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Pan-blues thwart privatization plans

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The legislature passed a budget for the state-run enterprises yesterday after what had turned into a legislative showdown.

The government had originally proposed that NT$44.2 billion gained from profits in Taiwan Power's sale of stock be used for privatization and that NT$30.3 billion from Taiwan Tobacco and Liquor's stock sale be used for the same purpose. However, members of the Chinese Nationalist Party (KMT) and People First Party (PFP), as well as members of the Alliance of Independent Lawmakers, opposed both measures. The Taiwan Solidarity Union also opposed the Taiwan Power plan.

"This will affect the both companies' financial positions this year and cause financial difficulties for the treasury," Democratic Progressive Party (DPP) caucus whip Ker Chien-ming (柯建銘) said.

"Privatization of state-owned businesses has been a long-term policy objective ever since the KMT administration. The move toward privatization won't be halted no matter who is in power. Yet the pan-blue caucuses want to please the state-owned businesses' unions. Even so, their act might not earn them more votes," Ker said.

Although the DPP lost on the privatization vote, it won a vote on a NT$3.8 billion subsidy for Chunghwa Telecom's (中華電信) cellular phone business despite the PFP's earlier vow to oppose the plan.

If the subsidy had not been passed, Chunghwa Telecom would not have been able to offer its customers special packages involving inexpensive mobile phones.
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