Legislature Passes NT$120 B. Special Budget for Reconstruction Works

Taipei, Aug. 28, 2009 (CENS)--The Legislative Yuan ratified yesterday (Aug. 27) the "special statute for post-typhoon Morakot reconstruction works," which calls for a special budget of NT$120 billion over a three-year period, to be financed by borrowing entirely.

The legislature also passed a supplementary resolution suggesting the executive branch exempt tour bus companies from auto fuel and license taxes for one year, or provide them direct subsidiaries, to help them weather the business difficulties resulting from the serious damages of many tourist sites.

Three fifths of local tourist sites, as well as 200 bridges for their external transportation, were ruined by the typhoon, which will take at least one year for repair.

Enterprises suffering business difficulty from the typhoon damage will be entitled to a grace period of one year for the repayment of principal and interest for working-capital loans and three years for capital loans, as well as interest subsidies for fresh loans meant for the resumption of their operation.

The resort to debt financing for the reconstruction works entirely will boost the central government's total deficit for 2010, including the yearly budget and special budgets, to NT$466 billion. The provision for the release 40% of the government's stake in the Land Bank of Taiwan to help finance the reconstruction works, as proposed by Ministry of Finance, was vetoed, due to the opposition of some legislators.

The statute specifies that the government should take into consideration the wishes of local people, the organization of communities (tribes), local culture, and lifestyle in the execution of the reconstruction works; it also must obtain the agreement of inhabitants for the transplantation of entire village.

A reconstruction committee will be set up and headed by the Premier, with representatives of disaster victims and aborigines accounting for at least one fifth of the seats of the committee.