Spokespersons of Ma-Siew Campaign Headquarters Hit back at Hsieh Camp’s Unfounded Allegations

Press Release

Spokespersons of Ma-Siew Campaign Headquarters Hit back at Hsieh Camp’s Unfounded Allegations

Ma Ying-jeou Campaign Headquarters

February 26, 2008

In response to the unfounded accusations made by the DPP camp against KMT Vice Presidential candidate Vincent Siew’s economic policies on Sunday and Monday, which aimed at creating misunderstanding and confusion, Lee Chi-chu, Lai Shyh-bao, Supo Kao, and Professor Steve Hsieh, the spokespersons of the Ma-Siew Campaign Headquarter, called a press conference on Monday to hit back at DPP Presidential candidate Frank Hsieh camp’s groundless mudslinging. “Mr. Frank Hsieh’s aides should work a little bit harder and provide their boss with accurate information to save him from the embarrassment of making unfounded accusations every day,” said Lee.

Lee added, “Mr. Frank Hsieh made a mistake on Monday in mixing up the 623 policies with the 633 policies. Hopefully his aides would be wise enough to clear the matter up for him. ‘623’ refers to the objectives of raising annual economic growth to 6%, raising per capita GDP to at least US$ 20,000 (to be realized by 2010 or 2011), and reducing unemployment rate to less than 3%, which are expected to be realized in four years. The ‘633’ policies, on the other hand, refer to the objectives to be realized by 2016, including maintaining an annual economic growth of 6%, raising per capita GDP to at least US$ 30,000, and keeping unemployment rate under 3%. The two are completely different things. I’m afraid Mr. Frank Hsieh was a little bit confused.”

Frank Hsieh questioned the source of funding for the Twelve Major Construction Projects proposed by Ma. In response, Professor Steve Hsieh said, “Mr. Frank Hsieh was mistaken again. He thought we wanted to borrow NT$ 2.65 trillion to complete the projects. Apparently he was misinformed. Many of these projects are, in fact, self-liquidating. Besides, the DPP government has earmarked NT$ 420 billion this year for public construction, and spent NT$ 410 billion in 2007 on public construction. The eight-year, NT$ 2.65-trillion construction projects Mr. Ma proposed would cost only NT$ 330 billion per year. Economic growth for the next eight years will definitely surpass that of the past eight years, which will naturally contribute to the growth of tax revenue. How come Mr. Frank Hsieh said there would be no funds to support the projects? Obviously Mr. Frank Hsieh’s aides did not do their homework.”

Lai concurred with Steve Hsieh, adding, “The Twelve Major Construction Projects will cost only NT$ 330 billion per year. There will be no need for the heavy borrowing described by Mr. Frank Hsieh, who probably wanted to create confusion and misunderstandings and make the Twelve Major Construction Projects look bad to the people.” Lai said, “Mr. Frank Hsieh, perhaps you should consult your financial advisors, the Ministry of Finance, or the Executive Yuan before introducing your policies. Did you explain the sources of funding for your policies?”

The Twelve Major Construction Projects proposed by Ma-Siew Campaign Headquarters are similar in nature to the Ten Major Construction Projects in the era of late President Chiang Ching-kuo in that both are large-scale construction projects conducive to the country’s development. The “construction” in the past eight years under the DPP government consists of nothing but unused buildings which cost over NT$ 10 billion. The Ministry of Audit has repeatedly censured the terrible waste of money on meaningless public construction in the past eight years. Unused buildings are almost everywhere in Taiwan. The Twelve Major Construction Projects focus on meaningful construction, whereas Frank Hsieh’s proposal is about wasting even more money on unnecessary construction.

The KMT’s Twelve Major Construction Projects have two major objectives. The first is to spice up domestic demand and boost economic growth though the government’s active investment, which will alleviate the impact of global economic slowdown. The second is to make up for the slack of infrastructure construction in the past eight years under the DPP government. Taiwan is deprived of the infrastructure normally required for a developed country. Through the introduction of the Twelve Major Construction Projects, the KMT aspires to lay a solid foundation for Taiwan’s economic development for the next several decades, just like the way the Ten Major Construction Projects once contributed to Taiwan’s economic development.

In addition, the Ma-Siew Campaign Headquarters raised two questions regarding the performance of the DPP government in the past eight years:

1.Public-sector investment has been dropping every year since the DPP came to power eight years ago. (Annual public-sector investment growth since 2001: -6.42%, -12.7%, -1.3%, -5.8%, -1.9%, -6.2%, -3.9%, and –2.4%), yet the government’s debts have skyrocketed by NT$ 1.54 trillion, from NT$ 2.45 trillion in 2000 to NT$ 3.99 trillion. The average household debt has increased by NT$ 210,000. The government has seen a drop in investment but a rise in debt. Where exactly did the money go?

2.According to the study of Asian Development Bank (ADB) in 2007, Taiwan has the greatest number of households in debt in Asia, with 59.1% of households in debt. What happened in the past eight years to cause this?

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