Economic affairs minister: Layoffs, streamlining on the horizon
Significant cuts to personnel costs will lead to layoffs under the economic ministry's umbrella, while many processes will be streamlined, Minister for Economic Affairs Erkki Keldo (Reform) has said.
"The exact numbers are for me – and in general – very complex to say, though it will become clearer during the process which activities can be merged and which can be in the future carried out less frequently or more efficiently," Keldo told ERR.
The minister added that he has asked his own ministry and its sub-agencies to review their operations. "Many agencies will definitely scale back their activities, streamline oversight, and reassess other operations," he added, meaning personnel and management cuts more than mergers.
"This process is already underway," he continued.
The cuts and streamlining effect a 10 percent cut in expenses required of the ministry over the next three years.
Keldo said he could not put a figure on cuts in monetary terms, noting various agencies, offices and tasks also fall under the remit of the other 10 ministries.
Keldo refrained from naming specific agencies or activities at this stage, adding: "One of this government's priorities is saving money, to show the public that the public sector is also cutting back and working more effectively."
Cuts should not diminish the content or quality of agencies' work, he added.
One office already under scrutiny is that of public conciliator (riiklik lepitaja), whose role is to be placed under the chancellor of justice's remit, Keldo has proposed.
This has already attracted sharp criticism from Public Conciliator Meelis Virkebau, who has stated that the post – as its name suggests mostly the mediator between employers and employees in labor disputes – has functioned well for a quarter of a century, and does not have the legal aspect to it which placing it under the justice chancellor's purview might suggest.
The draft proposal to transfer the national conciliator's duties to the chancellor of justice was sent to stakeholders for its coordination round on Monday, with responses expected by Wednesday.
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Editor: Andrew Whyte