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Rail Price Hike Review Welcome


15-Oct-2001 -
Complaints about the price increase on railway tickets during the Spring Festival led to an administrative review case filed by a lawyer in North China's Hebei Province. Qiao Zhanxiang demanded the Ministry of Railways cancel the price hike as well as the administrative approval given by the State Development Planning Commission over such pricing activity. When the new prices, about 20 to 30 per cent higher than usual, were introduced, the railway department claimed the scheme was intended to reduce pressure on railway services by discouraging rail travel. Some 134 million trips were taken during the Spring Festival period. Officials believed this year's price hike successfully extended the peak travel period, usually lasting one month around the Spring Festival, to six days more than before. That reduced train loads. A result like this may be adequate to justify the practice, but is insufficient to fully defend the ministry's improper pricing methods. The ticket price was raised without a hearing, thereby overshadowing the necessity and validity of such a pricing policy. The Pricing Law of China of 1998 stipulates that hearings are required before setting government-guided prices on public utilities. The Ministry of Railways is the sole provider of public railway transport in China, so any ticket price change affects the interests of the masses. If the public is deprived of opportunities to voice doubts and suggestions on such matters, public discontent is bound to occur when a price rise occurs. This makes it even harder for the departments to implement the policy. The public may even suspect the railway agency of having an ulterior motive, seeking greater profits and not better public policy. The Ministry of Railways has accepted the aforementioned request for an administrative review. That is a welcome sign. Individuals should be more aware of their rights and begin to probe the actions of powerful administrative departments. Those who can monopolize prices will then feel more obliged to exercise their administrative powers within the law.
15-Oct-2001 -

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