1. Eastday.com: Hello! I am a reporter from the Eastday.com. I have two questions. The first is about the crackdown on unlicensed business operations . How will the authorities intensify the supervision of licenses? Secondly, as we all know, Shanghai is home to many migrants. Many people in the city rent their residences, but some rented houses are used for business purposes. How will authorities step up efforts to regulate the housing sector?

Jiao Yang: The intensification of license management is a very important issue. First, the city’s authorities will categorize chess and card-playing rooms as part of the culture and entertainment industry. They should have cultural operation licenses. Second, foot massage establishments and chess and card playing rooms will be subject to public sanitation licenses. Third, approval for change of usage of idle workshops or dwellings by planning or house and land authorities will be a requirement when authorities issue a license. Fourth, industrial and commercial authorities will adhere to the integrity of a company’s registered place of business and its operational location. A store must have only one license and the store name must tally with the name on the license. Fifth, the license-issuing authority must follow the national system of industry categorization, to prevent any blind spot in management thereof.

As for how to intensify management of the rental market, it is a daily phenomenon of life in our city. The authorities will continue to regulate it according to applicable laws. First, the leaser should sign an agreement with the leasee on the public security responsibility. The leaser should shoulder the responsibility to ensure the leasee’s business is legal and take action should any illegal activity occur. Second, the house and land authority will take charge of regulating the renting of residences, workshops and farmer’s houses. The authority will team-up with industrial and commercial authorities to introduce a standardized format for leasing contracts. Third, the city will boost efforts to increase the spread of residential certificates, and set up more devolved house renting management authorities. These are the principle points to the management of the leasing market.

2. China Business News: I have two questions. The first is about the campaign against illegally operated vehicles and unlicensed operations. Behind those individuals directly affected are their family members. Counting them, it could affect about 1 million people out of a population of 19 million people. Will the campaign lower the living standards of these 1 million people to ensure the safety of the other 18 million? How do you see this issue?

The second one is about underground space. What law reference or experience did municipal authorities take into account while drafting the regulation on underground space development and use? Thanks.

Jiao Yang: The reporter has raised two very good questions. It is also an issue drawing extensive concern as to whether the needs of 18 million will affect the other 1 million. I mentioned just now that every time we issue a regulation, we will stress flexibility when facing different circumstances. It aims to give those engaging in illegal operations more choices. According to the reporter’s question, there are two aspects. One is illegal operation, and the other is unlicensed operation. Now I will give a brief introduction in these two aspects.

Let’s talk about unlicensed operation first. For those unlicensed operators who fulfill the criteria to apply for a license, we will direct them to become a licensed operator through education and help. For those not fulfilling the criteria, we will have to close their business. But we are seeking ways to give these people more choices. Some districts and counties, such as Songjiang District, are introducing a new business pattern. They set up an industry park, such as a food-processing park, and encourage unlicensed operators into the government planned and developed park, helping them to become licensed operators. By putting the operators in the same place will facilitate government supervision.

After these efforts, only a very small part of unlicensed operators will have to end their business. Perhaps, reporters will ask how their lives will be. So, the labor security authorities should extend their skill training for jobless and laid-off people. I have published many regulations relating to this issue before, and today I don’t want to repeat. It is a regular job for the city government to let more jobless and laid-off people receive training, helping them find a job again. Besides, the government will purchase some commonweal positions, which will be provided to those family having special difficulties, as part of its special employment projects.

As for illegal vehicle operation, we know some operators are out-of-town people and some come from poor families. They have no marketable skills and have to engage in such illegal operations. Some illegally-operated vehicles are motorcycles for disabled people, mopeds and tricycles. We can all understand why these vehicles should be restricted. Those disabled people have enough ability to guarantee their own safety but if they transport passengers how can they guarantee the safety of their passengers? A city’s public authorities should be responsible for the safety of citizens.

Motorcycles for the disabled are the mode of transport for those with disabled lower limbs, but they are forbidden to carry passengers or cargo. At present, there are about 9,300 motorcycles for the disabled. According to the city regulations, the association for the disabled subsidises each motorcycle by 425-yuan a year. The city government also has specific regulations on the work and life of the disabled. There are also many preferential policies. For example, a private business run by a disabled man can enjoy tax breaks, subsidies and prioritization. There are still many related regulations. Because of time, I won’t elaborate here. If any reporter wants additional information, out spokesperson team can provide it after the conference.

