At a breakfast meeting with the Chinese National Association of Industry and Commerce today, Premier Jiang Yi-huah highlighted the importance of bolstering economic growth and encouraged his administration team to persist in their efforts to spread economic benefits to all and narrow the gap between rich and poor.
The premier also urged the administration team to embrace innovation and reform as a means of fostering a democratic society of prosperity and propriety.
"Action must speak louder than words if we are to achieve such an ideal," Jiang said. He referred to the late former British Prime Minister Margaret Thatcher as an example. In the 1980s Thatcher drew both praise and criticism for her policies, but she persevered with an iron will to oversee Britain's transformation into one of Europe's most powerful nations. It is strong leadership rather than political rhetoric that drives a country's success, Jiang said.
Taiwan has been hit by a succession of economic challenges in years of late, Jiang said. Domestically, growth has been stifled by industries' inability to transform themselves, which in turn has suppressed wage increases over the long term. And despite a 4-percent unemployment rate, many industries still suffer labor shortages.
Meanwhile, the sovereign debt crisis in Europe has yet to be resolved, and economic recovery remains lackluster in the United States, mainland China, India, Russia and other powerhouse countries. Given all of these factors, Taiwan's economy—though improving steadily from the fourth quarter of 2012 to the current quarter—has not recovered to the extent expected by citizens.
The global recovery is also being hampered by non-economic factors such as the situation on the Korean Peninsula and the H7N9 flu outbreak in mainland China. These external issues could not have been foreseen by policymakers but could potentially impact Taiwan's economy and society. Even so, the administration team should continue focusing on economic recovery as first priority, Jiang said.
Aside from drafting policies, the administration team should take a sensible, more practical approach to executing the policies without worrying too much about fancy slogans or programs, the premier added. For instance, the team should ramp up efforts to implement the Economic Power-Up Plan formulated under former Premier Sean Chen, and address long-standing issues faced by businesses such as tax, land availability and investment capital.
Pension reform is another major issue affecting tens of millions of citizens. Some have suggested postponing the changes a few years more, Jiang said, but last October's run on the Labor Insurance Fund pointed to the urgency of reform. The government must take up responsibility for future generations and work with the public to find a means of sustaining the labor pension system for at least 30 years. Waiting another three to five years will only exacerbate the system's financial problems, he added.
Regarding construction on a fourth nuclear power plant in Taiwan, the premier said there has been much debate since a public referendum was proposed on whether the construction should continue. In a recent survey conducted by the Research, Development and Evaluation Commission, 68 percent of those polled favored holding the referendum while 19 percent opposed it.
An issue as critical as whether or not to continue construction is not to be decided by the executive or legislative branch alone, the premier said, as the decision will have a profound impact on the nation's economic, industrial and employment future. It will also affect whether commodity prices will be influenced by electricity prices, and whether Taiwan will be able to achieve its carbon-reduction objectives.
The survey further indicated that 54 percent of those polled supported the idea of having a fourth nuclear power plant if safety were not a concern, while 38 percent opposed the idea. Though the percentage difference is not significant, it is a gauge of changes in public opinion, not the final word in major policy decisions, the premier said.
Premier Jiang said the nuclear power plant issue requires the input of all sectors. When the public referendum is held, everyone will have a chance to be heard. In the meantime, all sides should make their argument and leave it up to the voters to make the decision.
The Cabinet should strive to benefit all sectors of society because therein lies Taiwan's vitality and force for growth, the premier emphasized. It is the government's job to set up the appropriate platforms and regulations to enable every industry to contribute their part and further Taiwan's global success. Such a vision can only be fulfilled with cooperation from all sectors.
Also in attendance at today's breakfast meeting were Minister without Portfolio and Minister of Economic Planning and Development Kuan Chung-ming, Minister without Portfolio Schive Chi, Finance Minister Chang Sheng-ford, Economics Minister Chang Chia-juch, Health Minister Chiu Wen-ta, Financial Supervisory Commission Minister Chen Yuh-chang, Mainland Affairs Minister Wang Yu-chi and ROC Central Bank Governor Perng Fai-nan.