For the sake of facilitating rapid economic development, the Taiwan government has long had a policy of providing water and power at low prices through state-owned companies. But now, with international fuel costs rising, the Taiwan Power Co. is running more and more heavily in the red, and both Taipower and the water companies face a challenge in coming up with the funds needed for future development. At the same time, the money being spent on subsidizing what the end user pays for utilities is exacerbating the already large deficit in the national budget, and environmentalists complain that the low prices encourage enormous waste of precious resources. But politicians have been reluctant to raise the tariffs, as the public has come to expect low prices - and keeping them low is seen as winning votes.

* The Impact of Underpriced Power
* Cheap Water is a Scourge

By Jane Rickards

Spotlight on the Legislative Yuan

The performance of the Seventh Legislative Yuan, which takes office this month, will be closely watched by all those who care about Taiwan's stability and prosperity. For well over a decade, the LY has been among the country's least respected institutions - with legislative sessions too often degenerating into bouts of fisticuffs, individual lawmakers engaging in corrupt or other unseemly behavior, and endless partisan squabbles thwarting the pursuit of a responsible policy agenda. Public dissatisfaction with that record brought the pressure leading to the 2004 reforms that took effect with last month's legislative election. The size of the body was cut in half (from 225 to 113 seats), single-seat districts replaced constituencies with multiple representatives, and another ballot for political party was added to determine the allotment of delegates-at-large. 

After nearly nine years at the helm of AmCham Taipei, Richard Vuylsteke has departed to take a new challenge as president of AmCham Hong Kong. The room was packed with well-wishers when AmCham Taipei held a farewell luncheon to express appreciation for his leadership and dedication.

BY Jane Rickards

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