RENE KOKK
member of the Riigikogu (EKRE)
The government must reach the decision that the money collected from fuel excise duties will be directed to the budget for the construction, improvement and maintenance of road infrastructure. Society is anticipating this decision.
If the coalition is unable to do this, then the underfunding of infrastructure investments will continue until a new government comes that understands the importance of mobility from the perspective of the entire country.
The opposition's proposals are not taken into account, no matter how good they are. We pointed out the problem areas of the car tax, but these were not heard until the same concern was addressed through the chancellor of justice, there are more such examples.
KULDAR LEIS
minister of infrastructure (Reform Party)
Road funding is a priority for the government, as confirmed by recent decisions. We have decided to increase the permanent funding for road maintenance by at least 60-70 million euros per year, and more if possible. As the first step, we will allocate an additional 97 million euros this year, part of which will come from EU funds and part from the state supplementary budget.
As in most European countries, Estonian road funding is based on two sources: the European Union supports the construction of major highways, while the state budget covers the maintenance and repair of smaller roads. In the conditions of a limited budget, EU funds are an important additional support, but the vast majority of funding still comes from tax revenues.
It should be noted that tax revenue is not usually earmarked for a specific purpose in state finances, but rather serves as a guideline for determining the amount of funding. Similarly, roads were not previously financed directly from fuel excise duty – until 2015, the principle of allocating 75 percent of the estimated excise duty revenue to state roads was in effect, but the actual money came from various tax revenues, loans, and EU subsidies.
The same logic applies now. The annual funding for road construction will be increased to the extent of the motor vehicle tax revenue, but this does not mean that every euro namely from there will go towards the roads. The EU 2021-2027 funding period has now been exhausted, but negotiations for the next period will start in the summer. We can also apply for additional funding from the military mobility measure of the Connecting Europe Facility (CEF).
SIIM KIISLER
deputy chairman of The Right
It is not a question of money, but of choices. In Estonia, roads are built mainly with European Union money, because the government has consciously assessed road construction as a low priority activity. Road maintenance simply does not have political weight, because it cannot be quickly and conspicuously «gifted» to the voter. Instead, the coalition government promises free benefits and subsidies that seem more tangible, but the long-term benefits of which are often questionable.
Precisely because roads are not a politically attractive topic, we must value those politicians who dare to invest in something that does not bring quick political returns but provides lasting benefits to society. This is the core of responsible leadership.
Good connections are the strongest instrument of regional policy. There is no point in talking about balanced development while at the same time letting the connecting roads fall into disrepair. Development does not mean the support of a single village society or a freshly painted community center if there is no proper road leading to it. If the roads are poor, local people do not have access to jobs and services, life quietly dies out.
This kind of attitude by the government hits rural people the hardest. A decent road is not a luxury, and road maintenance is not something that can be done «someday later». If we want Estonia to be livable also outside the golden circles of Tallinn and Tartu, we must invest in roads ourselves, not wait for Brussels to find a project to be acceptable.
Furthermore, the underfunded road network is hampering the Estonian economy as a whole. Poor connections harm local tourism, the exporting industry, and entrepreneurship in the broadest sense. A proper road network is a prerequisite for economic competitiveness. If logistics does not work, the economy will not work either.
SILVER KUUSIK
chairman of the Estonian Nationalists and Conservatives (ERK)
Yes, roads in Estonia are currently largely being built with the help of European Union subsidies. Fuel excise should logically be one of the sources of financing for road maintenance works, but the political and budget strategic practice of recent years does not confirm this.
Excise revenue is directed to the general state budget and used in different areas according to current priorities. This reflects the fragmentation of budget policy and the lack of a strategic goal.
We are used to relying on EU money, but in the long term we need a clearer plan that would ensure the sustainability of important infrastructure investments even if foreign subsidies decrease. A balanced and legally compliant budget policy would create better conditions for this.
JAAK AAB
member of the Riigikogu economic affairs committee, former public administration minister (SDE)
Estonian road construction has been in the role of an orphan for a long time, and the news of additional funding gives companies and professional associations a certain amount of hope. The news gives the impression that their message has finally begun to be heard, but as usual – the Reform Party is making things look better than they really are. In other words, first something is taken from someone somewhere, and then it is given back piece by piece later.
