The agency reform improved the conditions for effectiveness of the administrative sector of the Ministry of Transport and Communications, but competition in the digital services market did not emerge. The National Audit Office of Finland (NAOF) recommends that the Ministry of Transport and Communications should clearly define the objectives and monitoring procedures for significant future reforms and improve Fintraffic's operational conditions.
The NAOF examined how the 2019 agency reform in the administrative sector of the Ministry of Transport and Communications has affected the division of tasks, performance and effectiveness in the administrative sector. The Finnish Transport Safety Agency and the Finnish Communications Regulatory Authority were abolished in the reform at the beginning of 2019. The Finnish Transport Agency became the Finnish Transport Infrastructure Agency. At the same time, the Finnish Transport and Communications Agency and Fintraffic Ltd were established.
The aim of the reform was to improve the administrative sector’s capacity to respond to customer needs and changes in the operating environment and to clarify both the division of tasks and the public authority tasks. These improvements were realised. At the same time, the conditions for effectiveness improved.
The reform also aimed to improve productivity and support the development of digital services. The tasks of the agencies and Fintraffic were fulfilled in 2019–2023. Wellbeing and job satisfaction among the staff were good, but a small number of the employees of the Finnish Transport and Communications Agency were burdened. The financial results of the activities remained unchanged. The improvement of the efficiency of the Finnish Transport and Communications Agency was reflected in the fact that the agency was able to carry out the new tasks assigned to it without additional resources. The audit did not find other significant efficiency gains that would have followed from the reform so far. However, the benefits to be realised in the long term may also improve the financial figures in the future. Fintraffic achieved its streamlining objectives. The development potential of digital transport services also improved, but their market did not grow. The targeted competition in traffic management did not emerge.
Based on the audit, the NAOF recommends that the Ministry of Transport and Communications should clearly define the objectives and monitoring procedures for significant future reforms to make it possible to assess the benefits achieved efficiently. The Ministry, together with the agencies in its administrative sector, should ensure that the tasks assigned to the agencies are proportionate to the resources at their disposal. Fintraffic’s operating environment should be developed so that the agency reform’s objective of building a digital market for transport can be achieved.
The Ministry of Transport and Communications and the agencies audited by the NAOF can use the audit results to finalise the measures related to the agency reform and to develop their activities.
