<%@LANGUAGE="VBSCRIPT" CODEPAGE="1252"%> Civic Network of South Tyrol

Welcome to South Tyrol

Crafts and handicrafts

The economic sector of crafts and handicrafts plays an important role in the economy of South Tyrol and could have been extended and improved during the last five years thanks to the special promotion of the Province.
Crafts and handicrafts have comprehensive and irreplaceable function in the maintenance of the local economy. The small firm model (2.6 employees per firm), the province-wide distribution of firms, the extensive differentiation in the individual sectors and the outstanding vocational training in crafts and handicrafts make a continual renewal of enterprise possible. Crafts and handicrafts are therefore a pillar of South Tyrol's economy and society. The most important trades in South Tyrol are: joiner, bricklayer, painter, butcher, baker and plumber.
The structure of crafts and handicrafts in South Tyrol is essentially characterised by numerous very small or small firms spread out throughout the Province. These firms work predominately for the local market: about 86 per cent of production is intended for sale locally and nationally. Traditionally the South Tyrolese craft sector counts an above-average number of artisan-type firms. Most manufacturing crafts are concentrated in wood and metal work. Because of the recognised high quality of its workmanship, despite being basically oriented towards the local market, crafts also provide a considerable part of total exports.
Crafts and handicrafts are very important for the local economic fabric of society. They provide employment and economic stability and prevent emigration from the Province's outlying areas.
In 2000, South Tyrol had some 13,000 mainly small crafts and handicrafts firms, employing some 27,300 persons (this means an increase of the employed persons of 5 per cent, compared to 1999). The high number of apprentices also speaks for the significance of the craft sector; more than 60 per cent of all apprentices in South Tyrol work in the craft sector. Thanks to this structural composition crafts and handicrafts show a high degree of flexibility and adaptability and can thereby always maintain themselves in times of economic fluctuation.

The long historical tradition of South Tyrolese crafts is closely linked to crafts traditions in Tyrol and the German linguistic area. The Austrian Industrial Code used to apply in South Tyrol, but in 1926, after the separation of South Tyrol from Austria, it was abrogated. Thereafter complete freedom of trade reigned, as elsewhere in the Italian state. Only with the first Autonomy Statute of 1948 could primary legislature power in the field of crafts and craft vocational training be established. This was the basis for the creation of a provincial Crafts regulation which although passed in 1952, because of serious legal issues, could only come into effect in 1956. In view of the continual number of changes needed since then, its complete revision was clearly required, as a result of which a new crafts regulation was enacted with Provincial Law n.3 of 16 February 1981. Important features of this reorganisation were, besides the definition of a craft and its exercise, the classification of craft actives, with the Master Craftsman examination as the basis for the independent exercise of a craft or trade. The Italian Constitutional Court, however, annulled this important pillar of the Crafts regulation, and with Judgement n.168 of May 1987 declared that eventual conditions for the exercise of a profession could only be laid down by State laws. This did not abolish training and examination to become a Master Craftsman, but made such training voluntary.

Through related measures of the Province incentives were created for training to become a Master Craftsman. Thus, for example, Master Craftsmen, receive higher investment grants than those who are not Master. In addition, independent Master Craftsmen have recently been presented with a Master's Emblem which as an officially protected quality mark identifies the Master Craftsman's firm, and guarantees high professional training and quality. The already long in use and unique to the Province Master Craftsman Training Centre in Siemens Street in Bozen has brought an additional improvement in training and education of skilled workers in crafts and handicrafts.

A very important change in the existing craft and handicraft regulations occurred in 1997: in addition to the hitherto existing company formations of general partnerships (OHG) or limited partnerships (KG) it is now possible to found a crafts or handicrafts enterprise in the form of a limited liability company (GmbH) and be entered in the list of crafts and handicrafts enterprises. As a result advantages are to be expected particularly in relation to liability and therefore for entry into the risky business of exporting as well as for issues of inheritance.
On the basis of the craft and handicraft regulations a specialist body - the Provincial Craft Commission - was set up which gave its opinions on all questions relating to crafts and crafts vocational training. This "Crafts Parliament" consisted of eight members and was composed of craftsmen, vocational school directors and representatives of the Crafts Department of the provincial administration. The Provincial Craft Commission maintained the register of craft enterprises and had its headquarters in the Chamber of Commerce in Bozen. It has been replaced by the director of the provincial Crafts Department and by the Chamber of Commerce in July 2000 in order to reduce the administrative procedures.

The provincial administration is the supreme authority; within it the Crafts Department deals with legal matters, apprentices and Master Craft training, and promotional work.
In 2000, Crafts and handicrafts received 90 billion lire from the budget, chiefly for support firm investments in property and moveable goods, the purchase and development of business space as well as the promotion of training and further training, the provision of advice, research and development, and advertising. Also supported are apprentices through the refunding of costs occurred while attending vocational schools as well as building new or converting homes for apprentices. Also subsidised are the training of Master Craftsmen and the guarantee co-operative for craftsmen and the implementation of various annual initiatives (advertising campaigns for South Tyrolese crafts, putting on craft exhibitions and awarding prizes, participation in fairs, conferences and other events). Finally the Province contributes to the EU development programmes "5b", "Leader" and "Interreg".

The supportive measures applied in the fields of crafts and handicrafts were notified to the EU authorities in 1995 and with few restrictions were considered to conform to EU requirements. The EU regulations on support for small and medium-sized firms, parallel to provincial laws, have not seriously affected the crafts sector since most South Tyrolese craft firms are small or very small, are predominately active in the local market and therefore hardly likely to clash with EU competition rules. The new economic development law has been approved by the EU Commission in 1997.

In recent years renewed progress has been made in regard to the allocation of land for setting up businesses. Through the take-over of some 25 hectares of land in the industrial area of Bozen-Süd, which became available following the closure of big industrial concerns such as the Magnesium, Aluminium and Iveco works, plots of land can be allotted to numerous bigger and smaller craft firms.
The special importance which the Province of South Tyrol attaches to crafts and handicrafts in regard to training and further training is apparent in the activities of the office for apprentice and master craftsman training. For training apprentices about one billion lire is spent annually. The same sum is spent annually for carrying out the Master examinations and the corresponding preparatory courses, one third of which is financed by the European Social Fund.

Decisive for the continuation and the further development of crafts and handicrafts is the support for the setting up of new firms and safeguarding their existence. A vital step in that direction was the foundation of the Innovation and Economic Park "BIC - Business Innovation Centre" in 1998. What was involved was the establishment of a Consortium in which the Province, the Chamber of Commerce, regional banks and various employers participated as partners. It had the aim of supporting the foundation of new and the development of existing innovative enterprises. To that end the Consortium can provide workspace, administrative services and advice, amongst other things, on organisation, strategy, finance, planning and research. In this Park is the already existing "Counter for Technology and Development (STI)" which was set up a few years ago by the Bozen Chambers of Commerce as a technology advice centre.

In 1997 the South Tyrolese crafts and handicrafts plan was developed by the Institute for Management of the University of Innsbruck in co-operation with the Craft Department of the Provincial Administration and with the participation of the employers associations, the municipalities and the municipal associations. It pursues the aim of dealing with the issues set out in the Provincial Development Plan (LEROP) on the problems, goals and measures in the crafts and handicrafts sector trough future-oriented strategic development over the next three to five years.