Economy

Beijing's poorest get help as bills pile up

By Liu Yujie (China Daily)
Updated: 2010-11-24 14:26

Beijing's poorest residents will get some help this month in paying their vegetable bills.

The Beijing Municipal Bureau of Civil Affairs announced on Tuesday it will dole out subsidies worth 22.3 million yuan to the capital's low-income families. It will provide 100 yuan per person by the end of November to help offset rapid inflation seen in recent months at vegetable markets citywide.

"The measure is being taken mainly because the capital has been experiencing soaring food prices recently, which has raised the cost of living and brought more pressure to low-income households," said Li Jing, a spokeswoman for the bureau.

Under the current regulations, individuals with an income of less than 430 yuan a month will qualify for the temporary subsidies - as long as one of the following three conditions also applies. First, that there has been at least a 40 percent increase in the price of grain and oil, and the price remains high for at least two months. Second, that the cost of food keeps increasing for three months, leading to households' expenses on food increasing by 15 percent or more compared to the same period the previous year. And third, that the cost of water, electricity, natural gas and coal gas has increased dramatically.

In 2007, when food prices similarly increased, subsidies were given to the needy on a monthly basis. People received 20 yuan each month for five months in a row, until the prices returned to normal.

This year, the 100-yuan in subsidies will be given again but in one payment, meaning a typical poor family of three will get 300 yuan before the end of November.

Li said the subsidies will be adjusted in 2011 but she said the final decision concerning the exact time when a new policy will be adopted has not yet been made.

Li also said the bureau will continue to keep a close eye on the price of basic consumer goods, and, if necessary, the government will launch further plans to give out subsidies in a timely manner.

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"The recent increase in food prices really put my family on a tight budget," said Zhang Aiguo, whose family of four lives in a rented house in Changping district. She told Beijing Times on Monday that the subsidy will make a difference.

"Thanks to the 400-yuan subsidy, we will not need to tighten our belt for at least one month."

Chen Tao, director of the information office with Beijing municipal government, said at a press conference on Nov 17 that the authorities are working hard to try to bring down the cost of the capital's vegetables.

Chen said the plan calls for the inventory of cultivated land to be increased by 35 percent in both the suburbs of Beijing and adjacent provinces. The expanded land base will be achieved through inter-governmental and inter-company collaboration by the end of 2015.

Chen also said the municipal transportation administration has opened "green channels" to speed up the transportation of agricultural products, which will increase supply and bring down prices.

The initiatives seem to be starting to work. Statistics show the price of vegetables in the capital's produce markets fell by more than 8 percent between Nov 10 and Nov 20.

Among them, the price of garlic fell by almost 15 percent, from 13.5 yuan to 11.5 yuan per kilogram. The price of ginger fell by 7 percent, from 14 to 13 yuan per kilogram.