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Chiu confirms that voucher program is being considered

Vice Premier Paul Chiu (邱正雄) confirmed yesterday that a plan to issue purchase vouchers to stimulate the economy would be finalized this week.

The Council for Economic Planning and Development (CEPD) was in the process of finalizing the details, such as the value of the voucher, who would be eligible and how they could be used, he said.

Asked for comment at a separate setting yesterday, Premier Liu Chao-shiuan (劉兆玄) was more reserved, saying the plan was still under discussion at the council.

I will announce the plan once it has been finalized, Liu said.

The plan was initiated by council chairman Chen Tain-jy (陳添枝) at a meeting convened by Liu on Thursday to discuss measures to revive the economy.

DISAGREEMENTS

Officials could not see eye to eye on a number of issues regarding the vouchers, such as whether the wealthy should be excluded from the vouchers, how to define “wealthy” and how to finance the project.

The council’s initial plan was to provide NT$10,000 vouchers to households for its consumption of essential commodities during a certain period of time, an official said on condition of anonymity, adding that the project would cost about US$50 billion (US$1.51 billion).

The official said the program should not be confined to the poor, as it sought to incite spending to help the economy.

“This is not some kind of social welfare,” the official said.

Minister of Finance Lee Sush-der (李述德) said the ministry had suggested either diverting funds from the government budget for next year or using the Second Reserve Fund for emergency purposes to finance the program.

He did not rule out taking out loans.

STIMULUS

Asked during a radio interview yesterday to comment on the council’s proposal to issue purchase coupons to stimulate consumer spending, President Ma Ying-jeou (馬英九) said he agreed that stimulating consumption and increasing domestic investment were good ways to improve the economy, adding that the Cabinet would have final say as to whether vouchers would be issued.

Purchase vouchers were distributed by the Japanese government to children and low-income senior citizens in Japan in the spring of 1999 as part of an economic recovery plan.

Similar tickets, including food stamps and cash or gift cards, have also been distributed by the US government in efforts to stimulate spending.

ADDITIONAL REPORTING BY MO YAN-CHIH AND CNA
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