As the first question has taken so much time, I will answer the second one briefly. The regulation on the approval and registration of construction in underground space was drafted according to the national urban planning law, the land management law, the urban real estate management law, the regulation on urban underground space development and use, Shanghai’s real estate registration rules and so on. The regulation will apply to all the underground space on the city’s state-owned land. Therefore, the regulation has a quite solid basis in law.

3. Ta Kung Pao: My two questions are both about the development of underground space. The first is that the government has mentioned a key aspect to be developed, so will compulsory or preferential policies follow? Will the compulsory policies stipulate a limit to underground space for a building of a certain height? Is there such a prescription? Are there any preferential policies? Thanks.

Jiao Yang: The implementation of compulsory or preferential policies will depends on various factors. For instance, some underground spaces will be developed for public use, and some for business. So the policies, especially preferential policies, will be different. As for compulsory stipulations the reporter mentioned just now, we have none so far. I have said we will leave room for future use and development while developing underground spaces. We should leave some space for our children.

I remember introducing the development plan about underground space at a previous regular press conference. Here, I want to reiterate the five principles of underground space development. Underground space is a city’s natural resource, and very much a‘hidden’resource for a city’s development. Shanghai lacks land, and is a densely populated city. So we must develop underground space properly. The five principles are:

To adhere to a philosophy, connecting people, which is to arrange people’s long-term activities and achieve some short-term objectives.

To ensure comprehensive and integrated development. We should undertake systematic and comprehensive consideration before developing underground facilities.

To develop underground space in tandem with the space above ground. It aims to ensure unified planning and simultaneous construction of space above the ground and underground, ensuring they complement each other.

To ensure the key projects of underground space development should connect with public activity centers and rail transport hubs. They should be helpful in easing traffic problems. Projects which could initiate large flows of people and cause safety problems will be curbed.

To ensure efficient usage of underground space.

Today I have mainly introduced the approval and registration procedures for underground space development. As underground space is a tradable asset, we should define these practices clearly. Otherwise, it will be impossible to conduct ownership transfer, dampen enthusiasm to develop underground space and cause disputes. Such a regulation will also facilitate management.

4. News Times: I want to ask two questions. First, what is the scope of the city’s crackdown on unlicensed operations? Second, the Qinghai-Tibet railway will start services on July 1, including a train from Shanghai to Lhasa. But some media reports said the first train from Shanghai to Lhasa will be delayed. According to the regulation that people can buy tickets 10 days ahead of departure, today should be the first day tickets are on sale. However, as far as I know, tickets are not available today. Could you confirm this? If the train is indeed delayed, when will tickets be available?

Jiao Yang: Railway operation is not the business of local government, so I am afraid I cannot give you a specific answer to your second question. If necessary, the spokesperson team can help you acquire information from the appropriate authorities.

The question about the scope of the crackdown on unlicensed operations is related to the questions raised by the China Business News reporter. This is also a good question. It involves six instances of illegal operation, but some words belong to the legal vocabulary. First, there are operators who apply only for an operating license, but open a business without the license. Second, operators should have both an approval certificate and an operating license, but after obtaining the certificate, some operators commence their business prior to obtaining an operating license. Third, there are operators who open a business without both the certificate and the license, though they are required to obtain the certificate after getting the license. Fourth are the operators having an operating license, but who don’t have the approval certificate. Fifth, there are those operators who are required to obtain an operating license after receiving the approval certificate, but who are actually missing both. The sixth case is that the business exceeds the scope registered in the license.

Those operators who have allowed their certificates or licenses to lapse, or whose certificates or licenses have been revoked or expired will be considered unlicensed.

5. Shanghai Morning Post: I have three questions. The first is related to the information published today, namely the issue of illegally operated vehicles. Many of these illegal vehicles were run at suburban public transport hubs. After the clampdown, will more measures follow to facilitate people’s travel? Secondly, yesterday and today’s temperatures have been quite high. I am wondering if the supply of drinking water can be guaranteed. Thirdly, some media reported today that more than 100 trees were cut down because of a construction project. What’s the attitude of the Shanghai authorities to the incident?

