Arthur,

Ah! In posting the following article, do I take it that you are now coming
round to my idea, expressed several times on FW, that all bodies that have
to do with the public should post transparent accounts? (In fact, I say
that all communicated information within and between such bodies should be
recorded and lodged in the public record so that it can be investigated and
more widely publicised by anybody who wishes to.)

Marylaine Block's idea is, as she says, a pipe dream, but it is not a good
one because it is totally unrealistic. The plethora of  accounts that she
proposes would need building a model of the world almost as detailed as the
world itself! It would need such an extension to the civil service and the
non-productive part of business that it would drain the profit-making side
of business of all its personnel.  

It is, of course, the profits of business that enable government to exist
at all.

Keith  

At 15:48 17/10/02 -0400, you wrote:
<<<<
ACCOUNTING FOR PUBLIC SERVICES
by Marylaine Block
A few weeks ago I wrote about GASB 34, the new accounting standard for
public agencies. I thought it was entirely reasonable that since we are
spending the public's money, we should be asked to give a businesslike
account of how we use it. In fact, I thought we should start making a point
of discussing the return we deliver on public investment. 

But turnabout is fair play. We live in an era where disdain and even
mockery of government, its employees, and the services they provide, are
prevalent. When this attitude is widespread, it can hardly help increasing
the likelihood that profit-maximizing companies will see tax-avoidance as
the most rational strategy. 

And that would be a pity, not just because it increases the tax burden on
the rest of us, and not just because it could cut into the government
services we receive as individuals. It would be counterproductive for
business as well, because diminished tax revenues make it more difficult
for governments to provide essential services business relies on. 

So let me tell you about a pipe dream I have. I'd like to see businesses
use accounting standards that acknowledge all the public services they make
use of every day. I'd like to force them to realize that they are as
dependent on government subsidies as any bureaucrat or welfare recipient. 

I would like to see business executives acknowledge the tax dollars spent
to bring water and sewer services out to new plants and office complexes
they've built in the middle of nowhere. It would also be nice if they'd
acknowledge the money spent by local and regional governments to provide
them with police, fire and ambulance services, and the roads that bring
their employees to work and their supplies to their factories and offices. 

I'd like them to acknowledge the subsidy our tax dollars provide them in
the form of highways, ports, inland waterways, airports, and air traffic
control, as well as in the form of the government-created internet which
allows them to do some business without ever leaving home. I'd like
executives in western states to acknowledge that without tax-funded dams
and reservoirs that provide water, the cities and businesses they've built
in the desert could not survive. 

I'd like to see them admit that the public picks up the tab to clean up the
messes some businesses have created and walked away from, environmental
damage caused by hazardous wastes, toxic spills, and effluent discharges
into local waterways. I want them to acknowledge the resources they've
extracted from public land that belongs to all of us and to generations
that haven't been born yet, and the damage done in the process. 

I'd like to see businesses acknowledge the value of a workforce educated
primarily in public schools, universities, and in some cases, community
colleges that have tailored job-related training to the specific needs of
area businesses. I'd like to see businesses account for their use of
research funded by government agencies like the National Institutes of
Health and the National Science Foundation, or funded by public
universities -- especially when businesses like drug companies sell
products based on that tax-funded research back to the public at hugely
inflated prices. I'd like to see them acknowledge the value of the
libraries that purchase, preserve, and organize that research, and then
supply it on demand when businesses need it. 

I'd like to see executives acknowledge the extent to which they rely on
government-collected data: census data, economic statistics, databases,
maps, climate information, and financial data. I'd like to see them account
for their use of the legal system which enforces compliance with their
contracts, adjudicates their disputes, and awards and protects their
patents and copyrights (if anything, too zealously). I want them to account
for their use of our consulates and embassies and government agencies that
protect and promote their business abroad. 

You see, if business executives had to use this kind of accounting system,
they might be forced to realize that, no matter how great their ideas and
achievements, they didn't do it alone. They drew on the long legacy of
shared public resources -- a legacy we are all obligated to replenish. They
might even come to understand the value of paying their fair share. 

A pipe dream, like I said. But a good one, don't you think?
>>>> 




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Keith Hudson,6 Upper Camden Place, Bath BA1 5HX, England
Tel:01225 312622/444881; Fax:01225 447727; E-mail: [EMAIL PROTECTED]
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