Referendum plan worries investors

President Chen Shui-bian's (陳水扁) proposal to hold a referendum on scrapping the Fourth Nuclear Power Plant sparked concern among business and academic groups yesterday about its impact on the economy.

One foreign business leader yesterday criticized the referendum plan as potentially damaging to the nation's investment climate.

"As we in the business community have always said, Taiwan needs to keep in mind [that] businessmen like predictability," said Gus Sorenson, president of the American Chamber of Commerce in Taipei. "A contract that is changed again and again shows a lack of predictability."

"This is not good for the investment climate," Sorenson said.

The government suspended construction of the half-completed Fourth Nuclear Power Plant months after Chen took power in 2000. After a three-month political standoff that dragged down the economy, the government resumed construction.

Regular policy flip-flops by the government have alienated the business community, which feels it has been left out of the loop.

"The government should consult the industrial and business sectors before making a decision on a referendum," Theodore Huang (黃茂雄), the chairman of Chinese National Association of Industry and Commerce (工商協進會), said in a statement.

Huang said he would like to know why a referendum on the plant must be held.

Wu Rong-i (吳榮義), president of the Taiwan Institute of Economic Research, was careful yesterday to say that, while he's not against the idea of holding a referendum, "The people should be provided with adequate information about the project before going ahead with the vote."

Wu, an economic adviser to Chen, said the government should let the public know how much the government has invested in the project and how big the potential loss will be if it is scrapped.

The government also owes the public an explanation as to whether a stable supply of alternative energy exists and how prices would be affected, he added.

Meanwhile, one business official said holding a referendum is not a priority as post-SARS reconstruction should be the government's focus.

"This matter concerns a promise that Chen made during his presidential campaign in 2000, but we feel the construction of the plant should be viewed as an economic issue and dealt with through an economic perspective," said General Chamber of Commerce (GCC, 全國商總) spokesman Chen Cheng-yi (陳正毅).

Another official who requested anonymity said the real problem is "politicians never know when to shut their mouths."