The legislature has blocked a proposal for fiscal reform of the Taiwan High Speed Rail Corporation (THSRC). The Cabinet’s proposal was aimed to help the financially troubled high speed rail operator avoid a bankruptcy that could come as early as March.
The proposal suggested granting a 40-year extension to the corporation’s concessional rights to operate the Taiwan High Speed Rail. This way, the company would have had more time to acquire capital and solve its current difficulties.
The opposition Democratic Progressive Party (DPP) opposed the government plan to rescue the rail operator. The DPP said the restructuring plan would only benefit certain individuals. But the Cabinet said the plan would benefit the public and help the corporation manage its finances without going bankrupt.
The transportation ministry said that if the proposal had cleared the legislative floor, the THSRC would have had 59 more years to continue operating under the current business model.
Transportation Minister Yeh Kuang-shih tendered his resignation Wednesday after the ministry's proposal for financial restructuring at the Taiwan High Speed Rail operator failed to clear the legislature.