To further streamline its business operations, the nation's government plans to outsource roughly NT$125 billion in projects to private companies over the next five years, officials said yesterday.
"Inefficient government service is an obstacle to economic development," Chiang Ping-kung (
Chiang gave the example of the Postal Hospital, which had been managed by the Ministry of Transportation and Communications (
According to the Council's Coordination and Service Office for the Asia-Pacific Regional Operations Center (APROC), the government is expected to outsource 350 government projects to private companies in the coming years. The projects include outsourcing management of medical institutions, arsenal factories and museums, the construction of public schools and the evaluation and development of industrial zones.
"We completed last June the guideline book for private busi-nesses interested in taking over government projects," said Chen Sung-chao (陳松造), coordinator of investment and promotion at APROC.
"It was very well received by private businesses, which is rare for government publications."
Chen also said foreign investors had shown interest in participating in the bidding for management of government-owned arsenal factories that make fireworks.
While generally supportive of the government's direction, analysts said the real challenge ahead is the reallocation of government staff.
Jan Chung-yuang (
"[Chunghwa] is still trying to make a settlement with its employees," Jan said. "The only way is for both parties to constantly negotiate.
"The key to success is for the private sector to value business ethics with the belief that sometimes profit-making should not be the most important goal, while the government should also change to focus more on deregulation."
Meanwhile, the government is already taking measures to lessen deregulation's impact on employees. According to Chen, for projects that may turned over to private hands in the future, the government plans to recruit fewer staff.
"By recruiting less staff now, there will be more room for private companies to bring in their own management team later," Chen said.
In terms of existing projects, the Department of Health (
Analysts also said that, when it comes to letting private companies handle the government's business, the government can prevent private firms from reaping unjustified gains through greater oversight.
"For example, the attitude of the construction industry in Taiwan is to make high profits in a short amount of time," Jan said. "Therefore, the government needs to be more careful with projects in that field."
Lin Chuan (
"Financial data should be disclosed and evaluated in advance, and there should be a mechanism set for private sector to return parts of their profits to the government," Lin said.
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