Section 4 Carrying out Preferential Policy, Modifying Charges, Reforming Systems

A. Put forward an initial implementation of "Supporting Post by Post"

In 1984, the instructions of the State Council and suggestions about "7th Five-Year Plan" clearly put forward the policy of preferentially developing post communication. The new situation appeared that all aspects over the whole country supported and attached importance to post development. For post communication, leaders of the central government instructed post department to focus on management, construction, and services, which forcefully promoted the modification of post work. 

Zhu Xuefan, vice chairman of the
Stand Committee of National People's
Congress (SCNPC) debriefed on the
report of Beijing Post Administration
Bureau

On Jan 8, 1986, MPT reported to the Leading Group of Finance and Economy of the Central Government that post industry was lack of the ability of self-modification and self-development due to the low postage and low benefits. By then, post communication ability was scare and difficulties were great. MPT requested the government to take some measures in supporting post transportation ability, transportation charges, newspapers and periodicals service charges, postages and construction capitals. The Group of Finance and Economy decided to carry out the policy of "supporting post by post": (1) Post construction investment was decided by the National Planning Committee which carried out the same method toward Civil Aviation, changed financial allocation to loan, 10% of which should be returned. (2) All profits turned over by MPT to the state would be returned to post. (3) Post office should not be at a loss in party newspapers and periodicals service. The ministry of Finance would discuss with the Price Bureau to give solutions. (4) Solutions would be given toward the problem that the Price of post transportation by air was higher than that of freight transportation and the problems of increasing post carriages on train and further importing trucks by the National economy Committee and relative departments.

To carry out the policy of "supporting post by post", at the beginning of March 1986, MPT held the National Post Conference, determining that post would be greatly developed during "the 7th Five-Year-Plan', and construction capital would be poured into post. Investment would be 1.5 billion Yuan, which increased by over 2 times comparing to that in "the 6th Five-Year Plan". To further enforce the vitality of post, and accelerate development and construction of post communication, besides carrying out the preferential policies rendered by the state, MPT also worked out a series of measures of increasing post construction capitals: (1) The profits were all kept for use in post except those turned over to the state as energy and communication funds. (2) Profits of stamp-issue and capitals for developing new post technologies were all used in post. (3) 1% of the post income was drawn to be the maintenance capital, used in post offices of urban and rural areas. (4) Considering that postages were not modified and post Profit was low, in the modification of economic accounting system of post enterprises, MPT carried out unified profit rate for all professions to encourage post to do well. All those measures made post obtain tens of millions capital more: than that in the past. With the increase of post investment, it enforced financial forces and vitality of post to some extent.

Meanwhile, MPT earnestly solved the problems raised by the Group of Finance and Economy. For example, CAAC soon cut down the price of post transportation by air. The problems of increasing post carriages on train and importing large trucks were all solved. Modification of charges also received progress. The another major measure by which the government supported post was to approve the resume of postal savings business. From 1985, 12 cities started to open up postal savings. The policy of "supporting post by post" accelerated the progress of postal savings. From April l, 1986, Postal savings were officially opened up all over the country. Taking advantages of large amount of post offices, low-cost, fast-profit, Post opened up postal savings business. It developed rapidly and became an important business of post.

The Policy of "supporting post by post" indicated that the government started to attach importance to the development and construction of post, and provide many preferential policies and financial support, which provided favorable environment for post communication development.

B. Modification of postage

Since the foundation of the People's Republic of China, postage hadn't been modified for several decades. After the reform and opening up to outside world, prices had changed a lot. Post production expenditure had greatly risen. The differences between Postages and prices were getting larger and larger. Post economy was in difficulties. Post production abilities were scarce. It couldn't expanded reproduction, even couldn't maintain simple reproduction. The instructions on post from the State Council in 1984, pointed out that "it was imperative to modify postage, otherwise enterprises would have no vigor and post industry couldn't develop". Postage modification was widely supported by the Public. professor Yang Jike, the deputy of NPC put forward the resolution about postage modification to NPC, and led a special project group to research on post efficiency and postage modification.

