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Written by KPMG and Bocconi University February 2018
Study on State asset management in the EU
Final study report for Pillar 3 – Austria
Contract: ECFIN/187/2016/740792
2
EUROPEAN COMMISSION
Directorate-General for Economic and Financial Affairs Directorate Fiscal policy and policy mix and Directorate Investment, growth and structural reforms European Commission B-1049 Brussels
3
Austria
This country fiche presents a qualitative overview of the mix of governance models
and investment strategies implemented by the Austrian general government to
manage its assets portfolio.
1. MAPPING OF THE GOVERNANCE OF THE PORTFOLIO OF ASSETS
Art. 2 of the Austrian Federal Constitution defines Austria as a federal state. The
Austrian general government consists of three levels: (1) federal, (2) regional (or
state - Länder level), and (3) local level. Throughout this country fiche, we re-cluster
these three levels of government into two categories, i.e. the “central government”,
which includes the federal government, and the “local governments”, which include
both the regional governments and the local governments.
There is not a unique government entity responsible for managing the portfolio of
public assetsas a whole. The central government has centralised the majority of
strategic and operational decisions in the hand of few central bodies: federal ministries
(e.g. the Federal Ministry of Finance and Ministry for Transport) or Public Sector
Holdings (PSHs) for specific sectors (e.g. ÖBIB, ASFINAG).
There is no consolidated and integrated national public data source listing all public
assets and their key features and performance. Many ad hoc information sources on
government’s assets are made available from the Austrian information system; these
are kept updated by many relevant public bodies.
The annual financial statements are composed of a full suite of statements and
disclosures. With the exception of natural resources, assets are measured at historical
cost or replacement cost (heritage assets), and are recorded in the balance sheets.
The annual financial statements cover all central entities, which include the Federal
Chancellor, Ministries, as well as subordinate agencies and institutions. The financial
statements are a consolidation per se of all central entities that are controlled by the
Central government1.
1.1. Financial assets
The PSHs owned by the Austrian general government operate in a broad spectrum of
the domestic economy. This variety is reflected in the patterns of ownership and
governance. For example, some financial assets are owned by the central
government; others by the local governments.
The main body in charge of strategic decisions for financial assets owned by the
central government is the Federal Ministry of Finance. Operational decisions are
usually under the responsibility of the public owner of the PSH (ministries, central and
local public authorities). .
The ownership and operational decisions are devolved to The Austrian State and
Industrial Holding Limited (ÖBIB)2 – including privatization management, acquisition
of shares, execution of ownership rights, and general advice to the central
government. It represents the interests of the central government shareholdings
labelled as "strategic". It is itself a PSH fully held by the Federal Ministry of Finance. It
1 Moretti, D. (2016). Accrual practices and reform experiences in OECD countries. Results of the 2016 OECD Accruals Survey. OECD Journal on Budgeting, 16(1), pp. 9-28. 2 Österreichische Bundes- und Industriebeteiligungen GmbH (ÖBIB).
Study on State asset management in the EU – Pillar 3
Austria
has direct majority participation in 5 companies3 and direct minority in 4 companies4 –
weighting roughly 10.4% of the total assets owned by all PSHs within the Austrian
general government’s portfolio5. ÖBIB group’s workforce accounts for approximately
102,800 employees (20166).
Despite the fact that there were no changes in the composition of ÖBIB’s portfolio, the
value of the listed companies rose by nearly 17% from 4,847 Mn Eur in 2015 to 5,658
Mn Eur in 2016. In the same period, the Austrian equity index ATX rose by 9%. In
total, the value of the entire portfolio (i.e. including both the listed and non-listed
PSHs) amounted 5,824 Mn Eur7.
The ÖBIB Act of 2015 has established the following role and governance:
the Austrian Parliament sets the general legal framework in which ÖBIB
operates by passing legislation;
the central government takes strategic decisions about the methods by which
shares/PSHs ought to be privatised/acquired. The ÖBIB is mandated to act on
the basis of these decisions;
ÖBIB is required to report to the Federal Ministry of Finance, which reports to
the Federal Chancellor and Vice-Chancellor;
the Nominating Committee, which serves as an advisory council for ÖBIB under
special law, is responsible for selecting supervisory board members nominated
by the central government. The Nominating Committee consists of four
members who are appointed by the central government for one legislative
period based on the joint recommendation of the Federal Chancellor and Vice-
Chancellor. They remain in office at least until a new central government is
sworn in;
With respect to financial assets in the general government’s equity portfolio, the five
most important sectors in terms of Value Added (VA) generated by PSHs8 are as
follows:
