1. China Business: There are two changes to the news release: in the sentence "the new lab building project of local disease control and prevention centre 'passed' the evaluation of the Magnolia Prize of Shanghai", the word 'passed' was changed to 'applied for'; the building is expected to be 'officially operated' by the end of August, here the words 'officially operated' should be changed to 'trial operated'. Can you explain the changes?

Jiao Yang: Currently, the project has applied for evaluation for the Magnolia Prize of Shanghai.  The final result will be announced by the evaluation organization. After completion, the project will be operated on a trial basis for a period of time before being run officially.

2. Shanghai Morning Post: It is reported that all the 576 suites of apartments in the 'Violet Garden' were sold overnight. Currently, properties are sold via the Internet. How will the government standardize property sales in the future? Recent financial transaction policies have put a lid on the overheated housing market. It is reported that the local housing market has reached a turning point. What's your comment?

Jiao Yang: The events surrounding 'Violet Garden' aroused great public attention. The final punishments were reported yesterday. In order to standardize property transactions, the Shanghai Housing and Land Administrative Bureau issued a circular: firstly, the timescale for the sale of new property projects must be publicized on the real estate website by the Shanghai Real Estate Trading Centre.  This must be done within three days of the online transaction systems starting; secondly, the recording and registering of property sales contracts online and the starting of operational systems should occur between 8 a.m. and 10 p.m. every day, with the systems closed for maintenance at all other times. During the maintenance period, real estate firms and sales agencies must suspend property sales. Thirdly, real estate firms and sales agencies should sell properties based on the principles of openness, fairness, justice and transparency. For the properties where demand exceeds supply, notarisation departments can select home buyers through a 'lucky-draw' in a bid to avoid irregularities. 

3. The Bund: Will the city continue to auction car plates in August? China strictly controls the size of supermarkets, and Shanghai has many large supermarkets. How will the government manage this issue?

Xu Qiang (director of the government's Legislative Affairs Office): As to the car plate auction, there are different opinions. Jiao Yang, on behalf of the local government, has already explained that. The Legislative Affairs Office has been paying much attention to the issue from the outset. We think auctioning car plates is legal and it meets local traffic situations. According to the fourth point of local road traffic safety rules, governments at all levels are responsible for maintaining the city's road traffic orders. Shanghai, as a large city, is expected to adopt certain management measures during certain periods of time. It is impossible for the policy to be implemented indefinitely, but currently there will be no change.

Jiao Yang: After all, these measures aim to protect the interests of local citizens.
Shanghai's government is currently carrying out the central government's macroeconomic adjustment policies by cleaning up fixed-asset projects. Generally, it is normal for the existing construction of large local retail business facilities. According to the Shanghai Economic Commission's evaluations on shopping centres, released last month, the city's shopping centres are a kind of new business model which has adapted to the modernized consumption models. The local economy has grown rapidly over the past several years, so all developers should invest in a rational way. Currently, Shanghai Economic Commission is conducting studies and research to help draw up a business development plan for the Eleventh Five-Year Plan (2006-2010).  This is in a bid to guide investments in a rational way and enhance a steady and healthy development in the local commercial sector.

4.Phoenix TV: The enforcement of the Administrative License Law is a long process. Will the administrative licenses acquired before the law’s enforcement remain valid? If they are ruled invalid, who will make up the loss? Secondly: A new bird flu outbreak recently hit Anhui province. Does this affect the city's live bird and poultry trade? Has Shanghai any moves in response?

Liu Ping: The Administrative License Law stipulates that the government will not, at will, revoke administrative permits already granted. Financial compensation must be provided in the event that permits granted before the law enforcement are revoked.

Xu Qiang: On one hand, the municipal government will relax economic control by gradually abolishing remaining administrative permits. On the other hand, the Administrative License System should exist for the sake of public welfare. The municipal government has established two administrative licenses this year.  One for poultry farms, the other for micro-organism exploitation.

Jiao Yang: In answer to your second question, Shanghai is constantly alert to possible bird flu outbreaks, sparked by either internal or external factors. Vaccination and surveillance of fowl on local farms has been enforced. Poultry imports from other provinces are closely monitored. Local regulations on live chicken trade took effect on July 1.  The following precautions to be taken against avian disease: Continued compulsory vaccination programs and regular testing of farm fowl. Wild birds should be kept off poultry farms. Waterfowl and chicken must not be raised on the same poultry farm. Stringent quarantine regulations will be applied to all imported poultry. New bird flu cases must be reported to the authorities immediately. Sufficient supplies and funds must be stored for emergencies.

5.Shanghai Daily: Are the remaining licenses in line with the newly effective Administrative License Law? What will be done if they lack legal basis?
Liu Ping: 102 administrative licenses of the 203 established by the municipal government have been abolished. The remaining licenses are in accordance with Administrative License Law and will be retained at present.

