“With the revision of the tax law, we remain an attractive business location.”
In an interview, Lucerne's cantonal councillor and finance director Reto Wyss explains the advantages of Lucerne's special model in economic promotion and what measures the canton is taking in terms of sustainability and digitalisation.
You have been a member of the government since 2011 and are running for a fourth term in April. What do you like about your current position as Finance Director of the Canton of Lucerne?
Even after 12 years, I consider it a privilege to be a government councillor in the Canton of Lucerne. For me, it is an exciting, varied and challenging task. As Finance Director, I take care of IT, real estate and personnel in addition to finances. I enjoy these cross-sectional functions and the resulting responsibilities. Our department is allowed to provide the resources that the other departments need in order to provide the corresponding services to the population.
Where do you see the greatest challenges at the moment?
From an overarching perspective, mobility and sustainability are among them, along with health care. Within the Finance Department, we have several interesting real estate projects that we are allowed to push ahead with – for example, the expansion of the Horw campus. With a budget of 365 million francs, this is the largest project in the Canton of Lucerne to date. We have also just submitted the building application for the cantonal administration at Seetalplatz in Emmen. We want to bundle the administration in this new building for about 175 million francs. One of the challenging tasks is the ongoing search for a location in the city of Lucerne for the Lucerne Museum and the Cantonal Court. Since we need several thousand square metres of space for both, the project is not entirely simple.
You are currently working on the revision of the Tax Act 2025. Are global uncertainties such as the climate problem or the war in Ukraine being taken into account?
In the Canton of Lucerne we are registering a very positive development. The tax law reform is intended to create the conditions for the Canton of Lucerne to remain an attractive location for natural persons and legal entities and to develop optimally. In 2000, we still had debts of 2.5 billion francs – today we have net assets of more than 300 million francs. We have achieved this thanks to an ambitious and demanding tax and financial policy. In parliament, we discussed a climate and energy report and are implementing the corresponding measures. The situation in Ukraine naturally affects many areas. Taking the current situation into account, we have created a stable foundation for the tax law reform and are looking forward to it positively.
You see yourself as a bridge builder between city and country. Where do the discrepancies lie?
In addition to the city and the agglomeration as an urban centre, there are many agricultural regions, especially in Lucerne’s hinterland. It is precisely this diversity that makes the canton interesting. We are centrally located, easily accessible and can offer attractive local recreation areas. In this respect, I don’t want to talk about discrepancies, but about different starting points. It is our task to keep these differences in mind in all decisions. An agglomeration city has different needs than a rural community in the Entlebuch. Thanks to the cantonal financial equalisation system, we can offer comparable services to the population in all municipalities.
You completed an apprenticeship as a draughtsman and then studied to become a civil engineer. To what extent does the knowledge you acquired then flow into your current job?
I am a great friend of the dual education system: vocational training is not better or worse than the academic path. It is simply different. During my apprenticeship, I learned to take responsibility for the work I do and to do it very accurately. This benefits me in my current job as finance director. Especially in the real estate sector, I know how construction projects are set up and I know the processes. Basically, an education like the one I enjoyed is a good basis for a broad range of tasks.
What strategy are you pursuing in your department in terms of digitalisation?
I am convinced that the digital transformation is an important basis for the further development of our society and economy. In this respect, we have developed a digital strategy that is geared towards the entire canton and is intended to ensure its future-oriented development. Within the administration, we want to provide our services in a contemporary – i.e. digital – manner. We have launched the service portal together with the Lucerne municipalities. It is intended to offer communal and cantonal services online. The plan is to create a digital gateway for all public services in the Canton of Lucerne. Our aim is not only to find an optimal solution for the administration, but also one that makes life easier for the residents.
What makes the Canton of Lucerne attractive for companies?
We offer good framework conditions, for example in profit taxation, which we halved in 2012. As a result, we were the canton with the lowest profit taxation of legal entities for several years – this has had a positive effect. With the planned revision of the tax law, we are ensuring that we will continue to be an attractive business location in the future. But our educational institutions are also an important factor. We have consciously invested in education and belong to the rather younger education cantons. We also benefit from our central location and the sufficient space available for businesses. We are aware that we are in a competitive environment with the neighbouring cantons. We have to move constantly in order to remain attractive.
The Canton of Lucerne relies on a special model for economic development.
Correct. We are the only canton in Switzerland that does not regulate business promotion at the cantonal level, but has outsourced it to a foundation. The companies are represented there as partners of the cantons and municipalities. We are convinced that it is important that the business community has a say in decision-making and feels valued. That is why we attach great importance to the maintenance of the existing business community and want to ensure good framework conditions for the private sector. We strive for qualitative growth and receive good feedback for our model.
What is the situation regarding urban sprawl in the Canton of Lucerne and what is being done about it?
We support the economical use of land and try to promote this with legal foundations. Densified building is the order of the day in our structure plan and in the communal zoning plans. Due to the Federal Spatial Planning Act, we now have 21 municipalities that have to reduce their building zones by up to 70 hectares – so-called rezoning municipalities. This is not an easy process, but we are keeping at it. With our structure plan, we want to enable development and at the same time take care of our cultural landscape.
There is a housing shortage, especially in the centres. What measures must be taken to alleviate the situation?
The public sector alone cannot solve this problem. What is needed here is interaction between the private sector, investors and the public sector. We create incentives for dense building by allowing higher utilisation. In addition, we make suitable areas available for residential buildings, such as at Seetalplatz or in Ebikon. In this way, around 200 flats can be realised.