1. H – Transportation and storage;
2. M - Professional, scientific and technical activities;
3. B – Mining and quarrying;
4. Q - Human health and social work activities;
5. D – Electricity, Gas, steam and air conditioning supply.
3 Finanzmarktbeteiligung Aktiengesellschaft des Bundes i. L. (FIMBAG), Immobilien- und Industriebeteiligungen GmbH (IMIB), GKB-Bergbau GmbH, Österreichische Post Aktiengesellschaft, SCHOELLER-BLECKMANN Gesellschaft m.b.H. 4 APK Pensionskasse Aktiengesellschaft, OMV Aktiengesellschaft, Casinos Austria AG, Telekom Austria Aktiengesellschaft. 5 This share has been calculated using data collected and elaborated in Pillar 1. 6 For more details, please see the ÖBIB annual report 2016, available at: http://www.oebib.gv.at/fileadmin/annual_reports/OEBIB_GB_en_2016_final.pdf [Accessed 17th January 2018]. 7 Ibid. 8 The five most important sectors in terms of VA generated by PSHs have been mapped in Pillar 1. For industry classification we rely on data provided by Bureau van Dijk (BvD) Orbis, which in turns gets its data from other service providers and bases industry classification on the NACE codes provided.
Study on State asset management in the EU – Pillar 3
Austria
Table 1 Governance regimes: Financial assets, Austria
Owners of the
asset
Both the central and local governments participate in
the companies’ capital. One significant PSH held by the
Federal Ministry of Finance is the ÖBIB, which
represents the ownership interests of the Central
government in shareholdings defined as "strategically
important".
C3
D1
Most important sectors in terms of VA:
1. H – Transportation: the majority of PSHs are
owned by the local governments. In addition,
some strategically important PSHs are directly
owned by the central government either through
its Ministries, or through the ÖBIB
2. M – Professional, scientific and technical
activities: the majority of PSHs are owned by
local governments. In addition, some strategically
important PSHs are directly owned by the Central
government either through its Ministries, or
through the ÖBIB
3. B – Mining: in compliance with data retrieved for
Pillar 1, this sector includes only two PSHs, i.e.
Fosslienwelt GmbH, which is partially owned by
local governments, and Aktiengesellschaft, which
is partially owned by the ÖBIB
4. Q - Human health: the majority of PSHs are
owned by local governments. In addition, some
strategically important PSHs are directly owned by
the central government
5. D – Electricity and gas: almost all PSHs are
owned by local governments. A few PSHs are
directly owned by the central government
Bodies
responsible for
the strategic
and investment
decisions
The Federal Ministry of Finance is the main body
responsible for outlining the overall strategic
framework related to the Austrian PSHs. It operates in
accordance to other ministries and local governments
(when involved in the ownership of each PSH).
C1
Most important sectors in terms of VA: the relevant
local governments and each relevant ministry are
responsible for the strategic decisions on PSHs
operating within their jurisdiction in compliance with
the strategic framework outlined by the Federal
Ministry of Finance.
Study on State asset management in the EU – Pillar 3
Austria
Bodies
responsible for
the operational
decisions
The Federal Ministry of Finance is in charge for
managing the majority of the central government-
owned financial assets9.
Practically, the ÖBIB, a PSH owned by the Federal
Ministry of Finance, is in charge of investment
management (including privatization, acquisition of
shares), the execution of ownership rights, and advice
to the central government.
Local governments are responsible for decisions
regarding the management of the own financial assets
they own
C3
D1
Most important sectors in terms of VA: since the
majority of the PSHs operating in these sectors are
owned by local governments, then local governments
are responsible for operational decisions.
National Public
Data Sources
The Federal Ministry of Finance reports the list and the
main information regarding PSHs in the Federal
government’s equity portfolio (e.g. the stakes held in
its enterprises), while the Public Audit Office examines
the financial administration of enterprises.
C1
Source: KPMG elaborations.
The network graphs in the table above highlight the main bodies involved for each role of the (a)responsibility chain (e.g. the bodies owning the assets, the bodies responsible for operational decisions), for each asset cluster in the government’s asset portfolio. These models may not apply to all the individual assets within the cluster.
For some clusters of assets the responsibility for some aspects of the governance regime is spread (b)between more bodies at different levels of centralisation. Therefore, we represent these cases using two “network graphs” representing these bodies.
9 In compliance with the terms of the Austrian Federal Ministries Act.
Legend
C3C1 C2= Central government
= Central public body
= Central company-typestructure
D1 = Local governments
D2 = Local public body
D3 = Local company-typestructure
= Private bodyPM
Study on State asset management in the EU – Pillar 3
Austria
1.2. Non-financial assets
Airports
Table 2 Governance regimes: Airports, Austria
Owners of the
asset
The property of Austrian airports belongs to the central
government10.
