1. Commercial Times: After recent increases in gas prices, the city has offered subsidies to taxi drivers. Will the city also subsidize public transport? Will cabbies get 550 yuan (US$67.8) a month as reported by some media?

Jiao Yang: I will clarify some issues here. Over the past two years, rises in world fuel prices have driven up the domestic retail price of gasoline, which in turn has had a large impact on Shanghai's transportation industry. The Shanghai Party Committee and the Municipal Government are paying a lot of attention to these gas price increases and their impact. Recently, Shanghai Party Secretary Chen Liangyu required concrete measures to be taken to guarantee the healthy and stable development of the transportation industry. After soliciting ideas and suggestions at a standing conference, the city government decided to continue to subsidize public transport, with taxi drivers to now be subsidized by both the government and taxi companies.
I will explain: for buses, we will continue to subsidize them in the same way as last year (bus companies will cover the cost if the gas price is below three yuan per liter; the city government and bus companies will share the cost if the gas price is between three and four yuan per litre; and the government will cover the additional cost when the price is above four yuan per litre). In the short-term, the price of bus tickets will be unchanged.
Regarding the taxi industry, it is important to establish a system that links gas prices to taxi fares in accordance with national regulations, and for taxi companies, drivers and passengers to share the cost in a reasonable way. Before the new system is introduced, we will adopt temporary measures to deal with the situation, in which the government and taxi companies will jointly underwrite subsidies.
According to the decisions made at the government standing conference on August 1, the city will subsidise both public transport and taxi services to ease the situation. Not the drivers, but the government and the companies will cover the additional costs caused by the fuel price rises of July 23. From this month, each taxi will receive a monthly subsidy of 200 yuan from the government and 150 yuan from the relevant taxi company, a total of 350 yuan. Local departments and taxi companies will comply with the government's decision and are currently implementing measures.
You have mentioned a subsidy of 550 yuan. I have also noticed the figure in some media reports, and the local department has received many inquiries. I want to make it clear that the subsidy is actually 350 yuan. As gas prices have increased four times this year, and prior to the new subsidy scheme, the previous scheme subsidized each single-shift taxi by 150 yuan and each two-shift taxi by 200 yuan per month. It is likely that some media have erroneously added the old and new figures. I hope this is now clear.
The taxi industry, with long traditions, is an integral part of Shanghai. Despite rising gas prices and the scorching weather, taxi drivers have overcome their difficulties to offer quality service to passengers from both home and abroad. Reporters should pay attention to and report on their good performance. Thanks.

2. Shanghai TV Station Comprehensive News Channel: Can you give some examples on how the rating system for property management fees works, such as how to charge for fifth-level services? Will service charges be set on the basis of previous experience or public hearings? My second question relates to the second issue raised in today's press conference - the 'interim regulation'. We know that the city supervision team is responsible for only the city's appearance. Compared with previously, what are the advantages of the new regulation?

Jiao Yang: I have just given examples. In the cleaning services category, the first level (lowest) requires cleaning to be done once a week; the second level requires cleaning twice a week; the third level requires cleaning to be done twice a week and also the maintainance of a general level of tidiness; the fourth level requires cleaning every other day and the fifth level requires cleaning every day. In the public security category, the first level requires patrolling in residential quarters at some time every day; the second level requires patrolling at least four times in daytime and also twice in key areas during the night, with the need to keep patrol records; the third, fourth and fifth levels also have their own stipulations. The various fees for different levels of property services will be clearly displayed for residents to choose from, with the prices set by the property owners' committee, property management company and also neighborhood committee if needs be. For example, when we have a meal, we can see clearly on the menu the prices of seafood, vegetables and wine, and we will know the total price after placing our order. The new 'menu' service is more people-oriented, standardized and reasonable, placing restrictions on each party. Rating different services and evaluating their price will be easy as the service packages and quality will be reflected in the price. In the future, with the property owners' committee playing a more prominent role in setting charges and the process becoming gradually more market-oriented, the rating system will be developed so as to reflect industry criteria. This also symbolises the transformation of the government's role.

We think the new regulation will help to raise standards in the property management sector. I've read a lot about disputes arising from property management companies charging residents but offering no clear or reasonable explanations for the fees. You are concerned about it, and so am I. The new rules cover this. It says that the government should supervise the imposition of fees rather than only granting permits. It's also helpful in the evolution of the government's role. The new rule has created a system of differing fee-levels. The system will be further developed into an industry standard with more weight given to the home owners' committees and market forces. Then the government's role will also change.

