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Shanghai Municipal Government Press Conference Memo (June 29, 2005)
11/7/2005 16:37

1. Oriental Morning Post: We have seen in today's newspaper that a hepatitis A vaccine was linked to one death and adverse reactions among 300 students in Anhui Province, and that such vaccine has also been shipped to Shanghai. Is it true? My second question is about "green power". Currently, are there any residents who have purchased "green power"? and Why not offer incentives to encourage them to buy? Thanks.

Jiao Yang: We have also noted such reports and have consulted the local health authorities. As you know, serious incidents caused by the hepatitis A vaccine have taken place in Anhui Province recently. Vaccine purchased through irregular channels caused the illnesses.

Shanghai Party Committee and Shanghai Municipal Government leaders are paying great attention to the safety of the vaccine. After the mishap happened in Anhui, Shanghai health authorities conducted a special investigation into the local situation. To date, no adverse reactions after vaccination have been reported in Shanghai.

According to the health authority, hepatitis A vaccine is excluded from the local immunity vaccination plan, and people who receive the vaccination do so of their own volition and expense. Shanghai began to provide hepatitis A vaccinations in 1996, and a total of more than 1.4 million people have received the vaccination to date. After receiving it, a minority of people is likely to suffer side effects such as inflamation and aches in some body regions, headaches, sickness or fever. These are normal reactions which generally
can be relieved within 24 hours
Vaccine used locally includes some which is locally-sourced and also imports. Domestic ones are produced by the Zhejiang Pukang Biotechnology Co. However, this year, only 10 percent of the hepatitis A vaccine used in the city came from Pukang. To date, local health authorities have received no reports of identified adverse reactions. However, after the incidents occured in Anhui, Shanghai Health Bureau promptly ordered hospitals to stop using the vaccine and take appropriate measures.

Local health authorities are always strict in the management of vaccination. Every step- from purchase to transportation to injection has been strictly managed. All local vaccines have been properly certified by the State Drug Administration. All the hospitals offering vaccination have been approved by local health authorities and all medical staff are qualified to perform the task. Group vaccination must be approved by the Shanghai Health Bureau. The city has an optimized monitoring system for adverse reactions after vaccination, and patients will get prompt treatment if suffering such reactions.

Regarding the circumstances I mentioned above, local management is very strict and safe. The Shanghai drug supervisory department will enhance supervision and management of every step according to the Law of the People's Republic of China on the Prevention and Control of Infectious Diseases. Thanks to you for raising this matter which is of concern to local citizens.

As to your second question, we adhere to the voluntary principal. You asked why not offer incentives to encourage the use of "green power". Our system has special characteristics - the voluntary principal. Guided by the government and the mass media, users can use such power on a voluntary basis. It will not be compulsory, with no preferential policies offered. Industries and individuals should improve their awareness of social responsibility and environmental protection to make more of a contribution to society. We stress that we should popularize environmental protection ideology and socially-advantageous behaviour.


2. Shanghai Morning Post: In order to improve the living conditions of mid and low-income families, Shanghai is considering a new system for renting apartments. Can you tell us about the system? Second question: It is said that the Changxing and Hengsha Islands will be administratively combined with Chongming Island. Can you tell us the rationale behind the plan?

Jiao Yang: Developing a home leasing system for mid and low-income families is an important part of the local housing security system. Over the past years, the local property leasing market has grown rapidly under a market mechanism. For the next step, we will focus on strengthening management and standardizing behaviours. This year, we will first target poor families relocated due to urban construction and then develope a new home renting system.

The system will include several components: firstly, it will target residents with the local minimum income, serious illnesses and the disabled and elderly who live alone; secondly, such leased apartments will be supplied from the properties slated for residents relocated due to urban construction, with each family generally being able to rent one apartment ; thirdly, such apartments will be leased at prices below cost rates, and the government will offer subsidies; fourthly, leasing agreements will be signed, and after the agreement expires, the apartments can be sold; fifthly and finally, local departments will purchase such apartments at cost price and then lease them to the needy.

At present, the system has been operating at Changning and Zhabei Districts on a trial basis, and will be used in other districts after refinement. At an appropriate time in the future, the system can be used to develop highly-qualified personnel. The new home renting system for local mid and low-income families will be established gradually .

For the second question, the State Council agreed on May 18th to allow the Shanghai government to affiliate Changxing and Hengsha Villages from the Baoshan District to Chongming District. Now, transfer procedures are being handled. They will have finished by the end of July.

The administrative adjustment is a significant approach by the local government to expand development, and fuel island unification and resources allocation to build Chongming Island into an ecologically friendly island.
Changxing and Hengsha Islands are located at the mouth of the Yangtze River in the East China Sea. With an area of 88.54 square km, Changxing Island has a population of about 36,500. With an area of 55.74 square km, Hengsha Island has a population of about 33,400.

