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KMT votes down media
amendments
ABOUT-FACE: It was unclear why the KMT did a
U-turn, with the DPP saying it caved to conglomerates and the KMT saying its
caucus had misunderstood party policy
By Shih Hsiu-chuan / Staff reporter
Chinese Nationalist Party (KMT)
caucus whip Wu Yu-sheng, front right, holds up a sign that says “against” while
Democratic Progressive Party (DPP) legislators hold up signs that say the KMT is
cheating the people during a legislative session in which the DPP proposed
amendments to media laws.
Photo: CNA
Amendments designed to prevent media
monopolization and investors from interfering in the editorial content of
broadcasting corporations were put on hold yesterday after the government made a
last-minute U-turn late on Thursday night, with Chinese Nationalist Party (KMT)
lawmakers backtracking from their previously declared support for the amendments
and voting them down.
At the plenary session yesterday, the third-last day before the legislature goes
into recess on Tuesday, the Democratic Progressive Party (DPP) and Taiwan
Solidarity Union pressed for the amendments to clear the legislature.
The motion was voted down 59 to 44. The KMT caucus later proposed that the
amendments be referred to cross-party negotiation, which means the bills could
be held up for at least a month before they could be put to the vote for a
second and third reading.
Had the amendments to the Radio and Television Act (廣播電視法), the Satellite
Broadcasting Act (衛星廣播電視法) and the Cable Television Act (有線電視法) passed the
legislature yesterday, they could have hindered the acquisition of Hong
Kong-based Next Media’s four outlets in Taiwan by a controversial consortium.
The offer made by the consortium, which includes pro-China Want Want China Times
Group (旺旺中時集團) chairman Tsai Eng-meng (蔡衍明), to Next Media Group (壹傳媒集團) owner
Jimmy Lai (黎智英) has aroused much debate about growing Chinese influence on
Taiwanese media and concentration of media ownership in the hands of
conglomerates.
In view of the growing concern over media monopolization, the DPP drafted the
amendments to establish a regulatory framework for media acquisitions and to
restrict cross-sector media monopolies, with the aim of ensuring editorial
independence, media professionalism and social responsibility.
At one point, President Ma Ying-jeou’s (馬英九) administration appeared to support
the DPP’s amendments when they were rushed through the legislature’s
Transportation Committee on Wednesday without any revisions or objections from
anyone who was present, including National Communications Commission (NCC)
Chairperson Howard Shyr (石世豪).
After the amendments were sent out of the committee, the KMT caucus issued a
press release saying the party would like to see the amendments clear the floor
yesterday.
However, things changed late on Thursday night.
The NCC called a press conference and severely criticized the DPP’s proposed
amendments. At about the same time, KMT headquarters issued a statement
expressing similar views.
Executive Yuan spokesperson Cheng Li-wun (鄭麗文) said yesterday that Premier Sean
Chen shared Shyr’s view that the government would prefer to spend more time
drafting a well-thought-out anti-monopolization media law rather than support
the DPP’s amendments, which “could have wide repercussions on the broadcasting
industry.”
At the legislature yesterday, several KMT lawmakers accused KMT caucus whip Wu
Yu-sheng (吳育昇) of “impetuous” leadership because they said the KMT should have
blocked the DPP’s amendments at the committee meeting.
Wu said it was his strategy to send the DPP’s amendments out of the committee
first and then block the amendments on the floor, to highlight what he said were
problems with the DPP’s amendments.
Wu said the DPP had acted rashly on the amendments just to heat up its protest
tomorrow.
“The biggest joke was that the DPP removed an article restricting investments
made by political parties, politicians and the military from their amendments,”
he said.
DPP caucus whip Tsai Chi-chang (蔡其昌) said the removal of the article was a
result of “carelessness.”
“At the beginning of the session today, we told the KMT that we had a revised
amendment ready that added the article in and the amendments could be passed
today, but the KMT still insisted on sending the amendments to negotiation,”
Tsai said.
