La Rioja government defends state-owned enterprise model

The government of La Rioja has defended its model of state-owned enterprises following criticism from the Unión Cívica Radical (UCR). The opposition party labeled the provincial firms as inefficient and deficit-ridden after the approval of an extraordinary contribution in the Chamber of Deputies.

Gerardo Sánchez Volpini, Secretary of Public-Private Investments, rejected these claims, asserting that the state can maintain an efficient entrepreneurial role to protect local interests. He noted that the 37 active provincial companies provide over 2,600 direct jobs, accounting for approximately 10% of the territory's formal private employment.

While acknowledging that some units require assistance due to the nature of their services, Volpini highlighted successful models such as the Arauco Wind Farm, Internet para Todos, and the EMSE mining company. He also noted that between 2020 and 2023, the provincial administration managed to reduce the operating deficit margin by half, though he warned that recent changes in national policies and the paralysis of public works have impacted certain sectors.