(China Daily)
Updated: 2007-09-10 06:53

The fat profits of monopoly companies should be used toward public welfare, says an article in Beijing Youth Daily. The following is an excerpt:

Bi Jingquan, vice-minister of the National Development and Reform Commission (NDRC) said that the consumer price index (CPI) growth in August could be even higher than that of July. The CPI - a key gauge of inflation - hit a 10-year high of 5.6 percent in July.

Although no serious inflation is foreseen, price hikes have affected the public, especially low-income earners.

At a time when incomes are increasing only gradually, the government should consider how to minimize the affects of price rises.

To deduct part of the exorbitant profits of monopoly enterprises to reimburse the public purse could be a possible way.

Because of their monopoly status these State-owned companies should contribute more to society. They account for almost 70 percent of the nation's top 500 companies.

The government should set up a scheme to transfer some of their profits to benefit the public. A certain percentage of their profits should be deducted annually.

The money could go toward setting up a price adjustment fund to help low-income families and other disadvantaged groups.

Of course this is only one way to deal with the increasing income gap and prices.

Stable employment and pay rises are also important for the less well off. A fair social distribution mechanism is of vital importance.

(China Daily 09/10/2007 page4)