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It was reported recently that the China Consumers' Association (CCA) will receive 7.5 million yuan (US$961,000) in operating funds from the central government starting this year. This has touched off controversy. The following are excerpts from media comments.

Modern Express: Full funding from the government may hurt the independence of CCA.

Before this the allocation from the government only covered the association's office expenses. It depended on private funding for ongoing activities and the much criticized certification fee collected for the "3.15" mark was a major source of income. CCA was exposed for selling the "3.15" quality mark without checking the products or companies.

Now that CCA enjoys full funding from the government, it is expected that it will not have to sacrifice its credibility for the money from enterprises. But another issue emerges: CCA, though considered an independent organization, may change its behavior now that it receives full funding from the government. It should always ask itself: Is CCA responsible to the government or consumers?

People regard CCA as a relatively independent organization, which is how it built its credibility.

Business and government interests may conflict with the public interest. For example, the government may want to wait to reveal information on food or drug problems to avoid panic. But consumers will want to be informed as soon as possible. Should CCA inform the public or keep information confidential? Now that it is funded by the government, consumers' interests may not be its priority.

It would be shortsighted to gain power and funds through government support rather than the more difficult route of gaining authority by helping consumers.

Shanghai Securities News: Receiving funds from the government does not conflict with CCA's functions.

Some have worried that full funding from the government may change the nature of the organization but actually it is a new undertaking.

In the United States, the federal government provides consumer organizations with about US$44 million a year. Most of the money gets invested in equipment and facilities for quality examination. Consumers' organizations can set up independent laboratories to test products and publicize the results.

So it is not accurate to say that full funding may change the nature of CCA. It is still a non-governmental and non-profit organization.

People worry that its functions may be weakened. But funding has no direct relation to the nature of the organization. On the contrary, adequate funding may help the organization give full play to its consumer functions.

Now that the financial pressure is off, it can better protect consumer rights and interests.

Yanzhao Metropolis Daily: CCA can receive government funding but should not become an administrative organ.

It is all right for service organizations to use government money for the public welfare. But the organization should still remain independent. There is no need to worry about the 7.5 million yuan funding but we should be alert to whether CCA can keep its independence.

Social organizations are major forces in society. On the one hand, they take over the issues that the government cannot or should not manage. On the other hand, they are a social force that can supervise and restrict public power. CCA is a representative of consumers and it should monitor the government and enterprises.

But CCA still has some official status similar to an administrative organization. We cannot tell whether it will turn into a virtually official administrative organ after it gets fully funded by the government.

(China Daily April 17, 2007)