Publishing the rents for reception centres could jeopardise future negotiations
The Finnish Immigration Service has recently come under criticism for its decision not to disclose the rents payable on individual reception centres. Our decision not to disclose the amount of rent or the principles according to which the amount is calculated is based on our understanding that this kind of information constitutes business secrets under section 24(1)(17) of the Act on the Openness of Government Activities, and is therefore confidential. We have not received any information requests concerning the total costs of the reception centres.
Publishing the amount of rent specified in lease agreements would make it considerably more difficult for us to negotiate on new reception centres in the future. It could also result in inflated rent levels, as everyone would naturally want as much rent for their property as possible.
“Rent variation is natural, as rent levels are not the same in different parts of the country and as reception centres operate in different kinds of properties. Some properties have less useful floor space than others: for example, conference centres often have too much open space for our purposes, as these spaces cannot be used for accommodation. What matters the most is how efficiently the space can be used,” explains Director of Administration and Development Services Jouko Salonen from the Finnish Immigration Service.
The Finnish Immigration Service publishes information on the reception costs according to the reporting obligations of government agencies. We comply with all relevant laws and regulations, and honour the agreements that we have with our partners.
“We operate in a free market and are highly dependent on that market. If we went around publishing our partners’ business secrets, we would soon find ourselves with no partners and no business,” Salonen says.
Average cost of one day of reception services: EUR 43, inclusive of all costs
In recent years, the calculated average cost of reception services has been EUR 43 per asylum seeker per day. This figure is used as a benchmark when negotiating new agreements. The figure includes everything from rent to property maintenance costs, staff costs, health care, reception allowances and, in some cases, catering.
In most cases, the Finnish Immigration Service only has an agreement with the party that runs the centre, who leases the premises from their owner. In a few cases, the Finnish Immigration Service has concluded lease agreements directly with property owners.
Another reason for the difficulty in comparing lease agreements is the variation in what they cover. Some lease agreements only cover the rent on the property as well as utilities such as electricity and water. Others also include fees payable to the property owner for services such as security, catering and snow clearance.
Staff and property costs are the biggest expenses
Between January and June 2015, the total costs of the reception system amounted to EUR XX. The breakdown of costs was as follows:
- Staff 25%
- Property costs 20%
- Services 12.8%
- Reception allowances 19.8%
- Health care 12.8%
- Other expenses 10%
For example, the costs of one long-established and well-run, and therefore cost-effective, reception centre amounted to EUR 34 per asylum seeker per day. The breakdown of costs was as follows:
- Reception allowance EUR 10 (the centre is self-catering, which is why its clients are entitled to a bigger reception allowance)
- Staff salaries EUR 8
- Property costs EUR 6 (rent, accommodation, water, electricity)
- Health care EUR 4.7
- Outsourced services EUR 4.5 (e.g. interpreters)
- Projects and supplies EUR 0.8
Further information for the media
Jouko Salonen, Director of Administration and Development Services, tel. +0295 430 431, e-mail: firstname.lastname@migri.fi
