At the regular press conference on April 7, Shanghai Municipal Government representative Jiao Yang spoke on the following issues and answered reporters'' questions.
Shanghai is preparing to implement the regulations on government information transparency and the administrative permission law. The city will strengthen measures to solve the problems of delayed construction funds.

1. Economic Observer: On March 26, the National Development and Reform Commission stipulated that local governments are not allowed to auction car license plates, and Shanghai is the only city that put up license plates for auction. Will Shanghai stop the policy? The city had more than 200,000 private cars last year, with the lowest car price 43,000 yuan (US$5,200). Do you have any comments on this situation?

Jiao Yang: We haven''t received the relevant documents issued by the National Development and Reform Commission, so I cannot make any comments on the situation.
I have spoken many times about the issue of auctioning local car license plates. According to the principals of the white papers on local urban traffic, Shanghai will moderately limit the growth of motor vehicles in the city center so that we will continue to give priority to public transportation and at the same time to develop car transportation in an orderly way so as to maintain a coordinated balance between car development and local road capacity. Shanghai is still suffering from traffic jams, and the local transportation department has proposed a series of measures to ease traffic congestion and ensure convenience for local residents. We stress that revenues from license plate auctions are all spent in constructing local transportation facilities.

2. Eastday: As of May 1, Shanghai will carry out the regulations on government information transparency. What will residents do if they don''t know which department they should apply to for specific government information? Is it possible for you to tell us a specific phone number or mailbox for the public to consult? Secondly, will the administrative permission law restrict the government in any way?

Jiao Yang: The portal website of the Shanghai municipal government, which is being upgraded, is the main and most convenient channel for local residents to acquire government information. The web pages, with distinctive signs and columns, offer relevant information and links to all government departments so that it is very convenient for local citizens to get access to the department websites.
As of May 1, the Shanghai Information Commission will work out a general guidance booklet on local government information covering all the names and phone numbers of local departments specifically for those who never log onto the Internet. The booklets will be provided to the public through local information outlets. Local department will also open a comprehensive telephone hotline to serve the public, but some time will be needed to set up a database.
As to your second question, the administrative permission law will be implemented on July 1, and local citizens can learn the contents of the law by newspaper, website and other channels. Firstly, the law restricts the administrative right of the government; secondly, government affairs will be standardized and transparent; thirdly, government responsibilities will be connected to their rights by strengthening follow-up supervision from the public, mass media and government departments themselves. The law will greatly change the government''s original management ideologies, systems, practices and functions. The law will put more pressure on the government and encourage it to improve.

3. Oriental Morning Post: It was reported that the F1 Grand Prix is expected to bring 150,000 tourists to Shanghai. Will it be hard to find rooms in local hotels? Second question: Is it true that in April the government will place limits on the trading of unfinished apartments?

Jiao Yang: I have also seen the report that local hotels will be packed by the time of the F1 Grand Prix. According to the availabilities of local accommodations, the accommodation demand and supply during the F1 Grand Prix event will be balanced. There are more than 2,700 hotels and guesthouses in the city, with nearly more than 100,000 rooms, including more than 340 star hotels with 60,000-plus rooms. On the basis of one tourist in one room of a star hotel and two tourists in one room of a common hotel, local hotels and guesthouses can hold nearly 150,000 visitors, nearly equal to the number of visitors predicted at that time. If the supply cannot satisfy the demand, Shanghai will encourage visitors to stay in neighboring cities and towns, which can also offer support. To date, the local tourism department has made many accommodation preparations for visitors and made reservations specifically for foreign officials, athletes and overseas reporters. At present, tourists have begun to book hotels.
As to your second question, generally speaking, the local real estate market is growing in a healthy and orderly way. However, as of last year, housing prices rose too fast in some areas. In order to keep a balance between demand and supply in the local real estate market, and to curb the excessive growth of housing prices, the local government has made a decision to limit the trading of unfinished apartments as a measure over a certain period of time. To date, the local government has put forward the proposal to the Shanghai People''s Congress to amend the relevant regulations.

4. Construction Times: You mentioned an investigation into payment defaults in the construction industry. Is there a timetable for the inquiry? And by what standards do you judge a case as a default and blacklist the defaulters?

Jiao Yang: Not long ago, in line with the requirement by the Ministry of Construction, Shanghai started a citywide investigation into payment defaults in the construction industry. According to the schedule at present, the investigation will be completed before May 31, and a plan to have the defaulted payments paid will be drafted by June 30. The payments should be basically repaid by the end of 2005.

As for the definition of malicious default, we think it refers to a payment that is still unpaid after being ruled by the intermediary institutions or court as a default. Any case with an improper nature can be regarded as a malicious default if it is judged so by the federal meeting after study by the investigations office.

For your third question, the blacklisting of defaulters is appropriate in the cases of malicious defaulters. Those committing malicious defaults will be on the list. Before being listed, the companies will receive a letter notifying them of the listing and a notice urging them to make the payment as well as to undergo a federal examination. If they correct the wrongdoing during this process, they will not be blacklisted and will not be punished.

5. Shanghai Daily: The municipal government has submitted to the Standing Committee of the Shanghai People''s Congress a proposal to ban the transfer of unfinished apartments. If the policy is passed and carried out, will it affect the city''s housing market, or how will it adjust the market? The second question is this: a local building called "Art Village", under historic protection on Huaihai Road, was pulled down last month. How is the case going?