C1
Bodies
responsible for
the strategic
and investment
decisions
The supreme authority for civil aviation is the Federal
Ministry for Transport, Innovation and Technology
(BMVIT) 11, which is responsible for the strategic and
investment decisions regarding the Austrian airport
network.
Some residual responsibilities for aviation are also
vested in the local governments.
C1
Bodies
responsible for
the operational
decisions
The majority of the Austrian airports are managed by
the relevant airport operators, which are organised as
both central government-owned PSHs and local
government-owned PSHs.
C3
D3
National Public
Data Sources
Statistics Austria reports about airport traffic in the
country (e.g. transport volume of airport freight
transport). With regard to the airport infrastructures,
there is currently no single, definitive, public source of
information.
C2
Source: KPMG elaborations.
The network graphs in the table above highlight the main bodies involved for each role of the (a)responsibility chain (e.g. the bodies owning the assets, the bodies responsible for operational decisions), for each asset cluster in the government’s asset portfolio. These models may not apply to all the individual assets within the cluster.
For some clusters of assets the responsibility for some aspects of the governance regime is spread (b)between more bodies at different levels of centralisation. Therefore, we represent these cases using two “network graphs” representing these bodies.
Ports
Austria does not have maritime ports12.
Roads
10 Aviation Act. Available at: https://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&Gesetzesnummer=10011306 [Accessed 6th December 2017]. 11 Bundesministerium für Verkehr, Innovation und Technologie (BMVIT). 12 Fluvial ports are not considered in the analysis. For further detail, please see Methodological Notes of Pillar 2.
Legend
C3C1 C2= Central government
= Central public body
= Central company-typestructure
D1 = Local governments
D2 = Local public body
D3 = Local company-typestructure
= Private bodyPM
Study on State asset management in the EU – Pillar 3
Austria
Table 3 Governance regimes: Roads, Austria
Owners of the
asset
The property of the Austrian road network belongs to
the Austrian general government13.
C1
D1
Bodies
responsible for
the strategic
and investment
decisions
The BMVIT is responsible for the strategic and
investment decisions on the Austrian road network.
Among its tasks, the BMVIT defines the strategic and
investment decisions in a six-year master plan which is
then implemented by ASFINAG, which is a PSH fully
owned by the central government with the Federal
Ministry for Transport, Innovation and Technology as
shareholder representative.
C1
Bodies
responsible for
the operational
decisions
In compliance with the long-term agreement signed
with the central government, ASFINAG is responsible
for the operational decisions regarding the central
government’s road network. As stated in the Federal
Budget Act14, the central government must ensure that
ASFINAG has sufficient liquidity and equity of at all
times. In addition, the relevant local public bodies are
responsible for managing their portion of the Austrian
road network. They directly report to the central
government.
C3
D2
National Public
Data Sources
The Federal Council of Ministers is responsible for
keeping and updating the inventories of the State road
network. ASFINAG and Statistics Austria15 collect and
report key information about the road infrastructure
(e.g. the length of motorways) and road traffic in
Austria.
C1
C2
Source: KPMG elaborations.
The network graphs in the table above highlight the main bodies involved for each role of the (a)responsibility chain (e.g. the bodies owning the assets, the bodies responsible for operational decisions), for each asset cluster in the government’s asset portfolio. These models may not apply to all the individual assets within the cluster.
For some clusters of assets the responsibility for some aspects of the governance regime is spread (b)between more bodies at different levels of centralisation. Therefore, we represent these cases using two “network graphs” representing these bodies.
13 Federal Roads Act. Available at: https://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&Gesetzesnummer=10011428
[Accessed: 6th December 2017] 14 For more detail about the Bundeshaushaltsgesetz (BHG) (the Federal Budget Act), please see: https://www.bmf.gv.at/budget/budgetpolitik-und-grundsaetze/rechtsgrundlagen.html [Accessed 13th September 2017]. 15 For more detail about the information reported by Statistics Austria, please see https://www.statistik.at/web_de/statistiken/energie_umwelt_innovation_mobilitaet/verkehr/schiene/index.html [Accessed: 15th December 2017].
Legend
C3C1 C2= Central government
= Central public body
= Central company-typestructure
D1 = Local governments
D2 = Local public body
D3 = Local company-typestructure
= Private bodyPM
Study on State asset management in the EU – Pillar 3
Austria
Railways
Table 4 Governance regimes: Railways, Austria
Owners of the
asset
Railways infrastructures are owned by the Austrian
federal railways (ÖBB-Infrastruktur)16,17, which is a
PSH fully owned by the central government.
C3
Bodies
responsible for
the strategic
and investment
decisions
The BMVIT is responsible for strategic planning and
financial decisions regarding railway infrastructures.
Representatives of the BMVIT review the operational
and financial management of ÖBB-Infrastruktur and
approve the six-year master plan, which must be
renewed each year. The central government must
ensure that ÖBB-Infrastruktur AG has sufficient
liquidity and equity at all times18.