As to how we formulated the new rules, it was a joint effort by the municipal development and reform bureau, pricing bureau and the real estate administration, as I mentioned before. They tracked and studied the service and fee levels of the real estate management companies, calculated, checked and re-calculated, and held seminars and symposiums to discuss the draft rules up to the point that they were approved by the local government standing committee. During the seminars and symposiums, they received input from the Shanghai People's Congress, the Shanghai People's Political Consultative Conference, industry associations,  neighborhood committees, construction companies, property management companies and home owners' committees. They also studied the experience of foreign countries and revised the draft several times before the new rules came into effect. Fine-tuning will be an on-going process.

Now the second question. The city's supervision team has had its responsibilities extended from only the management of environmental sanitation and the city's appearance . In addition, the city management and law-enforcement bureau will have sole jurisdiction over administrative punishments, where in the past, 10 departments had different or overlapping partial rights to impose these punishments. We've adjusted these departmental functions and restricted their powers so as to make the management more effective. We've also cleary defined the relationship between the municipal management bureau and the district and county level administrative bodies. These lower level administrative bodies will be called teams rather than bureaus, and will administer the punishment while the city-level bureau will direct and supervise. Thus, the system will operate smoothly and efficiently. Further fine-tuning will be undertaken as the system proves itself. The changes are in line with district and county level government structural reforms.

3 Morning Post: I've heard that there will be adjustments to taxi fees in two to three months. I'm not sure whether it's true. Is there anything in the pipeline? Another question is about metro fare adjustments. It's been months since the hearing on fares  was held at the end of May, but we've yet to hear the outcome. Do you have any news?
Jiao Yang: You reporters are concerned about the fare adjustment mostly because the issue is closely related to our lives. For the taxi rate, I've mentioned some details just now, but the reporter from the Morning Post perhaps didn't pay much attention. We'll set up a long-term mechanism to link petrol price changes to taxi fares and have the consumers and taxi companies will share the expense. In foreign countries, if the petrol price goes up, taxi fares rise and when the petrol price drops, taxi fares will also. It's all decided by the market. We're now developing a long-term mechanism which is a key project to make oil price changes interactive with taxi fares. However, before the mechanism is in place, we need an interim subsidy program. The program, sponsored jointly by taxi companies and the government, mainly by the government, isn't a long-term solution, but it gives us time to complete our studies. The petrol market changes over time and will never wait for us. Therefore, we're seeking not simply an adjustment in fares, but the development of a new macro control system for the market.

The second question is about metro fares. Past government hearings on this issue have made the current situation of the metro clear to the public. We've also received a lot of advice and suggestions. The fact that the department in charge of the issue hasn't worked out a fare change plan reflects our attitude towards the issue. We are studying it carefully and take it very seriously. Further study and investigation and more input from differing viewpoints will help us to progress our work.

4. Phoenix TV: My first question is about the Sichuan Province-outbreak of streptococcus suis in pigs.  Luckily, we find that the Shanghai market is quite safe and the pork available here is not from the affected areas.  But if pork from those areas were to reach local markets, what preventative measures will the government take in response?
My second question relates to government subsidies for cab drivers to help them deal with rising gas prices.  Of the monthly allowance to each cab, the government will provide 200 yuan, while taxi companies will share the remaining 150 yuan.  My question is: what is the basis for these calculations?

Jiao Yang: The security of the city is not built on good luck, rather it is based on effective long-term prevention and management systems.  So far, according to the epidemic survey and monitoring of streptococcus suis disease by the city's vets and animal quarantine and inspection institutions, no abnormal situation has been detected among pigs in Shanghai.  Nor has the disease been spotted in clinical checks of pigs coming from outside the city. 
This is thanks to the city's effective long-term epidemic prevention and control system.  Relevant government departments are implementing prevention and control measures so as to eliminate hidden hazards, prevent epidemics and ensure food security and the health of citizens.

The system is made up of the following:

Firstly, reinforcing the quarantine supervision of pigs and checks at the designated road stations through which pigs from outside the city enter Shanghai.  We strictly ban entry of affected pigs or those from affected areas, as well as the sale of pigs that haven't undergone quarantine and inspection.  We also ban the slaughter of pigs lacking quarantine certificates from their home areas.  We will also speed-up the diagnosis of affected pigs and ban the slaughtering and consumption of all kinds of pork products, which then must be disposed of in a safe way.

Secondly, we will strengthen pig disease monitoring so as to clarify the situation and collect timely information.  In this regard, Shanghai's relevant departments have applied monitoring measures and the Center for Disease Control has despatched a special monitoring taskforce. They are in close contact with the national health ministry as well as Sichuan's health departments to get up-to-the-minute information about the situation on the ground.
I'd like to give a good example from the time of the SARS outbreak. Then, Shanghai established a close relationship with Guangdong and Beijing and received daily reports on the situation there.  It shows that information from outside the city is very important for Shanghai to ensure the prevention of disease.

