Ministerial and corporate governance

  1. Corporate governance principles
  2. Key duties of the Ministry
  3. Agencies and state-owned companies
  4. Ministerial governance principles and practices

1. Corporate governance principles

  • Corporate governance is based on legislation and the Government Programme.
  • The agencies have clear roles and duties in the work.
  • The companies under guidance are required to be efficient and profitable.

2. Key duties of the Ministry

One of the core tasks of the Ministry of Transport and Communications is to guide the sectoral agencies. The Ministry provides guidance for them and makes sure that their performance targets and operations are in line with the Government Programme.

It is the way to implement the decisions made by Parliament and the Government. The working method is similar to the one used in corporations and it is based on partnerships and expert networks.

The Ministry is responsible for the strategies, guidelines and legislation within its branch, while the agencies are tasked with their operational implementation.

3. Agencies and state-owned companies

The agencies in the administrative branch include the Transport and Communications Agency, the Transport Infrastructure Agency and the Meteorological Institute.

The companies operating under its ownership steering are Fintraffic Ltd, Cinia Oy, Nordic Railways Ltd (Pohjolan Rautatiet Oy), Finnish Rail, Turku One Hour Train and East Railway. The Finnish Broadcasting Company also falls within the Ministry’s administrative branch. It is steered by an Administrative Council appointed by Parliament.

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4. Ministerial governance principles and practices

The ownership policy of state-owned companies is in line with the Government Resolution on Ownership Policy, good governance, and the Ministry's governance guidelines.

Guidance and supervision of the agencies aims at clearly defined roles and duties. The goals for the administrative branch are set out in, for example, the corporate strategy and operating and financial plan.

The guidance methods include the performance targets that are set for the agencies and confirmed in cooperation with them in the related agreements.

The companies are required to be efficient and profitable. The aim is that they are able to invest in growth, maintain a healthy finance structure, and meet their performance and dividend targets.

The companies under ministerial guidance have societal duties that are laid down in legislation.

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