Finnish Transport and Communications Agency Traficom has launched an application round for government grants for newspaper delivery. The aim of the government grants is to ensure that newspapers continue to be delivered five days a week throughout Finland. The government grants for newspaper delivery are intended for companies that commit to the delivery of newspapers in accordance with the terms and conditions of the grants. The application round ends on 20 August 2023.
The letter delivery obligation in Finland will be reduced to three days a week on 1 October 2023 when the amended Postal Act enters into effect. The aim of the government grants for newspaper delivery is to ensure that newspapers continue to be delivered five days a week after this, even in areas that fall outside of newspapers’ commercial five-day early morning delivery networks. To this end, grants are available for newspaper delivery on Tuesdays and Thursdays in such areas.
Government grants available in 38 areas in different parts of Finland
“We have determined the areas that fall outside of newspapers’ early morning delivery networks based on a market analysis,” says Communications Market Specialist Sami Vilvala. The government grants for newspaper delivery are available in 38 areas in different parts of Finland. “We will be selecting a single grant recipient for each area included in the application round. The grants will be awarded to companies that can commit to delivering the newspapers covered by the grant on Tuesdays and Thursdays with the smallest grant amount,” clarifies Vilvala. The delivery companies will still be allowed to charge a delivery fee from the publishers of the newspapers, the maximum amount of which is determined by Traficom. The purpose of the grants is to cover the net costs arising from the delivery of the newspapers, meaning the part of the costs not covered by the delivery fee charged from the publisher. In addition to this, the grant can also cover a reasonable profit from the delivery of the newspapers.
Grant recipients are also allowed to deliver other items along with the newspapers and freely set the price for the delivery of such other items. However, in this case the grant recipient is obligated to maintain separate records of the delivery operations covered by the grant.
Grant recipients must possess sufficient experience and personnel
To be eligible for the government grant, a delivery company must meet the eligibility criteria defined in legislation and the terms and conditions of the application round. Grant recipients are required to possess sufficient experience and personnel to be able to carry out the deliveries covered by the grant, for example.
The government grants will be granted for a one-year period starting from 1 October 2023. The total grant amount is EUR 15 million, which has been divided between the areas included in the application round. The grant amount available in each area is the maximum grant amount allocated for that area. The application round starts on 16 June and ends on 20 August 2023.
More detailed information on the terms and conditions of the grant, the grant areas, the maximum grant amounts of the areas, the newspapers covered by the grants and the selection process are provided on Traficom’s website . The website also includes application instructions and an application form for the grant.
For more information, please visit Traficom’s website: Newspaper delivery grant
ENQUIRIES
Communications Market Specialist Sami Vilvala, tel. +359 29 539 0624, sami.vilvala@traficom.fi
Senior Specialist Merja Saari, tel. +358 29 539 0541, merja.saari@traficom.fi (16 June)
Background
The aim of the government grants for fixed-term newspaper delivery is to create the preconditions for continued physical newspaper delivery throughout Finland. The total amount budgeted for the government grants is EUR 15 million. Traficom will grant the government grants based on a selection process in which a single delivery company will be selected for each area eligible for the grant.
The reason behind the government grants is the amended Postal Act entering into effect on 1 October 2023, which will change the universal service obligation imposed on the Finnish postal service Posti from the current five-day delivery and picking to three-day delivery and picking.