Jiao Yang: The reporter asked a very good, practical question. Some illegal vehicles were operated at traffic hubs or on major roads, because the demand was there. So while strengthening the crackdown, we will also boost mass transit services, trying to satisfy people’s needs. There will be three major measures.

The first is to improve connections between bus and rail lines, especially in suburban areas. Currently, 85 of the city’s 89 Metro stations have at least one bus line operational after Metro operation ends. The other four stations will employ other measures to solve traffic problems for residents of nearby residential complexes.

The second is to strengthen the adjustment of the public transport network to newly-created needs. Once a residential area is inhabited by more than 5,000 people, it must be connected by a bus line. To support the relocation associated with the World Expo and other major urban construction, the city is stepping-up adjustments in the public transport network, especially in the suburbs. The city is striving to fill in the gaps in the public transport service by opening new bus lines and extending their hours of operation. Within the year, the city plans to open three to four new bus lines, and to add 300 new buses to cut service intervals and extend service time.

The third is to increase the number of suburban taxis according to demand.

The government will also study the practicality of introducing new vehicles and ticket pricing systems, which can improve people’s travel. Authorities will consider introducing shuttle buses between areas hitherto unlinked.

The second question is about how to ensure the water supply for residents in summer. Recently, I have also noticed the media devoting much coverage to the water security issue. I will take this opportunity to comment. According to the forecasts of the relevant authorities, the top daily water use will exceed 10 million cubic meters this summer, a record high. Local authorities have prepared six steps to guarantee water security..

The first is to make full preparations. Water companies will finish checking their pumping stations and water purifying facilities, and the cleaning and disinfecting of reservoirs, before the coming water supply peak. The companies will also prepare countermeasures in case of any emergency.

The second is to complete current projects on schedule, including the installation of pipelines and pumps and the expansion of some water plants, in order to ease potential tight water supply in some areas or at peak hours.

The third is to guarantee the water quality. Authorities and companies will increase investment in water quality inspection and monitoring, and in the enhancement of technology and management.

The fourth is to optimize the water supply network, and improve the preparations for the supply peak.

The fifth is to enhance service. at the peak, we will avoid water supply suspension if possible. On days when temperatures are above 33 degrees Celsius, water supply suspension to save water for the peak will not occur.

The sixth is to take precautions against unpredictable situations, such as typhoons, pollution and breakdown of electrical systems. Emergency teams should be constantly on stand-by 24 to ensure a fast response to emergencies.

Another question was about the damage to trees related to a construction project. We have noted the media reports. Our spokesperson team has also contacted the city’s forestry authority. Here, I won’t spend time relatling details of the incident. It was a rare and serious incident which has the attention of the authorities. The construction company, which cut down the trees without permission, has violated city regulations. Authorities will punish the company in accordance with their findings.

Here, I want to remind the construction companies. According to local regulations, if a project requires trees to be cut down, they must apply for approval from the relevant authorities in advance. After inspecting the scene, authorities will decide whether to approve the action or not. If trees are felled without prior permission, they will face punishment. At present, many construction companies have a weak sense of the law on forestry and environmental protection. Shanghai’s media functioned as a very good monitor of this incident.

6. Metro Express: I have only one question. The hot weather is set to continue. Does the city government have any plans for work safety?

Jiao Yang: The high temperatures concern everybody. Work safety is a task that needs our attention the whole year round, no matter whether the temperature is high or low. But the high temperatures require us to pay more attention to work safety, as they make people subject to fatigue. Actually, the government has specific regulations on sunstroke prevention. Mayor Han Zheng stressed at a meeting the day before yesterday that authorities should pay attention to sunstroke prevention. Authorities are now busy formulating their work to ensure citizens pass a safe summer and that production tasks continue smoothly. For example, construction sites should stop outdoor work when the mercury exceeds 35 degrees Celsius. According to work safety requirements, all industries should implement sunstroke prevention to protect their employees.

7. Oriental Daily News: I want to ask a question of concern to many Hong Kong people. Zhou Zhengyi has been released for a month now. He is still wanted by the Independent Commission Against Corruption. Will the Shanghai government hand him over to ICAC? Will you assist the ICAC, and how?

Jiao Yang: A prison in the city released Zhou on May 26, 2006, after he had served his term. But I’ve never heard anything about his handover or extradition, much less as to how ICAC can be assisted.