The 169 Position: Rationalisation of government companies

Call me clairvoyant, but the Balearic Government's rationalisation of its so-called "companies" is to bring about a merger between Inestur and IBATUR, two tourism agencies which have, since the former was established seven years ago, duplicated much effort. It is hardly public administration rocket science to appreciate that there is no point in having two agencies. A question should be, though, why there ever were two; why Inestur was ever formed. Its main purpose seems to have been as a conduit for siphoning off public funds into the coffers of the Unió Mallorquina party - allegedly.

The rationalisation affects at least a half of these companies, of which there are - get this - 169. What on earth are they all and what on earth do they all do? Add them into the various levels of government in Mallorca, and you complete the picture of the insanity of the public sector for an island with under a million people (or a couple of hundred thousand over a million, if you lump in the whole of the Balearics). But in announcing the rationalisation, President Antich has said that jobs are not to be affected. Why ever not? Simple. It would be politically unacceptable and would merely add to the unemployment burden. Were these "real" companies, however, with "real" shareholders, mergers would lead to job losses. What savings are truly going to be achieved by maintaining jobs that will still duplicate effort? The turf wars that will result from these mergers would be the stuff of dreams for a management researcher studying cultures in combined businesses; they are a recipe for unproductive behaviour and organisation.

There are all manner of suggestions and observations flying around as to this rationalisation process. "The Bulletin", commenting on the fact that the agriculture and fisheries ministry is to be swallowed up by the office of the presidency, asks why such a ministry is needed. Agriculture is far less important than it once was, but it still is important to Mallorca. Potato exports, almonds, wine, the traditional subsistence crops such as cabbage; they are hardly unimportant. And if one takes the words of those "gurus" from a few days back, agriculture should be something of the back to the future for the Mallorcan economy. No, there probably is a need for such a ministry, if, that is, one believes agriculture to be of strategic significance, like tourism.

Strategic. That is something missing in all this. A suggestion from the left-wing Bloc is that the tourism and transport ministries at government level should be scrapped and responsibilities handed over to the island councils, such as the Council of Mallorca. Why stop at these? Why not hand all ministries over to the councils and get rid of the regional government? It's the reverse take on my belief that it is the councils which should go, a move that would make a genuine saving in public spending.

It is the lack of strategic thinking that is worrying. The government is casting around, looking for anything it can to be the target of a short-term fix. Which is not to say that there isn't some sense to merging pointless agencies ("companies"). But the pressing need is for a thorough strategic review - from top to bottom - of the whole system of public administration, which is probably why it won't happen.


Any comments to andrew@thealcudiaguide.com please.