Finnish Transport and Communications Agency Traficom has launched an application round for government grants for newspaper delivery. Grants are available for the forthcoming period starting on 1 October 2024 and lasting one year. A total of EUR 15 million has been reserved for the government grant, the aim of which is to ensure the delivery of newspapers on five days a week throughout the country. The application round ends on 14 June 2024.
The letter delivery obligation in Finland was reduced to three days a week in autumn 2023 as the amended Postal Act entered into effect. The objective of government grants is to maintain newspaper delivery on at least five business days a week in areas where comprehensive early delivery is not available. Grants are granted for newspaper delivery in these areas on Tuesdays and Thursdays, when there is no universal service obligation. The government grant is intended for companies that commit to the delivery of newspapers in accordance with the terms and conditions of the grant.
Government grant available in 41 areas in different parts of Finland
Traficom has determined the areas that do not currently have the availability of comprehensive early newspaper delivery on at least five business days a week. "We have determined 41 areas throughout Finland which are eligible for government grants. One delivery company will be selected for each area, and that company may charge the newspaper publisher the maximum price determined by Traficom," says Adviser NN. The grant covers the net cost of newspaper delivery, i.e. costs not covered by subscription prices. In addition to this, the grant can also cover a reasonable profit from the delivery of the newspapers.
Map of grant areas (External link)
Government grant application instructions and terms
The application period for the discretionary government grant is 14 May–14 June 2024. The government grants will be granted for a one-year period starting from 1 October 2024. The EUR 15 million earmarked for the grant is distributed among the areas receiving the grants, taking into account the number of subscribers and area of each region.
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 e.g. required to possess applicable experience and sufficient personnel to be able to carry out the deliveries covered by the grant.
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.
Government grant for newspaper delivery (External link) (in Finnish)
FURTHER INFORMATION
Special Adviser Tero Ilvonen, tel. +358 295 346 105, tero.ilvonen@traficom.fi
Adviser Niko Kaarela, tel. +358 295 347 370, niko.kaarela@traficom.fi
Communications Market Specialist Sami Vilvala, tel. +358 295 390 624, sami.vilvala@traficom.fi
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 that entered into effect on 1 October 2023, which changed the universal service obligation imposed on the Finnish postal service Posti from five-day delivery and picking to three-day delivery and picking.
Traficom has determined the areas that do not currently have the availability of comprehensive early newspaper delivery on at least five business days a week. Larger entities complying with regional borders, and municipal borders in the case of Lapland, have been compiled to form the areas reveicing grants. The grants will be awarded to companies in each area receiving grants that can commit to delivering the newspapers covered by the grant on Tuesdays and Thursdays with the smallest grant amount. As defined in the Act, the grant covers newspapers that are published on at least three buisness days a week and contain national or local news content. The delivery companies selected in accordance with the terms 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.