- Crisis or armed conflict time
Legislation concerning security of supply
Act on Safeguarding Security of Supply (Statute Book of Finland 1390/1992) is to safeguard the economic activities necessary for maintaining the population's livelihood, the national economy, and the national defence. Defence security of supply is one area included. This act is in force also in normal conditions and not only during crisis time.
To a certain extent, security of supply issues can be dealt with also in connection of individual procurements under the applicable public procurement legislation.
The Council of State objectives for security of supply
The Council has set objectives for the general security of supply (the Government's Decision on Safeguarding the Security of Supply of 21st August 2008, Finnish Statute Book 539/2008). The objective is to reach such a degree of preparation that the population's capacity to make a living, to carry out necessary social activities and to achieve the material preconditions for an effective national defence are not endangered (basic security of supply level). In addition to traditional threats, the risks of terrorism and of the use of nuclear, biological and chemical substances (NBCs) shall be taken into account.
• energy transmission and distribution
• communication network
• transport and logistics
• water supply and other municipal services
• constructing and maintenance
• food supply
• energy production
• health care
• production for national defence purposes
• operational preconditions of export industry
Specifically concerning security of supply for defence purposes, the objectives set in 2008 state the following (unofficial translation):
- “Domestic system integration and support and battle damage repair capabilities for the procured systems are seen central. Support capability for the lifecycle for critical defence systems is maintained by domestic or international partnership- or user community arrangements and with binding agreements with the system responsible Sellers. In the area of most important defence consumables, production capability and SoS stocks are maintained. Production essential for defence needs is to be maintained.
- Participation from the domestic industry to procurements from overseas develops the support and repair capabilities, maintains interoperability and technological level of the industry. Specific R/T or R/D programmes are used to invigorate domestic knowhow.
- Capabilities should be strengthened and safeguarded specifically in the areas of C3I, effect, mobility, logistics, special structures and protection. Required powder and ammunition production capability and knowhow needs to be maintained, while Nordic co-operation in the production of the ammunition is developed.
- Cooperative programs are operated especially under EDA, the Nordic and NAMSA frameworks. Mechanisms for international SoS, the related legislation and user groups are to be developed.”
Preparedness legislation linked to security of supply
In times of serious disturbances and in emergency situations, public authorities need special powers to safeguard society's essential activities. The most important provisions are contained in the Readiness Act (Statute Book of Finland 1080/1991). This act also includes powers to strengthen defence industry and logistics. The act would be enforced in special conditions as stipulated in the act, ie. it is not applied in normal conditions. The Act on Defence State (1083/1991) similarly contains measures for crisis time situations. The Act is not applied in normal conditions.
- Urgent reasons (i.e. operational reasons)
To handle urgent operational needs, procurement measures would be made by authorities. As the case may be, the Finnish procurement legislation may enable procurements with a more direct and rapid mode. Besides procurements, the applicable international network of multi- and bilateral arrangements and cooperation could be utilized (among others, EDA and the Nordic framework).
The above mentioned act (readiness act) contains various measures for emergencies. See above.
Regarding the support from defence authorities to other countries in urgent situations, measures would be taken on a case by case basis.
The Act on the Defence Forces (12 §, Statute book 551/2007) also states that the Defence Forces may assist another Finnish authority in providing rescue or other assistance to another country in case of a terrorist attack, a natural disaster, a major accident or similar occurrence. The Defence Forces may assist by contributing equipment, material or expert assistance. Military force may not be used in providing such assistance. The decision regarding the participation of the Defence Forces in an operation as described in subsection 1 above is taken by the Ministry of Defence at the request of the competent Ministry.
There is recent national legislation for the control of foreign corporate acquisitions. See Act on the Monitoring of Foreigners' Corporate Acquisitions in Finland (Finnish statute book 172/2012). The controlling authority is the Ministry of Employment and teh Economy. A defence or dual use company foreign aquisition shall always require a prior confirmation. The confirmation is given, unless the acquisition potentially conflicts key national interests.
