It is the first time that the ministry, which still monopolizes railway transport across the country, has been brought to court in this way.

The Beijing and Shanghai railway administrations and the Guangzhou Railway Corporation (Group) are defending the case with the Ministry of Railways.

Lawyer Qiao Zhanxiang claimed that the Ministry of Railways' practice of raising the railway ticket price by 20 to 30 percent during the Spring Festival peak travel period was illegal because it does not have the right to raise prices.

He insisted that the price hikes did not get the approval of the State Council, which only indicated that its relevant leaders had read the relevant document.

The decision of the ministry has violated the legitimate rights of the consumers, including himself, said Qiao.

In a reply to Qiao's request for administrative review, the ministry said the decision to raise prices was approved by the State Development Planning Commission and the State Council.

The reply also dismissed Qiao's complaint, saying that the ministry had followed the Pricing Law, carried out investigations and listened to public opinion.

The ministry challenged the court yesterday, saying it did not have jurisdiction over the case because the decision to raise ticket prices was an "abstract administrative act."

China's Administrative Procedure Law does not include cases of abstract administration acts, which usually refer to the promulgation of administrative regulations that do not have specific people as their target.

After an entire day of public hearing the court failed to reach a verdict.

The Ministry of Railways has often raised prices during the Spring Festival, when Chinese people nationwide travel home. Although other means of transport, such as buses and aeroplanes, are also available, trains still dominate because of their speed and low price.

(China Daily 07/04/2001)