand for skills. But investments are also required in an expanded welfare for all those who move to the area.

There is, however, a lag in tax revenues and other things, so if one is to manage this increasing population development and the new investments, the municipality and the municipal economy are also heavily affected. It risks slowing down development if they do not feel they are receiving the support they need.

That was also why I asked my questions. I have spoken with many municipal councilors and politicians at the municipal level who are concerned and who I know need to receive a decision from the government. Will the support that they request and need to be there arrive?

I must return to my remaining questions, as I see that my speaking time is now over.

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Isak From (S)

Mr. Speaker! I and Erik Slottner had a debate on a similar subject some months ago. I had submitted an interpellation to the Minister for Finance regarding green credits to the municipalities or other support.

I signed up for the debate now because I hear that the answers differ a bit. Admittedly, Peter Larsson is also mentioned in the answer I received, but in Erik Slottner's answer to Eva Lindh on this interpellation, I hear that quite great weight is placed on the tax equalization and the investigation on it and how it can consider compensating the municipalities that have large population growth.

But for Skellefteå and Boden, the costs are here, now and yesterday. In Skellefteå, where production at Northvolt and other industries is already underway, over a hundred people are hired every week. New urban planning was needed and, unfortunately, also more construction companies that actually dare to invest, because now the municipality's own housing company has to step in and build everything they can manage. There, the costs are here and now.

At the same time, it is a neglected infrastructure. Trafikverket intends to investigate things that previous governments, but also this government, have said should be built. The Norrbotniabanan is to be built. But now the entire Skelleftepaketet, with a rerouting of the E4 through Skellefteå, is also to be investigated, and Trafikverket estimates this will take five years. Thus, a wet blanket is laid over large parts of the area, when one does not fully know how it will go. Major planning that must be done is postponed. Actions are needed here to keep things moving. The actions that are actually taken also need to mesh with one another.

Just as Erik Slottner says in his response, there can also be a large population growth. A city in northern Sweden that has had continuous growth for over 60 years is Umeå, which is a net payer into the system. Because it has a relatively young population and low unemployment, it pays into the system. The same applies to Kiruna and Gällivare. Despite the fact that Kiruna has a very high proportion of labor migrants, Kiruna and Gällivare pay net into the system. Nevertheless, they currently have enormous difficulties in making their finances balance because they have huge costs linked to the gigantically large investments taking place in the respective locations.

For Gällivare but especially for Kiruna, it is also the case that there is a lack of buildable land. There are restrictions on almost every land area that is needed, which means that enormous investigations and perhaps also court processes and other legal processes are required to access them.

The government must take a cohesive responsibility for the whole. If it is desired that these large investments should be successful, investments in several areas are required and not just references to the tax equalization system.

(Applause)

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Statsrådet Erik Slottner (KD)

Mr. Speaker! Let me begin by saying what has also been said earlier here in the speaker's chair, namely that it is a very exciting development taking place, among other things, in northern Sweden. However, it is not only northern Sweden that faces this new industrialization, which is to give us amounts of new green jobs and be much of the solution to the climate crisis ahead, but also other parts of Sweden. I will myself go to Västra Götaland next week to visit a large battery factory, for example. That must be said.

But it is very much the northern parts of Sweden that are coming into the spotlight, and for very understandable reasons. It is a new industrialization that is taking place there and which has ignited a new hope in these parts of Sweden. Those who previously were almost condemned to constant depopulation can now see the future shining: People are moving here! Jobs and new opportunities are being created here, and we are now a part of Sweden that will very concretely contribute to solving the climate crisis and many other problems that we see in our country and in the rest of the world. A hope has been ignited in the northern parts of Sweden that is fantastic, and this is exciting.

But that naturally also poses very large challenges, which have also been exemplified here. Growth can cause growing pains - that is something many parts of Sweden are aware of, and it is now also being felt in the northern parts.

When I meet municipal representatives, I absolutely hear some of the stories about the problems that growth brings. But the problems are much greater in the municipalities that experience the opposite: depopulation and companies leaving the locality and the municipality. It is a much larger problem than what we now see in some of the growth municipalities in Norrbotten and Västerbotten. I still think it is important to say, because sometimes it does not sound that way in the debate.

I am not only referring to the equalization system, but it is still worth pointing out that the green transition in northern Sweden is mentioned in the directives to the Equalization Committee and that a strong population growth is a factor that is now being compensated for in the equalization system. Then we will have to see what the committee comes to. Member Lindh sits on the committee, and we will have to see if they come up with a proposal that can in some way, to some extent, compensate for the costs that the growth entails. I am not interfering in what the committee comes to, but it will still be interesting to see because this is something that is mentioned in the directives.