The Price Committee of Communication and Transportation Society of China actively Promoted postage modification. It held a symposium on postage modification in Dalian, which energetically appealed to postage modification as soon as possible.

Considering the difficult situation of the newspaper and periodical service, under the direct coordination of the Office of the State Council, after the discussion for about one-year, the National Economy Committee, Central Publicity Department of CPC, the Ministry of Finance, People's Bank, the National Price Bureau, the Ministry of Post and Telecommunications, jointly put forward the plan of modifying the issue charge rate of newspapers and periodicals respectively to ease the difficulties of post issue departments. After the approval of the leaders of the State Council, on Feb 3, 1987, MPT, the Ministry of Finance and the National Price Bureau officially sent out "the Joint Announcement of Modification of Issue Charges Rate of Newspapers and Periodicals". On April 9, MPT and the National Price Bureau jointly held a conference call, requiring post departments to earnestly carry out the work of postage modification. It was approved by the State Council to raise domestic postages from July 31,1990. This was the first time to modify postages since 1950. It included: (1) For ordinal mails of 209, postage was raised from 4 fen to 10 fen within local area, 8 fen to 20 fen outside the area. Large amount of book catalogues and subscribing sheets of the public houses approved by Xinhua Book Store and the National News Publishing Office were given 20% preferential price of the raised ordinary postages. (2) Postage for Printings of per 100g was raised from l.5 fen to 4 fen within local area, 3 fen to & fen outside the area. (3) Register fee of mails was raised from 12 fen to 30 fen. (4) Postage of parcel was raised by 150%.

The range of this postage modification was large. It initially changed the situation of low postage in the past. After the postage modification, post enterprises still was low-profit, its difficult and tense situation was not completely solved, but it played its role in improving post operation and increasing income.

C. Reform on stimulant system

In 1980s, post faced the hard work of reforming operation system and management system. Post was a kind of social production, with unified business, postage standards, regulations and operation regulations. Therefore, post reform stuck to the principle Of starting from Practice, from simple to profound, progressing in Proper sequence, popularizing after trial. In 1980s and the beginning of 1990, reforms were made mainly in operation, management and stimulant system:

Firstly, to widen the self-determined authorities of enterprises, to enforce the enthusiasm of developing business, to increase income. According to "the regulations of enlarging self-determination authorities of industry enterprises" issued by the State Council, MPT drew up the regulations of enlarging the authorities of provincial administration bureaus in 12 aspects of operation development, local Postage standard, investment plan of capital asserts, material Provision, capital usage, and organization setup, which strengthened the vitality of enterprises.

Secondly, to fully carry out economic accounting and enterprise operation contracting system. From 1985, according to the quantity of products of each enterprise, income, benefit and deficit were calculated to check its production activity. This new account method broke "the equalization", and solve the problem that labour expension didn't fit for the income in the enterprises. Since 1987, on the basis of economic accounting system, enterprise's contracting operating system was carried out. It set up forget accounting and checking system, made clear the task, authority and benefit, and paid attention to the benefits of the state, enterprises and staff, which mobilized the enterprise's enthusiasm of developing business, increasing income and economizing expenditure.

Thirdly, to reform employment system Since 1982, MPT had carried out farmer-contracting worker system of "periodical change" as a trial to recruit rural postmen. Since 1984, it carried out the contract system of recruiting rural postmen from farmers. In 1986, it carried out labor contract system in recruiting workers in urban areas. By the end of 1980s, competition system had been inducted to labour management in enterprises. In 1990s, it carried out "Labour Contract System" and "Competition for Positions" systems. These reform measures mobilized the enthusiasm of enterprises and workers, effectively controlled the over-speed increase of workers.

Fourthly, to reform internal distribution. From 1983 to 1985, MPT undertook the reform on salary system. In 1986 and 1987, post enterprises carried out "the method of lumping together the total amount of salaries" within the range of the national plan as a trial. In 1988, it carried out the distribution system of "labor connecting to profit" which connected total amount of salaries to business quantity and profit. This contribution system was modified in 1990s and became the forceful leverage in improving enterprise operation and improving productivity and promoted the rapid increase of post business and post income, greatly raised the salaries and welfare of workers.