587 Replace birds with a cage

Lin Zhenhua laughed and said, "Governor Hong, our Jiangnan Province has always been the best provinces in the middle reaches of the Yangtze River in attracting investment. Why is it behind in your eyes? You are not so deeply in love and pain, right?"

Hong Yu'an said: "Xiaolin, you may have been in Jingxi for a while and have not paid attention to the outside. Since the demolition of the Yangtze River Bridge, the development along the Yangtze River line has been in full swing. We did have done a good job in the past, but in the past two or three months, our investment promotion performance has been worse than that of brother provinces. This matter cannot be taken lightly."

"Is there such a thing?" Lin Zhenhua said in surprise, "Governor Hong, after I left Jingxi, I took a boat to return to Xunyang along the Yangtze River. Along the way, I did see my brother provinces vigorously building development zones. However, the location conditions in Xunyang are not bad, and they have developed earlier, and the foundation is much better than those newly built development zones in brother provinces. Why do I lack competitiveness in investment promotion?"

"Chairman Lin, you don't know anything." Yao Niangui, the current mayor of Xunyang, interjected, "The hardware conditions of our entire Xunnan Industrial Belt are among the most advanced development zones established in the middle reaches of the Yangtze River. Our Xunyang Port has four container terminals and four bulk terminals. The scale of Xunyang Airport is ranked only second to major cities such as Beijing, Shanghai and Guangzhou. However, the problem lies in this. Because we developed early, the prices in all aspects such as land prices, labor prices, etc. are much higher than those newly built development zones, which will scare away those investors."

"So that's it." Lin Zhenhua suddenly realized that in fact, this was something he should have thought of long ago.

In real history, until the first 10 years of the 21st century, the economy of Jiangnan Province was still at the bottom in the middle reaches of the Yangtze River. Xunyang, known as the "the mouth of the three rivers and the thoroughfare of the seven provinces", had its good location conditions not fully utilized and had been in an unknown state.

However, in this fictional story, because Lin Zhenhua, a traveler like this, stirred up the overall situation, Xunyang has become a pearl in the middle reaches of the Yangtze River. In Xunyang alone, there are dozens of large enterprises with an annual output value of more than 1 billion yuan, including a nationwide giant like Hanhua Heavy Industry. As for small and medium-sized enterprises, there are countless. The annual cargo throughput of the entire Xunyang Port is as high as more than 30 million tons and more than 200,000 containers, which is achieved when the Yangtze River transport capacity is limited. Now the Yangtze River channel has been cleared, and future development is even more limitless.

Economic development will inevitably lead to land and labor prices. Hanhua's Human Resources Department once conducted a survey and found that the labor prices in Xunyang were almost the same as those of several coastal open cities. In the past, in order to reduce labor prices, Hanhua often went to some mountainous cities and counties in southern Jiangnan Province to recruit workers, but now, even the wage levels of workers from mountainous areas can no longer be reduced. This is the so-called bottleneck period of development.

"High land prices and high labor costs are all good things, which means we are already a developed province." Lin Zhenhua said to Hong Yu'an with a smile.

Hong Yu'an shook his head: "Xiaolin, you only know one thing, not the other. The country evaluates the quality of work in each province, not only depends on your absolute level, but also on your relative level. Indeed, Jiangnan Province's per capita income is currently ranked among the top five in the country, but our development speed is almost at the bottom. Everyone says that Jiangnan Province is a developed province, but you only grow by 5% in a year, and others grow by 20%. Where do you let me, the governor, put my face?"

"Uh..." Lin Zhenhua was really choked by Hong Yu'an. At this moment, he began to miss Xie Mingcheng. He really should have asked Xie Mingcheng to teach Hong Yu'an a lesson on how to reject GDP worship. In a place like Jingxi where the economy is backward, it is completely a dream to talk about breaking GDP worship. But for a province like Jiangnan Province, where the economy has developed to a certain level, there is really no need to pursue a higher speed.

However, Lin Zhenhua just thought about it this way in his mind. He knew that China is still a poor country, so he had the intention of working hard from the top, which determined that economic growth will still be an important indicator for evaluating the political achievements of local officials in the next few years. It is completely understandable that Hong Yu'an is dissatisfied with the development speed of Jiangnan Province.

Lin Zhenhua said: "Governor Hong, Mayor Yao has explained the reason just now. Taking Xunyang City as an example, we developed earlier than other places, so industrial land is seriously insufficient. However, I would like to thank Mayor Yao here. Although the industrial land in the entire Xunyang City is very tight, every time we Hanhua applied for land, Mayor Yao always had the green light all the way and never made any trouble."

