1.     Oriental Morning Post: I have two questions. When issuing details of the fuel price mechanism for the taxi industry, the government also promised to crack down on unlicensed taxis. We are wondering how the crackdown is going, and if there will be further measures. My second one is that with peak power-usage beginning next month, how does it look for Shanghai’s electricity supply this summer?

Jiao Yang: Both are very good questions. The crackdown on illegally-operated taxis is significant for the taxi market, the industry’s management and the protection of consumers. Recently, Shanghai’s traffic management authorities, including the Transport Bureau and the Bureau of Public Security, aided by district authorities, have taken a series of steps to strictly crack down on “black” taxis.

In 2005, the city and the district authorities traced cabs which were violating laws and regulations on 40,000 occasions and punished operators of 7,500 “black” taxis in a total of 1,503 actions. From January to April this year, Shanghai issued sanctions against 5,225 illegally-run taxis in 2,325 actions. The intensive crackdown at the city’s six major transport hubs, namely People’s Square, Shanghai Railway Station, Pudong Airport, Hongqiao Airport, Longyang Road Metro Station and Xinzhuang Station, has effectively curbed illegal operators. Some districts, including Songjiang and Minhang, added new bus lines and extended bus-operation times to increase the availability of public transport, reducing opportunities for illegal operators.

We also have five targets to attain in this year’s campaign to crack down on ‘black’ vehicles. (1) To effectively curb illegal operation across the city; to basically eradicate the issue in the downtown area and major roads in the suburbs; to noticeably improve the situation in affected areas. (2) To smash gangs which operate vehicles illegally. (3) To greatly enhance public transport services in the areas between downtown and the suburbs and in suburban districts. (4) To improve city and district supervisory systems covering the passenger and cargo transport market. (5) To increase public satisfaction.

The crackdown will focus on the streets around People’s Square, airports, railway stations, major Metro stations and other major transport hubs in the city, as well as townships in the suburbs. Besides stepping-up efforts to supervise the market and intensifying the crackdown on illegally-operated vehicles in the suburbs, authorities will also develop public transport in suburban districts. Three to four new bus lines will be added this year, and the number of suburban taxis will be increased. Authorities will also put 300 new buses into service on the new lines, increase bus services and extend hours of operation. The government will also study the practical conditions for introducing vehicle ticket-pricing systems, which will improve people’s travel. Authorities will consider developing shuttle buses between areas. This is my reply to the reporter’s first question.

The reporter also asked about this summer’s peak power-use. Actually, this year the cityl faces a better situation than in previous years. We can ensure the normal functioning of the city, and can satisfy the demand from residents and enterprises.

Here, I want to stress the implementation of scientific development. We should strive to build an economical society. It is also in line with the commentary we published just now. Shanghai is employing industry policies, economic measures and electricity policies to balance safe power supply with the goal of saving energy in the 11th Five-Year Plan period. This summer, the city will take the following steps to guarantee a stable power supply:

Firstly, to ensure power supply at full capacity, including ensuring power generators work safely, steadily and fully; to guarantee the supply of coal for power generation; to prepare a supply of natural gas for power generation; and to improve the operations of some natural gas power generators and oil generators.

Secondly, to step-up efforts to save electricity.

Thirdly, to carry out the plan for rational power usage, including adjusting the day-off’s of some production facilities.

Fourthly, the city will continue to employ pricing measures to balance supply and demand for electricity during summer.

Fifthly, to prepare plans for extreme weather; to incorporate emergency measures for power supply into the city’s overall emergency plan; and to improve the emergency plans.

In a word, the city government attaches much importance to the power supply for this summer’s electricity-use peak. The relevant authorities will spare no effort to guarantee the power supply and cope with the peak.

2.     Wen Wei Po: I have a question. The forthcoming World Cup is likely to induce a lot of gambling. What’s the Shanghai government’s attitude, and what measures will you take?

Jiao Yang: The World Cup draws everybody’s attention. But I don’t agree with or cannot confirm what you said regarding gambling. The city government’s attitude to the issue is clear: We oppose gambling resolutely. We will combat such lawbreaking activities.

3.     Shanghai Morning Post: I noticed press reports saying the city will renovate office buildings, shopping malls and public buildings in order to save energy. I know there is a requirement for the indoor temperature of these public buildings. I am not sure what this renovation will entail. In previous years, the lighting on the Bund would be switched-off for some time, so what about this year? The second question is about unlicensed stalls. Why does the phenomenon remain, despite many clamp-downs? What harm does it cause? Is there any way to solve it?

