For tenders

Blue and black want priority for “Made in Austria”

Austrian companies should be given preference wherever possible.

(Bild: Krone KREATIV/stock.adobe.com/KerkezPhotography.com)

Furniture from Lithuania, paving stones from Portugal - this is to be the end of public tenders. More domestic companies that manufacture products "Made in Austria" are to be given a chance. The FPÖ also wants to include this plan in the government program. However, any solution must be compatible with EU law.

The FPÖ and ÖVP were quick to agree on how to plug the gigantic budget gap. EU proceedings were averted. The presumed coalition partners are also in agreement on another economic issue. Blue and Black want more products "Made in Austria" for major contracts, especially for public tenders. Taxpayers' money is used to award 65 billion euros a year - from the Federal Procurement Agency to municipal authorities.

Quality plays too small a role
It is difficult to determine how much of this remains in Austria. If Austrian companies are awarded a contract, it is often only because they supply cheap goods produced abroad, according to negotiators. The best bidder procedure is usually used, "but even in this procedure, quality criteria are given far too little consideration, sometimes only five percent." Price dominates. No other EU country rates the quality criteria as low as Austria. However, it should be about domestic production wherever possible, according to the negotiations. 

Paving stones from Portugal, furniture from Lithuania
The current situation is leading to bizarre excesses, such as paving stones from Portugal for the market square in Bad Goisern and office furniture from Lithuania and Turkey for public administration equipment. This is a thorn in the side of the FPÖ in particular. In any case, the Freedom Party's election manifesto already referred to an "urgently needed Austrian economic patriotism". Companies that are Austrian-owned and produce red-white-red products should enjoy tax advantages and apparently also be more likely to win tenders. A negotiator from the Freedom Party told "Krone": "With so much money, you have to make sure that Austrian companies get a chance, because they pay taxes here and create jobs here."

Austria has high production costs and is therefore quickly at a disadvantage in tenders.

(Bild: Christian A.Pichler)

Among office furniture manufacturers, the Waidhofen-based company Bene, which employs over 1000 people here, should be mentioned. Neudörfler, Hali and Blaha also equip offices with Austrian furniture. Reinhard Gleiss, Chairman of the Works Council at Bene, told the "Krone" newspaper: "Despite the highest quality, we hardly stand a chance in public sector tenders because our unit labor costs are rightly significantly higher than those of competitors from Turkey or Lithuania." The company itself produces and exports from London to Dubai. However, some public authorities would rather buy their office equipment elsewhere. "That's why we need support from politicians to focus on securing locations and climate protection."

EU prohibits discrimination against countries
How the purchase of more expensive furniture is compatible with the budget target of saving 15 percent on material costs in ministries remains unclear. In addition, EU law could interfere with the plan. Explicitly excluding companies from other countries is prohibited and contradicts the principles of the EU internal market, clarifies law professor Walter Obwexer. However, the public sector can pay more attention to short transport routes and regionality as well as quality and sustainability in tenders, making it easier for domestic companies to win despite higher prices. That would be a viable way to ultimately achieve more "Made in Austria", says the expert.

Paving stones from distant Portugal or furniture from Turkey could then be eliminated if the weighting in tenders is adjusted. However, regionality must also be understood across borders: For the town hall in Kufstein, the supplier can also be from Bavaria. For a Waldviertel client, a producer from Brno in the Czech Republic also counts as regional. Obwexer also emphasizes that Austria benefits greatly from the domestic market. However, this is not a one-way street; our companies also want to be able to win contracts abroad and not be discriminated against. Furthermore, discrimination against foreign companies could also deter international investors.