Shaoyang to pinpoint community enterprises

PUBLISHED : Sunday, 02 March, 1997, 12:00am
UPDATED : Sunday, 02 March, 1997, 12:00am

THE city of Shaoyang in Hunan province should devote its resources to developing community-run enterprises, according to its mayor, Kong Lingchi.

'In the past we dared not proceed with development plans for the non-state sector for fear of deviation from the main ideology,' the mayor said.

'But every city should have a unique path of development.

'This year we'll put more emphasis on collectively run enterprises and the private sector, rather than state enterprises.' Mr Kong's blueprint for Shouyang was apparently different from the central Government's plan.

Delivering the government work report yesterday, premier Li Peng pledged greater strides to reform state-owned enterprises.

The loss-making state sector has been a headache for the Chinese economy for years.

Mr Kong said many state-owned enterprises had to scramble for loans from various sources before the Lunar New Year so that they could pay their staff during the holiday period.

'But collectively run enterprises are responsible for their own finances. The profits they make are theirs,' he said.

Citing Deng Xiaoping's 'white and black cat theory', the mayor said: 'It doesn't matter whether it is state enterprises or collective enterprises. It is a good enterprise if it makes profits.' Mr Kong credited investments in the private sector with the 12 per cent increase in the city's revenue last year.

He said small-scale businesses and the services sector would be the focus of development.

'Our natural resources are not as good as those of [the provincial capital] Changsa. Therefore we have to provide quality services. Otherwise who will come to do business with us?' he said.

Mr Kong also highlighted the importance of stable agricultural production.