Taipei Times: Since the DPP came to power in May 2000, it has been harshly criticized by both opposition parties and the public for poorly managing the country. What do you think of the criticism?
Yu Shyi-kun: I'm well aware that most of the criticisms are targeted at the economy. Two factors are attributed to the economic doldrums: the unique structure of the domestic markets and the global economic downturn.
To solve the two problems once and for all, we launched the six-year, NT$2.6 trillion national development project in May this year followed by many other economy revival measures. As the international economic climate is projected to gradually rebound, I'm confident that the public will eventually enjoy the fruits of our labors.
PHOTO: CHIANG YING-YING, TAIPEI TIMES
One thing I'd like to point out here is that the DPP-led government is much more efficient in terms of carrying out government policies than the previous KMT administrations.
To name a few, the expansion of the No. 9 provincial highway will soon be completed while it should've been completed six years ago during the stint of then Taiwan Provincial Governor James Soong (
The Northern Second Freeway should become operational by the end of the year. One thing worth mentioning about this project is that it cost the government NT$20 billion less than was originally projected.
One of the reasons that people don't feel the immediate resuscitation of the economy is because many of the undertakings don't have direct relations with their everyday life. Regarding such endeavors as administrative neutrality, realization of human rights and sustainable development of the environment, it may take some time for the public to eventually realize the effects.
TT: You've said that the next seven months will be a time of harvest. What achievements do you think the government can show to the public in the run-up to the presidential election?
Yu: While we've made many achievements over the past three years, I'll just touch on some of the areas most people might be most concerned about.
First of all, the economic growth rate is projected to be lowered from last year's 3.6 percent to 3 percent by the end of the year. The jobless rate, which hit a record high of 5.17 percent last year, is estimated to drop to 4.83 percent by the end of this year. The stock market and real estate market are expected to continue their steady resuscitation.
As we'll continue the "258 financial reform scheme," we hope to see the non-performing loans (NPL) ratio reduced to 5 percent and the capital-adequacy ratio raised to 8 percent within two years. As of the second quarter of this year, we've written off over NT$500 billion worth of bad loans and the rate of non-performing loans is estimated to drop from 8.04 percent down to 5.68 percent by the end of the year.
In addition, the number of international research and development centers established here has reached 10 and that of domestic ones has reached 42.
The number of regional operation headquarters is recorded at 150 and is expected to reach 250 by the end of the year.
Investment in public construction projects by private corporations' was registered at NT$630 million last year and we estimate the amount to reach NT$100 billion by the end of the year. We also expect to lure foreign investors to commit NT$130 billion during the October business alliance conference.
TT: What do you think of the "4-5-6 economic program" proposed by the opposition alliance, which is designed to lower the jobless rate to 4 percent, boost the economic growth rate to 5 percent and balance the government budget within six years?
Yu: One thing I can say about the opposition alliance's "4-5-6 economic scheme" is: where is the beef? I hear only slogans and no concrete plans.
On the contrary, all the economic boosting measures proposed by the DPP-led government are both tangible and practical. They've also received the endorsement of former president Lee Teng-hui (
We need new concepts to deal with new problems in a new era, he said. Many of the government's economic initiatives proposed by the government are innovative and designed to tackle the new problems.
Programs such as the six-year, NT$2.6 trillion national development project and the NT$20 billion job creation scheme, are just two fine examples, he said.
TT: The government is so cash-strapped that it has to borrow money to push for the implementation of some government initiatives. Where does the government find the money to fund many of the government programs, including the yet-to-be-finalized five-year, NT$500 billion project?
Yu: Honestly speaking, our financial situation is not as bad as it seems because we have many profit-making state-owed enterprises and national assets. Statistics show that we're much better off than many developed countries. While our cumulative debt accounts for 32 percent of GDP, that of Germany takes up about 53 percent, the US 60 percent and Japan 140 percent. I don't think it's such a bad idea to borrow some money now to build more public construction projects when the interest rate is low and the financial structure is in a sound condition.
The accusation that our children will be left with nothing but debt is totally misleading because they'll also be enjoying the fruits of our labor.
TT: Since the government unveiled the indirect scheduled charter cargo flights on Sept. 10, Beijing has been calling on Taiwan to allow two-way, direct flights under the principle of reciprocity. It also contended that private entities can work out the details of the scheme because it's a domestic affair. What're your thoughts on this?
Yu: It's also our ultimate goal to open two-way, direct flights under the principle of reciprocity but it has to be reached via negotiations. Until Beijing is willing to sit down and talk with us, the one-way, indirect charter flights scheme is the best we can offer at the moment. Our stance on cross-strait relations is clear: We're willing to negotiate with Beijing anytime, anywhere and about any topic, including the two-way, direct flights.
TT: Regarding the smuggling of Chinese women, both sides almost signed an agreement to together combat crimes across the Taiwan Strait during the historic meeting between Straits Exchange Foundation Chairman Koo Chen-fu (辜振甫) and his Chinese counterpart Wang Daohan (汪道涵) of the Association for Relations Across the Taiwan Strait in April 1993. Is the issue included in the agenda of negotiations with China?
Yu: Over the past 10 years, we've been trying to be very friendly with Beijing as we've clearly expressed our willingness and sincerity to sit down and talk. Unfortunately, our goodwill gestures have been met with indifference and even hostility.
Many problems ensued following China's refusal to talk. The recent smuggling of Chinese women and the abduction of a coast guard officer are just two of the many examples. I'm very curious to know why China can be so indifferent to the severity of the problem.
I'd like to reiterate that we're willing to talk with Beijing anytime, anywhere and about any topic, including politics, economy and crime.
