China starts 5-year ban on new gov’t buildings

China Bans New Government Buildings in Waste Crackdown

China banned government and Communist Party agencies from constructing new buildings for five years and told them to suspend projects that have already won approval as the country seeks to cut wasteful spending.

The ban includes construction for purposes of training, meetings and accommodation, the government said in a statement on its website yesterday, calling for resources to be spent instead on developing the economy and improving public welfare. All localities should report the implementation of the new rules by Sept. 30, according to the statement.President Xi Jinping, appointed as the ruling Communist Party’s general secretary in November, last month pledged a “thorough cleanup” of the party amid a yearlong campaign aimed at ridding its ranks of bureaucracy and extravagance. China’s economy grew 7.5 percent in the second quarter and is at risk of the weakest expansion in 23 years.

“The main purpose of the call for a ban on new government buildings is largely symbolic in that these are a highly visible sign of government officials misusing public monies,” Andrew Wedeman, a political science professor at Georgia State University and author of “Double Paradox: Rapid Growth and Rising Corruption in China,” wrote in an e-mail. “A real assault on corruption, however, requires a much less visible, long-term effort to attack the causes of corruption, not just those involved and the visible symbols of corruption.”

Wedeman said he doubted that money not spent on public buildings would be rechanneled into education, welfare or social programs, so the economic impact probably won’t be large.

White House

Some departments and local authorities have recently built office compounds in violation of regulations, which has hurt the image of the party and the government, according to the statement. A government building modeled on the White House, in Fuyang in Anhui province, drew public criticism in 2007.

Total local government debt may have risen 13 percent to 12.1 trillion yuan in 2011 and 2012, Moody’s Investors Service estimated in June, adding to risks that the central government will be forced to bail out local authorities and take over their liabilities.

Local finance departments shouldn’t release funding for projects without proper approvals, and land agencies shouldn’t grant property-use rights, according to the statement.

While the policy allows restoration of buildings with outdated facilities, such projects must be designed to remove safety risks and restore office functions without adding luxurious renovation, the government said in the statement.

To contact Bloomberg News staff for this story: Jun Luo in Shanghai at jluo6@bloomberg.net

China starts 5-year ban on new gov’t buildings

English.news.cn | 2013-07-23

BEIJING, July 23 (Xinhua) — Central authorities on Tuesday introduced a five-year ban on the construction of new government buildings as part of an ongoing frugality campaign.

The General Office of the Communist Party of China (CPC) Central Committee and the General Office of the State Council jointly issued a directive that calls for an across-the-board halt to the construction of any new government buildings in the coming five years.

The ban also covers expensive structures built as training centers or hotels.

The directive said some departments and localities have built government office compounds in violation of regulations.

The directive called on all CPC and government bodies to be frugal and ensure that government funds and resources be spent on developing the economy and boosting the public’s well-being.

According to the directive, the construction, purchase, restoration or expansion of office compounds that is done in the guise of building repair or urban planning is strictly forbidden.

The directive also bans CPC and government organizations from receiving any form of construction sponsorship or donations, as well as collaborating with enterprises, in developing construction projects.

While allowing restoration projects for office buildings with dated facilities, the directive stresses that such projects must be exclusively aimed at erasing safety risks and restoring office functions.

According to the instruction, such projects must be approved first by related administrative departments and luxury interior decoration is prohibited, with criteria and spending to be set in accordance with local conditions.

The directive stipulates that expenditures on office building restoration should be included in CPC and government budgets.

According to the instruction, buildings with reception functions, such as those related to accommodation, meetings and catering, should not be restored.

The directive orders all CPC and government departments to rectify the misuse of office buildings, including those that are used for functions that have not been approved.

The directive says CPC and government officials with multiple posts should be each given only one office, while offices for those who have retired or taken leave should be returned in time.

Local authorities should establish or perfect the management of government buildings by strictly verifying the buildings’ size, according to the directive.

Departments that have moved to renovated or newly-built locations should transfer the original office blocks to government office administrators in a timely fashion, according to the directive.

Departments and units at all levels should address the office shortage caused by adding new institutions by themselves. If the additions do not meet their needs, government office administrators should adjust existing resources to solve the shortage, according to the directive.

Strict approval procedures are also required for renting new office blocks, according to the directive.

“Banning the building of new government buildings is important for building a clean government and also a requirement for boosting CPC-people ties and maintaining the image of the CPC and the government,” according to the circular.

Leading officials should take the lead in the campaign and relevant departments should map out measures for its implementation as soon as possible, the circular says.

Departments in charge of investment should perfect approval procedures and internal supervision,while financial departments should tighten the management of public finance budgets by refraining from allotting funds for building projects without going through relevant approval procedures, according to the directive.

The renovation of existing government buildings and the construction of new buildings should be made public, the directive says.

Land and resource management departments should tighten land supplies and management, while auditing departments should strengthen supervision over renovation and construction projects, the directive says.

Discipline inspection authorities should look into violations related to such projects, the directive says, adding that those responsible for allowing projects that violate regulations should be harshly punished.

Relevant departments should report their progress to the General Office of the CPC Central Committee and the General Office of the State Council before Sept. 30.

The general offices will supervise and inspect new renovations and construction, as well as inform the public of such inspections.