3. China Business News: As far as we know, the central government developed a policy in 2002 to halve taxes to promote wind power. Is there any policy related to the taxes levied by the local government? Second question, how will the government support non-governmental organizations and private companies who are willing to purchase green power? Are there any preferential policies for them?

Jiao Yang: For the first question, we haven't created a tax policy with regard to that as yet. For the second question, we welcome private contributions to green power development, and we'll treat them the same as state-owned companies.

4. Asahi Shimbun (Japan): Production from Bright Dairy, Nestle and Haagen-dazs have been targeted by the media recently. What's the impact of the media exposure on the local market from the last news conference to now? Why do these famous brands have such problems in their management? How will the government handle these issues?

Jiao Yang: When we talk about the issue, we'd like to say that first of all, we have managed good control over food safety on the whole. We have uncovered all the problems related to the health risks from food, and the quality of some health products during our recent inspections. Our government's actions reflect the resolve to take responsibility for consumers' health. However, since these problems do exist, we feel obliged to increase management and supervision to ensure food safety.

Meanwhile, efforts from consumer committees, industry association, media, and professional organizations are also encouraged. First, we'll create a watchdog system for food safety. We'll ask governments at all administrative levels to reward informers, make this information public, and make it more convenient for people to participate in supervision. Second, we'll make full use of media inspection and guidance. Our government welcomes efforts from media. They not only expose violaters and create a lot of attention, but they also praise quality products and quality companies to make people feel safe. We encourage the media to help people be more consumer conscious and report their complaints to the government or the consumers' committee so as to expose violaters and  punish them.Third, we'll make full use of industry associations, consumer committee and professional organizations. Industry associations should be the watchdogs for food from its production to consuption. For example, they should supervise farming, promote advanced production technology and sales promotions. We also promote the development of professional organizations, suggesting that they function independently, and the creation of a system to certify products as a third party. We'll unite the whole of society to ensure food safety.


5. China Securities: Pudong District has been selected by the central government as a pilot for reform. I'd like to ask something about the preferential policies in Pudong, the details, and especially the details about the financial policies.

Jiao Yang: The State Council held a meeting to grant Pudong's reforms. It's a key policy of the Party and the State Council, a renewed one for Pudong's development, and a challenge for Shanghai's policy of opening-up and reforms. The Shanghai government will follow central government guidelines, and achieve harmony in society to accelerate Pudong's pilot reform programs, perfect the socialist market economy, and then contribute more to the rest of the country in terms of reforms and innovations.

As to the preferential policies you reporters are concerned about, it's not the focus of the pilot program. The program will be carried on systemetically following the central orders, focusing on innovations in system, mechanism and technology. We'll improve our service and offer a good reference for the whole nation in terms of reforms, opening-up and modernization. The trial program tries to change government functions, change the way our economy runs, change our social structures and combine healthy reform with development. We'll solve the problems both for the Pudong District and for many societies. We'll try making breakthrough while attempt ingenuity. We'll combine economic reforms with other reforms, and make efforts in all aspects so as to pioneer in China a perfect socialist market economy.

6. Economic Reporter (HK): President Hu and Premier Wen have backed the vigorous development of nuclear power.  By 2020 there will be 31 nuclear power stations operating across the nation. What is Shanghai's role in this, and is there a plan for the location of such a power plant here?

Jiao Yang: Apologies. I'm not authorized to discuss that topic here.

7. People's Daily: As publicized at today's conference, adopting green power is seen as an essential part of Shanghai's bid to develop a recycling economy.  My question is, on what basis will the recycling economy be achieved, and how is it progressing so far?

Jiao Yang: Regarding the recycling economy of your question, I have mentioned in the previous information release that because supply issues have caused a bottleneck hindering Shanghai's development, developing the recycling economy is one important way for Shanghai to reform its economic growth model.
In this process Shanghai, in line with the requirements of the Central Party Committee, State Council, city Party Committee and municipal government, will set up and implement a scientific development methodology and actively carry out its strategy of revitalizing the city via scientific and educational development.  It will adopt the principles of "clean production, low resource consumption and high energy recycling" to advance the recycling economic system of harmony, stability and sustainability.  It aims to achieve as large a social and economic benefit as possible at the expense of as little resource input and pollution as possible.  In this way, we are striving to build an energy-efficient and environmentally friendly city, achieving balanced development between people and nature.