This government also gave additional directives by saying that we do not want the tax equalization system to be designed in such a way that growth is hindered or that it costs the municipalities to grow. It is something that we are handling anyway in the investigation, and I am very happy that we have done so.

Then we also provide additional funds to the county administrative boards for this year, 100 million, for a more efficient and better permit process according to the Environmental Code. It is also very important to achieve these establishments. Many of the problems I encounter now are not just about municipal councilors complaining about population growth, but I also encounter a great deal of criticism that it takes too long with housing establishment and industrial establishment – not to mention the lack of competence supply, for example. There is a great deal of problematizing even regarding this.

We are now allocating 100 million kronor to a more efficient and faster permit process, of which 10 million is specifically designated to Västerbotten to facilitate industrial establishment in this part of Sweden which has much new industrialization.

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Eva Lindh (S)

Mr. Speaker! In my previous contribution, I attempted to describe the situation. I now wish to clarify a number of questions that I would very much like to have answers to.

I want to start by providing some background to my first question. When we in previous debates have talked about how we can support municipalities in the green transition, it has usually been pointed out that we have a large common consensus that Sweden should be a leader not only in ambitions but also in realization. That is very good, but for me, it is a truth with some modification. It is also one of my concerns regarding this.

The whole world realizes that the future is green and that we need to steer towards it. On several occasions, however, the Sweden Democrats, which are part of the so-called government base, have stated things that lead to strong concern. In a debate in the autumn, for example, the Sweden Democrats' economic-policy spokesperson spoke out against the technological shift that the Swedish steel industry is facing. It is about refining and making efforts that are incredibly important. It is billion-dollar investments that are at stake, and then no one can be hesitant. This raises concern not only in me but also in others. What does this mean for the investment that is needed?

So, my one question is: How does the government and, in this case, the Council of State relate to the fact that there is such strong skepticism towards this among the Sweden Democrats, who are part of the government's support base?

Since then, I have a few questions based on the answer the Minister gave to my interpellation. One concerns what the Minister partially touched upon: It is very clear that the green industrial revolution is truly visible in Västerbotten and Norrbotten, but not only there. I want to emphasize this. It is also precisely for that reason that it feels important to debate this.

If the municipalities that are leading the way now do not receive the support they need to develop, it can create a hesitation among other municipalities to follow suit, because they see that the challenges are so great. We do not need that hesitation. We must remove that hesitation by giving the municipalities the support they need. I want to emphasize that. It is also a question. Are we in agreement that what is being done in Norrbotten and Västerbotten must also be done in other parts of Sweden?

My third question concerns the equalization system. I am somewhat unsure what the Minister means when he says in his answer that one takes into account the impact of strong population growth. As I recall, it concerns one area, possibly two. But it is not particularly clear for those municipalities that it is a support for the strong population growth today and that it is intended to compensate for structural conditions. I therefore wonder what the Minister bases this on and in what way it is supported.

The green transition is something that all municipalities face and welcome. But it is a huge challenge, which costs a lot of money. I ask once more: Will the government support this development and the municipalities where it takes place?

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Isak From (S)

Mr. Speaker! Swedish steel bites. It is a fairly well-known saying. Now it is the new Swedish, climate-smart steel that bites.

On Thursday morning, we have a seminar here in the Riksdag together with LKAB, SSAB and H2 Green Steel, precisely based on what Eva Lindh points out, that there is a resistance movement. It exists particularly among the Sverigedemokraterna. But even others in other parts of the country feel worried about what will happen now. Does this threaten our energy supply?

It is dangerous to reason that way. Sweden and Swedish industry have always built their success on being at the forefront. That is precisely why it is important that the green industrial climate transition, which is taking place in northern Sweden, lands on its feet. It must not be the municipalities and taxpayers in Skellefteå, Boden, Luleå and Gällivare who are left holding the bill. In that case, more people will think that it is not worth it and that it must happen somewhere else. Thus, we do not build Swedish success.

There are currently more success factors that the government can seize upon. 600,000 are unemployed. Many of them would get jobs directly in Skellefteå, Boden or Luleå if there were housing. Right now, the housing shortage is the biggest obstacle to reducing unemployment.

There are probably some measures as well, a bit of lubricant, so that one goes and seeks a job at Arbetsförmedlingen. But it is still the government that has the opportunity to take a holistic approach to this. Take that approach!

