The Executive Yuan yesterday passed a draft regulation that would, if ratified by the Legislative Yuan, transform the Taiwan Railways Administration (TRA) into the state-owned Taiwan Railways Corp.
The government would be required to subsidize the company if it suffered losses while complying with government policy, according to the draft.
The railway agency has an outstanding debt of NT$420.8 billion (US$15 billion) divided into four categories, which would each be handled differently.
Photo: Lee Hsin-fang, Taipei Times
Short-term debts of NT$148.4 billion would be processed by a special fund established by the Ministry of Transportation and Communications, the ministry said yesterday.
Another NT$65.4 billion in debt from pension payouts to retiring TRA staff would be paid by funds the ministry sets aside in its budget each year, it said.
About NT$191 billion in deferred liabilities would be absorbed by either the government or the TRA itself, depending on the nature of the liabilities, it said.
Another NT$16 billion in debts would be paid out and observe due procedure, it added.
Premier Su Tseng-chang (蘇貞昌), who chaired yesterday’s weekly Cabinet meeting, has asked Minister of Transportation and Communications Wang Kwo-tsai(王國材) to address TRA employees’ concerns about the agency’s debt and employees’ benefits.
The TRA and the government must execute changes to meet the expectations of the public and families of victims who have passed away, Su said.
The government would not hesitate to implement reforms that would allow the TRA to transition to a new era, Su said, adding that it would shoulder the TRA’s past debts and not cut back on employee work benefits.
Su said the corporatization of the TRA would bring about better management and benefits for employees, while the Executive Yuan would allow employees to continue with TRA or transfer to careers elsewhere in the civil service.
Su said that Wang would facilitate the reforms, adding that other department heads have been asked to offer the TRA assistance in the transition.
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