Taiwanese ruling party lawmakers question opposition's proposal for National Development Fund management

Taiwan's legislative session saw a clash over the management of the National Development Fund, with the opposition Taiwan People's Party proposing the implementation of a "responsibility center system." This system, typically used by corporations to enhance financial management and control costs, has drawn sharp criticism from ruling Democratic Progressive Party lawmakers.

DPP legislator Chung Chia-pin voiced strong objections, questioning the fundamental understanding of the fund's mission. He argued that the responsibility center system is designed for profit-oriented business groups to maximize returns through internal competition and clear profit-and-loss accountability. Introducing such a profit-driven model into the National Development Fund, he contended, fundamentally misunderstands its purpose: to provide financial support for innovative technologies that may not yield immediate profits.

Chung further elaborated that the fund's core objective is to invest in industries aligned with national development strategies, not to pursue maximum profits like a private enterprise. He criticized the notion that the fund's investments must always be profitable, stating that this overlooks the very nature of innovation, which often requires initial investment without guaranteed short-term returns. "If we only invest in things that are obviously profitable, then there's no need to talk about industrial innovation; we might as well just speculate in stocks," he remarked.

The proposal also included a suggestion for legislative caucuses to recommend scholars and experts for the fund's management committee based on their party's seat allocation. While some opposition legislators, like KMT's Cheng Tien-tsai, expressed understanding for the proposal's intent to review the fund's utilization, the DPP maintained its stance that such proposals should align with the spirit of the Industrial Innovation Act, which prioritizes fostering innovation over profit maximization.