Fixed-price public cars - Great expectations

If the Parliament pass this proposal, we will see fixed-price public cars. Photo: ST.

Unsuccessful encouraging

Dr. Vu DinhAnh, an economic specialist:“This is theright decision to realizea suitable guideline, especially when the first agency tocarry it out and set a good example is the Ministry of Finance - the responsible agency for the Government in managing public assets.”

The problem of fixed-price public cars hasbeen in place since early 2007 when the Prime Minister signed Decision No 59/2007/QĐ-TTg to regulate details on standards, norms and management, using regimes for vehicles in State organs, public service units, and State enterprises and later was amended and supplemented by Decision No 61/2010/QĐ-TTg. At that time, this regulation only applied to those people whoqualify for“conditional and voluntary registration for self-sufficient vehicles”. Level of fixed-price released by the Ministry of Finance at that time was considered to be quiet closely based on rental car unit prices notified by the Department of Finance thatwas close to car rental prices in localities; the fixed-kilometers; 4 times transport from home to work and vice-versa each day; number of working days or number of kilometers for actual work. The amount of fixed-money is paid along with the office pay period for each implemented registered position. This mechanism was enacted in hopes of contributing to saving the State budget, limit the wasteful and improper use of vehicles, create conditions to support public transport services development; and positively impact on public opinion and people’s mentality.

However, in fact, after 9 years, this mechanism hardly applies. According to statistics, the Ministry of Finance found that, at the Central level, only few individuals subscribed to the fixed-price public cars. At local level, until now only Thai Nguyen promulgates regulations on car rent units for work with bracket 4.000 to 10.000 vndper kilometer, but only 5 units of this Province apply with the fixed-money about 4.7 billion vndafter 4 years.

To understand more specific about the causes, Dr. Nguyen Minh Phong, an economic specialist said, apart from the “advantages”, there are some disadvantages in fixed-price public cars when receivers feel “confused”. The most obvious is that he public vehicles and taxi services have not developed, the difficulties of specific areas lead to less favorable conditions for the receivers. Besides, the receivers are worried by complicated procedures when they pay the incurred costs in the process of implementing their actual work. Moreover, an encouraged mechanism without mandating usually will not be a choice for the users.

However, the most important thing to be mentioned is thinking “prefer to use the blue license plate cars” from many personswho use public cars.

Mechanism is ready

To prove this policy to be more efficient, some years ago, the Ministry of Finance wantedthe fixed-price public cars regulations to become mandatory, especially applying for the same level with the titles of Deputy Minister and equivalent. Mandatory is necessary, however, to solve the problem of transport infrastructure, and public transport services in the specific areas and tasks at the organs, and units is not easy. Through research, the Ministry of Finance found that the mandatory fixed-price public cars model should be in a roadmap with appropriate steps. Therefore, theMinistry temporarily shelved its proposal and instead submittingto the Prime Minister to issue clearer regulations on funding a package for thosewho voluntarily accept fixed-price public cars. In Prime Minister’s Decision No. 32/2015/QĐ-TTg, the Prime Minister prescribed regulations, norms and cars use and management mode in State organs, public non-business units, limited liability companies where the State holds 100% of the chartered capital, the formula to calculate the exchange rate basically remained the same, but the values used to calculate have been adjusted to be more suitable with the present time. This means that, the popular price bands of market taxis were used to calculate instead of car rent prices, 4 turns transporting instead of 2 turns.

Along with the united regulations for norm from 1 to 2 cars/unit, car rent services and fixed-price public cars at the market price would be a major change step to equip, arrange and use public cars in the organs, and units; to encourage the organs, and units to gradually change to the fixed-price public car model, promoting public transportation services, reducing administrative staff and the cost of transportation. This regulation is in line with the State and Party’s orientations and policies in managing public assets (including public cars) to step by step reduce the car equipment and change to rent/fixed-price cars.

In the long term, the Ministry of Finance has put the proposal of fixed-price public assets in general and cars in particular on the draft of Management and use of public assets Law that has been submitted to the Government Standing Committee of the Parliament to consult at the XIV National Assembly session in October, 2016 and schedule to be passed at the next session. In the near future, if the Parliament agrees to pass this law, fixed-price public cars will no longer end at encouragement, but be mandatory.

Great expectations

“Presently, according to the national database of state assets, apart from the security - defense vehicles, there are about 37.000 public cars, including more than 24.000 public cars for common work uses while only 2,000 cars among them serve for leaders’use. As calculations by representatives of the Department of Public Assets Management - Ministry of Finance, if enacted the fixed-price public cars for all services based on the average prices of taxis for 1 km, the State budget would save about 1.500 billion vndeach year”.

To gradually demonstrate that fixed-price public cars use is reasonable, recently, the Minister of Finance issued Decision No. 1997/QĐ-BTC to regulate the fixed-price cars regime to transport some titles under the Ministry from home to work. Accordingly, the titles of Deputy Minister of Finance; leadership allowances with coefficient of 1.25 (General Director of equivalent) under the Ministry of Finance will be formally funded for transportation costs from home to work starting from the 1st October, 2016. The fixed-funding and application method of the Ministry of Finance has been approved by the Prime Minister at Decision No. 32.

Evaluating this move from the Ministry of Finance, Dr. Vu DinhAnh, an economic specialist said that, “This is theright decision to realizea suitable guideline, especially when the first agency tocarry it out and set a good example is the Ministry of Finance - the responsible agency for the Government in managing public assets.”

In the short term, the fixed-price public cars isasaving in using public assets, but in a broader perspective, this work aims to change the inherent perception of how to provide public services.“The decision of the Ministry of Finance reflects that, we can fully use this form of finance, providing a public funding rather than public services”, said Mr. Anh. That will form the foundation tobuild a series of policies to expand mobilized public services from other subjects in the society by the financial mechanism. Further calculation, the next direction is not limited to transport officers at home anymore, but can expand to apply to more other public services with the first requirements is to save State budget. Gradually, if the fixed-price carspolicy is successfully implemented at the Ministry of Finance, it may be extended to apply to all related subjects who use public cars in a certain extent, can also be all ministries, and localauthorities.

Another significant issue that the Ministry of Finance is looking to change is the old thinking of the image of senior leadership in the eyes of the people. If previously, the image of the General Director, Deputy Minister, etc. go to meeting, to visit the locals is the image of the blue license plates cars with people welcome from gate, then now, people could see an image of comrades traveling by taxis, even by the public means for their work”, Dr. Vu DinhAnh stressed.

Thus, only a decision of the Ministry of Finance but could open a major transformation. This will be a boost contributing to realize the 12th National Party Congress guideline in “Reforming the methodologies, styles, working manners of the Party’s leading bodies from the Central to grassroots level, building the science, collective, democraticworking styles; closer to the people, esteem for the people, for people, stick to reality,and do as they say.