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Shanghai Municipal Government Press Conference (September 15, 2004)
15/9/2004 11:33

1. Wenhui Daily: I have two questions: Can you inform me of the situation of rising incomes for farmers in Shanghai's suburban area? Secondly, you mentioned that the Shanghai government has established a standard for pensions to elderly farmers. What is the standard?

Jiao Yang: To answer your first question: Early this year, I commented on the rising incomes of farmers last year. Over the last several years, following requirements from the Chinese central government, Shanghai has adopted a series of measures to improve agriculture, boost the suburban economy and raise farmers' incomes. As of the 1990s, the local farmers' per capita disposable income has tripled and their living standard has largely improved. However, there are still factors that prevent farmers' incomes from increasing, such as the poor organization and market mechanism in the agriculture industry, weak capabilities to resist natural disasters and market risks, the rapid aging among local farmers and imperfect employment and social security systems. Therefore, it is a difficult long-term task to raise farmers' incomes.
As to your second question, there are two steps for improving the pension system in the local suburban area: first, the city and district-level governments will subsidize each elderly farmer over 65 whose monthly pension hasn't reached the average standard of 75 yuan (US$9) per month in the local rural area to bring the pension up to that amount; second, the local government will try to include a farmers' pension system in the social security system for local towns.


2. Shanghai Morning Post: Recently, prices of grain, pork and eggs have been increasing. It is said that in a Shaanxi Road N. market, local citizens were waiting in queues to buy eggs. With several holidays such as the Mid-Autumn Festival and the National Day holiday approaching, can you tell me what the price trends will be in the following months? Also, can you explain to me what adjustments to the administrative divisions of towns and villages are occurring in the city's rural area?

Jiao Yang: I will answer your second question first. The adjustments started in July, 2000, and today the number of local villages and towns was reduced from 212 in 1999 to 118, with 94 (or 44.3 percent) removed or merged. During this period, the number of administrative villages was reduced from 2801 to 1953, down 848, or 30 percent.
According to the development plan, 60 independent new towns with distinctive features will be established in local suburban area, each with a population of more than 30,000.
As to the price increases on pork and eggs, currently, Shanghai has a stable supply with steady prices. Actually, prices for grain, pork and eggs have increased this year. The grain purchase prices in the production areas have increased rapidly, with the increase in consumption. After grain prices increased in the first half of this year, the local government adopted various measures to stabilize the prices; feed price increases led to rises in pork prices and the bird flu diseases in the first half of this year also drove up pork consumption; egg price increases were also caused by the bird flu cases, with declining output but rising transport costs also negative factors. Generally speaking, prices of other staple and non-staple foods are comparatively stable. Currently, local grain prices are normal, with ample supply to satisfy the local demand. Shanghai will offer more support to agricultural production in rural areas and guarantee supplies by perfecting the staple and non-staple food market system. The government will keep a close eye on price trends of staple and non-staple food, strengthen market supervision, prepare enough supplies and perfect a market adjustment system. Therefore, we are confident we will have a stable market.

3. Youth Daily:  At the last press conference, the city's new residence certificate system for out-of-towners was introduced.  But in my interviews, many people said they were informed by registration office workers that they still cannot get these certificates. Then, when will they be able to get these certificates?  Also, why has Shanghai recently started charging tolls on out-of-city vehicles for roads that are built with loans?

Jiao Yang:  As for your first question, our spokesperson work group has also received such inquiries.  At our last press conference, I said the system is still being implemented on a trial basis and will expand throughout the city as of October 1.  The reporters may have neglected this information.  The trial is being applied to four districts and will later expand to other parts of the city.

The second question.  The toll is not only targeted at vehicles with out-of-town auto plates, but also those with local plates.  This toll for the roads is not a new policy.  As early as 2000 and 2001, the city government unveiled the policy according to the nation's road law and the city's road administration regulations.  Vehicles with city plates and those from out of the city are subjected equally to the policy.  The only difference is that owners of local vehicles pay the tolls while paying road maintenance fees, but owners of out-of-city vehicles pay the tolls separately because they pay road maintenance fees where their vehicles are licensed.

Most auto owners paid the toll after the toll notice was released on September 1.  By September 12, more than 24,000 car owners had paid the toll.  For those who failed to pay, local administrators will make inspections to collect the charge.  Related departments are establishing a database of vehicles with out-of-city license plates to set up a long-term administrative system.

4. East Radio:  Also about the toll on out-of-city vehicles: there are two groups of out-of-city vehicles in the city: One is where the owner is a native but has obtained his license plates in another city; the other is where the owner is from out of the city but working in Shanghai.  For the 30-yuan toll, some out-of-city owners are wondering whether they can drive onto the elevated roads during the peak traffic hours?  Would you please elaborate on this situation?

