1, the urgency of market-oriented restructuring of water supply enterprises in China
At the end of this century, with the development trend of global economic integration, the scale of international aquatic industry enterprise groups has gradually increased, and increasingly fierce competition has been launched on a global scale. California Water Group, the largest water supply company in the western United States, and Dominquez Company in Los Angeles (Nasdaq listed company) announced the merger on 1999. The two companies merged by way of stock exchange, and the purpose of the merger is to make the business more competitive and have more development potential. Thames Water is engaged in water supply and wastewater treatment in the UK and around the world, with a comprehensive turnover of over 654.38 billion pounds and a total of over 654.38 million employees. In the Asia-Pacific region, the company has obtained large-scale franchise business in Thailand and Malaysia through offices all over the region; Construction of most water treatment plants in Singapore, Malaysia and Hong Kong; Providing water treatment contract services for municipal and industrial users all over Australia; Recently, it has provided wastewater treatment services for many new petrochemical projects. The French General Water Group, the world's largest water supply company with net sales of more than 35 billion US dollars, is competing in every corner through its 220,000 employees all over the world, covering more than 90 countries. In the Asia-Pacific region, from China to Australia, French General Water Group (1998 renamed Vivendi Group) supplies drinking water, builds sewage treatment plants, produces cold energy, generates electricity, recycles industrial and civil wastes, and designs and operates public transportation networks. In China, French General Water Group is conducting business in Beijing, Tianjin, Qiqihar, Daqing, Tonghua, Handan, Xi 'an, Luoyang, Shanghai, Cixi, Huizhou, Jinshan and Hong Kong through trusteeship, bot, design and construction.
While the international large-scale aquatic products industry groups are fiercely competing in the global scope, and quickly seize the China market, which has the most development potential in 2 1 century, we should look back at our national aquatic products industry. For a long time, China has basically implemented a government monopoly control system for the water supply industry. Its main characteristics are: enterprises are built by the government, enterprise leaders are sent by the government, funds are allocated by the government, prices are set by the government, and profits and losses are uniformly responsible by the government. There is no operational risk in enterprises, that is, a highly unified management and control model between government and enterprises is implemented. From a historical point of view, this highly centralized government control system has played a considerable role in concentrating a large amount of funds into the construction of water supply facilities for a period of time after the founding of the People's Republic of China. However, with the development of economy and technology, especially the deepening of market-oriented reform in China, the disadvantages of this traditional system are increasingly exposed.
1. 1 The economic benefits of water supply enterprises in China are generally poor.
Long-term separation of government and enterprise makes China's water supply enterprises generally bloated and labor productivity low; At the same time, due to the deviation of water price from value and the increasing cost of raw water, China's water supply enterprises eventually lost money in the whole industry. Since 1993 financial accounting reform of water supply enterprises, this loss situation has been more clearly exposed. According to the statistics of S.M. international technical consulting company, the whole water supply industry in China made a meager profit of 44 million yuan in 1996, and the return on net assets was only 0. 1%. It is reported that 65% of the water supply companies are profitable (359 out of 55/kloc-0 cities are profitable, and false reports are not excluded), and the average profit of each water supply company is 2.2 million yuan; 33% water supply companies lost money, with an average loss of 4.7 million yuan per water supply company. The benefits of these loss-making companies are so poor that almost all the net profits of profit-making companies are swallowed up. With the deepening of market-oriented reform in China, the loss situation is still expanding year by year.
1.2 The production technology level of water supply enterprises in China is generally low.
In recent years, due to the poor economic benefits of water supply enterprises, the proportion of government revenue in the gross national product has been declining, water supply enterprises are unable to invest, and there is a serious lack of funds for technological upgrading and facility renovation, resulting in a generally low level of production technology. In Harbin, the daily water pump of 19 15 is still running. In Shenyang, the water department originally planned to rebuild an asbestos cement pipe built by 1958. However, when I learned that the budget required 5 million yuan, I had to give it up because I was "shy". The low level of production technology directly leads to a big gap between the quality of tap water in China and the world, which worsens the investment environment.
