Cua Lo Town Land Fund Development Center: Unable to be self-sufficient with 2% of revenue

(Baonghean.vn) -Director of Cua Lo Town Land Fund Development Center reported to the Provincial People's Council's monitoring delegation: with only 2% of revenuetfrom compensation sources, site clearance, unitnot yet able to control

The Provincial People's Council's Legal Committee supervises the autonomy mechanism at the Land Fund Development Center of Cua Lo Town. Photo: Hoai Thu

The Land Fund Development Center of Cua Lo Town was established under Decision No. 51/2011/QD-UBND dated October 19, 2011 with two basic tasks: compensation for site clearance and land exploitation in the town. In addition, the center also has the task of supporting the introduction and promotion of investment in Cua Lo Town.

Reporting on the implementation of the unit's autonomy mechanism, Mr. Nguyen Thanh Tung said that the center is a self-funded public service unit that covers a part of its operating costs. Currently, the center has 7 staff and 11 contracts; its autonomous funding depends on 2% of the funding for compensation and site clearance. However, this funding source is limited and unstable; in addition, the regulations applied in compensation and site clearance are constantly changing, and the real estate market is sluggish, so it often encounters difficulties in exploiting land funds.

Among the assigned tasks, the Land Fund Development Center of Cua Lo Town has not been able to "receive the transfer of land use rights of organizations, households and individuals according to the provisions of law" because it does not have a reserve fund.

Therefore, Mr. Nguyen Thanh Tung also proposed to establish a reserve fund for compensation and site clearance, a land development reserve fund for land exploitation and to receive financial support to carry out compensation and site clearance.

A corner of Cua Lo Town. Photo courtesy

At the meeting, delegates discussed the issue of using the 2% revenue source as prescribed to move towards operating under an autonomous mechanism. However, through actual operations, it shows that in land fund exploitation procedures, the land fund development center is only allowed to collect a maximum of 2% from compensation and site clearance sources and has no revenue from land auctions.

In addition, the center's annual autonomous operating budget depends on the programs and plans of many related departments and agencies and the volume of construction works in the town, so that budget is unstable. Therefore, the Cua Lo Town Land Fund Development Center cannot currently implement the autonomous mechanism.

Ms. Thai Thi An Chung - Deputy Head of the Provincial People's Council's Legal Committee spoke at the meeting. Photo: Hoai Thu

Regarding the use of labor, Mr. Nguyen Thanh Tung said that in addition to the 7 staff according to regulations, the remaining 11 employees are contracted and paid by the town. To be autonomous, there must be revenue, to do so, there must be capital to exploit the land fund and there must be a mechanism for the center to be able to self-account; allowing the center to conduct land auctions.

Ms. Thai Thi An Chung commented that the Center has had many positive activities in contributing to attracting investment in Cua Lo Town. Although the center's autonomy has increased, contributing to reducing budget expenditures, its stability is not high. Ms. An Chung also said that some of the center's work plans are still passive; a job position project has not been developed. Regarding the center's proposals, the delegation will receive and submit them to competent authorities for consideration./.

Hoai Thu