- Foreign investments
- Export licenses
Export and transit of defence materiel is allowed only with an authorization (export licence) granted by the Government, or by the Ministry of Defence (Act on the Export and Transit of Defence Material 282/2012).
Application forms which can be downloaded, see: http://www.defmin.fi/en/tasks_and_activities/resources_of_the_defence_administration/export_control/applying_for_export_licence/ are handled by the Ministry of Defence, Materiel Section (postal address: Ministry of Defence of Finland, Materiel Section, PO Box 31, FIN-00131 Helsinki, Finland).
Granting an export licence is preceded by an overall and cross-governmental assessment of a licence application by the Advisory working Group for Export of Defence Materiel chaired by the Ministry of Defence. The license is granted case-specifically. Authorization will not be granted if it jeopardizes Finland's security or is in contradiction with Finland's foreign policy.
National legislation regulating export, transit and brokerage of defence materiel:
Act on the Export and Transit of Defence Materiel (282/2012). The Act is based on the directive on Intra-Community transfers 2009/43/EC.
The Government has drawn up the General Guidelines for export and transit of defence materiel to clarify the foreign and security policy as well as procedural aspects of defence materiel export. In addition, the Ministry of Defence has on its decision defined and specified defence materiel, technology and know-how.
In addition, Finland applies the EU Code of Conduct on Arms Exports.
(Please note, that for dual use goods and technologies, the export authority is the export control unit of the Ministry of Foreign Affairs. Postal address: Unit for Export Control, Department for External Economic Relations, Ministry for Foreign Affairs, P.O.Box 428, 00023 Government, Finland.)
- Codes/Regulations involving Defence Industry
There is no legally binding priority system in the Finnish legislation.
SoS-relevant economic operators in the field of defence may have certain SOS storage obligations.
The Security Strategy for Society 2010
The preparedness of the different administrative branches is harmonised in the Security Strategy for Society which is a Government Resolution. The goal of the Strategy is to ensure the functioning of society, safeguard Finland’s national sovereignty and promote the security and well-being of citizens. To reach this goal, the Strategy determines the functions vital to society, threat models and disturbances that might endanger security in society and its vital functions and strategic tasks of the ministries that are required for their functionality and continuation planning.
The Strategy is based on a comprehensive concept of security and it constitutes the common basis of preparedness planning and crisis management for all the actors in the society in normal as well as in emergency conditions. It is created in co-operation among the authorities, voluntary organisations and the representatives of the business community. The authorities, organisations and companies can then plan their preparedness by adapting threat models of the Strategy to their own operating environment. Through co-operation it is guaranteed that necessary tasks will be performed and, at the same time, it is possible to avoid overlapping and cut down expenses incurred. The aim is to mobilize the resources of all actors when security in society is threatened. This is called the comprehensive defence approach.
Well-functioning co-operation between public authorities and the business community create and maintain also security of supply in Finland. The ministries develop security of supply within their respective mandates as part of their strategic tasks to secure the vital functions and the required capability to act. Ministry-specific responsibilities for the security of supply are listed in the Strategy. However, the co-operation between public and private sectors and its continuous development are essential because the main part of the resources required by security tasks is, as a rule, owned by the business community.
More information and material: http://www.yhteiskunnanturvallisuus.fi/en
New Security and Defence Policy report to Parliament
The new report was submitted to the Parliament on the 20th of December 2012.
Objectives of the national SoS policy
The objective is to safeguard the economic activities necessary for maintaining the population's livelihood, the national economy, and the national defence.
National bodies involved and areas of responsibilities
In Finland the over-arching main organization responsible for Finnish society’s security of Supply is the National Emergency Supply Agency (NESA)
NESA is the central authority for overall Security of Supply for Finland. All ministries of the Government, plus the relevant economic operators, also play a role in defining the SoS objectives in their area of responsibility. Critical private companies and industries are linked to SoS under pool organization system.
The role of SoS in Procurement procedures (requirements, evaluation etc.)
