The Executive Yuan today pledged to keep Taiwan's high-speed rail system in normal operation after the Legislative Yuan rejected a financial restructuring plan drafted by the Ministry of Transportation and Communications (MOTC) to bring the troubled Taiwan High Speed Rail Corp. (THSRC) out of the red.
"The Executive Yuan respects but regrets the Legislative Yuan's decision. As the government is obligated to safeguard the public's transportation rights, its highest guiding principle here is to ensure that the high-speed rail continues without interruption," said Executive Yuan Spokesperson Sun Lih-chyun.
The government will be pragmatic in addressing the follow-up matters, Sun said, adding that the MOTC has been instructed to begin preparations for keeping the trains running as usual.
The MOTC's plan—proposing complementary measures such as capital reduction, capital increase and public stock offering—was intended to improve THSRC's capital structure and lay a firm foundation for the company's sustainable operation. At the end of the company's concession period for operating the system, the high-speed rail would have become a public service business owned by all Taiwanese citizens. The government had no intention to benefit any specific parties involved, Sun said.
Once the THSRC enters bankruptcy, it will fall under government receivership under conditions prescribed by the contract, the spokesperson said. He urged legislators to speed up review and approval of the amendment to the Statute for Encouragement of Private Participation in Transportation Infrastructure Projects, which would avoid controversy arising from any government takeover of the beleaguered rail system.
As for MOTC Minister Yeh Kuang-shih's resignation following the failure of the restructuring plan to clear the Legislature, Premier Mao Chi-kuo spoke to Yeh and hoped the minister would remain in office, Sun said.