Party Secretary Chen Liangyu, Mayor Han Zheng and other city and Party leaders are paying great attention to this work and, after several work briefings, have designated the development of the recycling economy to being an essential part of the strategy for revitalizing the city via scientific and educational development. 
In a spirit of cooperation, relevant government departments have selected a group of key enterprises, industrial parks, industries and localities for trial operations of various aspects of the recycling policy. The focus is on conservation and the comprehensive use of energy, water and key raw materials, research and development of advanced energy conservation and environmental protection technologies, conservation and use of resources, and the incorporation of energy-efficiency considerations into industrial policy-making.  In this way, Shanghai aspires to become a resource-efficient city.

8.  NHK TV: In the past few days, when high temperatures were reported, has Shanghai encountered power supply problems?  Of what magnitude is this year's peak power shortage expected to be? Is the government confident of successfully passing through the peak power use period, and what measures will it take to ensure this?

Jiao Yang: As everybody knows, Shanghai has reported a straight four days of high temperatures, resulting in a sharp rise in power use. On June 27th, it hit a record high of 15.4 million kws, 400,000 kws higher than last year's highest and 2.6 million kws higher year-on-year. This year's peak period has arrived some half-month earlier than previously.

In the face of continuous high temperatures, Shanghai Municipal Government has promised to rely on power rationing rather than power cuts, thus ensuring supply to civilians and key enterprises and guaranteeing normal life and production. Except in emergencies, the government will also ensure power supply to overseas enterprises. 
To achieve this the power authority has made a great effort. It has sought support from other government departments, institutions and citizens as well as the neighboring East China provinces of Anhui and Jiangsu.  So far, Shanghai has enjoyed normal supply and successfully passed through this year's first peak-period without triggering the emergency response plan.

According to the forecast, high temperatures will persist, as will the extremely hot days and consequent surge in power use. Shanghai commenced applying the power-rationing scheme relating to corporate users on June 15 and so far has covered over 90 percent of the enterprises involved.

Due to limited power supply from other provinces in June, the city's power supply is under high pressure.  With the cooperation of other provinces, Shanghai is making every effort to buy-in power surpluses.
Meanwhile, to ensure the continuity of supply, the city's economic commission designated the second group of enterprises to join the high-temperature power-rationing response scheme from June 29.

In a cooperative spirit, the city's construction committee has reinforced guidance and oversight of projects which are instructed to suspend outdoor construction in high-temperature periods. According to the rules, outdoor construction at all projects apart from emergency repair, rescue or certain key projects should be suspended from 11 am to 3 pm.  Construction management departments have also contributed to the power-use management and supervision task.

Meanwhile, via the media, we are calling on local citizens to enhance their awareness of energy-efficiency issues and the importance of power-saving.  People should aim to meet the government requirements on air-conditioner temperature control and use air-conditioners in a scientific and efficient way. By improving public awareness of the need for energy-saving, all of us will contribute to building our city into a resource-efficient one.

9. Jiefang Daily: What's the price of "green power" this year for local residents? How much is the extra expense for one year if they buy green power? That is to say, how much more expensive is one kWh of "green power" than one kWh of ordinary electricity?

Jiao Yang: According to the results of a trial on the purchase of "green power" in Shanghai, as issued by City Hall, the lowest purchase volume for one family is 10 units, with each unit 12 kWh.  That's 120 kWh in all. 
This lowest purchase volume is determined by the price difference between the average "green power" price for the year and the electricity price from the city's new coal-fired units approved by the state administration. 
The "green power" price this year is approved by the municipal price administration to be 0.53 yuan/kWt.  If the resident purchases 10 units of "green power", then a family's extra expense on electricity in one year is 63.6 yuan, 5.3 yuan more every month.

10. Shanghai Education Television Station: What's the relation between the use of "green power" and eco-friendly and energy-saving houses which are being promoted by the Housing and Land Bureau?  How far is "green power" from the daily life of residents? How will it improve their life-style? 

There are now two properties for local residents, guaranteed by the municipality, each one 10 million square meters. 
Audiences from one real estate channel at our station have raised several questions:  What is the price range for middle- or low-cost house prices?  What kinds of residents are qualified to buy these houses?  How can they purchase these houses?  Most recently-built houses are in the suburbs. Are there middle- and low- priced houses in the local market?

Jiao Yang:  We have discussed the "green power" system, and the administration is also promoting the construction of eco-friendly houses.  These are both experimental units.  We haven't put any pressure on people to use these two new projects.  So, you may judge them on your own. 
Recycling and green economies are becoming important parts of the city's development.  I talked about energy saving in architecture in the last press conference.  The municipality does have some compelling regulations and promotions for the construction and use of such buildings.

I have spoken repeatedly about the construction of the "two 10 million square meters properties".  We have sped up the marketing of these houses.  This has been a key project for the Municipal Committee and the local government.  This project is significant because it adds an important supply to the market.  Besides, it's also embodies the market control principle, and satisfies the demands for middle- and low-income families.

