Brian Hioeby Brian Hioe
語言:
English
Photo Credit: KMT/Facebook
AN UNUSUAL SPLIT became apparent in the KMT in preceding days. Namely, ahead of upcoming recalls, KMT chair Eric Chu stated that both the DPP and KMT should take a step back. Chu called for passing 10,000 NT in cash handouts to the public, as the KMT has called for, as well as refraining from blocking funding intended to provide for subsidies for Taipower and for national defense. The KMT would also seek to pass 410 billion NT in special funding, as proposed by the Executive Yuan, as a means to deal with shocks from the Trump administration’s threat of tariffs directed at Taiwan.
In effect, Chu would be stating that the KMT would back down from its cuts to the budget, which it pushed into law earlier this year. The KMT cut or froze what amounted to 34% of the government’s operational budget, including defense spending–in spite of repeated pressure from the US for Taiwan to increase its defense spending. Likewise, in blocking funding that was used for Taipower subsidies, this would result in a rise in electricity prices, in that such subsidies were used to keep electricity prices artificially low. The KMT would be hoping for a rise in electricity prices in such a way that the public blames the DPP.
Immediate dissent broke out from the KMT legislative caucus, which had invested much political capital in blocking subsidies to Taipower, even if the KMT legislative caucus had also advocated cash hand-outs. KMT legislator Lai Shyh-bao, for example, stated that he supported defense spending but not subsidies for Taipower.
In particular, the KMT has had difficulties justifying its cuts to the national budget–the largest cuts in Taiwanese history by orders of magnitude–in a year that Taiwan has seen a record-high tax windfall. As such, the KMT has proposed that Taiwan’s tax windfall be given directly back to the public through cash hand-outs, while otherwise calling for the budgets of social services and government institutions to be cut.
The cash handouts were eventually passed by the KMT yesterday. The KMT legislative caucus also approved a 150 billion NT budget for whole-of-society resilience, 93 billion NT for economic resilience, 20 billion NT for national health insurance subsidies, and 10 billion NT for labor insurance subsidies. The 10,000 NT cash handouts will cost a total of 235 billion NT.
Cash handouts prove a familiar tactic for the KMT, which has long been accused of “black gold” corruption involving vote buying. Vote buying aside, the KMT has often sought to implement policies that distribute cash to members of the public, with the hope that this attracts their support. In this sense, the KMT would be hoping to boost its popularity ahead of the recall vote. The DPP has instead called for Taiwan’s tax revenue to be used on strengthening the social safety net.
Chu’s attempted U-turn on the issue of Taipower may have to do with the effects of Typhoon Danas. The storm caused unexpectedly severe damage in southern Taiwan and Taipower has acted quickly to restore power to the over 900,000 homes that lost electricity.
With much positive media reporting on the heroism of Taipower works, it may not be politically expedient to try and cut funds to Taipower at present. To begin with, as a state-owned enterprise, the KMT going after Taipower is surprising when workers at state-owned enterprises have historically hewed pan-Blue, given that the KMT previously controlled the government as the sole ruling party of a party-state during the authoritarian period. In return for their political loyalty, the KMT offered workers at such enterprises generous pensions.
Still, the final bill passed by the KMT excluded crucial subsidies. As such, electricity prices may still rise.
The DPP supports passing the 410 billion NT relief bill proposed by the Executive Yuan, but it has hit out against the proposed cash hand-outs, claiming that this would damage the fiscal balance of the government and leave future generations saddled with debt. Either way, the KMT’s actions leave it open to allegations that it is effectively hoping to bribe the public. The cash handouts are still likely to be a sticking point ahead of the recall.
Although there is rising neoliberal discourse in some countries that calls for dismantling state social services and instead simply handing out cash to the citizenry, this has not taken root in Taiwan. Instead, the welfare state is broadly supported, among both the pan-Green and pan-Blue camps. However, in present times, the pan-Blue camp has turned against the welfare state and seeks to dismantle it, with the belief that this would lead to voters blaming the DPP government and turning against it.
Yet this proves a risky strategy. And with just over two weeks before the recall vote, it is not impossible that late moves by the KMT at this juncture will simply be viewed as desperation.