"It sounds feasible to use land mortgage loans to start infrastructure construction, but how to repay the loan? One or two may be the first, but the bank is gradually promoting commercial operations. As long as the first one or two is difficult to convert, the later loan cannot be carried out. Does the Songzhou Municipal Government plan to use finance to pay?" Hua Youlan is skeptical about this.
The land market in early 1998 was still in a low temperature period, and not many people realized that China's real estate market was on the eve of a boom period.
One of the goals proposed by the new Prime Minister at the People's Congress was housing system reform, but they were all submerged in other more prominent topics. Not many people noticed this topic. In fact, there has been a plan for the proposal to abolish welfare housing distribution and promote the commercialization of housing, but it is just that the promotion efforts are insufficient. The demand for urbanization will be the lasting driving force for the development of real estate. This time, in order to start the domestic demand market to drive the domestic economy that is becoming weaker, it is necessary to take real action.
"Governor Hua, I mentioned to you before that my country's urbanization rate is very low. Transformation from agricultural society to industrial society will inevitably bring about urbanization. Moreover, this process will continue to accelerate with the speed of economic development. One of the fundamental keys of urbanization is to transform abundant rural labor into urban labor. Whether through study, business or work, in short, agricultural labor into labor in the secondary and tertiary industries is a major trend. The main employment area of the secondary and tertiary industries will be urban towns. If these laborers want to survive in urban towns, the most basic factor is
It is housing, so it is the government's responsibility to continuously provide housing for these new populations, but the district needs to use market-oriented principles to allocate, and the government needs to guide and promote it. Then, in terms of land supply, the government can use various policy measures to adjust, and the government can also use the monopoly of land resources to obtain funds and invest these funds in more infrastructure construction. In order to open up a larger land market to ensure needs, I think for the moment, this cannot be regarded as the most virtuous cycle, but it is the most realistic strategy."
Lu Weimin's explanation made Hua Youlan fall into deep thought. There is no doubt that Lu Weimin's intention is to monopolize the land market and then use the decision-making power of municipal facilities to guide the development direction of urban construction, thereby enhancing the land value, allowing the land to increase its value, and even processing and value-added on the ancillary buildings on the land. This will develop in a rolling manner to realize urban infrastructure construction.
This idea is of course beautiful, but the premise is that it must be based on the thorough commercialization of the housing system and the acceleration of the urbanization process. Another factor is that the industrial economy of a city must have full development in order to attract enough foreign labor to enter the consumer market.
If the size of the city is concerned, Songzhou's foundation is undoubtedly sufficient, but Songzhou's economic development has been weak in recent years, Hua Youlan still attaches great importance to Lu Weimin. He also knows that he has a good economic situation, but it is difficult to go against the will of one person. There are too many variable factors, and the idea proposed by Lu Weimin sounds quite realistic. However, the policies of the senior management have been released and must be implemented in the following reality. There are many bonding factors in it, such as the opinions on housing commercialization mentioned by Lu Weimin have long been there. But it has not been truly implemented...
Lu Weimin saw Hua Youlan's concerns. Indeed, the various opinions and plans for housing system reform have not been there for a day or two. The progress in various places is very slow. Will the implementation of policies be accelerated suddenly because of the establishment of the new central government? This is also an unknown. However, Lu Weimin knew the iron-fisted method of the new prime minister and his courageous killing style of doing what he said and doing will soon make people look at him sideways.
"Governor Hua, I heard that our new Prime Minister is not a sympathetic person, and his style of doing things is different from others. The things he has finalized must be implemented. It is a bit like not saying it or saying it. The current domestic economic situation is affected by the Southeast Asian financial crisis. Foreign demand is sluggish and exports are affected, but domestic demand cannot find a suitable export to drive it. I learned from an acquaintance at the Development Research Center of the State Council that housing system reform may be the key action of the central government, which is to stimulate the real estate market to drive economic development. I am more confident about this."