Thirdly, upgrading the education of slaughtering staff and butchers will help to clamp down on illicit slaughtering.  Promotion, education and training will be undertaken to ensure slaughtering staff strictly conform to the rules. They must be equipped with epidemic-prevention products for their self-protection when slaughtering, in order to prevent infections resulting from improper procedures.  Illicit slaughtering is strictly banned. If convicted, the slaughtering house will be shut down by the city's slaughtering industry association and relevant government departments.

Fourthly, enhancing the comprehensive supervision of meat-product safety.  Regarding the summer season and the city's meat-product management, we aim to avoid food-poisoning incidents and food-related disease outbreaks by promoting food safety with measures relating to production, slaughtering and sale.

Fifthly, improving collaboration and communication between agricultural and health departments, and establishing a regular communication and reporting system.  Under the guidance of the municipal government, the departments should not only complete their own responsibilities, but also join forces in matters which impact both. 
In addition to controlling pig disease, we will resolutely prevent human infection by closely monitoring events and supplying all necessary technical and material assistance when needs be.

Meanwhile, the media should assist in raising public-awareness while citizens should raise their sense of self-protection.  Particularly in the hot summer, we should buy food at large supermarkets and credible stores and shops rather than at roadside stands that cannot guarantee food safety.

As to whether it is the first time cabs have been subsidised, I have said it is not, though the previous subsidies were provided by the taxi companies and not by the government.  In some reports, this allowance is reported at 550 yuan, as some journalists have combined all of the previous subsidies.   This is misleading, so let me now reiterate that on this occasion the subsidy is 350 yuan.

5. Eastday: What are the differences between the recently announced regulation of fees for property management services and the existing system?  Will the new regulation push up property owners'costs?

Jiao Yang:  Yes there are differences, and mainly in four areas:
* Changes in management.
In the past, the fee standards for property management services were mostly decided by the government, whereas the new Regulation stipulates that the price should be set by both the residents and management firms. Reflecting that the price mechanism is not perfect at present, the Government is responsible for setting the maximum prices that can be charged for property management services.  However, the standards will be finally determined by the residents.  At that time, the standards outlined in the Regulation will apply industry-wide.
* Differences in the definition of charging standards.
The charging standards used to be determined by the city's price bureau after reference to the costs of the management firms, and made comparisons between the price levels of different firms.  However, the management firm now has to give a detailed service menu from which the residents can choose which services they require.  Then the two parties will decide together the prices for the particular services that the residents have selected.
* The government is developing a rating system that divides property services into six categories, including sanitation, security and facilities.  The greenery maintenance fee has been kept separate from the property management fee.
* Each category is further divided into six service standards. The fees are then decided based on the service items and standards chosen by residents.
In the cleaning services category, for example, the first level requires windows in public places to be cleaned three times a year for 0.07 yuan (0.0086 US cents), compared with the second level's bi-monthly cleaning for 0.11 yuan.

The new Regulation defines standards of service, is transparent in terms of charges and more independent in its management.  Grass-root bodies like community associations will fully fulfill their roles after the implementation of the new Regulation.   The government will focus more on supervision rather than merely rubber-stamp things which is what the price bureau did.  The municipality will further perfect its functions by strengthening service and supervision systems. 

Now to the question of whether the residents will have to pay more after the new Regulation is put into effect, I think the issuance of the fee standards is aimed at protecting the interests of residents, to help them know more about where their money goes and to create a healthy and balanced property management market.  The division into different categories and the setting of the highest price will make the negotiation between the management firms and the residents much easier. 
In the property management fee category, for example, the highest level requires 2.3 yuan (0.33 US cents) per square meter per month. Of course, there is also a lowest level available here.  But the price for the lowest level I mention now is the highest of those of the various districts and counties, 
The new Regulation also stipulates that each district may set its own maximum price standard within the limits given by the municipality, according to its own situation.  This greatly helps to avoid big increases in  prices after the Regulation is put into effect.
As a whole, the local charging standard for property management will remain stable, and the new Regulation will serve the interests of most residents of Shanghai.

6. Dragon TV: You mentioned nine aspects of the administrative punishment rights-transfer to the City Management Law Enforcement Bureau just now.  However, many people are puzzled as to whether this newly established Bureau merely oversees the former system and whether there is a means of identifying its staff when they are going about their duties?

