Slim state albatrosses
Re: "Debt-ridden group lays off 961 staff", (BP, July 1).
The Business Organisation of the Office of the Welfare Promotion Commission for Teachers and Educational Personnel has laid off 93% of its 1,035 staff due to staggering debts and a lack of liquidity -- the exact same causes that forced THAI into bankruptcy. I laud Education Minister Nataphol Teepsuwan for, as he said, basing his decision on data, not emotions.
Minister Nataphol says that the survivors will be sufficient to carry out the organisation's mission -- which either means that 93% of the organisation's staff have been basically spinning wheels, or the organisation's raison d'etre has been streamlined.
As with the private sector worldwide, the wave of closings/drastic cost cuts in state enterprises is just beginning. The government should follow the saying, "When life serves you lemons, make lemonade": turn crisis into opportunity to prune all state enterprises so that the survivors meet the same standards as their private sector counterparts -- or become history.
Start from the basics: Can a private enterprise be more effective/efficient at achieving a given state enterprise's reason for being? For example, instead of having the Government Savings/Housing Bank, why not give tax breaks for savings/investment/mortgage programmes run by commercial banks? Instead of having THAI on stand-by 24/7 to evacuate Thais from harm's way, why not charter private carriers on an as-needed basis -- as we and many other countries did at Wuhan? Where we absolutely must have a state enterprise to perform a given function, require that it sustain the same level of achievement as their private sector competitors on each key performance indicator.
Use this opportunity to make our entire state enterprise sector a lot smaller, slimmer, and cost-effective. Then, use the savings to help the tens of millions of low-income Thais laid low by Covid-19.
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