Proposals to change the system for use of official cars have been around for decades. They are now being seriously considered at government departments throughout south China's Guangdong Province, and examples from its major cities are being collated and analyzed to develop a firm plan for reform.

The province will probably lead the "official-use vehicle reform," as it is being called, on a nationwide basis, as it did in the bid to introduce transparency into government information sources.

Several million official cars are in service throughout China, and their upkeep and other expenses consume more than 100 billion yuan (US$12 billion) annually.

In Guangdong, the number of official cars is estimated at 450,000. They will either be auctioned or sold to individuals, including officials who would like a used car of their own.

Government-owned vehicles used in the line of work, such as those used by police and court officials, will not be subject to the reform.

A subsidy allocation formula will probably first be introduced at township and grassroots level and in state-owned companies in cities in the Pearl River Delta later this year, said an official from the General Office of the Guangdong provincial government on Wednesday. Township governments will not be allowed to purchase any new work-related cars while their present cars will be auctioned off or sold this year.

The government officials who have car-use privileges will be offered a subsidy for official transport expenses, according to an unnamed official who declined to disclose the amount of the subsidies. "Guangdong will consider similar standards that are being used in other regions in the country," he said.

The official predicted the new system would boost car sales in the prosperous province, where about 10 percent of families have purchased their own cars. It will also boost business for local taxi operators. Taxi companies are already planning to buy new cars in anticipation of an increase in business.

The reform of the official car system is geared toward preventing corruption as well as reducing transportation expenses. These costs in some government departments and units in Guangdong have been considerable because official cars were being used for private purposes, the unnamed official said.

"When details have been sorted out and the time is right, the new system will cover county and prefectural level governments and units throughout the province," he said.

The cities of Shenzhen, Zhuhai, Zhongshan, Dongguan and Foshan are to take the lead in introducing the new subsidy system in Guangdong.

Similar subsidy-based reforms have already been introduced in the cities of Chengdu in Sichuan Province, Qingdao in Shandong Province, Yiwu in Zhejiang Province and Chongqing Municipality.

In Chengdu's Qingyang District, section-chief-level officials are subsidized to the tune of 1,100 yuan (US$133) monthly since the district government introduced its new scheme earlier this year. Other officials are provided with 400 yuan (US$48) to 600 yuan (US$73) every month.

A total of 33 official cars worth more than 730,000 yuan (US$88,300) have already been auctioned in the district, and since the introduction of the new system officials have not been allowed to claim travel expenses.

The Chengdu city government is considering ceasing to buy official-use cars for vice mayors and below within five years.

(China Daily April 29, 2004)