Policy Implementation Requires Reason and Determination

Policy Implementation Requires Reason and Determination
China Times editorial (Taipei, Taiwan, ROC)
A Translation
March 22, 2012

Summary: Sean Chen never imagined this. He was highly praised. The public felt blessed to have a cabinet staffed by the fiscal and economic experts who helped us weather the European debt crisis. Sean Chen has been in office less than two months. The European debt crisis has eased. But the Chen Cabinet is now being battered by the beef and chicken imports controversies. The beef and chicken issues have yet to be resolved. But the the cabinet is already being blasted over gas prices, electricity prices, health care fees, and university tuition. Public approval has plummeted.

Full Text below:

Sean Chen never imagined this. He was highly praised. The public felt blessed to have a cabinet staffed by the fiscal and economic experts who helped us weather the European debt crisis. Sean Chen has been in office less than two months. The European debt crisis has eased. But the Chen Cabinet is now being battered by the beef and chicken imports controversies. The beef and chicken issues have yet to be resolved. But the the cabinet is already being blasted over gas prices, electricity prices, health care fees, and university tuition. Public approval has plummeted.

The beef and chicken imports issue has been politicized, But people can choose to eat or not eat on their own, The problem is manageable. But price increases affect ordinary people's pocketbooks and daily lives. The public reacts badly to price increases. It seldom bothers to ascertain where the price increases are taking place, or who is benefiting. It assumes the price increases are always at its expense. Public discontent of this sort is often difficult to assuage.

But viewed calmly, gas prices, electricity prices, health care fees, and university tuition are different. They increase for very different reasons, and by very different degrees. The public often fails to understand this. The government often fails to communicate why to the public. Its policies are often sound. But it lacks the determination to stay the course. In the end, the most severe blow is to the morale of the cabinet. This makes it increasingly difficult for the administration to implement perfectly sound policies.

Take the gas and electricity price increases. Gasoline and electricity prices have been frozen for quite some time. No matter how moderate the price increases or decreases might be, the taxpayers are always the victims. The reason is simple. The larger the losses suffered by China Petroleum and Taipower, the larger the subsidies they receive. Any shortfall is invariably made up by subsidies from the national treasury. It is invariably borne by taxpayers as a whole. Ordinary wage earners enjoy no tax breaks. Not a dime's worth. Ordinary wage earners do not realize that price freezes victimize them the most. Take electricity for example. The government subsidies the industrial use of electricity to the tune of 90 billion dollars per year. This is a vast sum. The average household uses only about 300 kWh per month. Super-rich households use about 10,000 kWh per month, The average large commercial and industrial firm uses nearly seven million kWh per month. Those who use the most electricity benefit the most from a price freeze. This is the obvious reason.

If gas and electricity prices return to normal, Taipower and China Petroleum will no longer receive 180 billion dollars in subsidies. That 180 billion dollars could do so much good. It could underwrite so many social welfare, educational, and cultural programs.

The fact is, electricity prices on Taiwan are low by international standards. Any government hikes would take into account the needs of the disadvantaged. Take electricity for example. The government has established a clear power consumption threshold. Anyone using less than 110 kWh per month will not be subject to a price increase. Those who use the most electricity will be subjected to the largest rate increases. To some extent this will encourage electricity conservation. Government agencies have been thinking in terms of "reasonable price hikes." Of course it must explain what it means by "reasonable." It must avoid a public backlash provoked by erroneous perceptions.

The main reason health insurance will increase is the debut of second-generation health care in July. Last year the health care premium was hiked. The government tried to smooth over public discontent. It adopted a single rate, variable subsidy program. These government subsidies will end upon the implementation of second generation health care, An estimated 10.1 million people will see their monthly premiums increase anywhere from 19 to 44 dollars. No matter what adjustments are made, we must ensure medical treatment for disadvantaged members of society. for low-income households, for those with disabilities, for low and middle-income households, and for elderly people over 70. They must continue to benefit from premium subsidies.

Let those who are able, pay an additional ten or twenty dollars a month. This will maintain Taiwan's internationally acclaimed health care system. Who can complain? Besides, each penny paid is eventually returned in the form of medical care resources needed over the rest of a person's life. The government knows its policies are reasonable. It must now communicate this fact to the public. it must convince them. After all, if the health care system collapses everyone will suffer.

University tuition has not risen for seven years. During these seven years, prices have risen. Compulsory education depends on government subsidies. This is one of the government's most important policies. University education is no exception. Everyone who has studied abroad knows that university tuition on Taiwan is low by international standards. We live in a knowledge-based economy, Yet we undervalue the seeking of knowledge. This is a huge irony.

Admittedly, hiking university tuition will impose a heavy burden on households with students. But scholarships and school loan programs will make students appreciate the sacrifices families make for their education. They will make them appreciate their learning opportunities. This is a good thing.

Society on Taiwan is different from the past. The era when everything relied on the government is long past. Everyone must understand the relationship between taxes and benefits. The government cannot shoulder the cost of everything. We reject tax increases. We refuse to allow the price mechanism to return to normal. As a result, the the government cannot make ends meet. The public will not benefit. It can only suffer.

