Chapter Seventy-Nine: The First Step

  After the team meeting, Hu Deyong specially found Xu Shaojie and actively expressed his participation in building a vegetable greenhouse. As the deputy secretary in charge of agriculture, Xu Shaojie readily agreed. From then on, Hu Deyong's main energy was focused on the development of the vegetable greenhouse, spending most of his time at the Yulin Township Government and Huaguan Village.

  Liu Fugui represented Zhang Shaocai and came to Yudu District. In fact, Xu Shaojie could have taken charge of building the vegetable greenhouse himself, but he couldn't appear in person, so Liu Fugui appeared on his behalf. The negotiation process was very simple: the construction of the vegetable greenhouse had to be successful, so they chose the best arable land. All expenses were borne by Liu Fugui, including taxes that should be paid. At the same time, Liu Fugui provided some financial subsidies to farmers. The daily management of the greenhouse required workers, who would be hired from among these farmers. Xu Shaojie's idea was very practical: using Zhang Shaocai's financial resources to successfully establish a vegetable greenhouse, without calculating costs during the experimental period.

  Xu Shaojie did not expect that from this time on, Hu Deyong had truly sunk in, and the later development of vegetable greenhouses didn't need Xu Shaojie to worry about it at all. Hu Deyong was completely able to do a good job with all the work.

  Zhao Deli and Song Tao sat on the chair, Xu Shaojie was carefully reading the report that the two of them had drafted with all their might, day and night. Of course, this report was the result of many brainstorming sessions by Zhao Deli and Song Tao, as they were not familiar with how to run a business. So, they tried every means to find the technical personnel from the municipal cement plant, and after paying a certain price, they finally completed the report.

  "Lao Zhao, Song Tao, I won't worry about the specifics of how to do it. Since I've handed it over to you, it's up to you to complete the task. I emphasize two aspects: first, talent - you need to find experts by any means necessary. If you can find experts, half the work is done. Second, funding - figure out how much money is needed and make a plan. I'll go to the credit union for loans. I don't agree with outsiders leading insiders, so you need to familiarize yourselves quickly. I'm just sounding the alarm; I won't learn about running a factory or managing well. I only care about results.

  Also, remember one thing: I need quick and efficient results. It's not possible to spend too much time on one thing. The district's financial situation is bad, and farmers are very poor - they can't wait for years. We need immediate results, so your task is heavy."

  "Secretary Xu, we understand what you mean. As long as the funds are in place, Song Tao and I will do whatever it takes to get the cement factory up and running. Your chosen project is very accurate. The abandoned cement factory has an abundance of raw materials all around it, enough to fill two mountains. We've asked around and found out that the previous owner had funding issues and was eager to develop in the south, so they abandoned the factory. Even if the boss comes back, we have a way to deal with it."

  "Alright, I'll finalize the funding for you tomorrow. I'm planning to take out a loan in the name of the district office, so you must make money as quickly as possible."

  "Secretary Xu, don't worry, as long as the machine arrives, everything will be easy to say."

  The cement plant did not have as much investment as Xu Shaojie had imagined before, the first phase of investment was less than 300,000 yuan, mainly to purchase machinery and repair the cement kiln, including some minor repairs, it could start operation.

  3 million yuan, for Yudu District and Xu Shaojie, is an astronomical figure. The district's fiscal revenue, calculated according to statistical caliber, is only 1.7 million. Every year-end, Yudu District has to worry about paying wages. Not to mention Yudu District, Huaian City, and even the entire Huaiyang City, are currently all "eating" finance, with most of their annual fiscal revenue being used to pay wages.

  To set up a cement plant, the only way is to take out a loan, there is no other way. Xu Shaojie also thought about finding the department above and trying to get the project. He entrusted Zhang Shiqiu to go to the city to probe, but was rebuffed. The district and town wanting projects, in today's situation, it's best not to mention it, getting projects is a matter for municipal units.

  The district committee meeting was held as scheduled, and a special study on the cement plant's launch was conducted. This is a major event in Yudu District, and Xu Shaojie cannot make a decision entirely on his own. Beforehand, he had discussed it with Zhang Shiqiu, whose words were very ambiguous and did not directly state anything. He emphasized that the district's finances could not afford to spend money. Xu Shaojie sensed that building the cement plant might not be as easy as imagined, so after making thorough preparations, he directly convened the district committee meeting.