TT: The nation failed in its 10th bid to join the UN again this year. Does the government plan to change the name of the country for its UN bid next year amid mounting calls to rectify the nation's name from the Republic of China to Taiwan?
Yu: Since rectification of the nation's formal designation requires a Constitutional amendment, the name we use to enter the UN will remain the Republic of China as stipulated in the Constitution.
The name we use for the UN bid is Republic of China (Taiwan). The word Taiwan in parentheses is used to help clarify the difference between the ROC and the People's Republic of China (PRC).
While a significant breakthrough in the nation's continual bids to join the international body still seems a long way off, we'll try to increase the participation of the nation's NGOs in events organized by international organizations.
In addition, we'll fortify the international campaign to promote the nation's UN bid as well as strengthen cooperation with our diplomatic allies and major countries with which we have no diplomatic ties such as the US and countries in the EU. We'll also try to create a new security pact for the Asia-Pacific region, the North America-Asia Treaty Organization (NAATO). We anticipate Beijing's vehement opposition to our bid to create this Asian version of NATO, but we won't give up hope and will do our best to gain access to the regional alliance.
I'm calling on its prospective members to realize that the organization will not be successful if Taiwan is not part of the safety network because there'll be a yawning chasm in regional security.
TT: The recently held advisory referendum in Pinglin, Taipei County, has caused a stir in the political arena. Does the government still insist on holding a national consultative referendum on or before next March's presidential election as promised by President Chen Shui-bian (
Yu: First of all, I'd like to point out that it is very inappropriate for Taipei Mayor Ma Ying-jeou (馬英九) to liken the government's holding of non-biding referendums to China's Cultural Revolution.
Secondly, it's a basic right of the people guaranteed by the Constitution to exercise the right of referendum. It does not make sense to deprive the people of their basic right simply because there is no existing legal basis for holding one.
I'm again calling on the Legislative Yuan to pass the draft bill of the initiative and referendum law, which we sent to the legislature for further review and final approval over a year ago.
We totally respect the result of the Pinglin township's advisory referendum and will refer to it while making the final decision on the matter. We'll also try to strike a balance between the residents' opinion and the professional opinions of experts because the matter concerns environmental protection.
Regarding different government agencies' inconsistent interpretation of the result of the referendum, we'll call an inter-ministerial meeting to tackle the problem and handle the matter in accordance with the law.
The Pinglin referendum was like a marriage -- we had to respect the wishes of the township residents and trust their choices just like spouses do with their husbands and wives.
TT: Many of the DPP's old-time grassroots supporters such as railway workers, farmers and fishermen have taken to the streets to express their displeasure with the government's reform measures. What do you think of the phenomenon?
Yu: Since the DPP came to power, we've been making tremendous efforts to take care of underprivileged and minority groups.
We've approved the establishment of a gender-equality committee under the Executive Yuan and the raising of the monthly pension for senior farmers and fishermen from NT$3,000 to NT$4,000, among other measures.
We've also approved measures to expand eligibility of the monthly elderly stipend for indigenous people. In other words, those covered by labor insurance, military insurance and civil service insurance schemes would be included in the program.
To solve the problem once and for all, we've approved a draft proposal for a national annuity program, which would benefit almost 4 million people not covered by an insurance policy.
All of the measures, of course, are pending the final approval of the legislature. So my point is that the DPP-led government does have plans to tackle all the problems. And the plans are designed to solve not only the immediate problems but also the long-standing ones.
The DPP's coming to power signifies that the people want things changed. They're so sick and tired of the old and rotten KMT regime that they want a new and clean government.
One thing I can assure you here is that the DPP-led government will continue down the path of reforms despite the displeasure or criticism from certain interest or pressure groups because it's the only way to develop the nation and elevate its competitive edge in a highly competitive era.
TT: President Chen has vowed to push for reforms even if he may have to run the risk of losing power. However, you've recently mentioned that the government will delay the pace of reform. Is there an inconsistency between the Presidential Office and the Executive Yuan?
Yu: There isn't any inconsistency in the stance of the Presidential Office and the executive branch. What I meant was that we won't introduce any more new reform measures in the seven months leading up to the presidential election. However, we'll continue the reform measures already in progress.
In other words, we'll continue down the path of reform, but in a very laid-back manner. In short, we'll never stop the reform efforts. We'll continue to run the train but there won't be any more cars added to the train.
TT: Following the disruption of train services by the labor union of the Taiwan Railway Administration on Sept. 11, the labor union of another state-run enterprise, Taiwan Tobacco & Liquor Corp, is planning to take to the streets on Nov. 1 to protest against the government's plan to privatize the company.
While there are many unsuccessful examples of privatization in other countries, do you still think privatization is a good way to solve the many problems of state-run businesses?
Yu: The key to solving the problems of state-run businesses is industrialization not privatization.
From 1997 to 2001, the state-run Tong Eng Iron Works Co lost NT$20 billion and China Shipbuilding Co in Taiwan lost NT$10 billion. They, however, managed to make money starting last year, thanks to the introduction of industrialized management.
The idea of industrialization is to improve the efficiency of state-run businesses while maintaining public service at the same time.
It's a chain reaction -- the more efficient the business, the more money it makes and the better off the government is. The better off the government is, the more subsidy the business gets and the better service it provides to the public.
We don't dictate the time to privatize a state-run business. Instead, we've always respected the individual wish of state-run businesses and the professional opinions of the Cabinet's supervisory and promotion committee of privatization.
Corporatization, however, is a different ball game because it's deemed necessary for all state-run enterprises.
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