Search For The Balance Of Public Welfare And Profit

The operation mode of urban public utilities is construction by government investment, operation by subsidies of government and monopoly operated by state-owned enterprises. With the further development of market economic reform, this mode is increasingly becoming a bottleneck, which is low economic efficiency operating and are not fully showed in the urban public utility construction and development. In order to change this situation, the government reforms the field of public utilities in the city to privatization, that is, during the supply of urban public utility product, market competition mechanism was taken, breaking the traditional government monopoly business model, the formation of multiple competition pattern in the urban utility field, the enhance of efficiency and quality of supply of the urban public utilities products.As China's administrative reform is government-led reform, private enterprise, non-profit organization also undeveloped, there is a strong community depends on the Government's case, coupled with the city utility has obvious public nature, a natural monopoly areas Web-service, high political sensitivity and economies of scale and high barriers to entry, long cycle characteristics of return on investment, government has an inescapable responsibility as the perpetrators and promoters of reform of privatization of urban public utilities. China's ongoing reform of privatization of urban public utilities is the preliminary exploration and attempt to learn from the experience of Western countries on Public Utilities Privatization and based on the actual conduct of China. China is also in the social transition, the administrative system still is in the process of reform, government and enterprises has not yet been separated, the government's own qualities and abilities are limited, the Government is facing difficulties on the pursuit of value, and "agents" public-private partnerships and their corrosion resistance, etc during the process of Public Utilities Privatization. Therefore, studying to resolve these difficulties and finding ways has great significance for government to better play its role and realize its great responsibility in Public Utilities Privatization, it is also concerned with the smooth progress to promote the reform of privatization of urban public utilities and the achievement of balance of public welfare and for-profitThe essential attribute of the enterprise is for profits, which is except after the reform of urban utilities. In order to obtain maximum profits, by virtue of its monopoly position, utility companies often provide poor quality products and services with higher prices, relatively low quantity. Therefore, to better meet the needs of the public interest, the government must regulate the quantity, quality and price of provided products and services.In order to better balance the public utilities and for-profit public welfare, the govemment should rebuild the government functions and management system. When the city public utility is in market system, the government's functions must be shifted to be the policy makers, regulators and market creation from the producers and the provider of public services. In order to regulate and guide the market-oriented reform of urban public utilities, the legal system on city public utilities reform need be constructed as quickly as possible, related policies need be improved. Diversified ownership structure and multi-channel mode of financing should be established. Various forms of investment business structure is the booster to accelerate the development of urban public utilities. In order to improve operating efficiency of public utilities enterprises, improve service quality, we must obey the rule of market-economy, break the exclusive monopoly of the operation, and introduce competition based on the macro control of urban public services and not changing the government planning and management functions. The reform of promoting market-oriented process of urban public utilities should be based around the characteristics of the actual situation and development of the industry, according to local conditions to be treated differently, and the policy guidance to promote market-oriented process.