Lawmakers on the legislature’s Transportation Committee yesterday asked why state-run Taiwan International Ports Corp (TIPC) has launched so many subsidiaries, saying the businesses were created just to provide jobs for retired government officials and to avoid the Legislative Yuan’s supervision.
In reviewing the budget for the Port and Marine Bureau and the TIPC for fiscal year 2016, Democratic Progressive Party (DPP) Legislator Lee Kun-tse (李昆澤) said that TIPC had already established a port servicing company and an international logistics firm.
He said the company is next year planning to launch a tourism development firm in Penghu, a land development firm in the Kaohsiung Port and a container terminal firm.
These projects have been established since TIPC was founded in 2012, he said.
Aside from these subsidiaries, Lee said that TIPC also set up a marine transport development college.
However, it is already slated to establish a marine trade and economy research foundation, which has a budget of NT$13 million (US$393,677), he said.
Lee said that TIPC appeared to be extremely good at establishing subsidiaries, but it does not seem to be nearly as skilled at managing its main businesses.
TIPC’s revenues from berthing, tugboating, cargo uploading and unloading, as well as warehousing, have never hit their targets, he said, adding that business in the nation’s six free-trade ports have declined by 18 percent.
Some of the TIPC’s projects are redundant, Lee said, adding that the soon-to-be-established marine transport development college is to train people interested in the marine transport industry and to be a think tank concerned with marine transport issues, but National Taiwan Ocean University, National Kaohsiung Marine University and Taipei College of Marine Technology already fulfill those functions.
The Institute of Transportation, a think tank of the Ministry of Transportation and Communications, also has a harbor and marine technology center, Lee said.
“We have yet to see the performance of the marine transport development college, which was created with the same purpose as the new foundation. Creating such a foundation would be a frivolous use of taxpayers’ money,” he said.
Lee asked if these subsidiaries were created as “backup plans” for officials currently in office, saying they are a response to fears of a change of government next year.
The subsidiaries are exempt from legislative oversight, DPP Legislator Yeh Yi-jin (葉宜津) said, adding it is doubtful whether TIPC would be scrupulous in planning for their budgets and personnel needs.
The foundation would help bring in resources from the private sector and help Taiwan participate in international port organizations, TIPC chairman Chang Chih-ching (張志清) said.
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