Jiao Yang: Controlling indoor temperatures is one way to save energy. Many factors affect the energy-efficiency of buildings. The selection of construction materials, the construction methodology, the use to which a building is put and the renovation of existing buildings all help to save energy. To control the energy consumption of a building requires us to pay attention to many aspects, such as using energy-saving construction materials and products, using efficient lighting and extending the use of solar energy and other renewable energies. The requirement for indoor temperature, as we all know, is 26 degrees Celsius. But all this is far from enough.

As for decorative lighting, I have noticed some media reports saying Shanghai is improving its decorative illumination to save energy. Whether and when to turn-off the lighting this summer will be decided by the city government. When outdoor temperatures reach a certain level, turning off the decorative lighting will be considered as part of measures to conserve energy. The city’s appearance, environment and sanitation authorities will be in charge of the situation. If the reporter wants more details, consult the related authorities after the conference.

Now, I come to the characteristics of unlicensed stalls and their harm, in response to the second question. There are three main aspects to this. The first is their large number and ubiquity. There are more than 30,000 unlicensed stalls in the area within the Outer Ring Road, covering an area totaling nearly 80,000 square meters. Twenty percent of them are on major roads. The second is the people involved are a mix of locals and out-of-towners, the proportions being 30 percent and 70 percent respectively. Their motivations are also different. Some want to make a living, some want to be richer, and some seek to profit by renting their stalls. The third characteristic is high mobility. About two thirds of unlicensed vendors have no fixed stall, increasing the difficulty for management. The clampdown also involves many authorities, such as industrial and commercial management authorities, property management authorities, food administrations, labor security authorities, public security authorities and so on. So we should continue strengthening internal management and coordination to achieve better results.

4.     Interfax: I have two questions. Your press-release mentioned that Shanghai energy consumption was 1.27 tons of standard coal per 10,000-yuan of industrial added value in 2005. What is the equivalent national figure? My second question, Shanghai plans to cut its energy consumption per unit of GDP by 20 percent in the next five years. I believe you have noticed some foreign media and experts say this is quite a high target, difficult to realize. Is the city government confident of meeting the target. Thanks.

Jiao Yang: The reporter raised two very good questions. Shanghai’s per capita energy consumption stands among the best in the country. Energy consumption per 10,000 yuan of GDP is 0.96 tons of standard coal, also leading the country. Some provinces and cities in China also did a very good job. The reporter noticed the 20-percent target. It is a very high target. You asked if the city government has confidence in reaching its goal. I think the municipal government put it into the 11th Five-Year Plan and reiterated it in the guidelines to enhance the city’s energy-efficiency, which means we must make it, and we are also confident we will do so.

I am not sure if you have noticed that one of the highlights of the guidelines is the break-down of the 20-percent cut into different industries and fields. After research and calculation, the city government will adopt several principles. Industrial energy consumption accounts for more than 60 percent of the city’s total consumption. So the reduction in industrial energy consumption is the focus of the 11th Five-Year Plan. Also, the government will promote energy-efficiency society-wide. Saving energy needs the concerted efforts of the whole of society, so all sectors, including construction, transport, tourism, commerce, education, sanitation and governmenl departments, should undertake the task. In addition, after analysis, the government will require particular industries to achieve particular reductions.

Taking this year as an example, the city’s overall energy consumption should decrease 4.4 percent to stay on course for the 20-percent reduction over the 11th Five-Year Plan period. Taking differing sectoral targets into account, the city’s industrial energy consumption should fall 30 percent in the five years, and by 6.9 percent this year. Energy consumption in the tertiary sector should decrease by 15 percent over the five years, and 3.2 percent this year. Construction should save 15 percent, 3.2 percent this year. Governmenl departments should cut energy consumption by 20 percent, 4.4 percent this year. The energy consumption per 10,000-yuan of industrial added value in districts, counties and development zones should decline by 20 percent over the five years, and 4.4 percent this year. Education and medical institutions should also reduce their energy consumption. The districts and departments will further break down their tasks and designate the responsibilities.

5.     Eastday.com: I have two questions to ask you. How will the government use financial policies to induce industries to save energy? What measures will authorities take to control unlicensed stalls, and what are the underlying principles?

