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Breakup of State Monopolies, End to Unfair Charges Urged

State-run monopolies, such as civil aviation and railways, have taken a drubbing from China's lawmakers and political advisers, some calling for breaking them up and ending arbitrary charges.

One representative called urgently for strong anti-monopoly laws and introduction of private sector competition.

During the current sessions of the National People's Congress and the Chinese People's Political Consultative Conference in Beijing, representatives heard strong criticism of government monopolies and unreasonable charges.

"The railway sector is just using its claims about needing to raise prices during festivals as a pretext for its brazen exercise of monopoly," said NPC deputy Ji Jinshan.

"It is high time to take immediate and effective measures to break such monopolies," said Ren Yuling, a CPPCC member, the top advisory body.

He urged the state to open more sectors to private capital and level the playing field for market competition.

"I suggest an anti-monopoly law be enacted, to fully guarantee fair market competitions," said Ren.

Concerning charges, two of the most criticized charges are the "airport construction fee" collected by civil aviation operators on every air passenger over a period of 12 years, and the "floating train ticket price" charged by railways during each year's peak travel time during the Spring Festival.

Zhao Zhiquan, an NPC deputy, condemned the airport construction fee.

"It is not a tax, since the 'taxpayers' never get to know what the money is collected for," he said. "It's not a donation, which should be voluntary, it's not an investment, which should generate economic returns."

The civil aviation administration and operators started to charge a 50-yuan (US$6) per person "airport construction fee" on passengers in 1992, when the sector entered a boom period.
The charges were never examined or approved by the NPC and there was no public input, he said.

Deputy Ji said he received complaints from poor rural migrants about the ticket price hikes during the Spring Festival, a time of family reunions. Railways say hikes are needed to control and divert high passenger flow.

(Xinhua News Agency March 8, 2006)

 


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