Role of public Services and Social Partnership - the

Austrian experience

Chongqing – 5th June 2013

China-Europe Public Administration Project II (CEPA II)中欧公共管理二期项目

Public Services

• Are the foundation the Austrian social economy, whereas their are two different types – Grid based public services like

Energy, Water, Sewage etc. – Not Grid based public services like

Civil services, Social services, Social housing, Cultural services etc.

Public Services in Austria

• A very strong local responsibility• Citizen value versus Shareholder Value • The Principles of Public Services in Austria• Long term investments • Social stability and security of supply• Strategically highly important – especially during the

financial crisis in Europe

The System – Grid based

• The System „Stadtwerke“ – public utility companies

• Mainly in Germany and Austria

• Provide Infrastructure-based services on a local level

– Electricity, Gas, District Heating and Cooling

– Waste management (treat the waste you produce energy)

– Water supply

– Local Public transport

– Funeral Services

– Public Gardens and Green Areas

– Telecommunications, TV

• Losses and profits can be set

Local Responsability

• The Idea behind: – How to provide public services is best known on a

local level– Regions and Cities are very much different and

therefor the solutions should be created locally– Tight co-operations between the Cities and Regions

• Incineration: Waste is organised within the City of Vienna, the incineration is organised in the Wiener Stadtwerke

Citizens Value and Common Welfare

• Needs of the local population are essential • The assents are in the hands of the population • Democratic control and stability – no need to maximize

profits• Added value for the region, jobs, safety and security of

supply

The principles behind

• Efficiency – Benchmarking• Security of Supply • Environmental friendly

– Combined heat and power (CHP-Systems)• Social responsible • Affordable and equality • Synergies

Long Term Investments

• Investments in sustainable Infrastructure need much more than 20 years for re-financing – no private company is willing to take this risk

• Immense added value for the regions, example Vienna: – Very Euro invested in Infrastructure is creating 1,7

Euro added value in the region; – Every job in this „multi-utility“ companies create 1,8

additional jobs in the region

Public services „outside“ the grids

• Civil Services – public administration; huge reform on a national level – Biggest reform in the last 100 years

• Social and Health Services – provided again on a local and regional level – organised through a mixture between the national and the local level

• Social housing – politically highly relevant in Europe

Administrative Reform - Austria

• 120 government agencies will be closed down with the end of the year

• All cases will be moved to a governmental court dealing with administrative issues

• It will be the biggest court in Austria – dealing with 40.000 cases a year

WHY:• Legal certainty• Remedies for the citizens• Efficiency (grouping, quicker)

Why is it so important to have a goodcooperation between

public services and public administration

Youth unemploymentDramatically worse since 2008 in countries like Spain and Greece(20%), Lithuania, Latvia (18%), Ireland (16%), Estonia, Cyprus, Portugal and Slovakia (btw 10 and 15%)

Other countries like Germany, Luxemburg, Austria could keep the rate of youth unemployment quite low – due to a very strong public sector

Young men are more affected by the increase of unemployment, due to their overrepresentation in construction and manufacturing. Female unemployment is also increasing as cuts in the public services beginn to bite.

The role of the public sector

Around 27,5% of all jobs in the EU are found in the public sector – here we talk about 60 Million Jobs in the EU

Europe is very different – Italy 22% and Denmark 34%

3,5 Million young people (between 15 and 24 years) were working in the sectors providing Services of General Interest

Youth employment in public sectors

Decrease of jobs for young people

European Trends

• Decrease of youth employment: – Health sector– Public administration– Postal services

• Increase of youth employment– Residential care– Electricity

• Stable– Social work– Scientific research– Cultural

Austrian approach to tackle youth-unemployment

• Dual-educational System in Austria– Professional training and education work parallel– Strong role of the social partners

• Guarantees for young people • Young people must be able to stand on their own feed –

social security, social housing, jobs, education and a state which has the means to invest in order to tackle the financial crisis

Thank you very much

» Contact:

» Heidrun Maier-de Kruijff» maier@voewg.at» www.voewg.at