20000122

'Checkbook' poll campaign Taiwan's ruling party under fire

TAIPEI: Political analysts in Taiwan have hit out at "checkbook" election campaigning, saying Vice-President Lien Chan is bribing voters by promising tax cuts, cheaper phone bills and closer business links with rival China to boost his profile.

As the ruling Kuomintang's (KMT) candidate in the presidential race, Lien unveiled his campaign platform on economic issues Wednesday, offering to ease restrictions on mainland-bound investment, increase tax deduction allowances, and cut telecommunication rates.

Observers said the policies were apparently aimed at helping Lien, who has been behind independent candidate James Soong and opposition Democratic Progressive Party candidate Chen Shui-bian in opinion polls.

Lien has seen his backing hovering at low levels for nine months since he first voiced the desire of jogging for the presidential polls," said Sheng Chih-jen, political science professor at Soochow University.

"He knew he had to take some measures to boost his standing now before it is too late,"

According to the latest poll conducted by TVBS cable television on Monday Lien garnered 21 percent of voting intentions, compared to Soong's 26 percent and Chen's 27 percent.

To lure votes from lower and middle income groups, Lien said the government under his leadership would expand tax deductions for salary earners.

Official said the Finance Ministry would raise the income tax deduction allowance for each salary earner up to 90,000 Taiwan dollars (2,918 US dollar) next year from the current 62,000 Taiwan dollars.

Telephone bills would also be cheaper as the government would slash rates, according to Lien.

"This is something KMT knows how to do well but the effects will be limited," he said as the DPP heaped vitriol on the election scheme.

Taiwan's "go slow" policy towards China, which has been opposed by the Business sector, would be eased when Taiwan-China ties improve Lien said.

"A policy readjustment is possible so long as there is conceivable improvement in cross-strait relations and Taiwan investors mainland secure proper protection," Lien said.

After the relaxation, "cross-strait economic exchange would have more room for development," he said.

Taiwanese investment is the second largest source of overseas investment in China with more than 40,000 local firms pouring an estimated 40 billion US dollars worth of capital into the mainland. AFP