The agreement negotiated by the Minister of Housing and Communications Krista Kiuru and the Parliamentary group was reached mid-December, putting an end to the 80 year-old licence fee financing system.
In a year's time, YLE will thus be funded via a public broadcasting tax linked to a person's specific income and capital income. According to a statement from the Ministry of Communications, the tax will represent less than 0.7% of a person's income that is a minimum of €50 and a maximum of €140 per year, depending on the income. On average, the fee will be €80-€90 lower compared to the present system and a two-threshold system will be set up for businesses who will pay around €317 or €634 in tax depending on their turnover.
With an estimated 2013 budget of €500 million (including taxes), YLE now looks forward to going back to a ‘normal' rate of development. "The deficits of €26.5 million last year and €7 million this year have forced us to target savings that should not be targeted," noted YLE CEO Lauri Kivinen, citing cuts made in domestic productions, IT investments, sports broadcasting rights and personnel. "Public Service broadcasting should be built on independence, domestic materials, quality, reliability and variety. We now have an excellent opportunity to carry out our tasks to satisfaction."
YLE operates in 30 communities and offers services in Finnish, Swedish and Sami. The company broadcasts on four television channels and six radio channels, and produces internet services in Finnish and Swedish. The company has 3,000 regular employees and another 500 on fixed-term contracts.