Pan Yue, vice-minister of the administration, said the environment is being damaged by officials who ignore environmental protection measures.

He said prosperity can not be built at the cost of environmental pollution and ecology must be a priority when promoting sustainable development of the regional economy.

The serious pollution has led to complaints from local residents.

Working on a tip-off, the country's environment watchdog dispatched a group to inspect several enterprises in the region and the result was shocking.

The investigation revealed that all seven examined steel companies lacked environmental protection approval and were built illegally.

Also, as none of the factories had facilities to deal with pollutants, drainage was also a problem.

Much of the production equipment used was out of date and prohibited by the State.

To make things worse, some enterprises were currently establishing laggard producing facilities.

Pan Yue said these companies naturally go after maximum profits.

The local steel industry has been booming since 2000.

While the local officials hail the fast growth of the economy, they often overlook the polluted environment and damaged ecology, Pan said.

China has laws on environmental protection, but for a long time they have not been fully adhered to or effectively enforced by local government officials.

As local government's pursuit of economic growth and protectionism often takes an upper hand over environmental protection, a regional economy is thus developed that puts little value on environmental protection.

The obsolete mode of industrial development should be abandoned and the local government should take a leading role in pushing a healthy and scientific economical development.

Pan said tougher punishment is necessary to cure this persistent disease of pollution.

Pan said heavy polluted steel enterprises would be shut down and severe financial penalties imposed to deter illegal behaviour.

(China Daily August 24, 2004)