2023-11-14 20:55:19
Budget Committee deals with estimates for business, tourism and research agendas
Vienna (PK) – The budget for the economics department (UG 40) is expected to fall by €270 million to €3.25 billion next year. This decline is due in particular to significantly lower payments for the investment bonus of around €683 million for 2024 (-€1.5 billion compared to 2023), as many companies have already implemented and accounted for their investments and therefore have a lower amount in 2024 Funding needs are to be expected. However, this is offset by higher or additional payments for energy cost subsidies for companies totaling €1.88 billion (+€1 billion), since in particular for the implementation of the energy cost subsidy 2 (€1.45 billion) and the energy cost flat rate 2 ( 0.43 billion €) the budget requirement is expected to increase significantly. An authorization of €1.5 billion is also planned for the energy cost subsidy and the energy cost flat rate for measures to strengthen the resilience and compensate for energy-intensive companies that are particularly affected by extraordinary price increases in energy costs.
The corresponding budget estimate for business, tourism and the department’s research agendas (2178 d.B.) the MPs debated today Budget Committee with Economics Minister Martin Kocher and Tourism State Secretary Susanne Kraus-Winkler.
The Federal Financial Framework (BFRG) 2024 to 2027 was also negotiated (2179 d.B.). The payment caps for the economic department in the BFRG 2024-2027 will fall continuously from 2025 and should only amount to €573.3 million in 2027. The reason lies primarily in expiring economic development programs such as the energy cost subsidy and the flat rate energy cost allowance as well as the investment bonus.
Debate about energy costs, inflation and location policy
The final publication of the guidelines for the energy cost subsidy 2 should take place in the next few days after notification, said Economics Minister Kocher. There were around 85,000 pre-registrations from companies, slightly more than for the energy cost subsidy 1, but at that time only a maximum of 12,000 applications were actually submitted, he explained to Christoph Matznetter (SPÖ). According to the minister, he would also have preferred to be given planning certainty earlier. However, in response to criticism from Matznetter, he said that in the end the difference to the corresponding measures in Germany was small. The energy cost flat rate 2, in turn, is now intended for those companies that do not reach the minimum funding framework for the energy cost subsidy, the minister explained, among others, in response to questions from Elisabeth Götze (Greens).
Overall, from Kocher’s point of view, it is important to have a fair discussion about the different measures against high energy costs or inflation, especially since different effects would occur depending on the instrument. He was convinced that the strategy chosen in Austria was fundamentally the right one. “The settlement is settled at the end,” said Kocher, in favor of not “over-interpreting” short-term changes. Overall, monetary policy also plays an important role in the development of inflation in Austria, the minister emphasized to Axel Kassegger (FPÖ). In his view, an earlier ECB interest rate increase would have been good for Austria. As far as the issue of the merit order principle in the electricity trading market mentioned by Matznetter is concerned, the federal government is still committed to finding a solution. However, there was no majority at the EU level for the “Iberian model” envisaged by Austria.
According to the Economics Minister, €600 million is earmarked in his department from the budget focus for the climate and transformation offensive by 2026, including the research agenda. This concerns research and technology funding, qualification measures for employees in the transformation as well as location and investment funding. As far as the shortage of skilled workers is concerned, his department is trying to set “budgetary marks” in those areas where there is responsibility. Kocher also believes that simplifying business handovers, as urged by Maximilian Linder (FPÖ), is important. However, the legal responsibility lies with the Ministry of Finance.
The main program for the export sector is called “Go international,” said the minister in the direction of Carmen Jeitler-Cincelli (ÖVP). It is also about increasing the number of companies that operate internationally and opening new markets. Austrian companies enjoy a very good reputation worldwide, he emphasized. We want to continue to support this. One focus is on the Asian markets or Japan.
The Austrian Business Agency (ABA) is doing good work, for example in supporting companies with the red-white-red card, emphasized Kocher in response to questions from Gerald Loacker (NEOS). By the end of September, he had known the number of 267 settlement projects through the ABA.
Chips Act and penicillin production
For the first time, €150 million in national funding in the semiconductor industry is budgeted for the Chips Act, as national implementation of the European Chips Act is scheduled to begin in 2024. Here, as in the supply of pharmaceuticals, it is about establishing security of supply at the European level, said Economics Minister Kocher in response to questions from Tanja Graf (ÖVP). For example, with penicillin production in Kundl, there was a risk of migration. According to him, the plant could supply the entire EU with antibiotics. There has now been funding of €50 million for Kundl, of which €25 million has been notified.
