Breakup of state monopolies, end to unfair charges urged
8/3/2006 10:01
State-run monopolies, such as civil aviation and railways, have taken a
drubbing from China's lawmakers and political advisers, some calling for
breaking them up and ending arbitrary charges. One representative called
urgently for strong anti-monopoly laws and introduction of private sector
competition. During the current sessions of the National People's Congress
and the Chinese People's Political Consultative Conference in Beijing,
representatives heard strong criticism of government monopolies and unreasonable
charges. "The railway sector is just using its claims about needing to raise
prices during festivals as a pretext for its brazen exercise of monopoly," said
NPC deputy Ji Jinshan. "It is high time to take immediate and effective
measures to break such monopolies," said Ren Yuling, a CPPCC member, the top
advisory body. He urged the state to open more sectors to private capital and
level the playing field for market competition. "I suggest an anti-monopoly
law be enacted, to fully guarantee fair market competitions," said
Ren. Concerning charges, two of the most criticized charges are the "airport
construction fee" collected by civil aviation operators on every air passenger
over a period of 12 years, and the "floating train ticket price" charged by
railways during each year's peak travel time during the Spring Festival. Zhao
Zhiquan, an NPC deputy, condemned the airport construction fee. "It is not a
tax, since the 'taxpayers' never get to know what the money is collected for,"
he said. "It's not a donation, which should be voluntary, it's not an
investment, which should generate economic returns." The civil aviation
administration and operators started to charge a 50-yuan (US$6) per person
"airport construction fee" on passengers in 1992, when the sector entered a boom
period. The charges were never examined or approved by the NPC and there was
no public input, he said. Deputy Ji said he received complaints from poor
rural migrants about the ticket price hikes during the Spring Festival, a time
of family reunions. Railways say hikes are needed to control and divert high
passenger flow. (Xinhua)
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