Wen Jiabao: Confident That Prices Will Return To A Reasonable Price.

Standing Committee of the Political Bureau of the CPC Central Committee and Premier of the State Council

Wen Jiabao made this statement today when the Central People's Broadcasting Station participated in the program to return to the disaster area, the voice of China action.

Wen Jiabao said that in my interview last year, I promised to the masses that in my term of office, we must keep house prices at a reasonable level, and I will work hard to achieve this goal and never shrink back.

This year, we have adopted ten measures and five measures. Now we see that the implementation is not good enough. We will continue to intensify our efforts from two aspects. First, we should increase the construction of affordable housing. That is to say, the affordable housing we will start this year will be 5 million 800 thousand sets, and 3 million 700 thousand sets have been completed. Next year, we will start 10 million units, which include public rental housing, low rent housing and shanty towns pformation.

The second effort is to curb speculation. This is mainly based on the leverage of credit and the strengthening of land management. The land must first guarantee affordable housing, and we must strictly manage the use of speculative land.

I believe that after a period of efforts, the price will return to a reasonable price. I have this confidence.

About this year, some people say that "the prime minister has said nothing, the general manager has the final say", Wen Jiabao said that this method is inaccurate and not comprehensive.

In terms of housing prices, there should be a part of the government that should be managed. There should be a part of the market that should be managed. The prime minister should mainly manage the affordable housing, and solve the problem of the middle and low income people.

We should let the masses know a truth. China has a large population, few land and live in residence, but it does not mean that everyone has their own housing. Some graduates and some migrant workers can adopt the way of renting houses first to solve the housing problem. The rental price should be reasonable and the conditions should be perfect so that they can live in a convenient way.

When some netizens asked about the problem of "rising prices this year", Wen Jiabao said, "netizens, your words hurt my heart."

He is honest. Indeed, prices have risen recently in the whole country, and it is even more difficult for middle and low income people to live under the situation of rising prices.

"We are fully capable of controlling the overall level of prices," he insisted.

Wen Jiabao said that the government is fully confident that it will tide over the difficulties with the masses. We all know that in a word, "inflation expectations are more terrible than inflation itself". When inflation is concerned, we must establish confidence, fully recognize the favorable conditions, and take prompt and forceful and decisive measures to stabilize prices.

Of course, the most fundamental thing to solve prices is to maintain a balance between supply and demand, which needs to continue to develop production. The central government has formulated various measures to support agricultural production, and established the "Mayor responsibility system for vegetable basket", "the responsibility system for governor of rice bags" and "the implementation of local responsibility system".

Wen Jiabao said, "I believe that through hard work, we will be able to keep prices at a reasonable level. I am the main leader of the government, and I have the responsibility and I am confident."