Daily News - eluniversal.com

Government eyes expropriation of over 1,000 private companies
Socializing state companies

President Hugo Chávez monitors renewed operations in Cumaná cocoa manufacture (Photo: Miraflores press office)

The Venezuelan ruler encouraged businesspersons to take an active part in a novel, community-based economic-social model, where workers need to be involved in decision making and warned against private companies at a standstill

SARA CAROLINA DIAZ
EL UNIVERSAL

All Venezuelan state companies will become "social production companies" to create "community" production, service and delivery units, President Hugo Chávez said during his TV and radio show "Hello, President" last Sunday in Cumaná, the capital city of eastern Sucre state.

While urging private parties to engage in the new economic-social model, the ruler claimed that state basic companies, and other companies including public utilities, Caracas subway, airline Conviasa and army branches "have been just capitalist companies" and should become social production units.

According to the president, state oil company Petróleos de Venezuela (Pdvsa), is already in line with the social production model. "State companies should set the example," he alleged.

"Every company should turn into a social production unit (¿) Every state production item should change to production and community service units." President Chávez explained that the proposed model is under the guidelines of the 21st socialism.

Companies "different from traditional capitalist corporations, where owners are the only beneficiaries" are intended for the purposes of profit sharing and support of social projects. "Workers' tasks should be linked to workers' lives." The new model will be implemented in Cumaná cocoa plant, which was closed for nine years and is to operate with the joint efforts of cooperatives and social missions.

While clarifying that expropriation would be used as ultimate resort, the president warned against companies closed, as they may be subject to expropriation. "We are willing to recover all closed companies (¿) No company would be closed regardless of the reasons. Appropriate steps should be taken."

During the broadcast, Labor Minister María Cristina Iglesias read out a list of companies "subject to expropriation," including 136 closed companies and 1,149 on standby. "They will have to be expropriated as long as their owners are not ready to open them. Agreements may be reached provided that they wish to improve the companies, bolster workers involvement," he added.

Translated by Conchita Delgado

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