Minister of Economic Affairs Lin Hsin-yi (
"Presently the coordination of the new administration is indeed unsatisfactory," Lin told legislators. However, he added, there "should be some improvement later on."
Lin's comments mark the first time a Cabinet member has publicly criticized the performance of the new administration.
Since the new government came to power on May 20, a number of policies have been put forward, but a lack of coordination among relevant ministries and councils has hindered progress, Lin said.
For example, the minister noted that the Council of Labor Affairs (
But these various policies, if implemented, will have a detrimental effect on the economy and Taiwan's industries, Lin said.
And despite the chaos, he said, there is no evidence that anyone within the new administration is willing to coordinate the "contradictory" policies.
Lin said many worry that if the administration's policy proposals as now contemplated are implemented, traditional and high-tech industries will suffer.
The minister specifically opposes the CEPD's plan to hike the value-added tax by 1 percentage point to 6 percent, saying Japan's experience was evidence that such an idea would cause more harm than good.
"During Premier Hashimoto's premiership, the Japanese government raised the value-added tax and it triggered a period of economic recession," Lin told legislators.
Lin said that a hike in Taiwan's valued-added tax could bring similar consequences.
Legislator Yan Jin-fu (
Yan said a plan to shorten working hours and a higher value-added tax would deliver a double blow to the nation's traditional industries.
The legislator said that relevant ministries and councils have not worked together properly to consider the combined effect of the new administration's policy proposals.
Lin was frank in his conclusion: "Although the Executive Yuan acts as a coordination mechanism, that function has not been working well."
But market watchers say the new administration simply needs time to properly coordinate its economic policies.
Unlike the KMT -- which set government policy during meetings of its Central Standing Committee -- the new administration does not have a similar body.
And given Premier Tang Fei's (
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