The so-called action zone for Nord-Troms and Finnmark has existed for over 30 years.
Student loan write-downs, tax cuts, and employer tax waivers are just a few of the measures the state has used to encourage people and businesses to settle and establish themselves in the northernmost part of the country.
But according to one new report from analyst firm Vista Analyze the tools have had a limited meaning, which is reflected in population trends.
– Measures were important in the first 5-6 years after their introduction. But then the effect wears off, social economy professor and managing director of Vista Analyse, Håkon Vennemo, tells NRK.
The analysis was commissioned by the Ministry of Local Authorities and Districts.
Special means of action
The action zone for Finnmark and the seven municipalities of Nord-Troms was established in 1990. The background was the fishing and fishing industry crisis, which in turn led to high unemployment and poor life for the population.
In order for Nord-Troms and Finnmark to become attractive to live and work in, a number of special measures have therefore been introduced for the region, including these:
- Employer tax exemption.
- Write-down of student loans, capped at NOK. 25,000 a year.
- Student loan forgiveness for qualified primary school teachers.
- Electricity tax exemption according to consumption.
- Reduction of personal taxation.
Vista Analysis now says the measures have had little lasting effect on settlement in the action zone. According to Håkon Vennemo, this is mainly due to two things:
– Many of these instruments have not been regulated by the index over time. In real money, tools have become less important to people. Over time, even the measures have lost interest in the news. They’re just “there” and aren’t very motivating, says Vennemo.
The bigger places are the exceptions
When the action zone was introduced in 1990, a total of some 94,000 people lived in the region. Well over 30 years later, there were an estimated 1,200 fewer people in the area.
However, it is worth noting that the municipality of Alta has experienced long-term population growth, even before the introduction of the measure zone. In recent years, Hammerfest has also experienced growth, thanks to the development of Melkøya.
For the other municipalities in Nord-Troms and Finnmark, the statistics discourage reading.
A municipality like Berlevåg in Finnmark has lost 400 inhabitants since the introduction of the action zone in 1990. Another example is Skjervøy. In 1990, over 3,000 people lived in the municipality of Nord-Troms. Since then, the population has decreased by around 250, statistics from Statistics Norway show.
It will increase family allowances
So what can be done to ensure that measures in the action zone have a better effect?
First, the tools must be presented in a new way, for example through their own information campaigns, recommends Vista Analyse.
The report also suggests reducing or suspending the scheme with the electricity tax exemption, because it has little effect. The money saved can be used to reinforce other program measures.
At the same time, the report recommends several new measures, such as increasing family allowances. In addition, it is proposed to lower the tax on second homes.
– What happens if you do nothing?
– Then the demographic development in some parts of the action zone will be weak compared to the rest of the country, says Vennemo.
– It’s important that people live there
Local and District Government Minister Sigbjørn Gjelsvik (Sp) acknowledges that the population trend in Nord-Troms and Finnmark is serious. He now promises to sit down with municipalities and the business community in the action zone to look into possible changes to the measures.
– The feedback I get from Nord-Troms and Finnmark is that the measures are appreciated, but there is a desire for them to be strengthened and more targeted, says Gjelsvik.
Among other things, families with children in Nord-Troms and Finnmark will be able to benefit from free kindergarten.
– Think of the large and rich resources that can be found in this part of Norway. It shows how important it is for people to live in Nord-Troms and Finnmark, says Gjelsvik.
He suggests an extra week off
Tarjei Jensen Bech (AP) is mayor of the county of Troms and Finnmark. He is not surprised by the findings of the new report and points out, among other things, that the measures have not been adjusted by the index in line with the price increase.
It shows that existing measures need to be strengthened, and possibly new ones, according to him.
– An extra week of vacation may be a new measure, Bech tells NRK.
It also stresses the security-political importance of strengthening the action zone, not least as regards the neighbor to the east.
– The most important security policy we can do is to ensure that people live and live in Finnmark. Strengthening the settlement is the most important guarantee for our safety and security, says County Mayor Tarjei Jensen Bech.
