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Why privatize government utilities
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Posted on Oct 23 2000
The Issue: CNMI must shave off expenses on government. functions best left in the hands of the private sector.
Our View: Such should seriously be considered in the interest of efficiency of service and savings.
Years ago, most of us had fainted hopes when the government telephone operations was privatized. It turned into a multi-million corporation known today as Micronesian TeleCommunications.
MTC kept most employees who were on government payroll. It trained them to be efficient workers ready to serve the Northern Marianas Community with a fitting motto “Beyond The Call”.
It has a class of local workers who learned their trades and the value of quality service to customers who subscribe to their varied services.
The same can happen to the Commonwealth Utilities Corporation. Like the State of Pohnpei in the FSM, water, power and sewer services have reached new village subdivisions and out of the way places quicker than the usual snail-like fashion that government handled it years ago.
It is a fact that a majority of CUC’s services would render whoever takes over sufficient profit to subsidize other services. There’s also room to accommodate future business and residential expansion. Overall, it should be a money-making venture if we privatize it.
Privatization doesn’t mean the role of government ends. It must still be a partner of lesser role to ensure that agreements reached are carried out in full. Government must still have some monitoring role to make sure that services are provided to all consumers effectively and efficiently.
CUC employees must not fear privatization in that for as long as they are efficient in their line of work, whoever takes over would retain their services with greater opportunities for upward mobility. We should give this idea a chance for it means a savings to taxpayers of not less than $60 million a year. Think about it. Si Yuus Maase`!