  Yudu District has not held a district committee meeting for a long time. The secretary's office meeting and the team meeting have replaced the district committee meeting. Xu Shaojie studied it carefully and found that the district committee meeting is still the one that can make decisions. The resolutions formed by the district committee meeting can withstand the test of history. Although the district government is a dispatched institution of the municipal party committee, it is still a first-level government. In simple terms, just like the secretary's office meeting of the municipal party committee cannot replace the municipal party committee standing committee, and the four major joint conference of the city cannot replace the standing committee either. It's just that the district and township institutions are too small and not clearly divided, so the team meeting replaced the district committee meeting.

  The agenda of the district committee meeting was very specific, which was to study the establishment of a cement plant. Zhao Deli and Song Tao attended the meeting as non-voting delegates. After Zhao Deli reported on the investment needed for the establishment of the cement plant and other matters, the debate began. Of course, everyone would not target Xu Shaojie, but aimed at Zhao Deli.

  "Secretary Zhao, I listened to the planning scheme, and there is one thing that I am more concerned about. Secretary Zhao, can you explain it? The first phase of investment is 300,000 yuan to build a cement factory, but it doesn't mention how many phases of investment are needed in total, or how much money will be invested altogether, or over how many years?"

  Yi Xiangyang, who is in charge of economic work, surprisingly asked the first question. Xu Shaojie felt it and knew that Zhao Deli was under great pressure today and had to answer all questions carefully. Xu Shaojie emphasized earlier that today's meeting would be a free discussion, which is different from personnel adjustments and general administrative work. It must involve debate and some issues need to be clarified before they can facilitate the progress of later work.

  "Easy Secretary, what is referred to as the first phase of investment, refers to enabling the cement plant to officially start production, that is, producing cement. As for subsequent investments, they need to be decided based on the benefits and production situation generated by the cement plant, such as worker dormitories, canteens, etc. These are things to consider after the cement plant has entered normal production and started generating benefits. The most important investment among them is still the size of the production scale. Since it's just starting to be established, combined with the actual situation in Yudou District, we plan to establish a medium-sized cement plant, which cannot be compared with the city's cement plant. The planned annual output of cement is 200,000 tons."

  Zhao Deli's answer had just ended, and Tian Lixin, who was in charge of industry, spoke up. Tian Lixin basically supported the establishment of a cement plant. As the vice secretary in charge of industry, he was essentially an empty shell, as Yudu District had no industry to speak of, and he couldn't manage anything or do much of anything. The most he did every year was stationed work.

  "Secretary Zhao, I think that the purpose of running a business is to make money. Currently, the district's finances are difficult, so if we can successfully operate the cement factory, it will certainly increase financial revenue and everyone will be happy. However, there are two issues that need to be clarified first. The first issue is market prospects. Let me explain, I just recently understood the meaning of this term, which refers to investigating the situation in Huai'an city and its surroundings. How much cement is needed outside? Without detailed data on this aspect, it's hard to say what the prospects are like. The second issue is sales. Once the cement is produced, it must be sold. Many companies now focus on sales. The two issues I mentioned may seem repetitive, but actually, they boil down to one core question: can the cement be sold? Can the cement factory make money?"

  "Secretary Tian, regarding the market issue, we have conducted an investigation. Currently, in Huai'an City's 12 districts and towns, there is only one cement factory, which is the Municipal Cement Factory, with an annual production capacity of 500,000 tons. Although this number seems large, it's actually not. On average, each district and town gets less than 40,000 tons. The Municipal Cement Factory also needs to be responsible for Huai'an City's urban construction. Therefore, we have the conditions to build a cement factory. In the five districts in the south, plus our Yudu District, since last year, the amount of cement used has been increasing continuously. Many migrant workers who go out to work think about building houses as soon as they earn money, and they won't build earth-wall houses anymore. They need to buy cement from the Municipal Cement Factory and pay a lot of transportation fees. We can save this cost. This year, we predict that more and more rural households will build houses, so our 200,000 tons of cement production won't have any sales problems. The cement factory is sure to make money."

  The meeting room was filled with low murmurs, involving personal interests that everyone would care about. At least one thing is certain: if the cement factory makes money, the income of those present will definitely increase. Nowadays, people are talking about the issue of "vegetable baskets" everywhere, and there are many policies on this issue, but unfortunately, there is no money to be made, not even worth thinking about.