C1
Bodies
responsible for
the operational
decisions
As the manager of the railway network, ÖBB-
Infrastruktur is responsible for operational decisions in
compliance with the long-term agreement signed with
the central government.
C3
National Public
Data Sources
ÖBB-Infrastruktur annually publishes the “Network
Statement”19, which contains the essential
administrative, technical and financial information
concerning the railway network, the service facilities as
well as related services offered by the company.
Moreover, since ÖBB-Infrastruktur compiles its annual
report based on the International Financial Reporting
Standards (IFRS), its balance sheet maps the value of
its railway tracks in compliance with the accounting
principle of IFRS 12 (“Property, plants and
equipment”).
In addition, Statistics Austria collects and reports key
information about railway infrastructures (e.g. the
length of railway tracks) and traffic in Austria.
C3
Source: KPMG elaborations.
The network graphs in the table above highlight the main bodies involved for each role of the (a)responsibility chain (e.g. the bodies owning the assets, the bodies responsible for operational decisions), for each asset cluster in the government’s asset portfolio. These models may not apply to all the individual assets within the cluster.
For some clusters of assets the responsibility for some aspects of the governance regime is spread (b)between more bodies at different levels of centralisation. Therefore, we represent these cases using two “network graphs” representing these bodies.
16 Österreichischen Bundesbahnen-Infrastruktur (ÖBB-Infrastruktur) AG. 17 1992 Federal Railways Act (BBG 1992) as amended by Federal Law Gazette (BGBl) I No. 95/2009). Available at: https://holding.oebb.at/file_source/corporate/holding-site/Downloads/Bundesbahngesetz.pdf [Accessed 13th October 2017]. 18 Art. 41 (1) of the Federal Railways Act. 19 For more detail about the information reported by the Network Statement, please see http://www.oebb.at/infrastruktur/en/_p_Network_Access/NetworkStatement/index.jsp [Accessed 9th November 2017].
Legend
C3C1 C2= Central government
= Central public body
= Central company-typestructure
D1 = Local governments
D2 = Local public body
D3 = Local company-typestructure
= Private bodyPM
Study on State asset management in the EU – Pillar 3
Austria
Mineral and Energy reserves
Table 5 Governance regimes: Mineral and Energy reserves, Austria
Owners of the
asset
Mineral and Energy reserves belong to the central
government20.
C1
Bodies
responsible for
the strategic
and investment
decisions
The Federal Ministry of Science, Research and Economy
(BMBWF)21 is the relevant authority for all forms of
Mineral and Energy reserves within the central
government’s portfolio including prospecting and
exploring.
In addition, among its duties, the BMBWF is responsible
for outlining the central government’s mining policy. On
this subject, it prepared two key documents, i.e. the
Austrian Minerals Strategy22 and the Austrian Mineral
Resources Plan23.
C1
Bodies
responsible for
the operational
decisions
Many companies are given the rights to exploit Austrian
mineral and energy resources in concession.
C3
D3
National Public
Data Sources
There is no information sources on Mineral and Energy
resources in the country
n.a.
Source: KPMG elaborations.
The network graphs in the table above highlight the main bodies involved for each role of the (a)responsibility chain (e.g. the bodies owning the assets, the bodies responsible for operational decisions), for each asset cluster in the government’s asset portfolio. These models may not apply to all the individual assets within the cluster.
For some clusters of assets the responsibility for some aspects of the governance regime is spread (b)between more bodies at different levels of centralisation. Therefore, we represent these cases using two “network graphs” representing these bodies.
20 Mineralrohstoffgesetz – MinroG (the Mineral Raw Materials Act). Federal Law Gazette I No. 95/2016. Available at: https://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&Gesetze [Accessed 14th September 2017]. 21 Bundesministerium für Bildung, Wissenschaft und Forschung (BMBWF). .22 For more information about the Austrian Minerals Strategy, please see https://www.en.bmwfw.gv.at/Energy/AUSTRIANMINERALSSTRATEGY/Seiten/default.aspx [Accessed 18th September 2017]. 23 Der Österreichische Rohstoffplan (the Austrian Mineral Resources Plan). Available at: https://opac.geologie.ac.at/wwwopacx/wwwopac.ashx?command=getcontent&server=images&value=AL0026_001_A.pdf [Accessed 18th September 2017].
Legend
C3C1 C2= Central government
= Central public body
= Central company-typestructure
D1 = Local governments
D2 = Local public body
D3 = Local company-typestructure
= Private bodyPM
Study on State asset management in the EU – Pillar 3
Austria
Other natural resources
Table 6 Governance regimes: Other natural resources, Austria
Owners of the
asset
Other natural resources are owned by both the central
government and the local governments.