When a few years ago austerity plans were made at the request of the Reform Party, a few hundred million euros were deducted from road maintenance and construction over 4-5 years. Instead of substantively improving the efficiency of state governance and reducing actual bureaucracy, the path of least resistance was once again taken.
Reducing road investments is not as painful and recognizable to voters on the same day. In reality, these cuts have taken away a sense of safety from road users, a sense of security and increased efficiency from companies, and future prospects from regions.
If the head of government wanted to show statesmanship, he would work on a systematic and long-term financing model that would help ensure the good condition and consistent development of both national and local roads. One-off pre-election “popular” decisions, however, do not guarantee this.
Last year, 69 people died on Estonian roads. This number will not be brought down by campaigning. The Social Democrats are focused on the content of the next period’s traffic safety program and the state budget strategy. Are these meager additional funds for roads a campaign trick or are they thinking about real, long-term and well-thought-out strategies that the Estonian state and infrastructure really need? The near future will tell!
EVELYN SEPP
co-chair of the Estonian Greens
The root cause of this deepening impasse is the lack of vision and responsibility: each government and minister lives in their own illusory «principality», where at best, the only thing left to do is to fiddle around and start another «major project», but not to complete it.
There is no honest analysis of needs, no honest analysis of possibilities and prerequisites, and there is also no justified public consensus on priority, or an agreement that would move the project forward across coalitions.
If it existed, it would be much cheaper, pointless waste, delay and overdimensioning could be avoided, and public money could actually be used in the public interest.
In summary. The government today does not have a clear goal where Estonia should move and therefore every prince has his own small goal, which is being realized. Hence the conflict of interests and other errors, why the country does not walk in step. And those whose only plan is to stay in power have built their activities on appearance. That is, they create the image that the activities are necessary for society.
As a result, there is also the impression that everyone is scrambling and is stressed about it. At the same time, money is burning senselessly, but the result that Estonia is doing better is not there and cannot be achieved in this way even if taxes are raised further. Taxes are not the economy.
In other words, the irresponsible party of teenagers will continue tomorrow, because today the critical prerequisites for anything to change have not been met. Thus, the big goal continues to be to postpone the hangover, but that will not move Estonia forward.
TOOMAS UIBO
chairman of the Estonia 200 group in the Riigikogu
Estonia 200 is of the opinion that it is not reasonable to tie all excise duties and taxes to the financing of a certain area, because the state must retain the freedom to react in unexpected situations, which in this case is a security threat emanating from Russia. However, we are of the opinion that partially directing the funds collected from the car tax to road construction is also in line with strengthening our security and is a good plan in every way.
We certainly believe that the possibility of PPP projects in road construction should also be seriously considered, where the state will have the opportunity to spread the costs of the area over a longer period. This way, we could build the Tallinn-Tartu highway to its completion quite quickly, paying an annual amount of 15-20 million over a couple of decades, which also includes road maintenance costs.
MIHHAIL KÕLVART
chairman of the Center Party
Estonia has money for road construction. Last year, 516 million euros were collected from fuel excise duties, and now a car tax has also been introduced, but an increasingly insignificant portion of all this money ends up in roads.
This year, the planned road construction budget was only 115 million, according to some sources, even less than 100 million. The fact that the government is now increasing it and finding funds for it is a step in the right direction, but even 200 million is far from sufficient in total. According to the CEO of the Infra Construction Association, at least 250 million would be needed annually, but according to him, local roads already need repairs worth about 3.6 billion.
Unfortunately, the government's attitude is such that car owners are always guilty of something, so that taxes can be constantly raised for them and then the tax money can be diverted somewhere else. But in reality, the current situation also punishes bus companies, freight carriers and, most of all, rural people.
And what is also important: road construction has been a good financial instrument for balancing economic downturns, so that the state gets a better price and the construction company gets work, but now Estonian companies are simply forced to close their doors because the government refuses to see the issue from a comprehensive perspective.
The fact that this money does not go to road construction is a matter of political choice, not inevitability. If the government has ideological pet projects where money is not counted, then there will be shortfalls somewhere.
If the dream of getting to Berlin by rail faster than before is more important than ensuring that people survive in everyday traffic or that buses do not fall off the side of the road into a ditch, then these dreams need to be reviewed.
