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Governmental agency should not provide business services



 
A governmental agency should not provide services to businesses because it is unfair competition to companies and NGOs that have no public funding. The proposal in the Small and Medium-sized Enterprises Act (SMEA) that the Executive Agency for Promotion of Small and Medium-sized Enterprises (ASME) should be entitled to render business services is unacceptable – reads BCCI position, signed by BCCI President Tsvetan Simeonov on the occasion of the impending changes affecting small and medium sized enterprises (SMEs).

The state should develop strategies and policies in the relevant area rather than provide services to end users. This leads to a violation of market principles and to unfair competition on the part of the state with regard to the private sector considering that these services are inherently in the scope of specialized agencies and companies. 

BCCI’s position maintains that there exists an interpretation of the Constitutional Court according to which "in the exercise of private property all legal entities are equal, the requirement applying not only to citizens and legal persons but also to the state and municipalities." Thus, rendering of business services by a governmental agency that is publicly funded and that carries out an activity competing with companies or NGOs violates the principle of equality of the subjects putting it in a privileged position compared to the latter. In practice, this is discrimination against companies and NGOs that dispose of no public funding. 

That is why BCCI suggests that the Agency should contract out (outsourcing) rendering of services to business organizations with the necessary equipment and capacity available at hand and that have proved their worth, under the terms and conditions of procurements for sure.

The Agency should supervise the quality of the outsourced services to the sub-contractors. This will allow efficient use of public funds and avoidance of unfair competition. 

The Chamber also points out that organization of SMEs participation in international fairs and exhibitions is within the scope of activity of the chambers of commerce, sectorial associations and specialized companies so it should not be assigned to EASME by law. So this again creates conditions for unfair competition and the principles of market economy are infringed. Here as well BCCI proposes that a provision should be made to the effect that the implementation is realized through an assignment agreement (outsourcing).

16.07.2012

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