Government officials and opposition lawmakers yesterday clashed over funding for uncrewed aerial vehicles (UAVs), with Chinese Nationalist Party (KMT) lawmakers demanding that the regular budget be used for military drones.
KMT lawmakers presented their drone budget plan at a public hearing also attended by the party-affiliated Chung Hsing Policy and Education Foundation at the legislature.
A senior military officer and government officials said that the proposal does not meet urgent national defense needs and would be redundant as an economic policy.
Photo: Tu Chien-jung, Taipei Times
KMT Legislator Lai Shyh-bao (賴士葆) said that the proposal includes a 40 percent offset for purchases of US drones, meaning that for each drone procured from the US, the suppliers must buy Taiwan-made components worth 40 percent of the contract’s value.
The offset and other measures facilitating technology transfers would ensure growth in the domestic drone industry, which is a crucial goal of the KMT and the Taiwan People’s Party, Lai said.
The proposed defense budget for next year is NT$1.1 trillion (US$34.08 billion), or 4 percent of GDP, while the government has previously pledged to increase military spending to 5 percent of GDP, he said.
The massive budget cannot be passed through special funding measures without harming the legislature’s constitutional authority to check the executive branch, he said.
Legislative oversight is a guardrail against waste, especially with rapidly changing drone technologies, Lai said.
Making large orders increases the risk of waste, as UAV models that appear promising at the time of purchase could become obsolete by the time of delivery, he added.
Lieutenant-General Huang Wen-chi (黃文啟), head of the Ministry of National Defense’s Department of Strategic Planning, said that a special drone budget is necessary for obtaining urgently needed capabilities.
“Taiwan is not in a position to freely acquire whatever capabilities it wants,” Huang said.
The military must have the latitude to obtain platforms and systems through alternative means to fill critical capability gaps when regular methods fail to achieve results, Huang said.
Rapidly building domestic UAV manufacturing capability is a crucial national security matter, as Taiwan would most likely be cut off from external supply sources in a conflict with China, he said.
Coastal surveillance drones, attack drones and automated attack boats in the ministry’s special budget are all single-use or otherwise expendable platforms that require constant replacement to be useful, he said.
The armed forces would not be able to begin ramping up drone capabilities without a lot of UAVs to train and operate with, Huang said, adding that time is a crucial factor in national defense.
The drone industry has the potential to become a second strategically valuable economic sector for Taiwan next to chipmaking, a potential the government procurement strategy is not primed to realize, KMT Legislator Huang Chien-hao (黃健豪) said.
The ministry is showing favor to a few manufacturers at the expense of small and medium-sized enterprises (SME), which is not conducive to building supply chains capable of sustaining an industry, he added.
Industry Development Administration Deputy Director-General Chen Kuo-hsuan (陳國軒) said that the government’s drone industry development plan already includes subsidies for SMEs and building domestic supply chains.
Amending laws governing subsidies for the defense industry, SMEs and drones would be more than sufficient to address the opposition’s concerns, Chen said.
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