Contracting public cars, saving 3,400 billion VND/year

By allocating the cost of using public vehicles, it is estimated that the number of public vehicles will decrease by more than 10,500. Thus, the budget is expected to reduce about 3,400 billion VND each year for operating the above vehicles.

The number of public cars currently serving positions (secretary, minister, deputy minister, chairman...) and the expected remaining number after allocating the cost of using public cars (no more deputy ministers, deputy secretaries, chairmen of People's Council - People's Committee...). Photo: Tu Trung.

The total number of public cars nationwide as of the end of 2016 was 34,241. Of these, 864 were official cars, 17,047 were public service cars, and 16,330 were special-purpose cars.

That is the information given by Mr. Tran Duc Thang, Director of the Department of Public Asset Management, Ministry of Finance, at the press conference on the public vehicle allocation mechanism on the afternoon of March 8.

Mandatory allocation of costs for public vehicle use

According to Mr. Thang, implementing the Prime Minister's direction, by 2020, the number of public vehicles must be reduced by 30-50% compared to the current level.

In that spirit, the Ministry of Finance has completed the draft decision amending Decision 32 of the Prime Minister on standards and norms for the use of public vehicles.

According to the proposal of the Ministry of Finance, heads of Party committees, members of the Party Central Committee, ministers... and positions with a starting salary coefficient of 9.7 or higher will be provided with official cars.

As for leaders who are deputy ministers, deputy secretaries of provincial party committees, chairmen of people's councils, chairmen of people's committees, heads of specialized delegations of National Assembly deputies of provinces and centrally run cities, chairmen of boards of directors, chairmen of boards of members, general directors of economic groups, deputy heads of central Party committees, vice chairmen of the National Assembly's Ethnic Council, vice chairmen of National Assembly committees, deputy chief prosecutors of the Supreme People's Procuracy, deputy chief justices of the Supreme People's Court... and leadership positions with a position allowance coefficient of 1.25 or higher must implement the contract, which means mandatory funding for transportation from residence to work.

In case of meetings and business trips, the public car is still used for pick-up and drop-off.

The budget will no longer spend money on vehicles for these leaders. It is estimated that the number of official vehicles serving their positions will decrease by 684 vehicles, meaning that the whole country will have only more than 180 vehicles.

Regarding the car allowance, the Ministry of Finance proposed two options to the Government to apply a fixed mechanism of 6.5 million VND/month/person.

This level will be adjusted when the CPI index increases or decreases by 20%. Regarding the selection of this fixed rate, Mr. Thang explained that it is based on the fixed rate that the Ministry of Finance is applying to deputy ministers and general directors, such as the maximum fixed rate is 10 million VND/person/month, the lowest is 3 million VND/person/month.

So 6.5 million VND/person/month is appropriate. The car allowance will be transferred directly to the monthly salary. The second option is to pay 16,000 VND/km.

Admitting that this fixed rate is higher than the taxi fare, Mr. Thang analyzed that based on the standard of a car worth 1.1 billion VND that these positions are used for, he gave an estimated rate of 16,000 VND/km.

Looking at the overall cost of operating a public vehicle is 320 million VND/year (including maintenance costs, gasoline, driver's salary...), it is estimated that with this fixed rate, the cost will be reduced by half.

According to the Ministry of Finance, the mandatory allocation of public vehicles will help reduce about 684 vehicles serving official positions and a maximum of 10,000 vehicles serving general work, the budget will not have to spend thousands of billions of VND to buy vehicles. Photo: Tu Trung.

42-62% discount on vehicles used for general business

Mr. Thang said that for public service vehicles, there are currently more than 17,000 vehicles.

And to ensure the reduction of the number of vehicles, the Ministry of Finance also wants to tighten, such as the departments and agencies of ministries and branches in central agencies with less than 50 staff are equipped with 1 vehicle/2 units.

Units with more than 50 staff are equipped with a maximum of 1 vehicle/unit.

However, the Ministry of Finance also proposed option 2: in case of staff under 50 people, 3 units will be equipped with 1 car, in case of staff over 50 people, 1 car/2 units.

As for vehicles serving general work in localities such as the People's Committee office and the People's Council office, the number will be increased to 4 vehicles, which is 2 more vehicles than at present.

These are agencies with about a dozen positions that are allowed to use public vehicles. And in fact, the reduction of the number of vehicles in recent times has not been really appropriate, ensuring the best work. The Provincial Party Committee Office will be equipped with a maximum of 2 vehicles.

Mr. Thang also said that the total number of local vehicles is estimated to decrease by 42 - 62%, estimated at about 7,160 - 10,560 vehicles, depending on the plan.

Although he did not specifically answer about the economic efficiency of applying the fixed cost for public transport and the reduction in the number of public vehicles used for general work, Mr. Thang said it was very large.

The Ministry of Finance will calculate specifically when submitting to the Prime Minister. However, it is estimated that by reducing 684 vehicles for official duties and a maximum of 10,000 vehicles for general work, the budget will be cut by 3,400 billion VND per year just for the cost of operating these vehicles.

On the other hand, with an average car purchase price of 800 million VND/car, the budget does not have to spend thousands of billions of VND to buy a car.

According to Mr. Tran Duc Thang, one of the options for handling surplus vehicles after the state vehicle contract is to auction them and pay them into the state budget.

Many opinions support public vehicle allocation

Vice Chairman of the National Assembly's Committee on Social Affairs Bui Sy Loi said that the issue of saving in using public vehicles today depends first of all on the awareness of those who are entitled to be picked up and dropped off by public vehicles, as well as on monitoring the process of using the vehicles.

“The abuse of public vehicles for private purposes is real, but not all people who are supposed to be picked up and dropped off abuse them.

I am using a very old public car and I am willing to accept the contract with the condition that there is a legal document that is reasonable and fair to all subjects. The service of work and meetings after the car is contracted must be calculated reasonably and conveniently" - Mr. Loi said.

Standing member of the Committee on Social Affairs Luu Binh Nhuong said that he used to drive his own car to work and also intended to receive a contract according to the mechanism that the National Assembly Office is implementing (10 million VND/month), but after a while he also registered to receive a public car.

“I find driving to work inconvenient because I have to think about work and answer many phone calls on the way. The distinction between white and blue license plates is also annoying.

Once I went to a meeting at the Ministry of Labor, War Invalids and Social Affairs, the gatekeeper said that white-plate cars were not allowed in the courtyard, so I had to leave my car on the sidewalk. I support all policies to save public property,” Mr. Nhuong expressed.

Vice Chairman of the Judiciary Committee Nguyen Van Pha confided: “If the allocation of public vehicles is done in a uniform, economical and effective manner, I am willing to accept the allocation. I can go to work by motorbike or taxi. When the press and public opinion mention the situation of using public vehicles for the wrong purposes, those who are serious about using vehicles also feel sad and offended.”

According to Tuoi Tre