6.Jiefang Daily:  The main purpose of the public health centre is to provide advanced lab facilities.  Since the latest SARS outbreak resulted from lab pollution, what plans does Shanghai have to deal with such occurrences?  There is a lot of data about the newly effective administrative permit law.  Is there a reliable method for enterprises and residents in Shanghai to check all relevant permits?

Jiao Yang:  Shanghai's new lab hasn't started to operate yet.  Since the nation has strict regulations governing SARS related labs, Shanghai will abide completely by the health ministry's requirements.  It will do so at the new lab.

Xu Qiang:  For more details about the administrative permit law, please check the government website www.sh.gov.cn.

7.  International Finance News: Shanghai municipal government is launching a restructuring for state owned groups.  What, then will become of Shanghai's large state controlled groups?  And, as the auto market is declining, what is the government's plan for SAIC?  Recently, there have been many of problems over financial risks, what does the government think about this sector?

Jiao Yang:  As the SAIC's restructuring and listing plan affects many areas it has attracted wide attention.  The work is still in the primary stage of planning and preparation.

One of Shanghai's four point development goals is to transform the city into an international financial centre.  Therefore, we have been devoting much attention to prevention and reduction of financial risks for securities.  A Market-oriented economy must be a law-abiding one. In this case, Shanghai, under the leadership of the central financial supervision authorities, will completely implement and cooperate with the central policies in this sector.  Whilst providing a good financial service, it will advance the development of its financial market as well as prevent and reduce the financial risks.

8. News Times:  Since the bird flu outbreak in Anhui Province, there are reports that Hong Kong has suspended poultry imports from Anhui.  Has Shanghai any moves in response?

Jiao Yang:  One of the six measures I just introduced is targeted at the prevention of bird flu outbreak coming from outside the city.  We apply  stringent quarantine regulations on all poultry arriving in Shanghai to ensure food safety for local people.

9.  Shanghai Evening New:  Since the introduction of the insurance for domestic helpers, from July 1, many employers have bought insurance for their household help.  The has also government unveiled a pension insurance plan.  Will the government pay the premium?

10.  Shanghai Youth Daily: It is reported that the Shanghai Office of Legislative Affairs is working on a regulation regarding the location and management of parking lots. Will you confirm this report? It is also said the rule will stipulate the parking fee for each parking lot, is this true?

Xu Qiang: It is true that the regulation is being worked through.  However,  it was not initiated by the Legislative Affairs Office, but by the Shanghai Political Consultative Conference (the city's advisory body) several years ago. To date, the consultative conference is working with related governments, including the legislative office, on this issue.

Jiao Yang: Parking issues are part of Shanghai's transportation problems, and they’re caused in many ways, such as the mal-administration, improper planning, unsuitable equipment, substandard techniques, inefficient management and operation, and a lack of parking regulations. We are, therefore, tackling the problem from various angles. The one and only goal is to move the parked cars off the roads and thus ensure free traffic flow.

11. Oriental Morning Post: After the Administrative Licensing Law took effect on July 1, some former government approval procedures were substituted with a report-and-recording mechanism. So, what is this mechanism, and what's the difference between this and reporting operations and applying for approval beforehand (which was done in the past)? Is the Shanghai Office of Legislative Affairs working on any complimentary rules to cope with the absence of administration and the abolition of the approval procedure?

Liu Ping: The record-keeping mechanism consists of pre-operation and after-operation reporting. During pre-operation reporting, the individual or organization is required to report to the administrators before taking action, however it doesn't need the administrator's approval. That’s the difference between reporting beforehand and applying for approval. Under the new law, the administrator does not have the right to approve or disapprove an action.

Xu Qiang: As for the complementary rules, a total of eight items are being worked through now. One of the eight is publicized on the government website (www.sh.gov.cn). We're waiting to hear opinions from local citizens on this issue.

12. Reuters: You mentioned at an earlier press conference that Shanghai may create artificial rain to battle the heat weave and ease the power shortfall this summer. Has the project started yet? How is it progressing?

Jiao Yang: Yes we're implementing this plan. To date, there is no need for artificial rain as the temperature is not extremely high. The city's meteorology and other related departments are busy preparing the plan.

13. Shanghai East Radio: Local drivers are encountering many difficulties whilst looking for parking spaces, and parking outside designated areas is adding to Shanghai's traffic congestion. Many people feel the parking fee in Shanghai is too expensive.  Is there an benchmark price or guidelines on parking fees?

Xu Qiang: The parking policy is not worked out by the Legislative Affairs Office, therefore I'm not in a position toanswer officially. Personally, I assume the fee will vary between different parking plots according to their location and facilities. On the whole, the parking fee in Shanghai not any higher than that in other large cities.

Jiao Yang: When compiling parking policies we follow the basic principal that the regulations should help to improve Shanghai's general traffic conditions. Therefore, the policy aims to boost the construction of parking lots, raise the parking capacity and ease traffic congestion.