e-GOVERNMENT IN FINLAND - ePractice.eu

399. Brokers receive revenue from two sources: agencies that collect data and companies that pay for
additional services (for a reporting company, the basic service is free of charge). Data collection authorities
pay the broker for the volume of data received and fees are agreed on a commercial basis. The agreed fee
for a single report has been considered low compared to alternative services (about EUR 0.17 per report)
and the quality of data is high. The typical agreement between a broker and a data-collecting authority also
includes a monthly connection fee.
6.1.3 Involving public authorities
400. The first agency involved in the TYVI Pilot Project was the Finnish Tax Administration. Since
then, several other public authorities have joined TYVI, including Statistics Finland, the Customs agency,
several work pensions companies and the Ministry of the Environment.
401. After an initial investment of EUR 50 000 in 1996, the MoF continues to run the Project. Since
the beginning, it has spent a total of EUR 200 000 for establishing and promoting TYVI.
6.1.4 Problems and criticisms
402. While the benefits of the TYVI system have been clearly recognised, including the speed of
services, flexibility, cost savings, ease of use and quality of information, some problems have emerged.
403. Although TYVI brokers have been very active in developing the services and getting more
customers, a lack of co-ordination between brokers and authorities can affect the quality and effectiveness
of the services. For example, some agencies have been reluctant to adopt new data-collecting principles
(i.e. some trades unions and insurance companies are unwilling to change existing systems).
404. An even more important issue involves co-operation by brokers. Competitive behaviour can be
counterproductive, as co-ordination and exchange of information are necessary for the system to function
properly. Since TYVI brokers are paid according to the volume of data they handle, they are not
necessarily eager to reduce their individual profit by exchanging data with other brokers. While some
agreements have been made, one broker has refused to participate. To avoid this type of breakdown,
authorities should set a clear regulatory framework that promotes co-operation between TYVI operators,
possibly including establishing payment options for sharing information among brokers.
405. Another potential challenge is related to the development of software that would allow data to be
transferred directly, without the need for intermediaries. If this system is further explored and exploited,
this may mean a rethinking of the functions and roles of providers in the TYVI system. One broker is
already testing software, but so far this idea has met with resistance not only from brokers but from
businesses, as they would not like data to be reported directly from their systems.
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