Jiao Yang: In order to ensure safe, smooth and orderly traffic as well as to ease the traffic jams as much as possible, the local traffic administration department has adopted measures to reduce some traffic during the peak hours.  One measure is this: during rush hours from Monday through Friday, minibuses driven by local intern drivers, taxies without passengers and minibuses with out-of-city plates are banned from the elevated roads.  But no limitation is set on the ground traffic.  This measure not only targets out-of-city vehicles but also some local vehicles.  The results show that the measure is effective in reducing the city's overall traffic flow.

5. Jiefang Daily: How many types of agricultural insurance are government-subsidized? Secondly, the city plans to introduce a share-holding system into the management of village-owned property. Where will the reform begin initially?

Jiao Yang: In 1996 the municipal government began to subsidize premiums farmers were charged for agricultural insurance. Government subsidies were applied to a wider range of insurance products in 1998, 1999, 2002 and 2004. At present the government subsidizes premiums to farmers involved in the production of rice, cows, pigs, poultry, aquatic products, wood and forestry, vegetables, wheat and melons. For your second question, I would advise you to consult the city's agriculture commission. 

6. China Securities Journal: How will farmers benefit from the newly-established Shanghai Anxin Agricultural Insurance Co. Ltd(SAAIC)? Is the company market-oriented or government-operated?

Jiao Yang: SAAIC aims to help farmers reduce risks during agricultural production. Its establishment was approved by the China Insurance Regulatory Commission (CIRC). As a pilot project of the reform in agricultural insurance, SAAIC is the country's first special insurance company for farmers. The company is both commercially-operated and government-backed. At least 60 percent of its premiums will come from planting and breeding industries. Since these two industries are prone to natural disasters, the company will receive support from the government. There are two types of insurance for crop and breeding: basic and optional. The municipal and district governments will jointly pay for the basic insurance while optional insurance can be bought by the farmers. To disperse risk, SAAIC offers other insurance products like health insurance, property insurance and liability insurance.

7. News Times(Xinwen Wubao): Since owners of local vehicles pay tolls for roads built with loans along with road maintenance fees, the campaign seems to be against vehicles with out-of-town number plates. Why are out-of-town vehicles denied entry onto elevated roads? Is paying a road maintenance fee a must for entry onto the elevated roads?  Secondly, can those who retired after 2003 enjoy the new policy that increases the retirement pension of local retirees?

Jiao Yang: The campaign to charge road tolls is neither a new policy nor targeted at out-of-town vehicles. As I have just said, it is only a campaign to tighten the previous policy. I would advise you to consult the traffic authorities for further information. As to the policy to increase the retirement pension, the policy only applies to those who retired before the year 2004.

8. Oriental Morning Post: With regards to agriculture insurance, as far as I know, there used to be a well-known insurance pattern here in Shanghai that the municipal government entrusted the insurance company to provide agriculture insurance.  So why is this pattern now replaced by the newly established company Anshin? What is the difference? And as for the coming F1, how are the preparations progressing for the competition? What impact will F1 bring to the development of Shanghai's economy and society? Thank you.

Jiao Yang:  The simplest reason we don't maintain the former approach is that the insurance company of that time has reformed its share system.  According to the related requests, municipal government should take an active role in agriculture insurance.  Shanghai is an experimental unit.   As agriculture insurance bears an extremely high risk, the new approach may reduce the standard of insurance for the farmers and ease the disaster-relieve burden for the government. We are still searching.      

Speaking of F1, the 2004 F1 will be held from September 24 to 26.  Along with the Olympic Games and the World Cup, F1 is one of the top three sporting events and enjoys a wide reputation around the world.  Though the 2004 Sinopec F1 to be held from September 24th to 26th is a commercial competition, it is of great value in the development and stability of China's economy and society. Because it will help improve Shanghai's status and image as an international metropolis and promote the domestic auto and petroleum industry, the Shanghai government is offering the event its strong support.  Shanghai has made up for her lack of experience by learning from the success of F1 in other countries.

9. United Daily News: My question is also about F1.  The huge increase in prices at many restaurants during the F1 in Shanghai may cause troubles to persons who come to Shanghai for business.  Will this have some negative impacts on the city's future development? Thank you.

Jiao Yang: It is a temporary phenomenon, shifting with the needs of market.  The prices of hotels and restaurants differ a lot during the high seasons and low seasons.  The business guests may choose to avoid this high period or to stay in the less expensive hotels if they only want to pay business visits. So, I don't think this will have long-term impact on the future development of Shanghai.