Jiao Yang: The newly-issued Municipal Government guidelines to strengthen the city’s energy-efficiency requires authorities to increase their resource-allocation, to implement national tax-break policies to encouraging energy-efficiency, new energies and renewable energies, and allocate more public financial support to resource-saving management and for the renovation of government buildings. The government will collect revenue by adjusting the price of energy from different sources to encourage the development of energy-saving technologies, new energies and renewable energies, and to improve safety. In government procurement and construction projects funded from the public purse, the government will select energy-saving products, technologies and materials which have been listed in the energy-efficiency catalog settled-upon by the authorities. It has been unambiguously required that public policies should emphasise energy-efficiency.

The second question, about the control of unlicensed stalls, is very good. Many citizens are concerned about the issue. There is demand for such stalls in daily life. This is  part of the reason why it is difficult to curb this phenomenon. For example, shoe-repair stalls and bicycle repairers, stalls selling breakfast and so on. So the government will not eliminate all of them. Depending on traffic issues, the city’s aesthetics and environment as well as citizen’s practical demands, authorities will forbid the setting-up of stalls in some areas, strictly limit the number of stalls in others, and monitor the number of stalls in yet more.

In those restricted zones, stalls or similar activities will be banned with no exceptions. In restricted areas, authorities will instruct those repair service providers, which residents need, to set up their stalls at predetermined places. They cannot occupy roadways or sidewalks. In the areas where public service facilities have been built, authorities can gather vendors in a temporary venue to do their business. On principle they should not occupy streets and sidewalks.

Authorities should control the number, scale and location of such venues, according to practical conditions. There are two principles. One is to put the stalls into an indoor venue. Authorities can make use of existing indoor markets, wasteland and workshops. The second is to avoid setting up such a market in an area where public service facilities have already been built. In addition, authorities should step-up management and regulate the stalls.

To be specific, there are six kinds of stalls serving resident’s daily needs.

(1)  Breakfast stalls; Introduce more regulation, or move these stalls into standardized markets.

(2)  Vegetable stalls; On principle, move these stalls into indoor markets. The city will speed up construction of public vegetable markets. Market operators can reduce the stall rental fees to poorer vendors, or authorities can subsidize them. If the capacity of a market cannot be expanded in the short term, authorities can use idle land, workshops or warehouses to establish temporary markets. If possible, stalls should be rent-free.

(3)  Repair stalls; Curb those stallholders who extend their business without permission or run businesses occupying the street. Communities should take charge of the management of small stalls. In the districts which have set up a management company for non-motor vehicles, they can encourage the company to provide repair service of non-motor vehicles. In indoor non-motor vehicle parking facilities, repair services can be gradually introduced.

(4)  Bookstalls; On principle, allow no new roadside bookstalls, and gradually reduce and move those bookstalls affecting traffic. Encourage supermarkets and convenience stores to sell of books and newspapers.

(5)  Small grocery stalls; Gather the scattered stalls into one place. Make use of idle land, workshops and residential areas suitable for the opening of holiday markets.

(6)  Stalls occupying sidewalks; These stalls will be banned. In affected streets, authorities should change their operational pattern to improve the situation.

One thing should be pointed out. The temporary venues will be set-up just for the convenience of residents. It is a transitional measure until business facilities have been built in a residential area. Once the business facilities are completed, these temporary venues will be demolished. Relevant authorities should merge and remove such venues in timely fashion.

6.     Ta Kung Pao: I want to ask two questions. First, the central government has approved the setting-up of a Hong Kong economic and trade office in Shanghai. When and where will the office be established? What’s its significance? The second question is about energy saving in the tourism sector There is a point of view which sees decorative illumination, such as that on the Bund, as very important in developing the city’s tourism. It affects the image of a city. But late at night when there are less people on the streets, the lighting wastes power. And some streets in residential areas lack illumination. How will the city government balance the two issues? Thanks.

Jiao Yang: The Hong Kong economic and trade office is still under preparation. The Shanghai municipal government welcomes any measures to boost cooperation and exchange with Hong Kong. The meaning is self-evident. Shanghai and Hong Kong have established cooperation in eight respects under the CEPA framework. We will further consolidate and extend our cooperation.

As for the second question, there is no contradiction in having decorative lighting and a lack of illumination in some residential areas. Illumination in the residential areas is a basic requirement of residents. The government must satisfy it. In some newly-built residential areas, public facilities have yet to be put in place. Authorities are striving to complete this work to meet resident’s basic demands. This is also a basic duty of the people’s government.

