Schellhorn on deregulation: “We are blocking each other into ruin”

A company building a new commercial facility normally faces two administrative procedures in Austria: a building permit handled by the municipality and an operating-facility permit issued by the district authority. State Secretary Sepp Schellhorn believes one of them is unnecessary.

The Neos politician responsible for deregulation wants a “one-stop shop” based on a simple principle: one project, one authority, one procedure. He cites support from the Austrian Court of Audit and the provincial audit offices, saying concentrated procedures could make public administration more efficient, cheaper and faster.

Some of the system already operates this way. Statutory cities combine the functions of municipalities and district authorities, while municipalities can also transfer responsibility to district administrative authorities through a provincial regulation. But the practice varies sharply. Salzburg transfers responsibility in 84 percent of cases, compared with 12 percent in Tyrol, producing what Schellhorn calls a patchwork.

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This is misunderstood federalism.

A uniform approach would require a legal change that generally shifts the building-law component to district administrative authorities. A similar attempt failed in 2017 at the end of the then governing coalition's term.

The new proposal has backing from all parties in the government, including ÖVP Economy Minister Wolfgang Hattmannsdorfer, and municipal representatives hope it will generate savings. Some provinces oppose it because they fear higher costs in their jurisdictions. Schellhorn rejects that concern, pointing to the Court of Audit’s finding that the transferred responsibilities would not impose significant costs on district authorities. "This is misunderstood federalism," he said. "We are blocking each other into ruin."

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We are blocking each other into ruin.