China considers fairer land expropriation compensation

China's top legislature is considering fairer recompense for farmers whose land has been expropriated, by breaking the legal compensation ceiling and covering them with a social security package.

A draft amendment to the Land Administration Law, submitted to the bimonthly session of the Standing Committee of the National People's Congress (NPC) for its first reading on Monday, addresses the outstanding problems in land expropriation.

Song Dahan, director of the Legislative Affairs Office of the State Council, said current legal compensation methods have deficiencies including "low compensation standard, rigid regulations and a lack of guarantee for the farmers' long-term livelihood and social security."

"Illegal expropriation of rural land frequently occured in some regions. It has become a prominent problem endangering social stability," said Song when briefing lawmakers on the draft.

The draft amendment, which focuses on Article 47, proposes to give "fair compensation" to farmers to "ensure their living standards improve and their long-term livelihood is guaranteed" after land expropriation.

"China is still at the stage when a rural land market has yet to be formed," Song said.

"Fair compensation" means the standard should be set by taking more factors into consideration such as the land location, supply and demand relationship, level of economic and social development, and social security fees instead of only taking into account the annual output of the land before it is expropriated, Song said.

The draft amendment removes the compensation ceiling for rural collective land expropriation which says compensation and relocation subsidies should be "no more than 30 times the average annual output of the land for three years before it is taken."

The ceiling was no longer in accordance with the current economic situation. Many localities have seen compensation standards exceed the current ceiling, Song said.

The draft amendment also includes fees of social security as a new form of compensation.

Farmers, whose land is expropriated and with difficulties in finding a job, could enjoy preferential policies concerning professional training, employment guidance and help in looking for work, Song said.

They could also get subsidies which will be added to their personal accounts to enable them to enjoy better old-age insurance, according to Song.

In addition, the draft amendment sets down the principle of "Compensation and relocation first, expropriation later," Song said.

No expropriation can be conducted before compensation has been paid out, according to the draft amendment.

It entrusted the State Council, the Cabinet, to work out detailed measures for compensation and relocation in land expropriation and provincial-level regions could set down their own standard.

Protests over land seizures have occurred in villages across the country in recent years, prompting calls for better protection of farmers' property rights.

In a keynote report to the 18th National Congress of the Communist Party of China last month, Chinese leader Hu Jintao pushed for reform of the land expropriation system and the increase of farmers' share of gains in land value.

Dang Guoying, a Rural Economy Institute of the Chinese Academy of Social Science researcher, said the Land Administration Law is like the constitution and basic law in field of land.

"Land expropriation is a transfer of production factors. Relevant parties should do their best to conduct the transaction in accordance with market principles," Dang said.

"The draft amendment sets the guiding principles for the State Council to introduce regulations concerning land expropriation compensation," Dang added.

The Land Administration Law was passed by the top legislature in 1986.

The session is being held from Dec. 24 to 28.