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KMT slams CPC over surging oil prices

Skyrocketing oil prices and a planned increase in domestic gas prices were at the center of political squabbling yesterday as the Chinese Nationalist Party (KMT) caucus threatened to freeze the power of the state-run CPC Corp, Taiwan (CPC, 台灣中油) to hike gasoline prices. The engine capacities of government vehicles also came under intense scrutiny.

Minister of Economic Affairs Steve Chen (陳瑞隆) confirmed at a legislative question-and-answer session yesterday that the ministry would "adjust" gasoline and diesel prices by NT$0.7 per liter tomorrow, but guaranteed that prices would still be "lower than those in neighboring countries."

KMT Legislator Lai Shyh-bao (賴士葆) responded by saying that the caucus would propose freezing CPC's authority to hike gasoline prices during the legislature's Economics and Energy Committee meeting today.

Lai said that CPC had made a NT$20.2 billion (US$623 million) profit in the first nine months of the year -- almost NT$2 billion more than its target profit for this year.

"We don't understand why the CPC [as a state-run firm] insists on earning more than its profit target," Lai said. "Why does the company have to increase oil prices now that people are suffering from rising commodity prices?"

At a separate setting, Democratic Progressive Party (DPP) presidential candidate Frank Hsieh (謝長廷) said yesterday that he would talk to the premier about the planned hike in fuel prices.

Hsieh said he was in favor of government intervention in controlling oil prices, but only for a short period of time. Long-term intervention is wrong, he said.

He said it was the government's responsibility to care for public needs.

"The job of the government is to take good care of the people," he said. "There is an old saying that goes `treat the people like patients.' The government must be concerned about public interest to avoid hurting the people."

He added, however, that it would not be practical for the government to hold back fuel prices when it was time for them to rise.

Oil prices fluctuate as a result of international factors and market forces, and these affect domestic prices because Taiwan does not produce oil, he said.

Meanwhile, the economics minister apologized to the public for his remarks on Monday that people who own big cars should change to smaller ones in light of rising gasoline prices and that his car -- a 3-liter Toyota Camry, was only a "compact car."

When approached for comment on his way to the legislature, Chen said the remark was only a suggestion on how to save energy in response to soaring oil prices.

"If the public considers my comments inappropriate, I certainly deserve criticism, but that was not my intention," Chen said. "If I had failed to communicate my intention clearly, that was because I was not eloquent enough."

Chen said he called his 3-liter car "a small car" because he was comparing it with a bigger vehicle that the government had offered him, which he did not take.

"I am very sorry if my remarks caused public confusion," he said.

Chen became the target of criticism from the pan-blue camp and the media yesterday over the remark, which was made during a question-and-answer session in the legislature's Economics and Energy Committee.

Chen was then questioned by KMT legislators Lwo Shih-hsiung (羅世雄) and Lee Ching-hua (李慶華) about how people should cope with the fuel price hike.

Steve Chen answered that people should get rid of their big cars and buy "compact cars" or take public transportation once or twice a week.

Lee then urged government chiefs, who were offered mid-size or luxury vehicles by the government, to take the lead and start using smaller cars in line with Steve Chen's suggestion.

Responding to reporters' questions while leaving the legislature, Steve Chen said he had a "compact car," referring to the 3-liter Camry.

CRITICISM

However, the KMT caucus blasted Steve Chen yesterday, saying the government had failed to follow its own policy.

Showing a press conference a list of official cars allocated to government chiefs, KMT caucus whip Kuo Su-chun (郭素春) said that government chiefs could not sympathize with the people, because they all have official automobiles.

"If [Steve] Chen's car is really a compact car, then the people's small cars should be considered `toy cars,'" Kuo said.

LINCOLNS

Kuo's list showed that President Chen Shui-bian (陳水扁) and Vice President Annette Lu (呂秀蓮) use 4.6-liter Lincolns, while Premier Chang Chun-hsiung (張俊雄) and Minister of National Defense Lee Tien-yu (李天羽) use 4.6-liter Cadillacs.

In response to the KMT's criticism, Cabinet Secretary-General Chen Chin-jun (陳景峻) said the Cabinet has not been allowed to purchase cars with an engine capacity greater than 3 liters for ministerial-level officials since 2001.

PRICE LIMITS

Referring to measures adopted by the government to conserve energy and cut costs, Chen Chin-jun said the upper limit for the value of cars for ministerial-level officials had also been lowered from NT$1.4 million (US$43,000) to NT$1.2 million since 2001.

In addition, starting next year, the government will stop dispatching cars to transport senior-level civil servants to and from work, Chen Chin-jun said.

He said the Environmental Protection Administration had also been promoting the use of hybrid cars as part of an energy conservation campaign.

He said that many of the cars with large engine capacity -- such as Cadillacs -- now used by Cabinet members were purchased before 2001 and that the vehicles have not been replaced because they have yet to reach the end of their service life.

Accusing Chen Chin-jun of lying, KMT Legislator Wu Yu-sheng (吳育昇) said the Cabinet had earmarked NT$4 million from last year's budget to purchase a car for Hsieh and that almost all the cars currently used by ministerial-level officials have engine displacements of more than 3 liters.

NEW CARS?

Kuo said that a new car purchased for National Security Council Secretary-General Mark Chen (陳唐山) was a 4.3-liter Japanese-made sedan, while another one purchased for Mainland Affairs Council Chairman Chen Ming-tong (陳明通) was a 3.5-liter car, which cost more than NT$1.2 million.

Asked to comment, Chang said that classifying car sizes according to engine capacity was a "technical matter," adding that the main point was to use cars that consume less energy and cause less pollution.
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