Industry group threatens protest

The Chinese National Federation of Industries (CNFI, 工業總會) said yesterday that it may take to the streets if its demands for a favorable investment policy and cross-strait relaxation are disregarded during a national economic conference later this month.

The prominent industry organization threatened last week to boycott the conference, citing a lack of government goodwill and respect for the industry's suggestions, with many of them not being included in the agenda of the forum.

After internal discussions, "We have decided to proceed with our attendance at the conference and its ongoing preparatory meetings to make sure our proposals are heard and understood," Liu Chih-tung (劉志棟), a CNFI director, said in a phone interview yesterday.

Scheduled July 27 and 28, the Conference on Sustainable Economic Development aims to collect viewpoints from over 150 representatives to help the government revamp its economic policy.

If the conference's conclusions are unfavorable and disadvantageous to manufacturers in Taiwan, the planned protest may take place in November as national Industry Day is set for the 11th of the month, Liu said.

The CNFI represents more than 70,000 manufacturers with a total of 3.45 million workers that they claim creates output of NT$11 trillion (US$338.6 billion).

The association made the decision to participate during an ad hoc board meeting yesterday following intensive lobbying over the past few days from government officials including Minister of Economic Affairs Morgan Hwang (黃營杉) and Minister without Portfolio Ho Mei-yueh (何美玥), Liu said.

On top of CNFI's list of priorities are relaxation on limits for China-bound investment which are currently restricted to a maximum of 40 percent of any company's net value, full opening of passenger and cargo links across the Taiwan Strait, an "unbiased environmental protection policy" with no adverse implications for manufacturing and adequate provisions for the import of foreign labor.

The industrial sector opposed the proposed energy tax, Liu said, arguing that the levy would further dent Taiwanese manufacturers' competitive edge by adding extra costs compared to its Chinese rivals.

The disadvantage coupled with a lack of cross-strait relaxation would worsen the nation's investment environment and drive manufacturing away, he added.

People First Party Legislator Christina Liu (劉憶如) said she did not expect any major breakthrough in cross-strait relaxations from the conference in the face of Taiwan Solidity Union's (TSU) boycott.

"The TSU is tough on these matters ? and it has made clear its objections to any possibility of lifting restrictions on China-bound investment," she said.