President Chen Shui-bian (陳水扁) yesterday defended the Cabinet's announcement to halt reform of the grassroots cooperatives, saying the decision reflects a timing adjustment.
In the face of public criticism, Chen pledged his resolve to reform and urged the Cabinet to start direct communication with farmers and fishermen to allay opposition fears so that the goal of reform will be ultimately achieved.
"The DPP would not be called the DPP if it feared reform. The course of reform is full of obstacles. To take public opinion into account, we may adjust the pace. But [the adjustment] does not mean [we] flinch from reform, nor does it mean there is reversal of the reform," Chen told the media after the DPP's Central Standing Committee.
Bowing to pressure from the KMT and leaders in the credit department of the farmers' and fishermen's associations, the Cabinet said Sunday night it would indefinitely suspend a three-tiered risk-control mechanism -- which took effect in August -- over those credit departments with outstanding non-performing loans.
The decision, which meant to be a goodwill gesture to the farmers' and fishermen's associations, appeared to please no one after it was announced.
While the farmers and fishermen's Saturday march will proceed as scheduled, opposition lawmakers have suggested that the policy turnaround is a gambit by the Cabinet to coax farmers, fishermen and DPP lawmakers to doubt the government's resolve on reforms.
The dispute took center stage at the DPP's Central Standing Committee yesterday, where the president was forced to make a public speech to clarify the government's position after the meeting.
Chen said for future generations and for the future of Taiwan, the DPP will not fear reform, nor will the DPP fear losing power due to reforms.
But he said the DPP administration had to suspend the scheme because the public still has reservations about the plan. "As long as there is doubt, it means communication is not sufficient," he said.
Chen stressed that the government needs to take its case to the public and let them know that farmers and fishermen are the beneficiaries, not the victims, of the reform.
The overhaul of credit departments with non-performing loans will help the farmers' and fishermen's associations, Chen said. "The reform will not attempt to wipe out all farmers' and fishermen's associations," he said.
The president said that the DPP gained power from grassroots politics, so it places a high regard on public opinion.
"The party hates to see opposition because farmers and fishermen don't fully understand the policy," Chen said.
He called on the executive departments to communicate directly with farmers and fishermen to provide them with thorough explanations on the government's intention to work together toward the goal.
Former president Lee Teng-hui (李登輝) was said to have played a crucial role in the Cabinet's about-face.
Lee has opposed the reform measures proposed by DPP administration. He said in September that the DPP would risk losing power if it fails to tread carefully when dealing with the credit cooperatives' non-performing loans.
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