Jiao Yang: I understand you are concerned that there would be some departmental duties either overlooked or over-emphasised after the Bureau takes on the administrative punishment rights from the other departments. 
The new Regulation specifically defines and delimits the powers of the Bureau viz a viz the other relevant administrations.  For example, in terms of environmental protection administration, the Bureau has the responsibility to prosecute illegal behavior, which can be judged without specific testing, by reference to the laws or regulations in this regard.  For instance, illegal behavior could be the burning of poisonous waste material in a non-approved area, or the random dumping of industrial waste residues and other solid wastes.

For the same reason, the bureau of urban management has jurisdiction over the imposition of penalties for illegal activities as follows: occupation of streets by the setting-up of stalls, piling up goods on the roads unlawfully, operating a business without a license, distributing leaflets or putting up posters without government approval, etc. The bureau will administer penalties according to the rules and regulations governing transport, industry and commerce. For example, the bureau can levy a 50 yuan fine on anyone who distributes pamphlets in public illegally. The bureau will administer punishments for the obvious offences mentioned above, while illegal activities that need special equipment to detect will come within the jurisdiction of other government agencies.
Meanwhile, the provisional regulation on urban management has defined the roles of other government agencies (for example, engineering bureau, landscaping administrative bureau, construction bureau, housing and land resources administration, urban planning committee, etc) in penalizing illegal behaviour. Therefore, there will be a division of labour between the bureau of urban management and other government agencies in the field of sanction enforcement. The adoption of the regulation aims to prevent the competent authorities from either imposing repeated penalties for the same offences or shirking their duties and shifting the blame onto others. The provisional regulation will be further improved after being implemented for a trial period.  
As for whether the bureau of urban management has an emblem, you can ask the head of the bureau, who is present here, after the press conference.

7. Shanghai East Radio: The other day, the research center of the State Council released a report admitting the country's medical reform was problematical, creating problems like unfair resource allocation and a trend towards the over-commercialization of medical facilities. An official with China's health ministry admitted setbacks in the reforms as they affect urban areas. I'd like to know whether Shanghai has seen problems and how is the marketization of local medical systems progressing?

Jiao Yang: Several years have passed since Shanghai began to implement health care reforms. I have explained the substance of the reforms before. In the previous press conferences, I announced government measures to encourage private investment in medical services and the diversification of hospitals. Everything has been going smoothly since the reforms were introduced in 2001. The newly-established medical insurance system has solved many practical problems (for example, default in payment for the medical treatment of chronically sick people) and guarantees local residents basic health services. Since the city is developing rapidly, we will take account of the situation on the ground and improve the medical insurance system and progress health care reforms accordingly. As I have said before, the focus of the health care reform has been shifted towards the basic units. The government sets up community health centers where ordinary and chronic diseases are treated in order to achieve an efficient allocation of medical resources. By attracting patients with minor ailments like flu into community health centers, this helps reduce long queues in hospitals and relieve pressure on the big hospitals. Patients with serious diseases will be transferred efficiently from community health centers to the large hospitals, since the centers liaise closely with hospitals. Doctors from the large hospitals visit community health centers frequently and hold group consultations on difficult and complicated cases. Besides, public hospitals are required to provide people with basic and affordable health services. Everything proceeds smoothly in the field. The city will guarantee citizen's basic health services by advancing the health care reforms and improving the local medical system.

8. China Business News: The government has announced plans to subsidize local taxi drivers in response to increases in gas prices. What factors did you consider when formulating the plan? Many cabbies complain that their fixed monthly payments to the taxi firms are the main burden on them. Will the government tackle that problem? 

Jiao Yang: The government has no control over oil prices in the global market. Local gas prices and transport costs are the key factors determining the size of allowances for taxi drivers. In answer to your second question, the problem arises from the introduction of modern corporate practice into the taxi industry. I think taxi firms are entitled to set the level of monthly payments from cabbies and the government can't force a standard on them. Because each company has its particular conditions and criteria, it should give careful consideration to all aspects before setting the level.

9. Xinhua News Agency: Besides rising gas prices, local taxi and public transport industries are reportedly facing a labour shortage. Some two-shift taxis are now driven by one cabby only. The public transport industry is also worried about the outflow of skilled personnel. I'd like to hear your opinion.

Jiao Yang: The problem lies within the industries and is reliant on market forces for resolution. The government should create opportunities for vocational training. However, participants in the market economy should determine the relation between demand and supply of labor according to market mechanisms. Meanwhile, trade associations and other agencies can play important roles too. In many developed market economies, market forces, rather than government, determine such issues. The trade associations can also play an active part in the field and help market mechanisms work more smoothly.