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An interesting story from Russia

As I was reading through world news from the week on BBC I discovered that a Russian mayor, Alexei Zalivatsky, who is the head of Yantarny, which is a small town in the Kaliningrad Region of Russia, has decided to look into selling the community’s to
Kelly Running

                  As I was reading through world news from the week on BBC I discovered that a Russian mayor, Alexei Zalivatsky, who is the head of Yantarny, which is a small town in the Kaliningrad Region of Russia, has decided to look into selling the community’s town hall.

                  Zalivatsky is committed to continuing social services and having promised renovations to kindergartens and schools in the town; so, he’s literally decided that the people he serve is more important than a fancy place for the town council to meet.

                  He refused to take on more debt and decided that when faced with what to do that selling the rather large building (10,128 sq ft) plus a large yard means it could be ideal as a hotel. The building is to be auctioned off with only one stipulation; the new buyer is to allow officials time to move out of the building once the deal goes through.

                  People are wondering if it’s a simply public relations stunt or if it’s real, but either way people are praising his choice to put the people first and downsize town office before scaling back any social programs or promises regarding schools.

                  They haven’t stated where the town administration will move to, but wherever it is they will be able to continue to provide the services promised to the citizens.

                  My initial thoughts were that it was possibly a bad idea: You would make a bit of money quickly but what happens when that runs out? Unless you keep selling town assets.

                  I think it’s admirable though that he has decided to put the people in his community first by finding a way to support social programs through any means necessary, while also keeping his promise to the schools of refurbishing them. But, at the same time I wonder about the quick buck versus the future. Maybe the town should turn it into a hotel and operate it as a way to raise funds for the community.

                  My next thought was, would that ever happen in Canada? If a community was attempting to keep living costs down, provide assistance to citizens, and was losing money… would they enter into more debt or would they do something like sell the administrative building in order to pay for its efforts.

                  In Canada, we seem very willing to enter debt. And debt can be manageable, but there is a point in which you reach a point of no return. Where your debt will continue and be passed on to the next generation because it has reached such a point.

                  It’s an interesting story I thought because it’s one which puts socialist ideals… the social programs, into effect in a way that most capitalist societies wouldn’t really consider. Most would think about cutting costs as opposed to selling an asset to cover their responsibilities to their citizens.

                  When we look at Saskatchewan, one of the biggest concerns this year was how the government saddled school divisions with a considerable cost that they weren’t actually prepared for. Now they’re having to cut costs and come up with some way to pay half of all teachers’ 1.9 percent increase in their division, which adds up quickly.

                  Personally I feel like education and health should be the two things our government focus on the most, roads – despite a few potholes are still driveable, but an education and a healthy population are at the top of the list to me when it comes to taking care of our citizens.

                  So, the story of the Russian mayor looking to auction of a town asset to do that resonated with me.

                  Some would argue that our government looking to sell off Sasktel or other Crown corporations are the same… but it’s not really. Although the sale of a Crown corporation would come with a quick buck, right now Crown corporations keep our costs down when compared to the rest of Canada making big companies offer services at cheaper prices to be competitive with our crown corporations. Additionally, they provide a constant source of income year after year as opposed to a quick buck. What happens when that money runs out? Where do we stand then? How long will it last?

                  I’m not a politician, nor am I an accountant; but, I feel educated enough to at least have an opinion on it.

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