  "Lao Zhao, there's something I need to explain in advance. At the same time, I must also explain it from a financial system perspective. After the cement plant is built, it belongs to Yudu District and is responsible for its profits or losses. First of all, I want to say that we can't take out money from our finances. I've already reported this to Secretary Xu. The salaries of cadres and workers must be paid in full. Moreover, the most crucial thing is where the cement plant's funds will come from. If they come from our finances, I'll bluntly say that if it loses money, we'll bear the loss ourselves, and if it makes a profit, we may not necessarily get to use it."

  Xu Shaojie didn't notice these details, he found it strange and couldn't help but speak up.

  "Director Zhang, can you give us a detailed explanation?"

  "Oh, that's how it is. The funds that come from the financial mouth are basically all managed by the Municipal Finance Bureau. Some small and necessary expenses, including our annual office expenses, the Finance Bureau won't ask about, they're all clear about the situation. But if there's suddenly a large income, the Finance Bureau will definitely pay attention to it. What's behind the Finance Bureau, I don't need to say, Secretary Xu also knows. So, if the cement factory's accounts go through the finance department, we'll have no chance."

  "Oh, is that the case? Then what's your opinion?"

  "If a cement plant is to be established, it must have a sound financial and accounting team. I've been in charge of finance and trade for several years and know that the requirements for enterprise accounting are very high, to some extent even higher than those of our financial department. If the cement plant does not have a sound financial and accounting team, it will inevitably rely on the financial department, which is definitely not feasible. Moreover, the district government office is responsible for financial supervision of the cement plant, that is to say, at a certain time, the financial accounts are sealed and directly managed by the district government office."

  Xu Shaojie understood.

  "Director Zhang, is it that the income and expenditure of the cement plant are handled by themselves, while the profits earned are directly allocated to district public expenditures, without going through the financial department's accounts for the time being."

  "That's basically what it means."

  Xu Shaojie had a headache, this is a typical little gold vault. In the future, if it's investigated, it won't be a joke. But if they go through the finance and set up a cement factory, working hard to make clothes for others, that would be a waste of energy. The discussion in the meeting room became even louder, Zhao Deli thought this was not good and didn't speak up.

  "I think that after the cement plant is built, it will be financially independent and managed entirely according to enterprise methods. The district government will manage it, and the cement plant will either provide sponsorship or remit profits directly in cash, with a fixed amount every year. The district government can then allocate this funding to the category of administrative expenses."

  Zhang Shikui thought for a moment seriously.

  "Secretary Xu, I agree with this approach. However, it should be confirmed through meetings and documents. Meanwhile, in order to manage the cement plant well, financial personnel from the district government will be seconded to the cement plant. I'll think of a way to transfer some people from district-level units to form a financial team."

  The discussion gradually deepened, and two hours passed. It's rare for a single topic to be discussed for such a long time.

  Xu Shaojie made a summary at last.

  "I know there's a saying that truth becomes clearer through debate. Today, we've gathered to discuss and have confirmed the plan to build a cement factory. Zhao Deli and Song Tao have conducted thorough research over a relatively long period of time and have basically figured out all aspects of preparation needed for building the cement factory. Now everything is ready except for one thing - funding. As some comrades mentioned earlier, our opinions are unified on this issue. We will apply for a loan from the credit union in the name of the district government office. This matter needs to be handled quickly and cannot be delayed. My suggestion is that Zhang Shiqi serve as the head of the preparatory group, with Tian Lixin and Zhao Deli serving as deputy heads. The factory director of the cement factory will be Zhao Deli, and Song Tao will serve as the deputy factory director. Dong Guihua will serve as the party secretary of Yulin Township, and Liu Mu will serve as the township head. Of course, District Director Zhang's work is very busy, so Secretary Tian will need to take care of more specific tasks. We'll divide our efforts: District Director Zhang, Secretary Tian, and Zhao Deli will be responsible for handling procedures at relevant municipal departments to register and establish the cement factory. Song Tao will accompany me in applying for loans. Relevant district departments must provide full cooperation. This cement factory is our own, so let's call it Yudu Cement Factory."

  Xu Shaojie looked around at everyone and no one had any objections.

  "I'd like to stress one last thing, now that we've reached a consensus, let's not say anything more, and work together in unity to accomplish this major task. According to Zhao Deli's investigation, as long as the funds are in place, the cement factory can start operating within three months. The opinions discussed at today's district committee meeting will be turned into a resolution. Director Huang, please draft the document immediately after the meeting. I hope we can gradually change our current situation of lacking money."