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Cabinet amends law to boost Taoyuan airport company's competitiveness

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At its weekly meeting today, the Cabinet approved a draft amendment that would allow the Taoyuan International Airport Corp. to place foreign nationals on its board of directors and operate with greater business efficiency.

The revisions to the Act of the Establishment of State-Run International Airport Park Corporation Limited, drafted by the Ministry of Transportation and Communications (MOTC), will be sent for the Legislature's deliberation.

Addressing Taoyuan City Mayor Cheng Wen-tsan's concerns about development of the Taoyuan Aerotropolis, Premier Mao Chi-kuo replied that the Aeropolis concept will require cooperation between the airport and the city—much like the relationship between Kaohsiung Port and Kaohsiung City. The basic structure of the Aerotropolis project is already in place, while the details are being filled in by central government agencies as well as Vice Premier Chang San-cheng's special task force, of which the Taoyuan mayor is also a member. Therefore, the premier suggested, any following-up projects and their implementation may be worked out between the Taoyuan City Government and relevant ministries.

As for Taichung City Mayor Lin Chia-lung's proposal of closer integrating Taichung's seaport and airport, Premier Mao said that neither the airport corporation nor the seaport corporation can avoid the issue of setting up subsidiaries. Hence, Mayor Lin's suggestion of having the port corporation and city government invest in a subsidiary company together is very innovative and deserves further discussion, Mao said. Tainan, Kaohsiung and other cities having both seaports and airports can also submit their proposals for port and local development for discussions with the Cabinet.

In today's amendment, the MOTC proposed that nationality restrictions for the airport corporation's board members be eased so as to widen the pool of talent and make business operations more efficient and closer in line with international practices. Proposed changes are as follows:

1.The board of directors will not be subject to the restrictions of Article 20 of the Nationality Act and may include up to two foreign nationals or dual nationals. This new provision paves the way for the airport corporation to form strategic alliances with airports outside Taiwan, to bring in overseas professionals to help run the business, to lift operations to global standards, and to boost the corporation's international competitiveness. (Article 4)

2.Unless otherwise provided by any treaty or agreement to which Taiwan is a party, procurements between the airport corporation and its subsidiaries, or between the subsidiaries themselves, will not be subject to the regulations of the Government Procurement Act. This new provision is intended to improve business efficiency and competitiveness. (Article 8-1)

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