The demands for profit margins will be lowered, but not taken away, says Peter Norman. Photo: Jonas Ekströmer/Scanpix
SJ and GReen Cargo

State reviews demands on SJ profit margins

The government is currently reviewing the stipulated profit margins set for SJ, Green Cargo and other companies, according to financial markets minister Peter Norman.

In an interview with Swedish Radio News, Norman says he believes that the review will end up in demanding "slightly lower" profit margins, and that the change will take place during the first months of this year.

It was a representative of the trade union ST at the freight train operator Green Cargo that in an interview with Swedish Radio News criticised the ten percent profit margin requirement, calling it "a trap for the whole rail industry".

The state-owned train operator Green Cargo as well as the passenger train operator SJ both announced that hundred of jobs will have to go as part of large cost cutting packages. Increased competition is given as the reason for the cuts.

Peter Norman tells Swedish Radio that the demand for profit margins is under review, but that it will not be taken away completely.

"the demands are good. That means things are on a firm footing in the companies. It leads to a hunt for costs and that is excellent. Tax money should be dealt with in the very best way possible. And they are guaranteed by demands for profit margins," Norman tells Swedish Radio News.

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