The decorative lighting is part of the city scene and adds vitality, and also assists the city to develop tourism. In foreign countries, we can see bright light in many metropolises, signifying their vitality. So I don’t think it’s only a project to beautify the city’s appearance. I have mentioned related authorities have rolled-out measures to save energy used in decorative lighting. The city has stipulated the times when lights can be turned on. During the golden hours of evening when there are many people in the streets, the decorative lights will be on. Certainly, they will be off late at night. Just now, our team asked the responsible authorities, and they will not turn off the decorative lighting this summer as there will be no power shortages

7.     Xinmin Evening News: I have two questions. First, in the information published today about stalls, you said there will be restricted zones. They include nine key areas, People’s square being one example. Could you reveal the other eight, or where we can obtain specific information, including the names of the 79 main streets involved? Second, the Shanghai-Hangzhou maglev project, as we all know, has been approved by the State Council, and construction will start soon. But some residents in Minhang District have heard a rumor saying their houses are likely to be demolished to make way for the project. The rumor is still spreading among citizens. What’s the response of the city government to this rumor? Thanks.

Jiao Yang: The nine forbidden zones are People’s Square, Shanghai Railway Station, the Bund, the Nanjing Road Pedestrian Mall, Xujiahui, Lujiazui, the airports, the area around Kangping Road and areas adjoining foreign consulates. You can find more specific information on the Website of the city’s appearance and sanitation bureau. As for the second question, we have said the authorities are studying the feasibility of the Shanghai-Hangzhou maglev project. Its precise route and stations have yet to be determined.

8.     News Times: I have two questions. The first is about energy saving. The guidelines mentioned the development and use of renewable energies. How is the work going? How will Shanghai expedite the work this year? How far has the city’s development of clean-energy auto’s progressed? Second, we can often see people distributing business cards, and beggars in the streets. Besides the clampdown on stalls, will the city government step-up efforts to improve this situation? Thanks.

Jiao Yang: The second question is a little simpler. Let me answer it first. China has a set of regulations managing homeless beggars. I won’t repeat it here, as we have talked about it many times. We will continue following the existing regulations. Actually, the management is effective. As for those uncivilized distributors of small cards and adlets, the city’s appearance and sanitation authority will address the issue. I have noticed that the city authorities also said today that they have intensified the crackdown to coincide with the summit of the Shanghai Cooperation Organization. We hope the media can increase their coverage of this issue to help us gain public support.

The first question is a big one. It has two aspects -- the development and use of renewable energies and the development of the new-energy auto. These are also questions frequently raised by reporters. The development of renewable energies is a key to Shanghai’s sustainable development, and is also an effective way to reduce the use of traditional energies. During the 11th Five-Year Plan period, the city will accelerate the development of renewable energies.

The city will build a large wind power plant at sea. By 2010, the plant will be able to generate 200,000 to 300,000 kilowatts. The city will also carry out its plan to develop solar power. By 2010, this will contribute 7 to 10 trillion kilowatts. We will install 10 solar-power facilities on buildings every year, and will develop the solar-power water heater and the project to use garbage to generate electricity. Meanwhile, the city will foster three or four solar power generation companies and give support to the research and production of a wind power generator boasting a capacity of more than 2 trillion kilowatts. In the 11th Five-Year Plan period, Shanghai will also endeavor to develop hydro-energy autos and boost the infrastructure dedicated to hydrogen research.

Here I want to give a brief introduction to the city’s development of new-energy autos. It is not only putting into practice the national energy strategy, the philosophy of scientific development and ideas to build an economical society and to promote environmental protection, but also implementing the city’s strategy to thrive on science and education. It is also a major step in helping the city upgrade its auto industry and boost innovation-oriented development.

Shanghai should seize the opportunities of the Olympic Games and the World Expo and take advantage of international cooperation to raise its ability to innovate and to develop home-grown brands. The city should also get a grip of the most sophisticated technologies and better its understanding of the market, in order to be the first to switch the dominant energy in the transport sector and be the first to industrialize new-energy autos. It will help raise the city’s image and increase the industry’s competitive-edge. Shanghai will continue to quicken the development of battery-powered autos, hybrid-power autos and vehicles using oil-substitute fuels. Shanghai plans to complete the development of the new-generation battery auto by 2008; and to introduce more than 100 units to the market by then, more than 1,000 by 2009 and 10,000 by 2011 to 2012.

9.     China Business News: You said the city should improve the pricing system to help save energy. This made me recall some previous media reports, saying the city has submitted the concept of floating water rates to the development and reform commission for approval. I am wondering when the concept will be put into effect. What are the details?

Jiao Yang: According to the State Council’s circular to propel the reform of the water pricing system, cities can widen the price gap to promote the saving of water. The city is looking into ways to introduce floating water rates.