Advanced Search
Business | Metro | Nation | World | Sports | Features | Specials | Delta Stories
 
 
Shanghai Municipal Government Press Conference Memo (June 23, 2004)
9/9/2004 9:47

1. China Labour and Social Security News: There are three rates contained in the State Council's new industrial injury regulation, but Shanghai's relevant regulation only contains two rates. Can you tell me whether or not Shanghai will set different rates for different industries?

Jiao Yang: Based on the regulations of State Council and existing local circumstances, Shanghai's insurance regulations on industrial injuries have their own characteristics. As industry accidents occur quite differently in different enterprises or industries, Shanghai's regulations are enacted with a combination of both floating and base rates. All the employers should pay 0.5 percent in base rates and in the light of the frequency of industrial accidents and the use of insurance by different companies, the total rates should not exceed three percent after annual rate increases. Today, supervisors with the Shanghai Labor and Social Security Bureau are here, and you can consult with them for details.

2. Eastday: Shanghai will implement the administrative permit law on July 1. What kind of laws are the local land control interim rule and land reservation regulation based on? How will the people suffering from industrial injuries before the new insurance regulation is enacted be dealt with?

Jiao Yang: We drew up the two land-related government regulations in the light of the laws of the State Council. According to the State Council's circular on strengthening the asset management of state-owned land, in order to increase the government's control capabilities in the land market, local governments are required to implement an acquisition and reservation system for construction land. Our two regulations are based on the land management law of the People's Republic of China (PRC), the PRC's urban planning law, regulations on the State Council's approval of fixed-asset investment projects, local regulations on implementing China's land management law, Shanghai urban planning rules and the PRC's urban real estate management laws. Our two regulations comply with both the Chinese and local laws.
The State Council's new industrial injury regulations will not include those suffering from such injuries previously. As Shanghai is an old industrial city, there are a great number of old industrial injury sufferers. At present, their employers are responsible for their basic living and medical securities. Bringing these old sufferers under the new regulations can ease the economic pressure on their employers, give full play to the social security function of industrial injury insurance and maintain steady development of local reforms. The Shanghai Labor and Social Security Department will formulate a special law and implement it after government approval. Before the new law is issued, employers will still shoulder the responsibility.

3. Shanghai TV Station News Channel: After the city enacts the land reservation regulations, are there any differences between relocating for commercial and urban construction purposes? Will real estate developers get the land from the government through auction? How can residents' rights be protected and will the housing prices be affected?

Jiao Yang: The local land reservation regulation is in its preliminary stage, and will be improved gradually. Currently, six varieties of construction land for business purposes are included in the scope of land reservation, i.e. those for commercial, tourism, entertainment, financial or service purposes and those for constructing properties. Residents with land included in these six varieties will be relocated by the local land reservation institutes. Land for urban infrastructure and for some other public welfare projects will be reserved in the near future. We will protect the legal rights of the relocated residents.

4. Oriental Morning Post: As to the insurance program tailored for local domestic helpers, you said it is not compulsory. Do you mean it's up to employers whether or not to pay the insurance? The annual premium is 30 yuan (US$3.61). We all know that domestic helpers seldom stick to one employer, so could you tell me how such premiums will be paid? It is said that the noise from the pubs on South Maoming Road disturbed nearby residents. Will the road be re-planned?

Jiao Yang: To answer your second question first, as I haven't been to South Maoming Road, I cannot answer your question about whether or not the pubs there disturbed neighbors. However, we can deliver your question to the related departments and ask them to take it into consideration.
As to your first question, the insurance program for domestic helpers is actually not compulsory, but a push from the government on a commercial operational basis. Employers should be aware of buying insurance to avoid risks in a bid to protect the rights of both themselves and helpers. Employers should initiatively purchase the premiums for helpers, as such low-cost insurance can offer solid guarantees for helpers.
If helpers leave their job, employers can dial the number 12333 to change the name of their insuree. The Shanghai Labor and Social Security Bureau will handle the procedures for them. It is very convenient.

5. STV:  Many cities in China have rolled out land reservation systems.  How does Shanghai's system differ from the others'?  Auction prices of this month's licence plates have fallen.  Do you have a comment on that?

Jiao Yang:  I can't comment on the other cities' land reservation systems, since I'm not very familiar with them.  Neither do I have further comment to offer on the second issue.


6.  Youth Daily:  Can you offer the background for the two land regulations?  Is the rollout of the regulations related to Shanghai's control of housing prices?  The Administrative License Law will take effect from July 1.  There are media reports of clearing work in administrative licenses.   As far as I know, there's one administrative license remaining under clearance, can you offer more information about it?


Jiao Yang:  The two land market regulations are part of the important measures the government is taking to reinforce land management. They're also in line with the central government's requirement in macro control.  Shanghai will adopt more measures and make them work together to build a legal, standard and transparent land market.  Land is the most precious resource in Shanghai.  It's irreplacable.  Therefore, in order to ensure an orderly land market, the government must strictly crack down on illegal use and occupation of land while applying macro control.  With a dense population and limited land resources, Shanghai must value its land resources and prevent improper use.  This is also a must in Shanghai's application of scientific development strategy in order to achieve sustainable development.