Jiao Yang: Your first question. The municipal government highly values healthy and good development in the housing market. It is studying measures to solve problems arising from the past. The measures are absolutely not intended to strike at the good development in the property market, as you said, but to effectively limit speculative trade. The government is protecting the consumers and the common people. It is taking measures such as increasing the land supply for residences and encouraging developers to build more low-to-medium-price housing. In short, Shanghai''s housing market is inter-related, so we must approach adjustments in a comprehensive way.

The second question is about the protection of the building on Huaihai Road. I haven''t heard about the case, but I will learn about it. The government is taking the strictest measures to protect local historic and cultural buildings. I believe it will handle the case according to the law.

6. Phoenix TV: According to information we have received, Shanghai''s poultry industry is ranked No. 1 in pollution. We know the new poultry raising regulations will officially take effect from April 15. Some water source protection areas will be closed to poultry raising and some poultry farms will be closed. The pollution disposal costs for those not closed down will be quite high. What measures will the government take to protect the environment? Since the demand for Shanghai poultry and livestock is huge, how will the city satisfy that demand?

Jiao Yang: For your first question, we have enacted regulations to control raising poultry to ensure the healthy development of the industry and to encourage the development of large-to-medium farms. The strict rules on environmental protection are aimed at protecting Shanghai''s water sources and environment from pollution. In pollution and sewage disposal, our basic principle is to ask those who pollute to bear the cost of cleaning the mess. Protection should be always intensified rather than relaxed. As for how to ensure the poultry supply after shutting down some farms, the related department has taken the case into account. Shanghai is more of a major poultry consumer than a raiser. A large quantity of poultry products consumed here are supplied by neighboring areas. That will ensure the local supplies.

7. Youth Daily (Shanghai): According to data from the National Bureau of Statistics, the rate of the defaulted payments to the government for construction projects will increase from 26.7 percent at the end of 2001 to 50 percent of the total default cases today, while the housing project defaults will account for 40 percent. What is the case in Shanghai? Second, Shanghai has adopted a social insurance and default guarantee system. Does that mean the guarantors and the insurance companies will handle the defaulted payments?

Jiao Yang: You can get the detailed figures on defaulted payments from the appropriate department. The Shanghai government imposes strict requirements on defaulted payments. It will first clear up the default cases, then prevent new defaults and finally complete the work needed to re-pay the defaulted payments over a period two years.

For your second question, I think the social insurance and guarantee system refers to establishment and promotion of the guarantee system for payments by construction companies in the building industry. It includes the existing guarantee fee, deposit and maintenance fee in the scope of the guaranty. After the social insurance and guarantee system is set up, if the builder defaults on a payment, companies experiencing a default will receive compensation from the guarantor companies and insurance firms. It is practical solution for default payments in a social and market way.

Dragon TV: You just now mentioned keeping balance of supply-demand of hotel guest rooms during the F1 Game period. As we know, September when the game is scheduled is a peak tourism and exhibition season in Shanghai, so there will be large demand for guest room in the period. How will Shanghai handle the situation? Will hotels stop accepting booking for guest rooms?
Another question on the publication of administrative information. We notice one item in the regulation states that fees will be charged for searching, copying and delivering material. Will it be a new excuse of overcharging? How to prevent the possible overcharging?

Jiao Yang: We''ve taken into account both tourism, exhibition and convention attendants and F1 audience in the plan, and made full preparations. The total number of out-of-owners in Shanghai is estimated to be 150,000.
On your second question. The acquiring of general administrative information is free of charge. Only some information on specific items needs to be paid. The payment is set partially to cover the cost expense, on another hand to prevent abused information acquiring. This is a common practice around the world. The municipal government will set the charging rate, and all fees will be turn into the government, the whole process is open to public supervision.

International Finance News: The restructuring draft of Yibai and Hualian Group is worked out; does it mean the group listing of the two corps will be marred?
Another question, Liu Shunxin has been arrested, how is the case going on? Is any other higher level in USTC Chuanxin been involved in the case?

Jiao Yang: For you first question I don’t hear about the situation you mentioned? Liu Shunxin''s case is now in legal process, so the information revealing is beyond my scope of duty.

News Times: The government has banned transferring of unfinished apartment, yet it''s a periodical policy. If the draft get pass in the congress, when will it be carried at fastest? And what is the figure that actual figure that makes the government decide to put forward the policy?

Jiao Yang: The draft plan will be put forward after being passed in the city congress. The government made the decision based on figures that house purchase for investment purpose in above 16 percent, approaching the international vigilance of 20 percent.

Jiefang Daily: Shanghai plans to set up a classified labor market, how will the market protect interest of rural workers? What items does the complex insurance consist of?

Jiao Yang: The complex insurance system for rural workers in already started operation, covering 770,000 people currently. Employers of these rural labors pay the insurance fee, and we will take further actions to include more people in the system.

Xinhua News Agency: It''s reported that the Shanghai government will stage different power rate in peak and non-peak hours to ease the power shortage in the city. Will you confirm this report? If it''s true, what''s the price gap between peak and low hours?

Jiao Yang: Shanghai went through a tough situation last summer''s heat weave in limited power, yet the city''s better prepared this year. The government has promised to guarantee the power of major enterprises and departments, the normal operating of urban infrastructure facilities, and the daily life of citizen. The government promises no power cutoff, but rationing of power will still be used. The power authority estimated that the power consumption is around 16 million kilowatts this summer, exceeding the city''s supply capacity of 10.3 million. There remains a 2 million shortfall with the 3.5 million kilowatts imported power.

China Securities Journal: Shanghai has set several goals for capital market development in a regional plan, echoing the State Council''s notice on the issue. How is the plan being promoted?

Jiao Yang: Shanghai government works on the local practice plan of the State Council''s notice. Now we''re investigating and maturating the draft plan.