Dear Editor,
The title above has led to the introduction of this piece of writing, so that lay-people can understand the terminologies of the different types of business organizations on the island. A Private sector business is one owned by the person who created it with an objective to make a profit. A Public sector organization is owned by the population, or the citizens of the state – the taxpayers.
A Public Corporation and other public service agencies are created by an Act of parliament by a minister responsible for the trading activity with the general public. These organizations are managed by a board appointed by the minister, for the daily operation on behalf of the public. The board must be held responsible for the way they make use of public funds. State corporations and public service agencies are established to provide essential goods and services to the population not for a big profit, but what the public could afford to pay for them.
The people running the operations must not be self-selected: have no political affiliation, knowledgeable, honest, helpful, and not professional business people. Transparency is very important for public sector organizations.
Non-profit organizations including Foundations are part of the private sector businesses. These organizations are owned by their members. Housing Foundation is a typical example of this group.
Abraham Maslow, a famous psychologist in the 1940s, created the hierarchy of needs. He listed the top three basic needs in his book for human survival as: food, clothing, and shelter. Shelter-housing is an enormous challenge for the government these days. Homelessness is on the rise and required urgent attention to provide more affordable homes to people at a very low cost.
The Housing sector is too important to be in the hands of a “Foundation”. A foundation is not a public corporation, or a public service agency. The public must have a say in advising the board, the minister, and parliament on important issues affecting the tenants in the housing scheme.
A sole proprietorship business is owned by one individual, and is part of the private sector organizations. A partnership is owned by the partners who created it, and is part of the private sector businesses. Private and public limited liability companies are owned by the shareholders, and are also part of the private sector organizations.
Public Corporations and other public service agencies are owned by the public or the taxpayers in the country. They are created by the government in an act of parliament to provide important goods and services to the population at a low cost. In the case of housing, the board responsible to the minister must publish issues affecting the public and provide financial report to the minister for the public to be aware of what is taking place in the housing scheme. They must provide the result of the trading to show how much money has been available, and how it has been used. The board must have an independent committee to question parliament on general matters pertaining to the service operation in the public.
Housing is an important service to the community, and must be under government and the public control. It should not be left in private hands such as a foundation, because human lives and essential services are at risk, especially now that the hurricane season is approaching. The government is the major shareholder in these corporations and service agencies. Therefore, the price of house rent shouldn’t be so high.
Tenants are actually paying more for rent for public housing than their basic monthly salary. For the elderly, rent is almost twice their pension allowances. This shouldn’t be! A balance must be met between not for profitable gains, but for a basic need of the community.
In closing, public corporations are not created as profit-oriented organizations, and must keep proper records to show their financial positions to the public.
Joseph Harvey
