Establishment of a property management holding company for the efficient management of local government assets

The purpose of the operation of the system of local governments is to meet the qualitatively and quantitatively specified supply demands of the local society at the highest possible level. Today the local governments provide more than half of public services via corporations and public-service organisations. The form of economic organisation is a method of utilisation of the local government's assets, which is suitable for the performance of any public-service duties. It releases the assets of the local government, exempts it from operative control, and perhaps involves also private capital. The major aim for these organisations is to become reliable and many-sided and successful ventures of public interest in the service provision, telecommunication, financial, logistic and IT markets. The owners expect that they perform local publicservice duties at the highest possible level and with the highest possible efficiency, and free assets are explored and utilised. The operation of public utility companies as economic organisations of holding structure requires cost-efficiency, prioritises the increase of efficiency, demands expansion, and significantly improves communications and marketing of the group of companies. This may be targeted and implemented in a changes macroeconomic environment only with the development of a new economic structure.