Lahti Events will continue to operate for the time being, even though the decision to close down was taken in the summer. The parent company KOKO Lahti turned to the city for money. The failed Kymi Ring partnership is weighing on the company’s coffers.
The City of Lahti is investing a total of EUR 4 million this year and next in its own events company KOKO Lahti, which is responsible for the Sibelius Hall, Lahti Fair and the Concert Hall.
About half of the €4 million is earmarked for investment. The rest will be used to strengthen the company’s balance sheet. The first tranche of €400 000 was approved by the Lahti City Council last Monday.
KOKO Lahti has asked its owner for help for two reasons. Firstly, the events business has been affected by the war of aggression in Russia. Inflation has increased the company’s real estate costs. To remain a modern event organiser, KOKO Lahti needs to invest in both the Sibeliustalo and the Lahti Fair.
Another reason is the subsidiary Lahti Events. The city has obliged KOKO Lahti to support its subsidiary Lahti Events, which has run into difficulties because of Kymi Ring.
One suspects the aid is prohibited state aid – another denies it
– I am not against Sibeliustalo’s investments. The tax funds of the people of Lahti should not be thrown into that company to this extent anymore. I have not been in favor of Kymi Ring from the beginning, says Aaltonen.
According to Kalle Aaltonen, someone should bear responsibility for the use of tax money.
– This is a multifaceted entity and an unfinished matter, which involves several company secrets, and therefore I cannot comment for the time being, Putula explains his voting behavior.
On Monday evening in the Lahti council, Jorma Ratia admitted that the state aid issue is not simple. Under consideration was the conversion of Lahti Energia’s 60 million euro capital loan into a fund investment of the invested free capital. This Rat was not considered prohibited state aid.
– State aid regulations are always subject to interpretation. There is no absolute truth in these. Either state aid is prohibited or it isn’t. We don’t know for sure. But we know that if we start arguing about it, then a legally binding judgment will decide it in time, said Ratia in the council’s speaker booth.
Ratia is considering an appeal to the administrative court against the city board’s decision.
Chairman of the City Council Sirkku Hildén says that the preparatory office holders have determined that the capitalization of KOKO Lahti is not prohibited state aid. Hildén also reminds that the group and space division itself decided in the summer that the city will support the operation of KOKO Lahti.
Hildén thinks it is important that there is a critical discussion about the city’s money, but he still wonders why Lahti’s event companies, first Lahti Events and now KOKO Lahti, are constantly in the teeth of some trustees.
– The company has provided its owner with all the information that has been asked of it, and there should be no ambiguity about it.
Päijät-Häme entrepreneurs: big events require a big player
– A public actor must be an enabler and promoter of the industry’s economic activity, but it must not narrow the operating conditions of private events industry companies, says Vihervirta-Vuontelo.
According to Vihervirta-Vuontelo, the events are vital for Lahti and the entire province. They bring money and indirect effects to many different industries and increase comfort and attraction.
– In large events, a bigger operator is needed to be responsible for the attraction, but even then it is possible to cooperate through smaller operators in the area.
Disagreement over the timing of Lahti Events’ closure
Lahti Events, which has become entrenched in Kymi Ring, continues to operate as normal, even though the city decided to take down the board already in the summer. According to Sirkku Hildén, the arrangement has been left waiting for the program of event activities, which will be completed in the summer. After this, the city will be able to reorganize the tasks of event activities.
Jorma Ratia disagrees with this. In his opinion, it has been agreed that the necessary decisions regarding the shutdown of Lahti Events will be made in January-February, regardless of the completion of the events program.
He would hasten the downsizing, because he fears that Lahti Events will still swallow a lot of taxpayers’ money. Lahti Events will organize international motocross competitions and a road cycling event next summer.