The Finnish Radiation and Nuclear Safety Authority's (STUK) international expert services are proposed to be corporatised
According to the proposal, the management of STUK's international expert services should be transferred to a new limited liability company. The Ministry of Social Affairs and Health would be responsible for its ownership steering. The Government submitted their legislative proposal on this matter to Parliament on 1 October 2015. The Act is scheduled to enter into force on 1 January 2016.
Corporatisation gives new opportunities for developing the sales of STUK's international expert services in a profitable way that is functional with regard to the market. A company could, better than an authority, respond to the competition in this sector and to react to the needs of clients from different countries. Also risk management would improve if the operation was market-based and not part of the activities of an authority.
The operation of the new limited liability company is to be organised in a way which keeps STUK's operation and economy clearly separated and independent from each other. In the beginning, the capital financing for the company would be one million euros. The company would be led by a CEO without any public service employment relationship with STUK. About 10 persons would be transferred from STUK to the service of the new company.
A long term goal for the corporatisation is to export Finnish radiation and nuclear safety expertise to countries which are starting or developing further their use of nuclear energy. In addition to STUK, the new company could make use of other actors in the sector. This internationally recognised nuclear expertise developed in Finland could then be combined with even larger projects.
The clients of STUK's international services include authorities responsible for radiation and nuclear safety in different countries as well as other actors in the sector. A significant part of the services is connected with nuclear safety cooperation with Russia and the nuclear power plants in the Kola Peninsula and the Leningrad Oblast. An example of a new, large project is the development work of radiation and nuclear safety with Saudi Arabia that started last year. The demand for these services has been greater than STUK has been able to supply.
Corporatisation would also clarify STUK's role as a safety authority.
STUK's responsibility as an authority remains to assess, for example, the safety of nuclear power plants in the Kola Peninsula and the Leningrad Oblast.
All costs of STUK's international services are now charged from clients, and the activity is economically rewarding. The turnover was about EUR 5 million in 2015.
Senior Adviser for Health Affairs Mikko Paunio, tel. +358 (0) 2951 63312, [email protected]