76-19-B4
- Main Page \ Reagan Radio Commentaries \ 1977
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Government Can Cost Less I[edit]
Transcript[edit]I've often said that when government tries to do things that are not proper functions of government, it cannot do them as well or as economically as private enterprise. Now, I'm beginning to wonder if we've gone as far as we could in determining just what are the proper functions of government. I'll yield to no man in my respect for and appreciation of the men who fight our fires. So I intend no criticism of them when I bring up the question of whether they should or should not be employees of government. The other day I discovered, by way of Robert Poole, Jr., President of the "Local Government Center" -- a non-profit research organization -- that more than a dozen towns and cities in our land have no fire departments and no more fire problems than cities that do. One of the dozen is Scottsdale, Arizona. It contracts with Rural/Metro Fire Department, Inc., a private concern that has an employees' profit sharing plan, employs both men and women and pays time and a half for overtime. One , additional difference also -- its trucks are painted yellow, not the traditional fire engine red. This is not some experiment. Scottsdale has used Rural/Metro, Inc. for 25 years and just recently signed on for another five. How does Scottsdale compare to more traditional communities? Well, the latest figures available for comparison show that the per cost for fire protection in Scottsdale is less than one quarter the national average of cities in its population range. And, before you ask the next logical question, fire insurance rates in Scottsdale are in the Class Five rating, which is good and compares with all other well run cities its size (96,000 population). There is another statistic used to determine fire protection quality -- what are per capita fire losses over a period of years? The national average is about $12. In Scottsdale, it's only about $4.50. Bolstering these figures is the fact that Scottsdale has been recognized by the National Commission on Productivity for eight significant innovations in fire fighting. It has also received commendations from the Institute for Local Self-government and the New York City Rand Institute. One of the eight innovations is something called the snail; a remote control robot invented by the company and built at a cost of only $3000. Operated by one man, it does the work of four and goes into action on treads with a two-and-a-half inch hose in areas too hot or dangerous for fire fighters (700 degrees). Other improvements include "attack" trucks with an on-board water tank, pump and hose. These are pick-up trucks with two-man crews for the 75% of cases which are minor, rubbish and grass fires, and so forth. There is much more that can be told about Rural/Metro, but very simply, it comes down to this; because the company operates to make a profit, it has the strongest incentive to be efficient and cost effective. And, since 90% of fire fighting cost is personnel and much of that is for people who are paid to wait for something to happen, Rural/Metro has modernized the volunteer concept. Scottsdale city employees form an auxiliary force of paid reservists. Those who serve must pass stringent selection procedures and undergo a rigorous training program, for which they receive a $50 monthly retainer and $6.38 an hour for training and duty. They are on call for one week out of four. During his "on" week, each reservist carries a portable paging unit. Adding in these reservists and the regular company employees, Scottsdale uses only two-thirds the manpower of the average city its size. This is Ronald Reagan. Thanks for listening. |
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