Tsai said that pressure from conglomerates investing in broadcasting
corporations forced the KMT administration to make its turnabout on the
amendments.
Dismissing the criticism, KMT headquarters yesterday said the KMT caucus had
misunderstood the party’s policy on the issue.
Ma, who doubles as KMT chairman, and KMT top officials met on Tuesday to discuss
the party’s stance on the DPP’s proposed amendments and instructed the KMT
caucus to go over the details of the acts and explain the party’s stance before
deciding whether to support the proposal, KMT spokesman Yin Wei (殷瑋) said.
Yin said the government supported the fight against media monopolization, but
opposed any hasty amendments to acts that would make the laws too biased and
difficult to enforce.
Additional reporting by Mo Yan-chih
Main contents of the Democratic Progressive Party-proposed amendments to the
Radio and Television Act (廣播電視法), the Satellite Broadcasting Act (衛星廣播電視法) and
the Cable Television Act (有線電視法) against media monopolization:
1. Bans on investments in media by the financial sector
Owners and executives of financial holding companies, banks and insurance
companies as well as owners and executives of entities subsidized by financial
firms would be banned from investing directly or indirectly in terrestrial
television stations, cable television network systems and satellite broadcasting
companies.
The shares held by spouses or close relatives of said people in a single media
organization would not exceed 1 percent of the issued shares.
Some examples of its potential impact:
Want Want China Times Group chairman Tsai Eng-meng (蔡衍明) and his family, who
have a controlling stake in WaterLand Financial Holdings (國票金控) and Union
Insurance Co (旺旺友聯產物保險), and Chinatrust Charity Foundation chairman (中信慈善基金)
Jeffrey Koo Jr (辜仲諒) could be banned from investing in the Hong Kong-based Next
Media’s four outlets in Taiwan. Meanwhile, Fubon Financial Holding Chairman
Daniel Tsai (蔡明忠) could be forced to dispose of his shares in multiple systems
operator Kbro Co (凱擘) and be banned from operating the Momo TV shopping channel
and MoMo Kids TV.
2. Media monopolization
Shareholders who own over 10 percent of shares in a national newspaper company,
a terrestrial television broadcasting station or an affiliated firm of said
enterprises would not be allowed to engage in the management of a cable
television network system. Shares held by said people directly or indirectly in
a cable television network system would not exceed 10 percent.
Some examples of its potential impact:
Want Want China Times Group chairman Tsai Eng-meng (蔡衍明), who also owns
Chinese-language newspaper China Times and China Television Co (CTV, 中視), would
not be allowed to purchase cable TV operator China Network Systems (CNS, 中嘉網路)
unless he sells the newspaper and CTV.
3. Cross-sector media integration
The number of channels used by a cable television system operator and its
affiliated enterprises would not be allowed to exceed 10 percent of usable
channels. The number of channels in a cable system used by a channel provider
and its affiliated firms is also capped at 10 percent of its usable channels.
The current cap is set at 25 percent.
4. Independent outside director
Terrestrial television stations, cable television network systems and satellite
broadcasting companies would all have at least one independent director
recommended by their employees or labor union on their management board.
5. Media independence
The management of satellite broadcasting companies would be required to sign an
editorial agreement, create an internal control mechanism and establish a
self-disciplinary mechanism to uphold the media organization’s editorial
independence.
6. Public media
Satellite broadcasting companies would need to submit a mandatory public
offering for the purchase of their shares to the public. Direct and indirect
investments within a satellite broadcasting company made by foreign-invested
enterprises would not be allowed to exceed 60 percent of its issued shares.
Satellite broadcasting companies would be banned from taking out loans in excess
of 30 percent of its capital from financial institutions.
7. Media acquisitions
The government’s regulatory agencies would be able to deny proposed media
acquisitions for reasons related to media independence, national security,
public interest, freedom of expression and the public’s right to access to
diverse information.
Information compiled by Staff reporter Shih Hsiu-chuan
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