1.3 The scale of water supply enterprises in China is too small and there are too many.
According to China's current government control system, the main business of water supply industry is monopolized by local government enterprises. The government is not only the maker and supervisor of control policy, but also the actual operator of specific business, which determines that this monopoly is a typical administrative monopoly, not an economic monopoly based on natural monopoly. This administrative monopoly makes the huge fixed assets accumulated for a long time in the water supply industry widely distributed in various administrative divisions, almost at a standstill, and become dead capital that cannot be adjusted and lacks value appreciation. China's water supply enterprises have formed the status quo of small scale, large quantity, fragmented and lack of competition. From a macro point of view, the whole water supply industry presents a "small dwarf tree" state of enterprise organization and a decentralized pattern. As a natural monopoly industry, the scale economy of water supply enterprises in China has not been fundamentally reflected. China's water industry enterprise group is still in its infancy.
Through the comparative analysis of the current situation of water industry at home and abroad, we have clearly felt that the water supply industry in China urgently needs a profound reform. At the same time, we also found that the goal of market-oriented restructuring of China's water supply enterprises can no longer be limited to water price reform, separation of government and enterprises, and the establishment of "four-self" enterprises, so that the government can only "get rid of the burden" and enterprises will not lose money; On this basis, we should deepen the reform in a wider scope, actively create conditions and cultivate our own national aquatic enterprise groups, so as to participate in international competition in the new century, gradually develop and grow, and become a new profit growth point of our national economy. The latter is particularly important for government regulatory decision makers. ?
2.2 1 century marketization model of water supply enterprises in China.
Then, what model should China water supply enterprises build in the 2 1 century, or what should water supply enterprises transform into in the market-oriented restructuring? Next, the author tries to describe the market-oriented mode of water supply enterprises in China in 2 1 century from three aspects: macro-expression, external control environment and internal operation mechanism, hoping to give readers an overall impression.
2. 1 Macro Expression Form
As we all know, natural monopoly is the inherent essential feature of water supply enterprises. However, for a long time, due to the influence of institutional factors, people have distorted this economic monopoly based on natural monopoly into supernatural administrative monopoly, denying cross-regional investment and merger of water supply enterprises and competition among water supply enterprises, which not only makes the internal efficiency of water supply enterprises in China low, but also makes the economies of scale based on natural monopoly not fundamentally reflected.
2 1 century, this situation that economies of scale and competitive vitality are not obvious will be fundamentally changed.
China water supply enterprises will develop in the direction of collectivization and scale. Listing of water supply enterprises, cross-regional assets reorganization and industrial integration will become the theme of the times. Eventually, the whole water supply industry will form a pattern of oligopoly competition among several large water supply enterprise groups across regions, industries and ownership. As a natural monopoly industry, the contradiction between scale economy and competitive vitality of water supply enterprises will find a balance point and be fully exerted respectively.
In terms of business content, the tentacles of the water supply group will actively extend to related industries, involving scientific research, design, engineering, equipment processing, capital operation and other related fields, and eventually form a aquaculture enterprise group integrating the main business industries (water supply and sewage treatment industries), water engineering construction, aquaculture manufacturing, aquaculture research, design, development and service. While consolidating the domestic market, some qualified enterprise groups will actively expand the international market and grow stronger in the fierce international competition.
In fact, these concepts have been practiced abroad for a long time, which has brought into full play the economic and social benefits of the water supply industry. As early as 1973, Britain reorganized more than one water supply enterprise in England 100 according to the Water Conservancy Law promulgated that year, and established nine regional water conservancy bureaus and one Welsh water conservancy bureau (equivalent to a water enterprise group). Its guiding ideology is to implement "watershed integration" management to achieve economies of scale and scope. The regional water conservancy bureaus are fully responsible for tap water supply, sewer system, sewage treatment, water resources planning, pollution control, fisheries, flood control, water recreation and environmental protection within their respective regions. In France, several large water industry enterprise groups, mainly French General Water Group and French Lian Water Group, not only provide first-class water supply facilities and services to China, but also carry out business on a global scale, and are earning huge profits and taxes for the French government. I believe that these foreign water industry enterprise groups and governments that have formulated control policies have long understood the mystery of the above-mentioned market-oriented model!
