Creative Industries Styria GmbH is a corporation in which the state-owned Styrian Economic Development Corporation (SFG) holds 80 percent; The City of Graz and the Styrian Chamber of Commerce each hold ten percent of the shares. According to the state, the CIS looks after 1,225 member companies and is available as a contact point for all 4,800 Austrian creative companies.
Despite the focus on Graz, the land bears the main burden
However, the State Audit Office (LRH) now found that two thirds of the creative companies supported are located in the greater Graz area, but that the projects are largely financed by the state; Furthermore, together with the Styrian Economic Development Agency (SFG), the state bears almost all overhead costs, i.e. the material costs, according to the test report presented on Tuesday. The state’s economic department itself puts the state’s contribution to the CIS at one million euros per year.
Suggestions for improvement in 24 recommendations
The State Audit Office made suggestions for improvement in 24 recommendations. Among other things, he suggests a redistribution of the financial contributions between the state and the city of Graz in order to remove the existing financial asymmetry; on the other hand, the overhead costs could be distributed to all shareholders and project partners in a way that is fair to the cause, according to the LRH. If the inequality cannot be eliminated as a result, alternatives to implementing the lead projects should be considered – for example by commissioning external project partners.
In addition, general considerations could be made as to whether the promotion of creativity aimed for by the CIS could not also be realized through funding programs, for example – such funding channels are installed directly at the SFG and the State of Styria.
Need for action with managing director bonus
LRH also identified a need for action with the managing director bonus: The proper management of the accounting system and an internal control system represent a fulfillment of legal obligations anyway and is therefore “unsuitable” as target parameters for this bonus. In this context, the auditors recommend an evaluation of the existing premium regulation.
The report praised the fact that when contracts were awarded by the CIS, the best bidder principle was adhered to, taking social and ecological criteria into account, as required by the state parliament on the basis of a resolution.
Economic councilor emphasizes “positive effects”
Economic State Councilor Barbara Eibinger-Miedl (ÖVP) emphasized the important task of the CIS as a network organization. The positive effects are also confirmed by the current figures from KMU Research Austria, according to a broadcast. According to this, around 4,800 creative companies are currently active in Styria, employing a total of 17,500 people and generating annual sales of two billion euros.
Regarding the recommendations of the Court of Auditors, Eibinger-Miedl stated that they would already be implemented. “We are reviewing the shareholder structure of the CIS and are already in talks with the City of Graz in this regard,” said the regional councilor. Supporting the industry through a funding program, on the other hand, would require a significantly higher investment of funds.
FPÖ calls for more transparency in state participation
The LRH report also called the FPÖ finance spokesman in the state parliament, Stefan Hermann, on the scene: “The findings of the LRH show once again how important more transparency would be in the state’s investments”. The LRH recommendations are to be implemented, said Hermann, who, among other things, called for a “stronger commitment” from the CIS outside of the Graz metropolitan area.
During their examination of the conduct of the CIS, the auditors found, among other things, that their work extends too much to the Graz metropolitan area and, moreover, that the financial expenses for the State of Styria are disproportionately high.
NEOS: “State has neglected duty of supervision”
According to NEOS club chairman Niko Swatek, the CIS reflects the morals of Styrian government policy: “Here the state has once again neglected its supervisory duties. Instead of having clear objectives, the Creative Industries Styria stands out primarily with privileges for its employees, “says Swatek, referring to the premium payments to management criticized by the LRH:” If the simple fulfillment of obligations leads to premium payments, that’s a blow in the face of entrepreneurs in the creative industries, “said Swatek.
KPÖ sees itself confirmed in criticism
The KPÖ, however, sees itself confirmed in criticisms that have been made for years, explains Sahar Mohsenzada, finance spokeswoman for the Grazer der Communists in the municipal council, for example with regard to “excessive travel expenses for a few leaders” and “unjustified manager bonuses”: “How at the trade fair or at the Graz-Tourismus it is also evident here: the ‘success bonuses’ are not bonuses for success, but only a pretext for fat manager salaries ”, criticized Mohsenzada.
In fact, the KPÖ was the only faction that never approved the economic plans of the Creative Industries Styria (CIS). However, KPÖ cultural spokeswoman Christine Braunersreuther warns against asking the city to pay even more through a possible redistribution of costs,
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