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Wednesday, April 11 de 2018

Ministry of Finance extends fiscal austerity to Public Companies

A new directive of austerity and efficiency in the use of resources in public companies was signed this Wednesday by President Sebastián Piñera and the Minister of Finance Felipe Larraín.

These measures are in addition to those already announced last week to reduce expenses in the Central Government for an estimated US $ 500 million in the next four years, which will be allocated to social programs of the Government.

Specifically, the directive focuses on the following five points:  

  1. It applies to State companies in which the State or its institutions have 50% or more of its social capital and the Corfo institutes.
  2. It establishes criteria of austerity and efficiency in spending related to advertising, dissemination and subscriptions, as well as representation, protocol and ceremonial expenses.
  3. Travels abroad of executives and directors should be reduced to what is essential for the tasks of the company. In addition, the trip must report a manifest utility to the company.
  4. Public companies cannot have vehicles of their own. They may only have truck-type or similar vehicles to carry out activities directly related to the operation of the company, without the possibility of having direct assignment to executives and/or directors. Likewise, public companies must dispose of vehicles that are deemed to be in excess of what is needed. In addition, measures are extended regarding the use and renewal of cars contained in the first austerity document.
  5. With regards to collective bargaining procedures and personnel policy for State companies, Circular No. 17 and No. 18 of the Ministry of Finance are requested (which establishes procedures on collective bargaining and personnel policies for State enterprises).

According to the directive, Budget Office will give specific instructions on its implementation and monitor its compliance.

The companies affected by the new instructions are:

  • Corporación del Cobre de Chile (CODELCO)
  • Empresa Nacional del Petróleo (ENAP)
  • Empresa Nacional de Minería (ENAMI)
  • Empresa de los Ferrocarriles del Estado (EFE)
  • Empresa de Correos de Chile
  • Empresa Portuaria Arica
  • Empresa Portuaria Iquique
  • Empresa Portuaria Antofagasta
  • Empresa Portuaria Coquimbo
  • Empresa Portuaria Valparaíso
  • Empresa Portuaria San Antonio
  • Empresa Portuaria Talcahuano
  • Empresa Portuaria Puerto Montt
  • Empresa Portuaria Chacabuco
  • Empresa Portuaria Austral
  • Empresa de Transporte de Pasajeros Metro S .A.
  • Casa de Moneda de Chile S.A.
  • Zona Franca de Iquique S.A.
  • Polla Chilena de Beneficencia S.A.
  • Empresa Concesionaria de Servicios Sanitarios S.A.
  • Sociedad Agrícola y Servicios Isla de Pascua Ltda.
  • Sociedad Agrícola Sacor S.A. 
  • Sociedad Comercializadora de Trigo S.A.
  • Astilleros y Maestranzas de la Armada, ASMAR
  • Fábrica y Maestranzas del Ejército, FAMAE
  • Empresa Nacional de Aeronáutica, ENAER
  • Instituto Forestal (INFOR)
  • Instituto de Fomento Pesquero (IFOP)
  • Instituto Nacional de Normalización (INN)
  • Centro de Información de Recursos Naturales (CIREN)


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