Shenzhen will invest more in its education and public health
sectors with savings achieved through market-oriented
transformation of the city's public services.
Around 11.67 billion yuan (US$1.46 billion) is expected to be
saved each year following the reforms carried out to nearly 400
public service institutions over the past six months, the largest
exercise in the city's history, Vice Mayor Zhang Siping told a work
conference yesterday.
The transformation was launched in July and involved 388
institutions in the local public service sector.
"More than 373 of the 388 organizations finished their reforms
in December," said Zhang.
Taxpayers can also expect to pay a smaller budget for public
services after the government started to cut its own long-term
subsidy to the sector. Sources from the city's State-owned Assets
Supervision and Administration Commission said the saved money will
be invested into education and public health sectors.
According to Zhang, Shenzheners will soon be treated as
customers, and enjoy a more efficient service at these
organizations after they become more market-oriented and
financially independent. But he admitted that the improvements will
take time.
Those that used to operate under a traditional management system
and enjoy government subsidies will have to work hard to keep their
customers to survive in the market.
This includes most of the city's public kindergartens and job
agencies. For example, the 50- million-yuan subsidy which was
allocated to 22 public kindergartens is now being distributed to
all 477 across the city. Public kindergartens now have to face
competition from private ones for resources and enrollment. Those
privately run can benefit from the extra funding.
Other schools and hospitals, however, will remain
government-funded.
A 300-million-yuan fund and preferential policies will be
provided for reformed public service operators in the coming three
years, to resolve any financial and legal issues.
Zhang expected the city's reforms to provide an example to other
cities on the mainland.
According to the city government, more than 20,000 employees and
6,000 temporary staff have been affected, with shorter-term
contracts.
The reforms had been relatively smooth, officials with the
municipal government said. They said more than 767 million yuan has
been allocated in pensions for some 1,237 retired employees.
(Shenzhen Daily January 24, 2007)