C1
D1
Bodies
responsible for
the strategic
and investment
decisions
The Federal Ministry of Sustainability and Tourism24
(BMNT) is the main regulatory body for the proposal
and implementation of the government's policy on
Other natural resources. C1
Bodies
responsible for
the operational
decisions
The different relevant departments and agencies of the
BMNT are responsible for operational decisions
regarding the portion of Other natural resources within
their jurisdiction.
In addition, the relevant local public bodies are
responsible for managing their portion of the Austrian
Other natural resources.
C2
D2
National Public
Data Sources
There are many ad hoc registries each of them
covering a small portion of the state-owned natural
heritage (e.g. the Austrian Forest Report25). The BMNT
is the body responsible for keeping these registries
updated.
In addition, Statistics Austria periodically collects and
reports some key information about Other natural
resources.
C1
C2
Source: KPMG elaborations.
The network graphs in the table above highlight the main bodies involved for each role of the (a)responsibility chain (e.g. the bodies owning the assets, the bodies responsible for operational decisions), for each asset cluster in the government’s asset portfolio. These models may not apply to all the individual assets within the cluster.
For some clusters of assets the responsibility for some aspects of the governance regime is spread (b)between more bodies at different levels of centralisation. Therefore, we represent these cases using two “network graphs” representing these bodies.
24 Bundesministerium für Nachhaltigkeit und Tourismus (BMNT). 25 The Austrian Forest Report. Available at: https://www.bmlfuw.gv.at/english/forestry/The-Austrian-Forest-Report-2015--Austria-s-forests-receive-top-grades.html [Accessed 15th December 2017]
Legend
C3C1 C2= Central government
= Central public body
= Central company-typestructure
D1 = Local governments
D2 = Local public body
D3 = Local company-typestructure
= Private bodyPM
Study on State asset management in the EU – Pillar 3
Austria
Dwellings, Buildings other than dwellings
Table 7 Governance regimes for Buildings cluster, Austria
Owners of the
asset
Assets falling into this cluster can be owned either by
the central government or the local governments.
Pursuant to the Federal Real Estate Act26, the central
Government reorganised the management of its real
estate and transferred most of government-owned
buildings to a new, state-owned real estate company,
the Federal Real Estate company (BIG)27.
C3
D1
Bodies
responsible for
the strategic
and investment
decisions
The Federal Ministry of Finance is the main body
responsible for outlining the overall strategic
framework related to the central government’s
buildings. It also addresses the activity of BIG.
C1
Bodies
responsible for
the operational
decisions
BIG is responsible for operational decisions related to
the management and disposal of residential and non-
residential buildings within its portfolio.
In addition, local governments are responsible for
operational decisions regarding their own Dwellings and
Buildings other than dwellings.
C3
D1
National Public
Data Sources
Statistics Austria has to annually collect some
information about Dwellings and Buildings other than
dwellings in Austria (e.g the stock of dwellings and
buildings, housing costs, the estimated value of
dwellings and buildings).
C2
Source: KPMG elaborations.
The network graphs in the table above highlight the main bodies involved for each role of the (a)responsibility chain (e.g. the bodies owning the assets, the bodies responsible for operational decisions), for each asset cluster in the government’s asset portfolio. These models may not apply to all the individual assets within the cluster.
For some clusters of assets the responsibility for some aspects of the governance regime is spread (b)between more bodies at different levels of centralisation. Therefore, we represent these cases using two “network graphs” representing these bodies.
26 Federal Real Estate Act. Available at: https://www.ris.bka.gv.at/Dokumente/BgblPdf/1992_419_0/1992_419_0.pdf [Accessed: 7th December 2017] 27 Bundesimmobiliengesellschaft (BIG) m.b.H.
Legend
C3C1 C2= Central government
= Central public body
= Central company-typestructure
D1 = Local governments
D2 = Local public body
D3 = Local company-typestructure
= Private bodyPM
Study on State asset management in the EU – Pillar 3
Austria
Figure 1 Asset-responsibility chain and ownership matrix for the cluster of assets in
government’s portfolio, Austria
Source: KPMG elaborations. n.a. = not available Central gov. = Central government; Local gov. = Local government; Min. Fin. = Federal Ministry of Finance; Local PB = Local public bodies;
For more detail about the clusters of governance regimes, please see Methodological Notes. (a) The network graphs in the table above highlight the main bodies involved for each role of the (b)responsibility chain (e.g. the bodies owning the assets, the bodies responsible for operational decisions), for each asset cluster in the government’s asset portfolio. These models may not apply to all the individual assets within the cluster.
For some clusters of assets the responsibility for some aspects of the governance regime is spread (c)between more bodies at different levels of centralisation. Therefore, we represent these cases using two “network graphs” representing these bodies.
