Taiwan Lawmakers Freeze Submarine Budget, Defense Minister Urges Release

The legislative session saw a significant move by Kuomintang (KMT) lawmakers to freeze the budget allocated for the next phase of the "Submarine Nation" program, specifically targeting the 11.95 billion NTD for the construction of subsequent submarines. This decision, spearheaded by KMT legislator Ma Wen-chun, stems from concerns that the initial prototype, the Haikun, has not yet completed its crucial sea trials. The KMT's stance emphasizes a cautious approach, prioritizing the validation of the prototype's performance before committing further public funds to subsequent vessels, aiming to prevent the replication of any potential errors.

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The conditions for the release of the subsequent submarine budget this year should be the same as last year, which is that the Haikun completes its sea trials.

Defense Minister Chiu Kuo-cheng has appealed for the budget's release, drawing a parallel to the previous year's conditions. He hopes that the successful completion of the Haikun's sea trials will be sufficient grounds to unfreeze the funds. Chiu highlighted the financial strain on the Taiwan Shipyard Company (TSMC), which has already begun procuring materials and incurring costs for the follow-on submarines. He stressed that unfreezing the budget upon sea trial completion would alleviate significant pressure on TSMC and ensure the project's momentum.

Legislator Wang Ting-yu of the Democratic Progressive Party (DPP) echoed the need for project continuity, emphasizing the importance of maintaining confidence among international suppliers, particularly for "red zone" components. He argued that linking budget release to sea trial completion strikes a balance, satisfying legislative oversight while preserving supplier confidence and supporting the morale of the shipbuilding team. This perspective underscores the intricate geopolitical and industrial considerations involved in such a sensitive defense project.

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If the subsequent submarine budget is to go through many twists and turns, suppliers have no reason to waste time with Taiwan.

The debate reflects a broader tension between robust legislative oversight and the need for decisive action in national defense procurement. While the KMT prioritizes a "crawl, walk, run" approach, ensuring the prototype's success before scaling up, the Ministry of National Defense and some legislative allies advocate for a more streamlined process to maintain industrial capacity and international credibility. The ultimate decision rests on consensus during cross-party negotiations, highlighting the complex interplay of political will, technical validation, and national security imperatives in Taiwan's indigenous defense programs.

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The reason for freezing the budget is very simple: the budget from last year has not even been executed yet, because the Haikun has not passed basic sea trials.