2.2 external control environment
The above-mentioned market-oriented model can only be realized under an external control environment conducive to the growth of aquaculture enterprise groups. The particularity of water supply enterprises makes it necessary for all countries in the world to formulate various control policies and put them under the macro-control of the government. Similarly, the government controls water supply enterprises. Why do foreign water supply enterprises have grown into international water industry enterprise groups, while China's water supply enterprises have not formed industrial development, but have fallen into trouble? In our opinion, the key lies in the problems in the thinking and methods of China government supervision.
Then, what kind of external control environment should our government create for water supply enterprises? Referring to the macro-control experience of American government on enterprises and combining with the national conditions of China, we can tentatively position the macro-control of China government on water supply enterprises in the 2 1 century as follows.
2.2. 1 control target
In order to get rid of the long-term loss situation of water supply industry, make water supply enterprises embark on the road of virtuous circle and self-development, provide high-quality basic environment for the development of national economy, and at the same time make the country get rid of this increasingly heavy burden and move forward lightly. Supervisors of water supply industry in China should take establishing market operation rules of water supply enterprises, maintaining market operation order and cultivating large state-owned water industry enterprise groups as their primary goals. At the same time, on this basis, we should pay attention to prevent water supply enterprises from taking monopolistic actions based on their market monopoly structure, which will harm social interests (note: there are essential differences between market monopoly structure and market monopoly behavior. Our goal is to establish a competitive monopoly market structure in the water supply industry, but resolutely resist its market monopoly behavior that harms social interests.
control standards
Under the traditional system, the Chinese government's direct regulation and control criterion for water supply enterprises is "what enterprises must do and how to do it", that is, to stipulate and limit the micro-business activities of enterprises. Only within this kind of control and restriction can enterprises have freedom of activities, and only within enterprises can enterprises have certain autonomy on how to complete the government's plan and realize the government's goals. The United States is different. The government's criterion for managing enterprises is that "enterprises are not allowed to do anything", and enterprises have their own freedom of full activities. This intervention criterion makes the scope of government intervention very limited, while the scope of enterprise activities is very wide. The market-oriented reform of water supply enterprises in China can learn from this experience and change the management standard from "what enterprises must do" to "what enterprises cannot do". This can not only make enterprises get rid of the government's arbitrary intervention, but also facilitate the government to concentrate on formulating, perfecting and maintaining market rules.
Control subjects
The management subject of water supply enterprises refers to the organization through which the government intervenes in the market behavior of enterprises. In this regard, there is basically no government administrative straight-line organization (so-called enterprise department) in the United States, and it mainly relies on the inspection and supervision of social functional departments to intervene in enterprise behavior. Referring to the experience of the United States and the industry characteristics of China's water supply enterprises, the regulatory bodies of China's water supply enterprises can be tentatively divided into three categories:
(1) Asset Management Department. Specifically, the State Administration of State-owned Assets, local state-owned assets management committees (bureaus) and their intermediaries. Its main function is to appoint the person in charge of the state-owned assets of the enterprise and the supervision organization, decide the major merger and reorganization activities of the enterprise, and ensure the preservation and appreciation of the state-owned assets of the water supply enterprise.
(2) industry management department. By formulating industrial policies, market failure and some blindness can be overcome. Operationally, these departments can be urban construction departments, China Water Association, local water associations, local public utilities bureaus, water affairs bureaus and other original industry departments, or they can be "original administrative departments" after changing their functions.
(3) inspection and supervision institutions. Specifically, there are departments and organizations such as business administration, audit, planning, price, construction Committee, supervision, economic justice, environmental protection, health and quarantine, and consumer Council. Multi-level supervision and auditing of water supply enterprises through legislation is an important guarantee for maintaining the normal operation of economic order and social order.
2.2.4 control mode
The macro-management mode of American government to enterprises can be summarized as control, guidance and service. The control of enterprises mainly uses legislation to regulate enterprise behavior and maintain market order and social order; Guidance to enterprises is mainly through the formulation and implementation of industrial organization policies, urging enterprises to invest in the most urgently needed departments and regions of the national economy; Services to enterprises are manifested in many aspects, such as providing market information for enterprises, providing loan support for small and medium-sized enterprises, and providing diplomatic support for multinational enterprises. These experiences provide a good inspiration for the management of joint-stock water supply enterprises in China. Accordingly, our government's macro management of water supply enterprises can be constructively divided into the following three aspects:
(1) Create a good external business environment for the growth of water industry enterprise groups through legislation, system reform and policy regulation.
