The national legislature yesterday heard reports on economic and social development and work safety, which said land used for grain production is increasing, overheated investment in fixed assets has been reined in and progress has been made in mine safety despite appalling conditions.

The reports were made to the Standing Committee of the 10th National People's Congress (NPC), currently meeting in Beijing.

The minister of the National Development and Reform Commission, Ma Kai, said the economy has maintained steady and rapid growth while all social undertakings have made headway, but many factors hold back further increases in grain output and farmers' income.

In his report on the implementation of this year's plan for national economic and social development, he said all but three mainland provinces scrapped agriculture tax this year, expected to alleviate farmers' financial burden by at least 22 billion yuan (US$2.7 billion).

With regard to investment, Ma said a batch of projects were suspended due to violation of land and environmental protection statutes and industrial policies, but investment policy favored agriculture, manufacture, railway transport and health sectors.

Investment in fixed assets in urban areas had expanded by 27.2 percent in the first seven months of this year, down 3.9 percentage points year-on-year, while investment in property grew 23.5 percent by July, down 5.1 percentage points, he said.

Senior legislator Li Tieying told the NPC that work safety law should be steadfastly enforced, and proposed that "the State Council and relevant departments ensure a drastic reduction in the number of gas explosion accidents in coal mines within two years... and resolve the problem of smaller mines within about three years."

Li, vice-chairman of the NPC Standing Committee, headed a four-month tour to check on implementation of the 2002 Law on Work Safety, paying particular attention to coal mines. He said the findings were appalling, though overall, the statute had brought positive results.

"As shown by the experience of some collieries, gas explosions can be prevented by enhancing site management and implementing a production safety responsibility system," Li said.

As smaller mines crank out one-third of China's coal production, but account for at least two-thirds of mining deaths, Li said the State Council should completely reorganize their governance and that no new small mines should be allowed to open before then.

He said regulations regarding work injury insurance should be implemented as soon as possible; all high-risk sectors, including mining, must implement an insurance system by the end of next year.

In addition to having new recruits sign labor contracts with mine operators, enterprises should also strengthen training and reduce stresses placed on workers, Li said.

(China Daily August 26, 2005)