Response to interpellation 2023/24:629 on support for 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 industry is making strategic investments for long-term competitiveness and that the government contributes with frameworks and incentives 1. KD emphasizes that the state facilitates through coordination assignments and that they are investing in new nuclear power to secure fossil-free electricity 1 2. KD welcomes constructive proposals from municipalities and has taken measures to speed up permit processes 2. KD argues that it is unclear what S intends with support and asks if they want to introduce enormous state subsidies 2. KD emphasizes that the government supports the transition through energy policy, support for the automotive industry, and increased state grants 3. S argues that the government does not take responsibility for necessary investments and that state support and coordination for municipalities are needed 4. S proposes start-up loans, production support, and state credits 5. S argues that municipalities need state support to handle challenges with skills supply, infrastructure, energy, housing, and schools 6. S believes that the state must share the risks with the municipalities 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! [The member] has asked me whether I and the government will provide the support that Mariestad and other municipalities with large industrial establishments need to manage the necessary investments that follow from the green transition.
Industry is making extensive strategic investments in the green transition, which is crucial for creating long-term competitiveness. The task of politics is to contribute with frameworks, conditions, and incentives for this transition. Today we see investments in the industries of the future in different parts of Sweden, and many communities face extensive expansion.
It is positive, while at the same time creating challenges because, among other things, new electricity production, infrastructure, housing, educational opportunities, and the influx of skills must be quickly put in place. This implies new challenges for municipalities linked to, among other things, quickly planning, building, and managing new housing and good living environments, as well as offering access to preschool, school, and other community services.
The new situation entails that municipalities, regions and state authorities need to develop their ways of working.
A number of government measures have been taken that contribute to facilitating for municipalities with large corporate establishments and corporate expansions to manage the challenges that the situation entails for them.
The Government has given a coordination mandate to Sweden's export and investment council (Business Sweden) to strengthen the coordination of efforts for large-scale establishments in the automotive industry's green transition.
Tillväxtverket has been tasked with coordinating the work at a national level to support industrialization and social transformation in Norrbotten and Västerbotten counties. In the assignment, knowledge, experience, and methods shall be disseminated to support larger company establishments and company expansions throughout the country. The agency also has a mandate to assist regions and municipalities in larger company establishments and company expansions.
A letter of inquiry has been commissioned to promote coordination of state interventions that facilitate sustainable community building and rapid population development in Norrbotten and Västerbotten counties.
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 growing significantly in a short time. The Government intends to promote equal economic conditions for municipalities and regions. The ongoing Equalization Committee shall, in its work, comprehensively analyze the equalization system's impact on growth and establishment.
The County Administrative Boards shall also, within the framework of their duties regarding social planning and housing, report on what measures have been taken in cooperation with the municipalities to contribute to increased housing construction where there is a shortage of housing.
The Government will follow the developments and thus monitor the need for further measures.
Ida Ekeroth Clausson (S)
Madam Speaker! I would like to begin by thanking the Minister for the detailed answer.
Right now, a global climate race is underway where companies compete to develop new technologies and products that replace the fossil. It is important that we ensure that the jobs created by the climate transition actually end up here at home in Sweden. The countries at the forefront of the transition will ensure that they get the highest growth and the most jobs, not those that continue to be dependent on fossil fuels.
It is not so many years ago that the former Moderate Prime Minister said that the industry was basically gone. Since then, a Social Democratic government has contributed to the renaissance that Swedish industry has received by taking the lead in the green transition. The Social Democrats' initiatives have made a green industrial revolution possible. We can now see that Sweden is on its way to becoming a superpower in battery manufacturing. This is noticeable, not least in my hometown Mariestad, where Volvo will establish a battery factory that will be a boost for all of Skaraborg.
There is, however, a lag in tax revenues and other things. If we are to manage this increasing population development and the new investments that are required, municipalities and the municipal economy will be heavily affected.
At the same time as the municipalities are struggling to balance their finances today, in this sensitive economic situation, they are to invest in potential future municipal residents. State support and state coordination are therefore needed for the companies and municipalities that are already today driving the green transition through industrial renewal. New educational places are needed to meet the competence supply both within industry and within welfare in the growing municipalities.
Madam Speaker! I have therefore asked the Minister if the government intends to provide the support that Mariestad and other municipalities with large industrial establishments need to manage the necessary investments, but I am actually still unaware of the answer. The Minister mentions in the answer that the task of politics is to contribute with frameworks, conditions, and incentives for this transition. I mean that the government is not taking this responsibility today, but the Minister is welcome to clarify in what way the government contributes with conditions and incentives for the necessary transition.
The government's appointed coordinator for the battery factory also speaks about the importance of support for the affected municipalities. He advocates for a new mandate for Riksgälden to be able to offer support to municipalities facing large-scale establishments. For example, Mariestad, Skellefteå, Luleå, and Boden could then use this for municipal investments. This would allow the municipalities to retain their investment room at Kommuninvest, as the municipalities will still need to borrow. This would mean a lower risk premium. I wonder what the Minister thinks about this proposal.