Federal competition authority with 18 additional positions
According to the estimate, 18 additional positions are planned in the areas of the Federal Competition Authority (BWB) and competition law. A further 19 positions are intended to support UG 40 in various areas on a strategic and operational level. In addition, the budgeted payments for the BWB will increase by €2.4 million to €8.3 million, especially with regard to the transparency measures to strengthen competition.
As far as a structured price comparison for the food retail sector is concerned, a draft law is being drawn up, said Minister Kocher. There will be further discussions on antitrust law, which Gerald Loacker (NEOS) discussed. However, responsibility lies with the justice department.
Funding for the film industry increases by €72 million
Funding in the film industry for FISA+ is expected to increase by €72.4 million to €90.7 million, as the new film funding model introduced in 2023 will be very well received by the film industry. Other uses of funds in the economic department concern, for example, investments by the Austrian Castle Authority in historical buildings as well as expenses in the area of calibration and surveying and bombardment. Minister Kocher reported to Laurenz Pöttinger (ÖVP) about the castle authorities’ construction projects, which, among other things, should include structural measures for a memorial in the former concentration camp in Gusen.
The budget also includes compensation for the loss of examination fees for master craftsmanship and qualification examinations with around €12 million. The minister emphasized in the direction of Süleyman Zorba (Greens) that the elimination of examination fees is an important signal for this career path. He told Gerald Loacker (NEOS) that the slight increase in costs in this context should increase quality assurance.
Tourism budget without event protection umbrella
In the tourism sector, payments will fall to €62.7 million in 2024 (-€48.0 million), as the COVID-19 protective shield for events (-€44.0 million) in particular will expire and not in 2024 more is budgeted. The main disbursement areas of this detailed budget relate to the federal government’s membership fee for Austrian , commercial tourism promotion and strategic projects to address current tourism policy issues.
State Secretary Susanne Kraus-Winkler explained to Ralph Schallmeiner (Greens) that the promotion of Alpine infrastructure runs on several tracks. Last year, special funds were budgeted for Corona. The situation is similar with the Austrian Hotel and Tourism Bank (ÖHT) – here too, the Corona funds will no longer be included in the basic budget, which, in addition to Schallmeiner, Maximilian Linder (FPÖ) questioned. At least it was negotiated that the basic budget for the ÖHT would be €21 million until 2027 – and not €19 million, as was the case before Corona.
Franz Hörl (ÖVP) discussed, among other things, the upcoming Expo in Japan, which Kraus-Winkler expects to have a positive effect on tourism from Japan to Austria. A unanimous resolution by the National Council to bring the Guide Michelin back to Austria was also discussed, according to which, according to the State Secretary, many stakeholders are currently examining the situation to see whether and how a reintroduction can take place. As far as the shortage of skilled workers and workers that Melanie Erasim (SPÖ) addressed, measures are not directly budgeted for tourism, especially since it affects many sectors. But there is intensive cooperation and actions that do not directly require budget funds, said Kraus-Winkler. According to the State Secretary, the increasing work performance of third parties in the budget according to Gerald Loacker (NEOS) relates, for example, to statistics such as tourism acceptance or focal points such as digitalization and the effects of climate change.
Research focus on digital and sustainable transformation of the economy
The funds of €263.9 million for applied research at UG 33 in 2024 are budgeted with a minus of €17.8 million compared to 2023. This includes an increase of €30 million for application-oriented research projects in the area of digital and sustainable transformation of the economy. The total of €90 million earmarked for this will be distributed to the Austrian Research Promotion Agency FFG (€81 million), the Christian Doppler Research Society (CDG, €5 million), the Austria Wirtschaftsservice (AWS) and Austrian Cooperative Research (€2 million each). ) divided up.
The FFG will experience a loss of €42.1 million due to the expiry of additional funding for life sciences (2024: €55.5 million). The budget for the IPCEI Microelectronics II and the IPCEI Hydrogen remains unchanged at €29.8 million and €17.3 million respectively. For IPCEI Microelectronics I, the budgeted payments decrease by €6.1 million to €20.4 million. These are handled equally by FFG and AWS. The further payments to AWS (€27.6 million) and CDG (€15.4 million) are estimated to be slightly higher than in 2023.
Minister Kocher emphasized to Petra Oberrauner (SPÖ) and Axel Kassegger (FPÖ) that the increase in research for his department has been two and a half times since 2019. According to him, the funds will be slightly less than in 2023 because a life science project is coming to an end. The Chip Act is reflected in the UG 40 economy because it is an investment promotion, says Kocher. There would be different programs to support women in particular in MINT subjects, as Oberrauner discussed. There is no special AI program, but there are projects in the direction of AI in existing funding channels, said the minister. Overall, the goal in research is to become one of the European Innovation Leaders in Austria, says Kocher. We are well on the way to achieving this, he said. (Continuation of the Budget Committee) mbu
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