Provide a guarantee system for the development of aquaculture through legislation. The state must immediately formulate a series of laws and regulations on the water supply industry to standardize and solve the problems and phenomena in the market-oriented reform.
Ensure the legal person status of aquaculture enterprises from policies and systems, separate the relationship between government and enterprises by law, and limit administrative intervention.
The financial, taxation and industrial and commercial administrative departments must also formulate new management systems and methods suitable for the development of aquaculture.
Industry management departments should formulate new management systems and methods such as water price, water supply service, environment and water quality, market access as soon as possible, and determine them in the form of policies and regulations. Special emphasis is placed on establishing a reasonable water price operation mechanism and ensuring its implementation, which is a prerequisite for cultivating China's water industry enterprise groups.
(2) Using the industrial policies and economic levers of aquaculture to indirectly regulate and control the operation of aquaculture enterprise groups.
Aquaculture industrial policy is the sum total of policies formulated by the state on aquaculture industrial structure, industrial organization, industrial layout and development order. Its purpose is to guide the investment development direction of enterprises through policies and plans, coordinate with the overall development of the national economy, supplement and adjust the market mechanism in a sense, so as to overcome some blindness in the market process and promote more stable economic development while ensuring social benefits.
Economic leverage refers to the adjustment tools such as taxes, interest rates, exchange rates and subsidies held by the state. The national social functional departments should make full use of the adjustment function of various economic levers to manage and guide the water industry enterprise groups from the micro level. The adjustment of economic leverage is comprehensive and indirect, which can change the investment and business environment of enterprises and force aquaculture to develop in the direction of national industrial policy.
(3) Improve various management institutions and stabilize the management order. With the marketization of water supply enterprises, the disadvantages of traditional management institutions and management methods will be exposed, and a large number of old management institutions will lose their functions, while new economic activities are neglected, and the management activities of water enterprises lack coordination. Therefore, in the process of marketization, it is very important to improve and perfect various specialized management institutions and stabilize the management order.
Establish and improve the state-owned assets management institutions, and clarify their authority in the asset evaluation, registration and operation management of water supply enterprises by formulating various implementation rules of the law. Coordinate its relationship with relevant departments of water industry.
Improve the accounting audit system of water supply enterprises, and implement social audit and social supervision of water supply enterprises through independent accounting firms and audit firms.
Gradually weaken the direct management functions of industrial departments at all levels and realize the transformation to the functions of industrial coordination and consulting services.
Strengthen the functions of social supervision departments such as price, water quality supervision, and consumer committees to ensure the realization of social benefits in the form of legislation.
(4) Providing preferential policies, strengthening service functions and ensuring the normal operation of this new thing. The government should provide convenience and preferential treatment in market information, loan support, diplomatic support of cross-regional transnational water supply enterprise groups, tax incentives, risk compensation and other aspects. So that this new thing can step into the road of healthy growth.
2.3 Internal operation mechanism
2 1 century, the completely market-oriented operation mode of water supply industry must have a good internal operation mechanism in addition to a good external control environment. In other words, a modern enterprise system must be established to adapt to the new market-oriented competition system and grow into a large aquaculture enterprise group that can participate in international competition. A set of perfect modern water supply enterprise system mainly includes the following aspects: (1) a clear, scientific and reasonable decision-making and supervision mechanism. The company limited by shares with board of directors and board of supervisors will become the main organizational form of water supply enterprises in the 2 1 century.
(2) Management innovation, with scientific, reasonable and efficient internal management mechanism.
(3) There is a perfect talent incentive and competition mechanism.
(4) The operation mechanism of enterprise technology center with the integration of production, learning and research has continuously improved the market competitiveness and sustainable development ability of enterprises.
(5) It has an industrial development and operation mechanism integrating international cooperation, capital operation, corporate culture construction and CI image planning.
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