In the face of dwindling public resources and the growing needs of local communities, José Mirande advocates for Local Public Enterprises as modern, agile, and effective tools serving local governments. The mayor of Le Marin and CEO of SPL Sud Nautique highlights their ability to balance public oversight, entrepreneurial efficiency, and economic development—not by replacing private companies, but rather by creating conditions that foster their success.
Philippe Pied
Local Public Enterprises,
A modern economic model that serves the public interest.
Faced with growing budgetary constraints, increasingly complex public policies, and ever-higher expectations from citizens, local governments are being called upon to reinvent their approaches. In this context, Local Public Enterprises (EPLs) now serve as a strategic lever for development, combining economic efficiency, public oversight, and the public interest.
EPLs encompass several legal forms that enable local governments to operate in a variety of sectors, such as: urban planning, housing, funeral services, tourism, transportation, energy, port management, institutional food services, culture, economic development, and the ecological transition. Their diversity is their strength.
The main categories are Mixed-Economy Companies (SEM), which combine public and private capital; Local Public Companies (SPL), which are owned exclusively by local governments; and Single-Purpose Mixed-Economy Companies (SEMOP), created to carry out a specific project with a private partner.
This legal structure offers a degree of management flexibility that traditional public administration does not always allow. EPLs have a tailored governance structure, greater investment capacity, and the ability to respond quickly to contemporary economic demands, while remaining under the control of local elected officials.
Contrary to some common misconceptions, the pursuit of economic performance is not incompatible with the pursuit of the public interest. On the contrary, a high-performing public enterprise is one that optimizes public resources, improves the quality of services provided to users, and generates new investment capacity for the region.
The value of EPLs lies precisely in their ability to reconcile two requirements that are often presented as conflicting: economic efficiency and the public service mission. They do not seek maximum financial profitability for the benefit of private shareholders, but rather regional profitability that creates value for the community.
Like any business, an EPL is intended to generate results. When it makes a profit, that profit naturally benefits its shareholders, whether they are public or private, depending on the chosen legal structure. This return on capital is not contrary to the public interest; on the contrary, it reflects sound management, which ensures the company’s long-term viability, its ability to invest, and its development for the benefit of the region.
This value is measured at several levels:
- the creation of local jobs ;
- the development of new economic activities ;
- improvement public infrastructure; ;
- attractiveness of the territory; ;
- innovation in resident services; ;
- the security public investments.
Public-sector enterprises thus become genuine tools of public policy. They enable local governments to retain strategic control over essential activities while benefiting from the management practices of the private sector.
In island territories—whether overseas territories like Martinique or those heavily reliant on tourism—their role appears even more crucial. They can support infrastructure projects that municipal or intermunicipal budgets could not finance on their own: marinas, cultural facilities, business parks, renewable energy production, water sports infrastructure, housing, or tourist facilities.
The success of a public-interest limited liability company, however, depends on several factors: exemplary governance, impeccable financial transparency, a clearly defined strategy, regular evaluation of results, and seamless alignment with the local government’s policy priorities.
Elected officials must view public-interest local entities (EPLs) not merely as a legal tool, but as a genuine instrument of regional development. They make it possible to move beyond an administrative mindset and adopt an entrepreneurial approach in the service of the public interest.
At a time when local governments must do more with limited resources, local public enterprises are demonstrating that it is possible to combine public ambition, economic efficiency, and social responsibility.
The future of local communities will likely depend less on increased public spending than on better organization of existing resources. Public-interest entities (EPLs) embody this new generation of public action—more agile, more effective, yet still guided by a single goal: the public interest.
Some private companies sometimes express concern that Local Public Corporations (SPLs) compete with private enterprise. This perception is most often based on a misunderstanding of their role. An SPL is not intended to enter competitive markets or replace private entrepreneurs. They operate exclusively to meet the needs of the local governments that are their shareholders and carry out their activities strictly within the scope of those governments’ authority. On the contrary, SPLs frequently serve as a catalyst for the development of the local economy: they contract out numerous projects, services, and supplies to private companies in accordance with public procurement rules. In this way, they generate economic activity, support employment, and foster the emergence of local economic sectors. Far from undermining entrepreneurship, they are often a key partner in its development.
An SPL does not replace private enterprise; rather, it creates the conditions that enable local businesses to grow through projects that serve the public interest.
Ultimately, Local Public Enterprises do not represent a privatization of public action; rather, they represent its modernization. They give local governments the ability to act as true regional developers, balancing political vision, economic performance, and service to citizens. Against a backdrop of dwindling public resources, they appear more than ever to be a model for the future, enabling the creation of resilient, attractive, and sustainable regions.
José Mirande
CEO of SPL Sud Nautique
Mayor of Le Marin