The Sean Chen Cabinet is determined to get things done. It has not been entirely successful. Many major policies are being implemented. This makes it even more important to prioritize. Take gas and electricity prices, for example. Taipower and China Petroleum are overwhelmed by heavy subsidies. This has gone on for some long time. Must we launch both at the same time? The Chen Shui-bian era "scorched earth diplomacy" left bitter memories. The Ma administration must not unwittingly provoke unrest where there was none. It must not unwittingly implement "scorched earth domestic policy." Political appointees are responsible for policy. Their first responsibility is to defend their policies. They must have sound justifications for their policies. They must also be determined to implement their policies. They must not be timid. The Sean Chen Cabinet must roll up its sleeves and get down to work.

中時電子報 新聞
中國時報 　2012.03.22
社論－為政策辯護 理要直氣更要壯
本報訊

陳?一定想不到，本來備受好評，國人多半對於歐債危機下的財經專業內閣深慶得人；上任不到兩個月，歐債危機緩解，陳內閣卻為了牛雞風暴焦頭爛額；牛雞問題還沒全部解決，又為了油、電、健保和大學學雜費紛傳漲價被罵臭頭，民意支持度驟降。

牛雞問題被政治化，但是，民眾可以選擇不吃或安全吃，未必處理不了；漲價風四起卻攸關小老百姓的荷包與生活，民眾聞漲色變，卻不大深究到底漲在哪？受惠的是誰？只想到吃虧的是自己，民怨相對擺平不易。

但是，持平來看，油、電、健保、及大學學雜費性質不同，漲價原因也不同；即使調漲方案差異更大，民眾沒這個力氣細想其中道理，政府卻不能不理直氣壯溝通；有理而無氣，最後打擊的還是內閣整體士氣，讓政府施政愈發舉步維艱。

先從油電雙漲來看，油電長期凍漲、半漲或緩漲，其結果還是納稅人倒楣。原因很簡單，中油、台電虧損愈大，表示國庫補貼愈多；國庫補貼的缺口最終還是得納稅人集體承擔，一毛錢跑不掉的受薪階級，卻不知反漲結果還是自己受害最大。以用電來說，政府補貼的工業用電一年高達九百多億；這筆龐大的金額，一般家庭用電每個月不過三百多度，富豪之家每個月用電差不多一萬度，大型工商業用電平均更高達七百萬度；用電愈多者受惠於凍漲就更大，這是顯而易見的道理。

油電價格回歸正常，台電、中油至少可以不必再負擔高達一千八百多億的補貼；一千八百多億可以做太多事了，從社會福利到教育文化支出都相對可以寬鬆許多。

事實上，台灣電價相對於國際都是偏低的；而政府任何調漲方案不可能不照顧弱勢。以電價為例，政府方案中很明確訂出最低用電門檻，諸如一百一十度以下完全不漲，用電愈高漲幅愈大，某種程度也是鼓勵節電。政府部門在思考所謂「合理調漲」的時候，當然要把何謂「合理」說得清清楚楚，避免民眾因為錯誤認知而沒來由的反彈。

健保費漲主要是因為二代健保將於七月上路。去年健全健保財務調漲保費，為撫平民怨，政府採訪單一費率、差別補貼方案；政府的補貼將在二代健保實施後告一段落，估計一千一百多萬人每個月將增加十九到四十四元不等的保費。但是，不論如何調整，為保障弱勢民眾就醫權益，低收入戶、身心障礙者、中低收入戶、七十歲以上老人依舊享有保費補助的權益。

讓有能力的人每個月多繳十數或數十元保費，維繫台灣讓國際稱羡的健保制度，誰曰不宜？更何況，自己每一分繳出去的錢，最終還是回到自己一輩子都必然用得上的醫療照護資源。就這點而言，政府當然應該理直氣也壯地全力溝通與說服，畢竟健保若垮台，受害者將是全體民眾。

大學學雜費已經七年未調漲。在這七年中物價水準不可能維持不變，國民義務教育當然有賴政府補貼，因為這是政府最重要的政策之一；大學教育則不然，留學國外的人都明白，台灣大學學費在國際間同樣偏低，在知識經濟的時代，卻想低價攫取學問，不啻是一大反諷。

無可諱言，調漲大學學雜費，對家中有學子者會是一大負擔。但是，以目前國內的環境，只要做好獎學金制度和學貸方案，讓學生因為體會家庭對自己受教育的付出，更珍惜自己有限的學習機會，未始不是好事。

台灣社會終究已經不同於以往。事事都靠政府平準的年代早就過去了；每一個人都要理解所得與付出的道理，不可能大小事都要政府一肩扛起或補貼；既不讓加稅，又不讓價格機制回歸正常，結局是政府施政左支右絀，於全民非但不利反而有害。

陳內閣有心做事，卻顯然並不得法。在這麼多重大施政中，必須更縝密思考輕重緩急。以油電價格為例，台電中油被沉重的補貼壓得喘不過氣來不是一天兩天的事了，有必要急於同時間推出嗎？扁政府時代的「烽火外交」燒出惡評，馬政府何必沒事四處起戰端，搞成「烽火內政」卻收拾不了？最重要的，政務官要為政策負責，負責的第一步就是辯護，理要直、氣要壯，尤其不能心虛。陳內閣，加油！