Security of Supply plays an important role in Finnish defence procurements. Aspects to be considered are varied, and are based on the nature of each defence procurement and the lifecycle considerations in it. The current defence procurement strategy is geared to take into account these issues.
The Finnish general rules/guidelines for the defence procurement policy aim to achieve security of supply. These rules call for interoperability, selection of tested and operationally mature procurement solutions, finding international and domestic collaboration, use of European solutions when possible, etc. These rules give guidance to procurement authorities in the defence procurements.
Security of Supply issues may be integrated for instance in the technical requirements and life cycle support requirements in a procurement. Exceptionally, and in certain critical defence procurements only, the industrial participation tool could be used to gain essentially in-country safeguards for security of supply.
Also the new EU defence and security procurement directive (2009/18/EC) enables that certain Security of Supply requirements may be stated by the Contracting Authority in the procurement (see directive article 23 with a non-exhaustive list of these requirements). These requirements will be stated in the procurement RFQ or in the procurement notices, and may appear as contractual terms and conditions. See tyhe applicable legislation: Act on public defence ans security procurements (Statute book 1531/2012).
Cooperative procurements may be enablers for security of supply.
Contractual terms on SoS
Procurement elements that could be mentioned as supportive and relevant to SoS are, amongst others:
- option clauses
- availability clauses concerning service or locally needed support
- outsourcing in general
- IPR issues
- supply chain issues
- bilateral or other international agreements/arrangements.
National policy on sharing information on stocks/inventories
Sharing information on defence stocks is on case by case basis.
Regarding defence materiel Nato Support Agency (NSPA) is the current main place of pooling activity. In NSPA there is the NLSE (Nato Logistic Stock Exchange). It is possible to check other user nations' stocks and procure from them.
Another potential place for exchanging information of stocks may be the various armaments User Club structures, where stock situations might be discussed in view to optimise them.
Nationally, and based on our Security of Supply system, in the times of crisis, the governmental stocks might be re-allocated based on special crisis legislation. This covers not only defence items but civilian goods and services. See the Readiness Act in Finnish legislation.
Existing Bi/Multi-lateral SoS agreements
In the field of defence:
-Agreement on support for industry cooperation in Defence Materiel area (Security of Supply clauses)
-Agreement on Priorities and Allocations System within the Alliance
-EDA Framework Arrangement for Security of Supply between subscribing Member states in circumstance in Operational Urgency.
SoS Experts contact info
EDA SoS WG expert Jouko Tuloisela
SoS PoCs/National representatives contact info
General Security of Supply:
CEO Ilkka Kananen National Emergency Supply Agency (NESA)
E-Mail: email@example.com Defence Security of Supply:
E-Mail: firstname.lastname@example.org Designated EDA SOS POC:
Ministry of Defence of Finland
Resource Policy Department
P.O. Box 31, 00131 Helsinki, Finland
Telephone: +358 916 088 126
GSM: +358 405 740 929
Fax: +358 916 088 111
Link to related national websites
http://www.nesa.fi http://www.defmin.fi http://www.mil.fi http://www.yhteiskunnanturvallisuus.fi/en http://www.tem.fi/files/33216/Act_on_the_Monitoring_of_Foreign_Corporate_Acquisitions_in_Finland_Unofficial_translation.pdf
Act on Safeguarding Security of Supply (Statute Book of Finland 1390/1992)
Readiness Act (Statute Book of Finland 1080/1991)
Act on Defence State (Statute Book of Finland 1083/1991
Act on the Defence Forces (Statute Book of Finland 551/2007)
Act on the Export and Transit of Defence Materiel (Statute Book Of Finland 242/1990)
Decree on the export and transit of defence materiel (Statute Book of Finland 108/1997)
Act on the monitoring of foreigners' corporate acquisitions in Finland (Statute book of Finland 1612/1992).
Government's Decision on Safeguarding the Security of Supply (Statute Book of Finland 539/2008).
Page Last Updated: 2/12/2013