As China's economic reform and development were at critical point those attending a high-level symposium on Thursday agreed that reforming and standardizing the country's income distribution system was significant for the country. 

President Hu Jintao, also general secretary of the Central Committee of the Communist Party of China (CPC), presided over the symposium where China's democratic parties, the All-China Federation of Industry and Commerce and non-party personages were invited to give their views on the upcoming income distribution reform.

A release from the symposium said that the CPC would "seriously consider and absorb" the comments and advice which Hu said were "full of insights".

Calling the reform "an important issue in China's political and economic life" Hu said in a speech that the CPC Central Committee would strive to defend social equality and close the wealth gap by raising the income of the low-paid, expanding the middle classes, wiping out illegitimate incomes and putting a curb on excessively high salaries.

A source close to the meeting said that reforming the payment system for civil servants was high on the agenda of the symposium.

Under the Civil Servants Law implemented on January 1, China must have a uniform salary system across the country. This would mean there would be no gap in salaries for civil servants of the same rank.

Currently the salaries for civil servants of the same rank depends, to a great extent, on healthy local government finances and therefore their salaries can vary from region to region. To remedy this Hu proposed that additional funds be made available to civil servants working in poorer areas. 

He said that "a rational and scientific" salary system for civil servants and "a reasonable pay rise mechanism" not only suited China's economic system but would also help secure a steady and robust civil service and facilitate reforms of the income distribution system across the country.

Hu said the core issue was to establish a good framework which could turn wages into effective incentives inspiring civil servants to serve the country honestly and industriously. The framework should also include a system that would penalize those who violated their positions, he said.

Hu said that China faced "a rather complicated situation" while advancing the salary reforms for civil servants. He indicated that things must proceed from the current actual situation and a plan should be mapped out allowing the country to take the very first step and make continuous improvements.

He said that to resolve the salary issue of civil servants efforts should be made to coordinate the interests of all walks of life especially those on low-incomes so that "the achievements of China's economic reform could benefit everyone".

To phase out the disparity, Hu said, policies had to be enacted with the full consideration of the needs of those at the grass-roots and living in remote and poverty-stricken areas.

He said the pensions of retirees from public institutions should be adjusted to a more reasonable level while those for retired company employees required to be increased. 

Hu also indicated that stipend levels for disabled servicemen, family members of revolutionary martyrs and servicemen, retired veterans and cadres and the basic subsistence for urban dwellers required adjustment. 

Given that the reforms concerned the interests of all Chinese, Hu urged democratic parties, the All-China Federation of Industry and Commerce and people with non-party affiliations to keep a close watch on the issue and relay the opinions at the grassroots level to the appropriate government departments. 

Jia Qinglin and Zeng Qinghong, members of the Standing Committee of the Political Bureau of the CPC Central Committee attended the symposium at which Premier Wen Jiabao addressed the issue of income distribution reform.

(Xinhua News Agency July 7, 2006)