Critics oppose subsidies

A proposal to broaden a subsidy program for senior citizens to those already covered by labor insurance would be too expensive, critics said yesterday.

Premier Yu Shyi-kun and legislators from across the party lines support extending the program -- which provides NT$3,000 monthly to low-income seniors.

But academics and former officials say expanding the subsidy -- although politically popular -- would put to much stress on an already cash-strapped government.

"Those ruling and opposition officials who support broadening the program are being irresponsible," Lai Shyh-bao (賴士葆), a former legislator for the New Party, said yesterday.

"The politicians are just thinking about the elections and totally ignoring the government's financial difficulties," said Lai, who is now a business administration professor at National Chengchi University. "The elderly pension program should not have been implemented in the first place."

The elderly welfare subsidy is an interim measure until a national pension program can be established. The legislature passed the NT$16 billion stipend program and the Temporary Provisions for the Elderly Welfare Subsidy in May.

The means-tested program is for Taiwanese 65 or older. Due to their shorter life expectancy, Aboriginal Taiwanese can be 55 to qualify. But seniors covered by the labor insurance program or other pension programs don't qualify for the monthly subsidy and want to be included.

"If this is a transitional measure, then we should complete the establishment of the national pension program before releasing the elderly pension. But where is the national pension program?" Lai said.

The Ministry of the Interior is still drafting plans for the program.

The Council of Labor Affairs supports the plan, while Minister of the Interior Yu Cheng-hsien (余政憲) has said the cash-strapped government cannot afford an expanded program.

If the subsidy program is broadened, the government would need another NT$5.6 billion annually to cover an additional 156,000 beneficiaries.

Yu is worried that if the program is expanded to those already covered by the labor insurance program, other groups will demand to be included as well.

Statistics show there are roughly 2 million people in Taiwan who are 65 or older, accounting for 8.5 percent of the population.

DPP Secretary-general Chang Chun-hsiung (張俊雄) said on Saturday the DPP has decided to extend the current program in response to the complaints of elderly retired workers.

TSU Legislator Chien-Lin Whei-jun (錢林慧君), who supports expanding the program and has received backing from roughly 73 other legislators across party lines, says it's the government's responsibility to care for the nation's needy elderly citizens. "The fact that this group is provided with a retirement pension is no excuse for the government to take less care of them," the lawmaker said.

The KMT and PFP legislative caucuses have also expressed support for the expanded subsidy.

But James Hsueh (薛承泰), a professor in the Department of Sociology at National Taiwan University, said lawmakers are just hoping to win votes by broadening the program.

Hsueh added that the government should monitor how senior citizens use the pension and evaluate whether it is money well spent. "What the government needs to provide to seniors is social welfare services, such as free medical care, but not money," Hsueh said.