Others News
- Guangdong News
Date: 24-Jan-2007 Sources: (Shenzhen Daily)
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.
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