Statsrådet Erik Slottner (KD)
Madam Speaker! I was in Mariestad not all that long ago – a few weeks ago. I was then informed about the fantastically exciting establishment of a battery factory that is planned in Mariestad. But I was also told about the challenges this entails, not least the need for more housing. Mariestad is not alone in this, but it is more municipalities that testify to the same thing.
I am happy to listen to the municipalities when they tell me what is needed. There are no proposals - not now in any case - for any direct financial support or subsidies in that way. On the other hand, the state is happy to contribute with a more coordinating role to facilitate the establishment. It can involve speeding up permit processes and using the county administrative boards in a more efficient way so that they do not become bottlenecks in the development.
In my response to the interpellation, I accounted for some of the measures the government has taken to facilitate the industrialization that many municipalities are now facing, not only in northern Sweden. There is a lot of focus on northern Sweden, but this is also taking place in, among other places, Västra Götaland.
One of the biggest problems that many of the municipalities and regions are experiencing is the electricity supply. The previous government did not leave that legacy behind particularly well, I must say. We have a deficient power system today, so even if we produce much more electricity, it is very difficult to achieve the capacity that is needed: to get the electricity transported where it is needed when it is needed. This is something that really needs to be addressed and upgraded, both to increase production and to increase capacity so that we get electricity where and when it is needed. It should also not be just any electricity, but secure, fossil-free electricity.
That is also why the government is now investing so much in getting new nuclear power to Sweden. It would be of immense importance for the new companies that want to establish themselves.
I realize and acknowledge that it involves problems for a municipality to grow rapidly. It can, at the very least, entail large initial costs in the form of investments. But I would still say that it is a significantly larger problem to decrease in population year after year, lose companies, and lose jobs. It is a much more difficult situation, and these municipalities are also crying out for increased support and increased help.
The state contributes today, and it is very possible that we will need to return with more proposals to facilitate industrialization and support for the municipalities that this affects.
Ida Ekeroth Clausson (S)
Madam Speaker! Possible nuclear power in the future can certainly be good. But the question is also about the fact that electricity is needed now, and that is not fixed by any future nuclear power that might be ready in ten years, at the earliest.
It is worrying that the right-wing government, together with the Sweden Democrats, has now changed direction on Sweden's climate policy. Instead, a policy is being pursued that increases emissions while the government does not seem to care whether the climate goals are met. At the same time, other countries have realized that investments need to be made in green technology. One example is the USA with its Inflation Reduction Act, IRA, to reduce carbon emissions.
Now, parts of the business community are warning that Sweden and the EU are losing competitiveness and that investments risk ending up in other countries. The CEO of AB Volvo warns that the green transition is moving so slowly that it risks eroding Swedish and European competitiveness. The CEO says: "USA, Germany and France are investing large state resources to attract companies. It is extremely positive for reducing global emissions, but it also places high demands on Sweden. If we lose our position at the forefront to other countries, we also lose competitiveness, jobs and tax revenues to build a strong Sweden."
How does the Minister intend to act to ensure that investments in green technology also continue to land in Sweden?
When the investments have finally landed in Sweden, housing construction becomes a challenge, as the Minister himself mentioned. We can already see a widespread housing shortage in Sweden. Despite this, the pace of construction has come to a complete standstill. Volvo and other expansive companies do not want their staff to live in barracks; they want the staff to be able to live in apartments.
But now the private construction companies cannot make their calculations work. Here, we Social Democrats have proposed starter loans for first-time buyers. We have proposed production support to municipalities such as Skellefteå and other growth municipalities where more housing is needed. We have proposed state credits to keep costs down.
So, there are three clear proposals here that we can start on from a purely economic standpoint. But from the government's side, it is still silent, while at the same time the alarming news about increased bankruptcies among the construction companies is coming in thick and fast.
A few weeks ago, an opinion piece was published by a number of representatives from municipalities facing major transitions as a result of industrial establishments. It was signed by both Social Democratic and Moderate politicians from both Skaraborg and the northern parts of Sweden. In the article, several concrete proposals were presented for actions that the government can take to support municipalities. This included, among other things, introducing a risk-sharing model between municipality and state, suggested in the form of credit guarantees and interest-free loans. Another proposal was to enable the expansion of the electricity grid based on forecasts.
What answer does the Minister give to the municipal representatives who come here with constructive and concrete proposals on how the state could step in and support those municipalities that face the greatest changes as a result of the green transition?
Statsrådet Erik Slottner (KD)
Madam Speaker! A lot of questions are being asked now that lie outside my area of responsibility as Civil Minister, so I cannot really go into detail on every question that is asked here. I just want to have it said for those who are listening.
