Publication Date：11/05/2011
Source： Taiwan Today
By Nick du Toit
On Oct. 24, Dacheng Township in Changhua County was handed a welcome vote of confidence in its future at a public meeting outlining the central government’s NT$10 billion (US$331.4 million) regional economic revitalization plan. Attended by some of the biggest names in Taiwan politics, including ROC President Ma Ying-jeou and Premier Wu Den-yih, the event went down a treat, with participants receiving a thunderous round of applause from locals at the conclusion of a Q-and-A format session.
The success of the meeting at Dacheng Performance Hall stands in stark contrast to the ugly scenes of just over a year ago at the same venue. On that occasion, a 500-strong crowd used insults, fists and steel bars to express opposing views before the opening of a Ministry of Economic Affairs-convened hearing on the township’s selection as the site of the Kuokuang petrochemical complex.
Around 200 police were required to restore order before the event could begin, with many of the betel nut-chewing protestors continuing to hurl abuse at one another once proceedings got underway. The ruckus was so loud that MOEA and KuoKuang Petrochemical Technology Co. Ltd. officials inside were forced to bellow responses to questions from civic group representatives and members of the public.
The furore centered on the NT$600 billion Kuokuang petrochemical project slated for a 2,773-hectare wetlands site in the western Taiwanese township. Featuring a crude oil refinery and 25 midstream and downstream petrochemical processing plants, the facility was projected to refine 300,000 barrels of oil per day, as well as 1.2 million and 1.5 million tonnes of ethylene and aromatic hydrocarbon per year, respectively.
In addition to creating 6,800 new jobs and generating over NT$312.7 billion in annual production, the project would have bolstered Taiwan’s petrochemical industry and headed off an ethylene shortage when the fifth naphtha cracker in Kaohsiung is phased out in 2015. The island’s automobile, electronics, food and green energy industries were also set to enjoy badly-needed cost savings through the inexpensive supply of key petrochemical products such as benzene, toluene and xylene.
Despite these numerous benefits, Ma took the bold step of canceling Kuokuang April 22 after the government failed to secure a favorable environmental impact assessment. Questions surrounding the project’s impact on the health of Dacheng residents, survival of the Indo-Pacific humpback dolphin, greenhouse gas production and the long-term future of the regional ecosystem were never satisfactorily answered, handing greens a clear-cut victory in their battle against pro-business interests.
Although many were disappointed by the president’s decision, describing it as a setback for Dacheng and Taiwan’s goal of carving out a lucrative slice of the global refining business, there is no question that it was made in the best interests of the environment and the people. By paying more than just lip service to the government’s policy of putting the environment before economic development, Ma reaffirmed his credentials as the leader of a responsible administration that works for Taiwanese society as a whole, not just the corporate sector.
But in doing the right thing on Kuokuang, Ma had to overcome an even bigger challenge: placating over half of Dacheng’s 20,000 residents who were banking on Kuokuang as a way of stimulating the township’s moribund economy and ensuring they were not left behind in Taiwan’s drive for greater prosperity. The president was more than up to the task, instructing key agencies such as the MOEA, Council for Economic Planning and Development and Ministry of Transportation and Communications to draft one of Taiwan’s most ambitious regional economic revitalization plans.
The visionary blueprint, which comprises 36 projects spanning agricultural renewal, ecotourism, industrial park construction, green energy development, reforestation, urban beautification and transportation link upgrades, is expected to attract NT$6 billion in private investment and create 3,300 jobs over the next four years. After the industrial park comes on line, the government will launch an NT$19 billion public-private sector investment fund that should generate 7,000 additional employment opportunities.
In many ways, the timing of this initiative could not be better for Dacheng. Taiwan’s agricultural and manufacturing sectors are set to surge after tariffs on over 90 percent of items on the early harvest list under the Cross-Straits Economic Cooperation Framework Agreement (ECFA) are eliminated Jan.1, 2012. And since the signing of the historic arrangement on investment liberalization, promotion and protection between Taipei and Tokyo in September, there has been a steady stream of new and upgraded Japanese business ventures unveiled across Taiwan.
With the latest government-organized investment tour of Japan expected to produce 10 memorandums of understanding, there is every reason to believe that Minister without Portfolio Yiin Chii-ming could name Dacheng as the site of a new project when his weeklong visit wraps up Nov. 12 in Kobe. But if not this time, then locals can take great comfort in the fact that the government’s go-to guy for attracting Japanese investment is moving heaven and earth to ensure the township is at the front of the queue when the next opportunity surfaces.
Abandoning Kuokuang may have raised doubts over the government’s commitment to Dacheng and Changhua, but these have surely evaporated in light of its farsighted regional economic revitalization plan. In the final analysis, losing Kuokuang may prove to be a blessing in disguise for the township and county, which can now look forward to a better tomorrow without paying a hefty environmental and social cost.
Nick du Toit is a freelance writer based in Kinmen County. These views are the author’s and not necessarily those of Taiwan Today. Copyright © 2011 by Nick du Toit
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