President Ma Ying-jeou, in the company of Vice President Vincent C. Siew and Premier Wu Den-yih, held a press conference on the afternoon of April 22 to formally announce that the government does not support the proposed Kuokuang Petrochemical Technology complex in Changhua County. The president expressed his hope to take advantage of this opportunity to reexamine the direction of Taiwan's overall industrial structure and policy, and called for efforts to promote the transition and upgrading of the petrochemical industry in the direction of higher added-value production.
The president remarked that the environmental impact assessment taskforce delivered two recommendations—to either reject the project or to give it conditional approval. These will be forwarded to the Environmental Impact Assessment Committee, and they show that the potential impact of the petrochemical project would be too severe for the ecosystem and environment. Consequently, the government must make a responsible policy decision regarding the project. President Ma said that he has asked the Executive Yuan to request that the Ministry of Economic Affairs urge state-run refiner CPC Corp., which holds a 43% stake in Kuokuang Petrochemical and constitutes the firm's largest shareholder, to convey the government's stance against continuing the project in central Taiwan’s Changhua County.
President Ma stated his belief that this marks an opportunity for Taiwan in its pursuit of sustainable development, and offers the nation a chance to reconsider the best balance between economic growth and environmental protection. He stated that the government must reexamine Taiwan's overall industrial structure and policy directions, including how to foster transformation and upgrading of the petrochemical industry towards higher added-value output.
The president commented that the petrochemical industry makes a big contribution to Taiwan's economy and that the government absolutely will not abandon this sector. In the face of the tremendous challenges of conserving energy and reducing carbon emissions, however, industry must embrace innovative ways of thinking and actiion, he said. The petrochemical industry must reposition itself internationally in a manner that benefits both Taiwan and the industry. The Executive Yuan will therefore comprehensively examine the structure and developmental direction of the petrochemical industry, and will help Kuokuang Petrochemical find alternative options. If a new site is found, appropriate arrangements must be made to help the petrochemical industry take on the challenge of transitioning to higher-value products and overcoming current bottlenecks.
President Ma also announced that progressive legislation will be adopted to defend the quality of the environment. The nation will adopt more appropriate standards and muster even greater determination to protect the land. That is why the Ministry of the Interior has been directed to act as quickly as possible to complete required assessment procedures for designating wetlands in Changhua County as a national wetlands park, he said, adding that international standards will be introduced in promoting a "coastal act" and a "wetlands act" to prevent harm to the nation's land.
With respect to future industrial development in Changhua County, the president said that some residents of Dacheng and Fangyuan townships oppose construction, but others are hoping not to lose the investment by Kuokuang Petrochemical because they have been looking forward to the attendant job opportunities. Consequently, the president said he has asked the Council for Economic Planning and Development to work with agencies such as the Ministry of Economic Affairs and the Ministry of Transportation and Communications on a cross-ministerial taskforce that collaborates with the Changhua County government and local representatives on concrete measures to revitalize the area's economy.
The president mentioned that he has listened to a number of briefing reports on the issue in recent days and held seminars with quite a few experts and scholars on the topic. President Ma said that he even rode in a tractor through the Dacheng wetlands area to get a better understanding of the wetlands ecosystem. He said he saw oyster farmers kneeling in the wetlands praying to the heavens for good fortune, which made a deep impression on him as to the importance and vitality of the ecosystem in the area. All of these factors helped form the basis for the decision that he announced today.
President Ma pointed out that the process of discussing the Kuokuang Petrochemical project was in fact an excellent example of how to make public policy. Everyone was allowed to express their opinions in a thorough and rational manner, and data and evidence were used to reveal the truth. This is a model in the practice of democracy here, he said.
The president also stated that the Kuokuang Petrochemical project highlights the dilemma faced in governance. While it might seem that it is always impossible to achieve a win-win situation for the economy and environmental protection, the president said that the Kuokuang project marked a crisis, but also an opportunity. He expressed his hopes that the ROC is able to find an appropriate balance in the pursuit of sustainable development and economic growth in order to achieve the ultimate goal of generational justice.
After the president finished speaking he fielded questions from reporters. He said that in the decision-making process the Environmental Impact Assessment Committee's opinions on the project indicated that the project could cause an unacceptable burden on the local ecosystem and environment. In the future, of course, many supplementary measures will need to be instituted, he explained, such as providing assistance to local industry, protecting the wetlands, and preserving the Indo-Pacific humpback dolphin. The president commented that while there is both support and opposition to the environmental assessment procedures, this constitutes a good system as it enables specialists to furnish their opinions in a rational manner, thus paving the way for a consensus to gradually emerge.
As for the impact on the domestic petrochemical industry caused by this decision, the president said that related agencies have already discussed the matter at length. Abandoning the Kuokuang project will undoubtedly have an impact on the petrochemical sector, he stated, but it will not necessarily be an immediate one. Therefore, the government will have ample time to make preparations to ensure the availability of raw materials needed by the downstream petrochemical sector. The Ministry of Economic Affairs will provide detailed plans and the entire process will be carried out in accordance with democratic procedures, he commented. So this decision by the government was made after opinions from all concerned were aired. This shows that society has the ability to reflect critically on issues and make reasoned decisions. This also demonstrates that the government will not shirk its responsibility, and will embrace a serious and responsible attitude towards such decisions.