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8. Intensifying job creation and social security work to further improve people's lives
Doing everything possible to create more jobs is one of the major responsibilities of the government. Our targets for 2004 are to create 9 million jobs for urban residents and get 5 million laid-off workers reemployed. We will continue to follow an energetic employment policy, focusing on effectively implementing the policies of fiscal and credit support and tax cuts and exemptions. The central government will allocate 8.3 billion yuan in this year's budget to subsidize reemployment, 3.6 billion yuan more than last year. We will expand the avenues for employment and emphasize the development of labor-intensive industries, small and medium-sized enterprises and the non-public sector of the economy, promote flexible and diverse types of employment and encourage people to find jobs on their own or become self-employed. We need to develop a fully functioning reemployment assistance mechanism, giving people with difficulties in finding jobs on their own hiring preference in non-profit undertakings funded by the government. We will support efforts of large and medium-sized state-owned enterprises to separate their secondary lines of business from their core business, turn their secondary lines into independent companies, and reassign their redundant personnel to these new companies. We will focus our support on reemployment of laid-off workers in old industrial bases, cities and industrial and mining areas whose locally available natural resources have been exhausted, and the defense industry and the coal and logging industries. We will improve our system of employment services to provide better job training and guidance and assist people to find job opportunities. This year is another peak year for college graduates entering the job market and ex-servicemen being transferred to civilian jobs, so we need to work hard to provide them with effective employment guidance and services.
We need to build a social security network suited to China's conditions and the level of our economic development. This is an important yet demanding task. We will continue to ensure the "two guarantees" and better integrate the "three-stage guarantee." We will steadily integrate the subsistence allowances for these workers into the unemployment insurance system. The existing system of basic old-age pensions for workers will be improved by combining contributions from enterprises and institutions with personal accounts. We will expand the coverage of social security in accordance with the law. We will intensify efforts to collect social security contributions from all types of participating enterprises. Governments at all levels must put greater effort into law enforcement and inspection in this regard. We will do a better job in providing subsistence allowances for needy urban residents and establish standards and criteria for eligibility. We will continue to raise social security funds through a variety of channels and manage them properly. On the basis of a review of our efforts to improve the urban social security system in Liaoning Province, we will extend them to Heilongjiang and Jilin provinces. The central government will allocate 77.9 billion yuan this year in subsidies for the "two guarantees" and subsistence allowances for needy urban residents, up 11.3% over last year. Local governments will also spend more in this area.
We will take better care of urban and rural residents with special difficulties. We will continue to improve the system of social relief and assistance and help those families that cannot afford medical treatment, tuition for their children, housing or heating in winter. We will improve the "five guarantee" relief program for childless and infirm people in rural areas and ensure funding for it. We will reduce and exempt taxes in disaster-afflicted rural areas and provide relief to the affected people who have difficulties in their production and daily lives. We will show our concern for the disabled and support programs that benefit them.
We must promptly solve problems arising from the demolition of urban residential buildings and the expropriation of farmland. When demolishing urban buildings and relocating their occupants, we must ensure that overall urban development plans and short-term construction plans are strictly followed, that the area to be demolished is defined reasonably, and that the examination and approval procedures are properly applied. Furthermore, we must improve the policy for compensating and relocating displaced inhabitants, and intensify oversight and inspection. When expropriating farmland, we must strictly limit the area expropriated and follow the plan and proper procedures in accordance with the law. We must promptly give affected farmers reasonable compensation to ensure that their legitimate rights and interests are protected.
Measures must be taken to ensure that rural workers in cities are paid on time and in full. We must pay very close attention to solving the problem of their wages being docked or not paid on time. The State Council has decided to basically solve the problems of default on construction costs and wage arrears for migrant rural workers in the construction industry within three years. Clearing up such back payments should begin with government-invested projects, but different types of enterprises should also be urged to pay off their arrears as soon as possible. Enterprises and managers that refuse to pay back wages to migrant rural workers must be held accountable in accordance with the law. We need to develop a mechanism to ensure the timely payment of migrant rural workers' wages, thereby eliminating the root cause of wage arrears. All enterprises must pay wages on time and strictly obey the minimum wage regulations. We must ensure that all state organs and institutions pay salaries and retirees' pensions on time and in full. New arrears will not be allowed anywhere. Accounts for paying salaries must be placed under stringent oversight, and budgetary funds should be used to pay wages and salaries first.
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