Ports are not represented in this figure as there are no maritime ports in this country. (d)
In light of the analysis presented earlier and summarised in Figure 1, the overall
governance regime for the Austrian government’s asset portfolio can be defined as
centralised both in terms of ownership and in terms of responsibility for strategic and
investment decisions on the assets.
In particular, the PSHs owned by the central government own the majority of the
state-owned assets and they also have the responsibility for operational decisions
relating to assets in their portfolio.
Asset cluster
Role of the bodyNational public
data sources
Responsible for the operational
decisions
Responsible for the strategic
decisions
Owner of the asset
Financial assets
Airports
Ports
Roads
Railways
Mineral and Energy
reserves
Other naturalresources
Dwellings, Buildings otherthan dwellings
ÖBB
C3
ÖBB
C3
ÖBB
C3
ÖBIB
C3
Local gov.
D1
ÖBIB
C3
Local gov.
D1
Fed. Min. Fin.
C1
BMVIT
C1
Central Gov.
C1
Local gov.
D1
BMVIT
C1
Central Gov.
C1
Central Gov.
C1
Local Gov.
D1
BMNT
C1
ConcessionairePSHs
C3 D3
Agencies & Local PB
C2 D2
No
n –
finan
cia
lassets
Fed. Min. Fin.
C1
Central Gov.
C1
Airport operators
C3 D3
StatisticsAustria
C2
n.a. n.a.n.a. n.a.
ASFINAG
C3 D2
Local PB
BMBWF
C1
BMNT
C1
BMVIT
C1
Fed. Council
C1
StatisticsAustria
C2
n.a.
Legend
C3C1 C2= Central government
= Central public body
= Central company-typestructure
D1 = Local governments
D2 = Local public body
D3 = Local company-typestructure
= Private bodyPM
StatisticsAustria
C2
Fed. Min. Fin.
C1
BIG
C3
Local gov.
D1
BIG
C3
Local gov.
D1
StatisticsAustria
C2
Study on State asset management in the EU – Pillar 3
Austria
2. MAPPING OF THE INVESTMENT STRATEGY OF THE PORTFOLIO OF ASSETS
The central government does not have a unique document outlining the investment
strategies for all the assets within its portfolio. Strategies are presented for almost
each cluster of assets in the portfolio of the general government.
Austria has implemented changes in the governance regime for most clusters of public
assets owned by the central level, establishing PSH to which the ownership and
operational management was transferred, while strategic decisions remain the
mandate of the ministries – see next two sections.
2.1. Financial assets
Art. 52 of the Austrian Constitution28 defines and regulates the rights of control in
respect of enterprises in which the Federation has a participation of at least fifty per
cent in the share, stock, or equity capital and which is subject to the control of the
Public Audit Office.
The Austrian central government does not publish a consolidated strategy about its
presence in the economy as an owner of PSHs (acquisition/privatisation). Practically,
until 2005, the central government has privatised some of the PSHs in its portfolio.
Indeed, the Austrian government has been selling many financial assets in its portfolio
(Figures 2 and 3). Specifically, two periods are worth flagging:
1996 – 2000, in which the privatisation process was driven by the dismissal of
government stakes in “Finance & Real Estate industry” and reached its peak in
1998 (in terms of value of the transactions) following the privatisation in public
utilities (i.e. “telecommunications”, and “utilities” sectors);
2001 – 2005, in which the privatisation process was driven by the dismissal of
government stakes in “Finance & Real Estate industry”, “Telecommunications”,
“Utilities” and “Manufacturing” sectors;
Figure 2 Privatisations across markets by value and by number, 1980 – 2014,
Austria
Sources: KPMG elaborations on Fondazione Eni Enrico Mattei (FEEM) database, 1980 - 2014.
28 Austrian Constitution. Available at: https://www.constituteproject.org/constitution/Austria_2009.pdf [Accessed: 8th December 2017]
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The value of privatisations refers to the sum of the values of the transactions agreed between a public (a)body (seller) and a private entity (bidder) for that period.
The number of privatisations refers to the total number of transactions for that period. (b) Sectors that are below the threshold of 5% in terms of both total value of the transactions and number (c)of deals have been included in the aggregate cluster “Other”.
16
Figure 3 Privatisations across markets by value over time, 1980 – 2014, Austria
Sources: KPMG elaborations on Fondazione Eni Enrico Mattei (FEEM) database, 1980 - 2014.