"That's of course." Yao Niangui said with a smile, "Who doesn't know that you, Chairman Lin, is a banner of our Xunyang? And every time you Hanhua applies for land, you bring a new industry to our Xunyang. Look, steam turbines and chips are industries that people can't find even if they want to find. Are we willing to push them out?"

Hong Yuan also said: "That's right, when I was the mayor here, I had already set this rule. Whenever Hanhua wants to use land, no matter how nervous it is, it must be guaranteed. After I went to the province, I mentioned this article to Comrade Niangui many times."

"Yes, yes, every time Governor Hong comes to Xunyang for inspection, he has to reiterate this article." Yao Niangui quickly echoed.

Lin Zhenhua knew that what these two officials said was true. Hanhua is currently enjoying the treatment of VIP in the province. Whether it is land use, labor, or other places that require government cooperation, the provincial and municipal governments have never lost the chain.

"Thank you, Governor Hong, and Mayor Yao," Lin Zhenhua said, "Let me continue. Since we developed early, industrial land has been saturated. If you want to attract investment, you will inevitably encounter the situations Mayor Yao said. My opinion is that we cannot expand the local industrial scale infinitely. When the old industry develops to a certain level and can no longer accommodate new industries, we need to adopt the policy of changing cages and replacing birds."

"Turn the cage and replace the bird?" Hong Yu'an, "Xiaolin, tell me in detail, what does this mean?"

Lin Zhenhua said: "Our industrial development zone in Jiangnan Province is mainly the Xunnan Industrial Belt. But there are already many industrial enterprises gathering in this area. Not only is the lack of industrial land, but the environmental carrying capacity is also close to the limit. In this case, if we want to accept new industries, we must push out the old industries. This is like we have a bird cage. If we want to raise a new bird, we must let the original bird go and empty the cage."

"You mean, let us push the old industries away?" Yao Niangui asked in surprise, "These companies are all recruited by us with great effort, and they are also contributed by you, Mr. Lin. How can you launch them casually?"

Hong Yuan was moved by Lin Zhenhua's statement. He murmured: "Entering the cage and replacing the birds... This is a new term. Xiaolin, tell me, which birds do you think we should free up and what new birds should we replace them with?"

Lin Zhenhua said: "The early development of our Xunnan Industrial Belt was the path of export processing trade. In the entire Xunnan Industrial Belt, purely labor-intensive simple processing and assembly enterprises accounted for more than 80%, and the industry covered more than a dozen categories such as clothing, electrical appliances, toys, furniture, etc. The profit margins of these export processing enterprises were very low and they won completely by scale. The reason why they could maintain profitability is that the land they used was allocated more than ten years ago, and the land price was very low at that time, so their land use cost was almost negligible.

Now, the land they occupy has appreciated, and acre of land is worth hundreds of thousands of yuan. They occupy hundreds of thousands of acres of land and produce products that can only earn a few cents per piece. Isn’t this a waste? Think about it, if you take back the land and rent it to enterprises with higher profit margins, wouldn’t it be more efficient?”

"Governor Hong, look at Mr. Lin's idea..." Yao Niangui turned his head and looked at Hong Yu'an and sought Hong Yu'an's opinions. This is no longer a policy choice for a city in Xunyang City, but an overall idea involving the development of the entire Jiangnan Province.

Hong Yu'andao: "I also saw this practice Xiaolin said when I visited some coastal areas. But they had not sorted out this idea in such a systematic way. I think Xiaolin's idea is correct. Since our industrial land is limited, why can't we prioritize these land to enterprises with better benefits?"

"But how can we squeeze out these companies?" Yao Niangui asked again, "These companies are also our big taxpayers. Over the years, they have made great contributions to the development of Xunyang. Let's say no, just push them out. Isn't that appropriate?"

Lin Zhenhua laughed and said, "Actually, there is a way to do this. We can formulate a land income standard per unit area and calculate it based on the ratio of the land occupied by the enterprise to the local tax paid. Any tax paid per unit area is lower than the standard value, the government has the right to collect idle land tax. The profit margins of these enterprises are too low and cannot afford such taxes, so they will naturally leave."

"Mr. Lin has asked us again." Yao Niangui smiled bitterly, "What tax is imposed on this? It is not something that our local government can decide. I have never even heard of the idle land tax."

"Comrade Niangui, what Xiaolin said is just a way of thinking. You can use your brain to think about it and think of more ways." Hong Yuan said dissatisfiedly.

"Yes, yes, Governor Hong, I understand." Yao Niangui quickly agreed. In fact, he just complained casually just now, and the idea proposed by Lin Zhenhua was still very creative. As for how to use the method to get rid of those companies that occupy land but cannot pay much tax, the government has never lacked means.

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Chapter completed!