What the industry demands, including the new establishment of industry that is to contribute to the green transition, are long-term rules of the game. That is what is primarily demanded. Then, one needs electricity. A very large amount of the new industrialization that is occurring and that will continue to occur is very electricity-intensive. There, secure supply of electricity and fossil-free electricity is needed, because the industry does not want the production to contribute to climate change. That is what is demanded, and it is based on that the government is now working to get an electricity system that can deliver fossil-free electricity in time, where it is needed and in the amount that is needed. In that, nuclear power will play a very important role.
Even if new nuclear power can only be established in ten years, it is extremely important for the industry and these new companies to be able to receive information about this. In that world, ten years is not a particularly long time. Very many of those who are now planning establishment in Sweden will be up and running within five to ten years, and then these notifications play a huge role.
It is not just about building new nuclear power. It is about producing the electricity in places in Sweden where there is currently an electricity shortage, and also about expanding the electricity system so that we can deliver the electricity there where it is needed and when it is needed.
What do I answer the municipal representatives who come forward with constructive proposals? Yes, that it is very welcome. Thank you very much for constructive ideas and proposals! We take them further and check if they can be something for the government to proceed with. All proposals that are constructive in this regard and in all other areas, we of course welcome well. I also receive many constructive and good inputs when I make my various municipal visits.
One measure we are now taking to facilitate the establishment of new companies is a specific earmarking of 10 million kronor to Länsstyrelsen Västerbotten, which shall centralize permit reviews for parts of Sweden where we see industrial establishment, in order to speed up the review. It is a concrete measure we have taken in my area of responsibility.
Here, the large state subsidies in, among other places, the USA are mentioned and how good they have been. I wonder if that is how the Social Democrats now want to strengthen Swedish competitiveness - through enormous state subsidies. In that case, it is a new announcement being made here tonight. Some such announcements have not existed previously - that we are now to introduce enormous subsidies to industries that want to establish themselves here. It would be interesting to know if it is a new policy from the Social Democrats.
It actually also sounds a bit like one wants to reintroduce the reduction obligation that existed during the previous mandate period and which would give diesel prices of 30-35 kronor per liter within a fairly short time. Is that the policy the Socialdemokraterna want to return to? It sounds almost like that from the speaker's chair here tonight.
Ida Ekeroth Clausson (S)
Madam Speaker! What is currently taking place in Skellefteå is the establishment that one has faced for six and a half years. It is very good to have long-term conditions that may be in place in ten years, but the thing is that even today there are not enough housing units. Mariestad will in the near future face a similar problem.
When an establishment of this size ends up in a municipality like Mariestad with barely 25,000 inhabitants, it represents an opportunity but also a number of challenges regarding competence supply, infrastructure, energy supply, and access to housing, schools, and preschools. These are common challenges for all municipalities facing large industrial establishments.
At the same time, these municipalities have the same challenges as many others, with decreasing numbers of children and an economic situation that leads to large demands for savings. Having to reduce staff in welfare when one faces a large population growth within a few years may seem illogical, but it is a reality when the government does not provide the support that the municipalities need in the economic crisis that prevails right now.
If the municipalities that are currently leading the way do not receive the support they need, it could create doubt among other municipalities about following suit. The State cannot assume that municipalities with poorer economic conditions will dare to take the risks that, for example, Skellefteå has taken. Before more people have moved in and started paying taxes, rents, and fees, it is not reasonable for the municipalities to stand alone with these risks and investments. The State must therefore share the risks with the municipalities. It would also contribute to greater public acceptance and confidence for the future, where we now see skepticism spreading as the plans become reality.
Statsrådet Erik Slottner (KD)
Madam Speaker! It is still somewhat unclear what is meant. The word support can mean incredibly much. Support can be moral—I understand that is not what is intended in this debate. Support can also be to facilitate by helping in permit processes, clearing away legal hurdles, and removing national interests or other things that prevent housing construction. Then it can be direct economic subsidies. That is also a form of support. It is a bit unclear, I think, what the Social Democrats are looking for when they say support in this context.
The government supports the green transition in various ways, including through a new energy policy that is intended to create better long-term conditions for fossil-free electricity supply to the industry. It is a form of support. We are making specific investments in the county administrative boards' permit processes to speed up the granting of permits for the various industrial establishments. We have provided a special support to the automotive industry which goes through Business Sweden and is directly applicable to Mariestad. It is part of the support we provide.
Since then, in connection with the previous debate on the state grants, we have increased the state grants to the municipalities and regions – including the supplements announced in the year-end budget – by 34 billion kronor in order to be able to maintain the welfare sector in municipalities and regions as well as possible in the recession we are in.
The government, therefore, supports this transition in various ways. I am not closing the door to the possibility of further support to manage the green transition and the new industrialization taking place in different parts of our country. But do not come and say that the government does not support anything, because we actually do!
I thank you for the debate and for this evening.
Source: The Swedish Parliament. The speeches come from the open data of the Riksdag, translated into English by AI, which may contain errors.