The value of privatisations refers to the sum of the values of the transactions agreed between a public body (seller) and a private entity (bidder) for that period. (a) According to data retrieved from the FEEM database, there were no privatisations during the years 1980 – 1985. (b)
5,000
3,000
4,000
8,000
0
7,500
2,500
7,000
2,000
6,500
3,500
4,500
5,500
6,000
500
1,000
1,500
9.3%
2006 - 2010
20.6%
1996 - 2000
6.7%
20.7%
38.1%
22.2%
2011 - 2014
71.1%
3.3%
2001 - 2005
42.0%
1991 - 1995
5.0%
1.4%
10.0%
34.2%
66.2%
28.2%
5.3%
2.3%11.6%
1.1%
3.7%
1980 - 1985
23.8%
10.3%
23.8%
11.3%
65.1%
1986 - 1990
14.2%34.9%3.1%
10.4%
Eur Mn
Transportation Industry
Petroleum Industry
Telecommunications
Services Industry
Utilities
Finance & Real Estate Industry
Manufacturing
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17
2.2. Non-financial assets
The central government does not have a unique document outlining the investment
strategy for all Non-financial assets within its portfolio. However, in recent years, the
Austrian government has launched and approved many ad hoc initiatives for almost all
Non-financial assets in its portfolio.
In the following sub-sections more details on the Austrian investment strategy relating
to Non-financial assets are provided.
Airports
The reform based upon the Aviation Act and its subsequent amendments was
addressed to concentrate the responsibility for strategic and investment decisions in
the hands of a unique entity within the central government, i.e. the BMVIT.
Although no clear details have been given yet with respect to the amount to be
invested in the Austrian airport infrastructures, the BMVIT has launched the Aviation
Road Map 202029, which is the central government’s strategic plan for the optimal
development of the Austrian aviation by 2020. This strategy was developed with
stakeholders within the Austrian aviation industry, and offers the aviation industry a
comprehensive planning and decision-making structure for the coming years. This plan
focuses on developing high-capacity and sustainable infrastructures to boost domestic
and international airport traffic in the country.
Ports
Austria does not have maritime ports30.
Roads
The Federal Roads Act31 transferred the property of the road network to a fully publicly
owned PSH, ASFINAG32 and mandated it to manage of the majority of the Austrian
road network
According to the 2017-2022 investment programme adopted by the government,
ASFINAG will invest 7.8 Eur Bn in infrastructures33. The construction programme is
financed only by toll revenues without any state grant.
Railways
The current governance regime adopted by the Austrian government was established
by the entry into force of the Federal Railways Act34, which aimed at incorporating the
principles established at European level in the directive of the first railway package.
29 Aviation Road Map 2020. Available at: https://www.bmvit.gv.at/en/service/publications/transport/downloads/aviation_roadmap2020.pdf [Accessed 17th January 2017]. 30 Fluvial ports are not considered in the analysis. For further detail please see Methodological Notes of Pillar 2. 31 Federal Roads Act. Available at: https://www.ris.bka.gv.at/GeltendeFassung.wxe?Abfrage=Bundesnormen&Gesetzesnummer=10011428
[Accessed: 6th December 2017] 32 http://www.asfinag.at/about-us/core-areas [Accessed 13th September 2017]. 33 For more information, please see https://www.unece.org/fileadmin/DAM/trans/doc/2017/TEM/Austria.pdf [Accessed 09th January 2018]. 34 1992 Federal Railways Act (BBG 1992) as amended by Federal Law Gazette (BGBl) I No. 95/2009). Available at: https://holding.oebb.at/file_source/corporate/holding-site/Downloads/Bundesbahngesetz.pdf [Accessed 13th October 2017].
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The ownership and the management of railway infrastructures were transferred to
ÖBB-Infrastruktur.
In addition, the Council of Ministers adopted a six-year, 15.2 Eur Bn investment
master plan with the ÖBB-Infrastruktur from 2017 to 202235. Most of the funding will
go into ongoing construction projects.
Dwellings, Buildings other than dwellings
In recent years, the Austrian central government has transferred the property of the
majority of the central government-owned to a PSH, i.e. BIG m.b.H, through the
adoption of the Federal Real Estate Act36.
This PSH is responsible for implementing the general investment strategy outlined by
the Federal Ministry of Finance. Annual reports are published by BIG m.b.H.
presenting its investment plans.
Mineral and Energy reserves
With regard to the investment strategy launched for Mineral and Energy reserves,
BMBWF prepared two key documents:
the Austrian Mineral Resources Plan, which is the national master plan to
secure the supply of mineral resources and to serve as a planning basis for
future mining activities with the central government and the local governments
in relation to their specific needs;
the Austrian Mineral Strategy, which is an essential tool to implement the
national mineral policy. Its priority objective is to ensure and to improve the
supply of minerals and commodities to the Austrian economy. Similar to the
Raw Material Initiative launched by the European Commission, the Austrian
Mineral Strategy is grounded on three pillars:
1. securing minerals supply from the domestic sources through the
implementation of the Austrian Mineral Resources Plan;
2. securing minerals supply from non-EU sources through the
establishment of raw materials partnerships;
3. promoting resources efficiency through substitution, recycling, and even
development of new methods with reduced minerals input.