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Statsrådet Erik Slottner (KD)

Mr. Speaker! To Isak From, I want to say that my view is still that municipalities are crying out for business establishments. They want business establishments in their municipality. It is not as I think it sometimes sounds, that the municipalities shun business establishments, that they do not want people to move there because it costs so much money to get people and businesses there. Municipalities want to grow and have growth.

We must ensure that we have a tax equalization system that does not hinder growth or cause municipalities to lose out on growth. That is why I mention the tax equalization system here. It is also why this government, in a supplementary directive, has pushed even harder on precisely the growth factors; we must not build in growth-inhibiting parameters in the equalization system. That is what the committee should look at. I truly hope that they do so in a serious manner.

I think that we already today support municipalities that want establishments. We can certainly do more. It is very possible that the government will come with more proposals. But I still want to mention the assignments we have given to Tillväxtverket to grease development in, among other things, the northern part of Sweden. We have given the county administrative boards 100 million kronor so that they should speed up and streamline the permit processes. Of those millions, 10 are specially designated to Västerbotten so that they in turn shall coordinate different building permit applications.

The government is, therefore, doing things. I am not saying that nothing more will come. But I still think one can be a bit decent and say that the government is doing things.

I believe, however, that it is difficult to have targeted state grants to individual municipalities that are hit particularly hard. The boundary lines would become enormously difficult. Which municipalities should one give grants to because they are growing too much? Which municipalities have problems with their finances due to the growth? What is due to other things and so on? It would be difficult to build up such a system. I have also not seen in detail what the Social Democrats are proposing.

Regarding the industry's possibility to contribute to the climate transition, this government is firmly determined that the industry has a key role in terms of contributing to the transition. Regardless of what any member in this chamber says, the government is firmly determined that the industry has a key role in this regard.

In order for the industry to be able to play that main role, we need to electrify. Then we need to increase the production of fossil-free electricity in Sweden. And in that, nuclear power plays a very important role. There, the government and Sverigedemokraterna have joined forces and pushed through a policy that enables an expansion of nuclear power. It will play a huge role both for industrialization and for the climate transition.

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Eva Lindh (S)

Mr. Speaker! I believe and hope that it is only the Minister for Civil Affairs who hesitates as to whether we think the green transition is positive. We do. It is clearly visible that the municipalities welcome that transition. We know that.

What we are highlighting is that there are challenges. More municipalities must dare to do this. Therefore, it is important to support the municipalities that are leading the way now, but naturally also the others. It is clear that it is incredibly positive with the municipalities that are part of the green transition, municipalities that are growing and where new jobs are being created. It gives an incredible faith in the future. But we need to support the municipalities where it is actually happening with the costs they have. Because it costs money.

I hear what the Minister for Civil Affairs is saying. But the Sweden Democrats have pointed out that no tax money should be spent on this transition. That naturally raises concern about what that implies. And of course, we must ask that question.

Supporting a green transition is good for us to tackle the climate threat and develop and strengthen the labor market. The government but also we in the Riksdag must truly show that we together support that development. It is important not only for the municipalities but also for Sweden as a whole. It is also therefore why I want to receive an assurance that the government truly supports that development and will assist the municipalities that face these challenges but also the great hope it gives for the future.

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Statsrådet Erik Slottner (KD)

Mr. Speaker! As Civil Minister, I am also responsible for the state's relationship with municipalities and regions, and that means I am out in the country quite a lot and meet many municipal representatives. Next week, I will be making such a trip to Västra Götaland and Skaraborg. I am, therefore, fully aware that the green transition and industrialization also create challenges, as I mentioned in my previous contribution.

It is not entirely easy to know exactly what is the best way to support. Is it through direct financial contributions, or are there other ways – by facilitating and greasing the wheels to, for example, achieve smoother permit processes?

The challenges and problems look a bit different depending on which municipality it concerns. Sometimes it is housing construction that is difficult. Sometimes it is about national interests playing a major role, which makes it difficult to even manage to establish companies at all. Sometimes it is a lack of competence, and sometimes it is about the population continuing to decrease in some municipality despite there being a need for it to increase. The needs, therefore, look very different.

The state has so far, during the more than a year the government has been in power, made some efforts to support the northern parts of Sweden, but I do not rule out that we will come with more measures. We are, of course, listening very carefully to what the municipalities are requesting in terms of measures.

The interpellator may, of course, ask whatever questions she wishes. I will probably have to check exactly what the Sweden Democrats have said in the chamber and whether they support the green industrial transition or not. But regardless of what the Sweden Democrats think on that question, I feel secure in any case that the Social Democrats can be partnered with on the issue of the green industrial transition. It is important for Sweden's future but also for the climate transition.

The interpellations debate was hereby concluded.

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