News from the SRS's Website, January 30, 2008: SRS–Piber Statement on Auditors’ Report

• The two new Managing Directors Elisabeth Gürtler and Erwin Klissenbauer, who were appointed on December 1st, 2007, are taking the observations made by the Court of Auditors very seriously. A number of recommendations have already been implemented and during the next months others will follow.


• The Spanish Riding School – Federal Stud Piber is one of Austria’s most important cultural institutions. Classical dressage is cherished and maintained in the unique setting of the historical Winter Riding School built by Fischer von Erlach.


• Commercial Development


• It was clear from the beginning that in the commercial development of the enterprise which was released from the Federal Administration in 2001, the first years would generate a loss. As stated by the Court of Auditors a significant improvement was achieved in 2006. Measures are currently being implemented that will enable further improvements on both returns and expenses.


• One must take into consideration that especially in the first years after the spin-off comprehensive and long-overdue necessary investments had to be made, notably with regard to the improvement in horse husbandry, which were covered among other things by financial funds from the federal government and by the sale of individual real estate.


• It must be stated that both the Spanish Riding School and the Federal Stud Piber are cultural establishments which certainly have the potential for improvements, however, generating profits is not a priority, especially taking into account the numerous statutory remits.


• Budget management is conducted with the outmost commercial diligence.


• Sponsoring


• Concerning sponsoring activities a new, comprehensive concept is being drafted and great importance will be attached to the quality in the attendance to sponsors.


• Events and Tours


• The new management has already increased the number of performances for the year 2008, in accordance with the School Director especially taking into account the requirements of the horses.


• The planning of tours is undergoing a complete realignment. It is important to emphasize that tours are generally seen as an investment for the School into different markets, which in the long term should generate economic viability.


• Staff


• Concerning the riders’ income a new salary system is being developed, which will take into account the points of criticism voiced by the Court of Auditors.


• Real Estate


• With regard to the existing real estate at the different locations a real estate concept is currently being drafted based on the principle of generating current income through real estate management.