The Cabinet will make significant changes to housing, transportation and the structure of industry and energy sources to ensure the nation’s energy security as the world enters an era of high oil prices, Premier Liu Chao-shiuan (劉兆玄) said yesterday.
Liu said the government would use the policies to force Taiwanese industry to go “green,” while encouraging the public to change their living and transport habits.
As part of the plan, all incandescent light bulbs installed in governmental buildings are to be replaced with energy-saving light bulbs within a year and retailers will be required to phase out sales of incandescent light bulbs within four years.
Within three years, all of the country’s traffic lights would use light-emitting diodes (LEDs), following the example of Singapore, the first country to install LED traffic lights nationwide three years ago.
The Cabinet also hopes to have all of the nation’s 100,000 taxis converted to use liquefied petroleum gas (LPG) within four years and to popularize the use of vehicles powered by rechargeable electric batteries, with the aim of increasing the number in use to 100,000 within four years.
The plan incorporates measures to encourage industries to adjust their energy usage, including an offer of a NT$50 billion (US$1.64 billion) low-interest rate loan from the government to help industries install energy-saving facilities and low-carbon equipment.
Liu announced the measures at a press conference at the conclusion of the Cabinet’s two-day workshop held for senior officials to draw up policies that the Chinese Nationalist Party (KMT) administration wishes to accomplish by the end of next year.
However, Cabinet officials did not address details on how to achieve the goals and their effectiveness with regards to greenhouse gas reduction and energy efficiency at the press conference.
The energy security issue was one of the five major topics discussed at the workshop.
Liu said the two main themes of the government’s policy in the future are to “ease the restrictions” on cross-strait economic exchanges that were tightened by the former Democratic Progressive Party administration and to “reconstruct” the nation by advancing major construction projects and rebuilding the public’s confidence in the government.
Liu said the Cabinet would enhance the competitiveness of industry by loosening restrictions in 20 regulations that concern cross-strait economic and trade relations, implement a tax reduction proposal and encourage private investment of NT$1 trillion by the end of this year.
Regarding relaxation of cross-strait regulations, the government will open up to a limited degree to Chinese capital, partially lift the ban on China-bound investment in the high-tech and finance industries, expand cross-strait passenger charter flights from weekends to a daily basis and implement cross-strait cargo flights and direct sea transportation.
Minister Without Portfolio Chu Yun-peng (朱雲鵬) said the government’s priority among its proposed tax cuts is to adjust the special deductions in individual income tax, to lower inheritance tax and gift tax and the income tax on profitable businesses.
Meanwhile, Liu said the government would “listen to the voice of the people” and have the public participate in the policymaking process before major policies are finalized.
Liu, however, disagreed that holding a referendum was a way for the government to solicit public opinion, saying that a “[referendum] was a method of making decisions” and not to garner public opinion.
Development and Evaluation Commission Minister Jiang Yi-huah (江宜樺) said it was possible that the government would let the people decide on controversial issues such as the continued construction of the Fourth Nuclear Power Plant and the Suhua Freeway, as long as initiators of the referendums met the requirements.
In response to Liu’s announcement, the Ministry of Transportation and Communications said that plans were under way to deliver on Liu’s promises.
“Prior to Premier Liu’s announcement, the ministry had already budgeted for all traffic lights on provincial roads to be changed to LEDs,” Director-General of Highways James Chen (陳晉源) said. “With some 92,000 bulbs to be changed, NT$500 million will be needed. Because this year our budget has been increased to NT$270 million, we are quite confident that the change can be completed by next year.”
Because of a contract between the ministry and Taiwan Power Co, the electricity bill for traditional traffic lights is at a favorable price, “so even with the LED light changes, the total electricity bill will not be reduced,” Chen said. “What is important is not whether money will be saved, but that energy use can be decreased — with the LED bulbs, only one-sixth of the electricity is needed.”
Commenting on the LPG conversion plan, Chen said the ministry is training technicians to perform the conversions.
“Taxis contribute a lot to air pollution in cities. With the conversion of all taxis, city air can be cleaned up significantly,” he said.
Additional reporting by Meggie Lu
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