TAIPEI: Economic affairs authorities have set aside NT$100 million ($3.09 million) to help industries likely to be affected by the proposed economic cooperation framework agreement (ECFA) with the mainland next year, economic affairs chief Shih Yen-shiang said yesterday.

The signing of the cross-Straits economic pact could affect up to 80,000-100,000 workers in Taiwan. What remains unclear is whether the displaced workers will be eligible to receive compensation.

Considering the number of jobs the agreement would help to create, Taiwan is expected to see a net increase of 260,000 jobs, Shih said on the sidelines of a meeting of a Legislative Yuan committee.

Shih said the Executive Yuan has asked his department and the Council of Labor Affairs (CLA) to allocate more funds to deal with the imminent situation, and that the economic affairs authorities have already set aside NT$100 million this year.

The government agency has earmarked NT$35 billion for subsidies to 3,740 businesses that are likely to be affected by the ECFA, he said.

CLA chief Wang Ju-hsuan said last week that the council hopes affected workers would also be eligible to receive assistance, and noted that it would require an additional NT$10 billion to fund such subsidies for up to six months.

Wu Den-yih, head of the Executive Yuan, said last Friday that the ECFA will bring the greatest benefits to the petrochemical, machinery and textile industries, creating a total of 350,000 jobs in these sectors.

This will contribute to a net increase of 260,000 jobs after subtracting those that are expected to be lost in the porcelain tile, home electrical appliance and towel industries, which are likely to be threatened by the liberalization of cross-Straits trade, Wu said.

China Daily/CNA

(HK Edition 10/20/2009 page2)