Other natural resources
The current legislative framework on the Austrian general government’s Other natural
resources makes very difficult to infer the general investment strategy for Other
natural resources within the general government’s portfolio.
35 ÖBB-Infrastruktur AG, Annual Report 2016. Available at: http://presse.oebb.at/file_source/corporate/presse-site/Downloads/Publikationen/OEBB_INFRA_AnnualReport2016.pdf [Accessed 09th January 2018]. 36 Federal Real Estate Act. Available at: https://www.ris.bka.gv.at/Dokumente/BgblPdf/1992_419_0/1992_419_0.pdf [Accessed: 7th December 2017]
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3. PERSPECTIVE ON THE EXECUTION OF THE INVESTMENT STRATEGY
From the mapping of the governance regimes (Section 1) and the investment
strategies (Section 2) for the state-owned asset portfolio, some key insights about the
perspectives on the execution of the investment strategies can be drawn as follows:
the Austrian central government has concentrated the ownership and the
responsibility for operational decisions on the majority of the central
government-owned assets in the hands of a few PSHs fully owned by the
central government (e.g. BIG, ÖBB-Infrastruktur). In addition, the ultimate
responsibility for investment and financial decisions regarding state-owned
assets belongs to the central government;
as it can be inferred from the analysis of a considerable sample of investment
strategies, master plans, and programmes, the central government aims at
developing and exploiting its portfolio, mainly using the Federal State Budget.
However, private investors and the local governments bear a portion of the
investment costs for some assets within the Austrian general government’s
portfolio (e.g. airport infrastructures, real estate, mineral and energy
reserves).
Figure 4 Matrix of Governance regimes vs Investment strategy by clusters of assets,
broad features, Austria
Source: KPMG elaborations, based on governance regimes and recent observed strategies.
The position of each asset cluster with respect to the “investment strategy” dimension (x-axis) reflects (a)the general investment strategy adopted by the government for the cluster. The general investment strategy might not apply to every single asset within the cluster (e.g. the position of the cluster indicates that the government currently plans to invest/divest, and this does not imply that this applies to all assets within the cluster).
Ports are not represented in this figure as there are no maritime ports in this country. (b)
As Figure 4 shows, the governance regime is mostly “centralised” with regard to those
assets for which the central government is responsible for the bulk of the investment
Decentralised
InvestmentInvestment with private investors
involvement
Divestment/Fullyprivate investment
Governanceregime
Investmentstrategy
Centralised
Legend
= Financial assets = Airports
Not clearinvestment
strategy pattern
= Ports = Roads = Railways= Mineral and Energy reserves
= Other naturalresources
= Buildings
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(e.g. the railway network through ÖBB-Infrastruktur AG, and the central government-
owned buildings through BIG m.b.H) (first two quadrants on the left of Figure 4).
The centralised model adopted for most of transport infrastructures forced the central
government to bear the greatest part of investments in transport infrastructures. In
fact, in compliance with the Austrian legislation, the central government must ensure
that ÖBB-Infrastruktur AG and ASFINAG AG have sufficient liquidity and equity to be
able to implement the government transport policy.
Currently, there is no publicly available document that defines the destination of the
proceeds from forecasted privatisations.
4. SYNTHESIS OF STRENGTHS, WEAKNESSES, OPPORTUNITIES AND RISKS
Financial assets
Strengths/Opportunities:
o in order to represent the central government’s interests as owner of
some companies labelled as "strategic", the central government has
transferred the ownership and the responsibility for the operational
decisions on these companies in the hands of a unique PSH fully owned
by the central government, i.e. ÖBIB;
Weaknesses/Risks:
o the mandate of ÖBIB and its objectives are set by the central
government and therefore are strictly depending on political
discretionary decisions;
Non-Financial assets
Strengths/Opportunities:
o the central government has transferred the ownership and the
responsibility for the operational decisions on a significant portion of its
assets in the hands of PSHs fully owned by the central government (e.g.
BIG, ÖBB-Infrastruktur and ASFINAG);
o lack of a unique document or law outlining the government’s general
investment strategy for the asset portfolio as a whole. At the same
time, the central government has not launched any strategies covering
significant portions of the government’s asset portfolio:
the Aviation Road Map 2020 for airports;
ASFINAG six-year master plan for roads;
Öbb-Infrastrukure six-year master plan for railways;
the Austrian Mineral Resources Plan and the Austrian Mineral
Strategy for Mineral and Energy reserves.
Weaknesses/Risks:
o lack of a unique integrated and consolidated National public data source
covering the public asset portfolio as a whole.