Lai urges passage of extra budget for Taipower, CPC
NEED SUPPORT: Local fuel prices have been relatively stable, as state-run firms have been absorbing rising costs, but that has led to financial problems, the president said
By Huang Liang-chieh and William Hetherington / Staff reporter, with staff writer
President William Lai (賴清德) yesterday called for support across party lines for a supplementary budget to subsidize state-run Taiwan Power Co (Taipower, 台電) and CPC Corp, Taiwan (台灣中油), which have been absorbing rising energy costs amid geopolitical tensions.
Speaking at the opening ceremony of the Kaohsiung City Medical Association Building, Lai said the president’s responsibilities extend beyond developing the economy and improving life expectancy, and include maintaining social stability and keeping prices under control.
The Russia-Ukraine war, the US-Iran war and tensions in the Middle East have driven up prices in many countries, with some facing fuel shortages and others experiencing sharp increases in fuel costs, but Taiwan has maintained stable fuel and electricity prices, he said.
Electricity pylons in Taipei are pictured in an undated photograph.
Photo: Lin Cheng-kun, Taipei Times
The nation’s tax revenue has increased, allowing the government to propose a supplementary budget to help curb inflation, Lai said.
He thanked the public and businesses for their efforts in boosting tax revenue, saying that the additional funds had given the government room to subsidize oil and electricity prices, which would have otherwise had to reflect rising costs worldwide.
It is essential for the government to maintain social stability amid the increasingly serious international geopolitical situation and the significant challenges posed by rising prices for oil, goods and other necessities, Lai said.
The supplementary budget to subsidize CPC and Taipower has been submitted to the Legislative Yuan, he said, urging lawmakers from the ruling and opposition camps to work together to support the proposal.
Lai also called on members of the medical community to encourage opposition lawmakers to approve the budget.
Health insurance premiums should not be raised if possible, but if an increase were unavoidable, additional tax revenue could be used to help cover the costs and prevent higher premiums, he said.
The same principle applied to oil and electricity prices, he added.
Passing the supplementary budget to subsidize CPC and Taipower would help prevent inflation, Lai said, adding that rising inflation could prompt the Financial Supervisory Commission to raise interest rates, which would have significant consequences that could undermine social stability.
Many countries are experiencing fuel shortages amid rising oil prices caused by the war in the Middle East, but motorists in Taiwan can still obtain fuel at relatively stable prices, as CPC and Taipower have been absorbing the rising costs, he said.
However, that has inevitably resulted in a great financial burden for the state-run companies, so the government must allocate additional funds to subsidize their losses, Lai said.
The goal is to stabilize prices, maintain social stability and protect the livelihoods of Taiwanese, he said, urging the public and lawmakers to support the proposal.
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