Cut public spending on hospitality dining

By Sun Liping (China Daily)
Updated: 2007-01-06 09:24

Millions of yuan is wasted annually by government officials holding banquets at the public's expense.

Since so many people are getting fed up with officials delving into the public purse in order to wine and dine, this author believes the time is ripe to settle this issue once and for all.

None of the measures which have so far been devised in the past ranging from restricting the number of dishes to keeping tabs on officials' weight have managed to tackle this problem.

So what's the way out? I would contend that simple measures often work better than more sophisticated ones.

One such "simple" example can be found in Wuhan, the capital of Central China's Hubei Province, where the municipal government recently introduced a "notification system" to deal with this issue.

First, clearly defined provisions have been introduced. This is not a novelty, as similar measures have long existed in other places.

Second, the provisions are rigorously enforced by the "hospitality allowance notification system."

Anyone planning to entertain the guests of a work unit is supposed to fill in a form stating clearly how much money will be spent, with this information then being made public in the relevant workplace.

Initial results show that the amount of money spent on wining and dining by government organizations in Wuhan fell 38 percent year-on-year in the first five months of 2006.

The reason for this is simple: Treating guests to meals at the public's expense is made very difficult by the notification system, as officials have to account for all money spent on such activities.

It can be argued that the notification system is a shortcut to transparency and openness.

However, people still have questions, such as who is actually notified about this spending and how wide the remit of this system should be.

Some officials maintain that hospitality allowances are an "internal affair" of government organizations, claiming that they have no obligation to make this information public.

Other officials say that the government organizations' entertainment expenses are a sensitive matter.

In view of this, it is advisable to make the amount of money spent on hospitality known to the staff of the workplace in question, while effective means should also be applied to ensure that the notification is not simply a question of going through formalities.

The hospitality allowance should also be made known to society at large, but this should be in terms of the overall budget, instead of specific sums. The Wuhan city government is considering taking action in this regard, incorporating entertainment expenses into its budget this year.

However, people are concerned that government organizations may just shift some costs to subordinate work units or enterprises, now that their own expenses are being subjected to strict monitoring and control.

These concerns are not entirely unfounded. As a matter of fact, some officials go to subordinate work units or enterprises quite frequently to get such bills reimbursed.

A friend once told the author: "You should never appeal for the reform of public vehicle use. If such a reform is launched, our enterprise would have real difficulties, as higher-up officials often come to 'borrow' our vehicles."

In the face of such shifting of financial burdens and "borrowing" vehicles, a notification system is not enough. Other measures need to be introduced.

Some people are concerned that reimbursing such expenses could be very easy if the management, accountants and other supervisory officials connive to ensure this.

How can we prevent this from happening?

Punitive measures should be instituted to make the notification system more efficient.

The approach of the Wuhan government is rather transitional in its nature. Institutional reform is required in order to root out such problems.

The general offices of the Central Committee of the Chinese Communist Party and the State Council jointly issued a circular on October 20, 2006, about government organizations' hospitality activities. More recently, the Ministry of Finance decided to raise the allowances of civil servants on business trips. The average staffer gets 150 yuan ($19) per day, compared with the original 60 yuan ($7.5), while division leaders get 300 yuan ($37.5) and vice-ministerial-level officials receive 600 yuan. All of this has helped bring about a more clearly defined institutional climate to resolve the problem.

I hope we can find a more effective and transparent way to cure other stubborn social ills by curing the chronic disease of feasting at the public's expense.

The author is a professor from the Sociology Department of Tsinghua University.


(For more biz stories, please visit Industry Updates)