President Ma Ying-jeou called a press conference on the afternoon of May 19 at the Presidential Office to examine four areas where his administration has drawn criticism over the last four years. Some have faulted the government for failing to create sufficient jobs, not promoting increases in salaries fast enough, not closing the gap between rich and poor enough, and insufficiently communicating and explaining government policies. The president also responded to questions raised by the media about imports of US beef, the levying of a capital gains tax on securities, and hikes in gasoline and electricity prices. Among those accompanying the president were Vice President Vincent C. Siew, Premier Sean C. Chen (陳冲), Vice Premier Jiang Yi-huah (江宜樺), and Government Information Office Minister Philip Y. M. Yang (楊永明).
In remarks, the president reiterated that some policies that the government has promoted lately have caused inconvenience and concern among the public. He said he understands and feels sorry about this. In its efforts to strike a balance between differing views in the future, he said, the government will take the greater good of the majority of the people as its guidepost, so that government policy will be more reflective of the standpoints of the public, and will show greater empathy.
Later in the press conference, the president received a question from the media related to the import of US beef. President Ma again stressed that he has not made any pledges to the United States regarding a timeframe or the scale on which imports of US beef will be allowed. He said that he did not have any pre-set positions in mind when the issue first arose, because domestic scholars had not yet had an opportunity to engage in discussions as to the safety of consuming US beef. Since then, experts and scholars have held three conferences and reached several conclusions, one of which was that no consumer here has yet fallen ill due to the consumption of beef containing traces of ractopamine, and that 80% of the additive is expelled by the body after 24 hours. It was only after this conclusion was reached that the government proposed adopting tolerance levels, treating beef and pork separately, instituting mandatory labeling requirements, and banning the import of offals. The president stated that before the government could adopt a comprehensive policy and communicate it to the public, it was necessary that all domestic scholars first agree that US beef did not pose a health hazard. Acting otherwise would have been dictatorial, and the public never would have accepted it.
President Ma remarked that he has never denied being pressured by the United States on this issue, adding that the United States continues to be deeply concerned about the beef import issue. President Ma furthermore said that while resumption of negotiations under the Trade and Investment Framework Agreement with the United States are extremely important to Taiwan's economic development, the government will absolutely make sure that US beef is entirely safe to consume before it moves ahead on this issue. The president noted that the United States is Taiwan's third largest trading partner, and that if Taiwan intends to discuss free trade agreements and trade liberalization with other nations, it must naturally do so with its major trading partners. Moreover, Taiwan's foremost competitor, Korea, signed a free trade agreement with the United States that took effect in March of this year. In addition, Japan, mainland China, and Korea are preparing to initiate negotiations on a trilateral free trade agreement, he said. Based on overall strategic considerations, and for the sake of Taiwan's competitiveness in the global arena, the government, he said, must work quickly to abolish barriers, strive to make progress, and keep in sync with the rest of the world.
With regard to domestic gasoline prices, the president said that the experience four years ago in adjusting prices showed that the public began to hoard gasoline prior to the major price hike. There were also signs of hoarding ahead of this latest round of gasoline price hikes, he explained, furthermore stating that if the government had further delayed action, or if it had failed to implement the entire increase in one single adjustment, the situation would have become even worse. Therefore, in order to avoid the occurrence of public safety hazards, the government had to do the enterprise hike all at once. Meanwhile, he pointed out that domestic gasoline prices have fallen for six consecutive weeks since the large price hike was instituted on April 1. This demonstrates that domestic oil prices are reflective of the actual cost of oil, he said.
As for the planned hike in electricity prices, President Ma reiterated that the nation's exports were not ideal in the first quarter of this year. In addition, with the consideration that a large hike would trigger expectations of a broad rise in domestic prices, the government decided to institute the electricity price hike in phases. This will reduce the impact of the price hikes on the public, he said. The president remarked that electricity prices here absolutely must be raised, as the government cannot use taxpayer funds to subsidize large users of energy. President Ma said that the government will continue to communicate with the public on this issue. In addition, the Executive Yuan's price stability task force will continue to examine domestic prices and investigate whether there are any parties who are breaking the law, he added.
Lastly, as for the capital gains tax on securities, President Ma also expressed his hope that a plan can be formalized as soon as possible. He again emphasized that this reform must be implemented, and that even though the tax is highly controversial, the government will continue working to build consensus and communicate with all concerned parties so as to bring the matter to an expedited conclusion. This issue will not go unresolved indefinitely.