As for the clearing work of administrative licenses, I've noticed the media have produced many reports.  In short, licenses covered by the administrative license regulation fall into two groups.  One is enacted by the central government and it's up to the national departments to decide whether to cancel or leave remaining; the other group is designed by the Shanghai government. Some 50 percent of the licenses in the latter group have been removed by the clearing work.  Carrying out the clearing work according to the schedule designed by the State Council, Shanghai has so far basically completed the clearing in all kinds of regional administrative licenses.  It is now training its senior officials on the new administrative license regulations. It will expand training and testing to all civil servants in order that government employees learn the regulations and strictly implement them.

This clearing work has involved 1,241 administrative licenses as ruled under laws, regulations and government documents.  Of the licenses, 1,019, or 83.7 percent, were ruled by the national government, and 202, or 16.3 percent, were designed by the city government.  Of the 101 licenses that will be abolished, 36 were ruled under regional regulations and 65 were in government documents.  Ninety-three licenses remain after the clearing up.  More than 70 of them were contradictory to the "Administrative License Law" for the conditions of application and procedures.  The regulations and rules concerning these licenses will need amendment.

To fill the management void that may occur after the licenses are abolished, the city plans to take corresponding makeshift measures for five licenses after removing them.  These measures include record keeping, which is aimed to make it convenient for administrative bodies to master each case as well as manage procedures and monitor them afterwards.  For more details, please check the official website of the Shanghai municipal government.

7. China News Service:  As the fifth category of land in the "Land Reservation Regulation", non-developed state-owned land will be collected.  What is the situation with the 6,000 hectares of idle land in Shanghai?  Other kinds of land will be reserved by district-level reservation agencies.  How will that be carried out?  Which departments will monitor it?  When will the suspended land auction resume?

Jiao Yang:  For non-developed land, Shanghai's principle is to reinforce control of land supply.  We will give top priority of land use to key state projects, municipal projects and medium-to-low-price housing projects while controlling the supply for property development.  The purpose is to improve the land market structure, control the total supply and quicken the use of idle land.  Secondly, we will make a thorough check of land that has been approved for use in past years to get clearer information about the lots and why they're not yet developed.  We will urge development and restructuring, or we will recollect the land or take other measures to encourage land use.  We will act differently in different cases.  For development enterprises that have stored large amounts of idle land, we will restrict them from participating in further land bids to force them to hasten the development of existing undeveloped land and put it on the market.


There are clear provisions for supervision and monitoring under the 17th code of the land reservation regulation.  The city, district and county land administrative departments must make regular checks of the implementation of the city's land reservation plans.  The financial and audit departments must provide regular financial checks of the land reservation agencies and the cost of land reservation.  Audit results must be submitted to the city land reservation leadership group.  To enforce this work, Shanghai has established such a group.

8.  Jiefang Daily:  Will the "Shanghai Land Size Control and Approval Regulation for Construction Projects" take effect from now on?  Beforehand, what measures or methods has Shanghai taken to control land?


Jiao Yang:  When I announced the regulation, I mentioned that there are four aspects to Shanghai's land use approval for construction projects; approval of project proposal, site selection of projects, land prejudication and approval of feasibility report.  The four measures have already been implemented.  Now we are to further tighten land size control and audit and, therefore, the cooperation and coordination between departments must be reinforced.  This is not a newly created administrative permit issue but reinforcement of land size control for construction projects.  It will be taken as an important factor in the approval of construction projects.

9. China Business: We learnt from a inside material that some construction project in Songjiang District have made irregular practices. Is it true? How do you look at it?

Jiao Yang: Sorry I didn't see the inside material you mentioned, neither do I know which project are you referring to. Yet I've read report on some irregular building in Songjiang. So far the district urban planning bureau has torn some of the buildings down. Others will be torn soon. In a word, the government will strictly supervise the unlawful practices.


10. Shanghai Legal News: In the insurance programmed for domestic helpers, in who's name should the employers buy the insurance? When accidents happen, will the insurance company pay the domestic helper directly? Or they will give the compensations to employers that will later transfer the pay to the domestic helper?

Jiao Yang: The employer will buy the insurance in the name of their employees. Domestic helpers will be the ultimate the beneficiaries. Officials from two insurance companies are present at today's conference; please consult them for further information.


11. News Times: How to ensure the actual implementation of domestic helpers' insurance? To whom shall a domestic helper complain if his or her employee would not buy the insurance for me? We noticed the insurance fee is 30 yuan, which is relatively low. So shall the employee buy several sets for one domestic helper? Could the fee cover the cost? How does the insurance companies check the buyers and benefited?
It is said some recreational streets lights will be turned off in summer time to save energy. Will the sight lights at the Bund be turned off too? And how about those commercial buildings along Huaihai Rd.?

Jiao Yang: Most of your questions are techical ones, about which I suggest you discuss with officials for the social security department and the insurance companies. They are present at today's conference.  I can assure you that the social security department has put all factors into concerns, and the insurance policy is supported by a complete database and mechanism.
According to the current regulation, an employee should only buy one set of insurance for one domestic helper, yet he can buy them forms of insurance if he wishes. 
As for whether how many and which sight lights will be shut down, it will be decided according to the actual power consuming situation this summer. However, I wish to emphasize that the power shortfall only occurs periodically and only in certain area. At most of the summer time, a normal power supply with guaranteed.


12. Youth Daily: You mentioned just now the newly launched land resource administrative regulation will contribute to the government's balancing and control on land resource and income. Does it refer to the levying of real estate tax?

Jiao Yang: The two issues are not related. I mean, the regulate will ensure that the profit created from the urban construction and public facilities will be at the government's hand.