06. 09. 10. - 12:00

Magna boss justifies farming subsidies

Siegfried Wolf, one of the richest Austrians, has defended receiving almost 50,000 Euros in subsidies for his agricultural business.

Hans Weiss reveals in his new book "Schwarzbuch Landwirtschaft" (Black Book of Agriculture) that so-called small business farmers receive just 20 per cent of 2.2 billion Euros paid by the Austrian government and the European Union (EU).

The author said six of the 10 richest Austrians receive subsidies for agricultural activities.

He explained: "Large-scale firms and agricultural companies become bigger and bigger, while the small ones shut down."

Now Wolf, co-chief of Austrian-Canadian car parts maker Magna, has defended himself for raking in 45,000 Euros in annual subsidies.

He told the Kronen Zeitung: "I receive 23,000 Euros of direct aid and the rest for avoiding toxins which pollute water, air and soil. The subsidies are financial compensation for the resulting small revenue."

Wolf – who with around 3.8 million Euros is Austria’s best-paid manager – said he would appreciate a debate about fair prices for agricultural products instead of subsidies.

Meanwhile, Fritz Grillitsch hit out at Weiss over his latest book.

The head of the Austrian Agricultural Association dismissed "Schwarzbuch Landwirtschaft" as "just the usual agitation against farmers". Grillitsch claimed the subsidy schemes would keep prices for products at supermarkets from soaring.