The new standards governing low-priced housing and housing sales will ensure house supplies for relocated families. The system for these new standards is still under discussion.The first 10 million square meters of properties are now about to enter the market under the guidance of local government.  The construction of these properties has been assigned to specific developers by the government via public bidding.  On completion, these properties will be purchased back by the government at a specific contract price.   Then, we will market these houses according to the demand from local residents.  We will control the pace of demand, as well as the construction.

The new standards, which are presently under review, are expected to present new regulations in the third quarter that must take effect in the fourth quarter. 
The standards involved include the qualifications of buyers or renters eligible for the housing intended for residents with low-and-mid-range incomes.  As well, they will cover the purchase and rental of houses.
District authorities will be in charge of organizing housing distribution and supply, while the city government will supplement housing supplies. 
On the rental system for low-income relocated residents, Jiao said the city is carrying out a trial program in two relocated residential quarters in Changning and Zhabei districts. 
If the system works well, the government will increase it to all low-income families in the two districts and later to throughout the city.
The prices of these houses will be controlled according to the market prices in the neighboring areas. 
The municipal real estate administrations promise to complete this city project by the end of this year.

11. Shanghai TV Station: My first question is about "green energy". A 20-megawatt wind farm, which has turbines in both Chongming and Nanhui districts, will come into operation in mid-July. What will the city's annual green power capacity be at that time? What proportion of the city's output of electricity will green power represent at the time and in the long run? Secondly, someone inquired about the current levels of family consumption of green energy. Could you give more details? Thirdly, as I heard thunder a moment ago, it occurred to me that the city is at risk from flooding almost every rainy season. A thunderstorm hit Shanghai yesterday, flooding several parts of the city. What will the government do in the field of flood control this year? Thank you.

Jiao Yang: The city generates electricity from two renewable energy sources, wind power and solar power.

With regard to wind power utilization: four 850-kilowatt wind generators capable of generating 6.1 million kWh of power were installed in Fengxian district in 2003. Eleven 1500-kilowatt wind generators were set up in Nanhui district this year. They commenced operations at the end of June and have yielded 5.04 million kWh of power. Also this year, another three 1500-kilowatt wind generators were installed in Chongming district, and will start working in mid-July and generate 20 million kWh of power by the end of the year.

Regarding solar power utilization: in 2003, the city's first 10-kilowatt photovoltaic power plant was established in Fengxian district. It can generate 10,000 kWh of power annually. At the same time, a 15-kilowatt photovoltaic power system was set up at Shanghai Solar Energy Technologies Corp. In 2004, a 5-kilowatt photovoltaic power system was installed at the city's architecture academy. This year, a 50-kilowatt photovoltaic conversion system will be established in Jiangwan New City. Meanwhile, a 40-kilowatt photovoltaic conversion system will be set up in the office buildings of Shanghai Solar Energy Technologies Corp.

To be frank, green electricity represents only a small percentage of the city's energy supply. Some reporters have mentioned that green power represents a larger portion of energy consumption in foreign countries. That is true. Compared with other parts of the world, green energy plays a more important role in European countries. We are still a long way from having green electricity as the main source of power in Shanghai. Production capacity and public awareness are major limiting factors. Therefore, local media should publicise the need for green energy while energy suppliers should accelerate its development.

As for your third question, flood control is vital to both public safety and the local economy. The municipal government pays close attention to the issue. Local governments at all levels take flood prevention as a task that must be accomplished. They are now making preparations for it.

Shanghai will enter flood season soon. Severe weather and rainstorms hit the city recently. Weather conditions may continue to worsen in the near future. The government will make a citywide safety check and try to resolve problems existing in local flood control system by focusing on the weak points in our work. At present the departments concerned are focusing on four aspects of flooding preparedness: First, the department of water resources will keep watch on weather trends in cooperation with local weather stations. They will give weather forecasts and advance warning to the public and the department in charge of flood control. Second, according to the guiding principle of "mutual cooperation between the vertical and horizontal administrations", the responsibilities of flood prevention must definitely be met. Third, we will provide regular maintenance for safety equipment. Local departments will increase their inspection and patrols of flood control facilities. Fourth, we will develop a new improved emergency plan for flood control and carry out emergency drills.

Government leaders stressed time and again that "flood control is an issue that concerns the overall situation; safety precautions are more significant than Mount Thai". All government departments and local factories should be fully prepared, both mentally and in safety measures, to "act quickly to avoid great floods, disasters or dangers", in response to the request that "we should put public safety first, be ever prepared for flood control, and spare no effort to deal with an emergency".