Lu Weimin's words made Hua Youlan stunned, and her eyes looked at Lu Weimin with a little more appreciation. "For the people, okay, the relationship has reached the State Council. It's so unsure. I know this. But I'm very worried that you will be addicted to financing and will not be able to control your appetite. This financing platform under the background of the government is actually designed to evade relevant laws, but in the final analysis, the government must pay the bill. It is an invisible debt. If you use it well, it will probably bring hidden dangers. Whether you go back, you must report and study it carefully like Secretary Quanzhi and Mayor Yunsong. How to operate it is the key."
When Hua Youlan let go, Lu Weimin felt much more relieved. Logically speaking, setting up a financing company at the municipal level does not require provincial approval. This thing is still a new thing in Changjiang. Although there are also companies such as provincial investment companies, provincial tourism companies, etc. in the province, none of these companies are invested and developed by industrial enterprises, which is completely different from the financing platform companies that rely entirely on government reputation or land for financing.
It is precisely because it is a new thing and the risks behind it are not unavailable for anyone to see. Now that I am famous, it is easy to imitate other cities and cities. Once the risks appear, I may become the target of public criticism. Therefore, I report to the province in advance, give a vaccination, and say ugly things in front, so I can also be cleared to the greatest extent.
"Governor Hua, you are right. The quality of a new thing is not in itself, but in whether it can operate well and be used well. Our city lacks financial resources. However, to develop the economy, our infrastructure is backward and to attract foreign investment, we must change ourselves. Therefore, we must obtain development funds through various channels and accelerate development. I also know that this financing platform is a double-edged sword. If it is used well, it can indeed promote local economic development. If it is not used well, it is another big hole. Just like the alloys in various places. The key is how to control it so that it will not be out of control."
Lu Weimin's words made Hua Youlan feel deeply. It is not easy for a 30-year-old cadre to make innovative moves, but more importantly, he can see the risks behind an innovative move and warn in advance. Although it is worthy of praise for his determination to reform and innovation, it is even more gratifying. Lu Weimin's ability to serve as the executive vice mayor of Songzhou is also a good steel. The relationship between Shang Quanzhi and Tong Yunsong seems to be a bit drifting, but he can still maintain a peace. With Lu Weimin's impartial strength, working hard, Songzhou, an old city that has been in decline for a long time, may usher in a turning point.
"Is the stall too big?" Tong Yunsong carefully read the plan submitted by Lu Weimin. Although he had listened to some Lu Weimin's introduction before, when the plan was released, Tong Yunsong was still a little worried. "According to the current central government's policies, local governments should not intervene in the operation of industrial industries, and they cannot invest. Will we do this..."
"Mayor Tong, Songzhou is a big city with an urban population of more than one million. According to the long-term plan, our urban population will reach three million. This means that according to the minimum standards, our main urban area planning will also be expanded to more than three times. Scientific planning may reach five to eight times the current urban area. The per capita housing area of our domestic urban population is seriously low. This means that with the development of the economy and the improvement of people's living standards, the demand for housing will become increasingly prominent. This requires us, as the decision makers of a city, to plan in advance,
And if it is a forward-looking plan, and the commercialization of residential buildings is the general trend, but residential buildings are a special commodity. Some special groups may gradually become marginal people as the city progresses faster. They cannot afford to buy houses and do not have the opportunity to share houses. However, we have no right to deprive them of their right to live. Therefore, in specific circumstances, the government still has to assume a obligation, which requires our city to have an enterprise that can provide a funding platform for our urban construction, and this enterprise should also have the ability to perform some specific functions in the city."
Lu Weimin's explanation failed to reassure Tong Yunsong. He pondered for a moment and said, "Weimin, I know your idea, but if these two platform companies want to realize the functional functions you mentioned, they are afraid that the scale will not be small, and your requirements are so high, can they do it? You know the financial situation in the city better than me. If you want the municipal finance to finally take over the stall and provide a guarantee, it will be difficult for you and I to explain."
Tong Yunsong is a good person, but his cautious and weak personality can even be said to be conservative. Fortunately, Tong Yunsong also has a great advantage, that is, he is good at obeying different opinions, and he is willing to accept it as long as he can convince him.
Lu Weimin took a light breath and considered how to brew words to convince the other party.
Four hundred votes for the goal, brothers give me strength! (To be continued...)