Savings for society
Responsibility is reflected in Hansel’s objective – to generate savings for the government. The conclusion of a study conducted at the Helsinki School of Economics (Karjalainen et al. 2008)1 indicated that, compared to distributed procurement operations, use of a centralised operational model in procurement generates considerable savings of approximately 20–25 per cent.
Based on the model presented in the study and the potential calculations of Hansel’s framework agreements, the savings achieved through central procurement totalled about €241 million in 2015.
Through more efficient operations, Hansel has been able to lower the service fees charged from contract suppliers. Currently, the maximum service fee that can be charged is 1.5 per cent of the contract value. The average service fee in 2015 was 1.09 per cent.
1This research was conducted using Hansel’s central procurement figures for 2006 and concluded that the savings already achieved that year amounted to approximately €95 million. It also suggested that if all potential central procurement were conducted in a fully centralised manner, savings could rise to 25.7 per cent. As it was assumed that a 100% utilisation rate could not realistically be achieved, this figure was viewed as a theoretical maximum value for savings through central procurement. The study estimated a utilisation rate of 80 per cent to be realistic.
Hansel’s tax footprint
Hansel is now reporting its tax footprint in its CSR report for the second time. Tax footprint reporting is based on guidelines issued by the Ownership Steering Department of the Prime Minister’s Office on 1 October 2014, which instruct the State’s majority-owned companies on how to report country-specific taxes.
As Hansel has no operations abroad, all taxes are paid in Finland in accordance with current legislation. Operating under the CEO, the financial unit is responsible for tax affairs at Hansel. Hansel has no specific tax strategy or tax planning.
The amount of value added tax to be paid from 2015 amounted to €1,632,424.20. The amount of corporate income tax amounted to €72,468.61. Tax withholding in 2015 amounted to €1,617,951.49.
No public grants were paid to Hansel in 2015.