KMT Proposes Drone Bill: NT$240 Billion Over 6 Years, Purchases Over NT$100 Million Require Legislative Reporting

(CNA Taipei, June 30) The Kuomintang (KMT) caucus today unveiled its version of a drone ordinance draft. Caucus Secretary-General Lin Pei-hsiang stated that the total budget over six years would be NT$240 billion, to be allocated annually from the regular government budget at NT$40 billion per year. The funds can only be used for the procurement, production, and industrial cluster development of military unmanned vehicles. Any single procurement exceeding NT$100 million must be reported to the Legislative Yuan, and annual execution results must also be submitted.

The Executive Yuan on June 18 passed a draft special act for the procurement of domestically produced unmanned vehicles, allocating a maximum of NT$210 billion in special funds. Procurement items include maritime surveillance drones, maritime attack drones, and small suicide unmanned boats. When the Legislative Yuan addressed reports on June 26, the KMT and Taiwan People's Party caucuses proposed postponing the agenda, and the motion passed with a majority vote.

KMT Legislative Yuan Caucus Secretary-General Lin Pei-hsiang, Chief Deputy Secretary-General Hsu Yu-chen, and KMT legislators Lai Ssu-bao, Liao Wei-hsiang, and Luo Ting-wei held a press conference today at the KMT Legislative Yuan Caucus titled "Developing Drones with NT$240 Billion Over 6 Years, Creating the Next National Champion Industry" to announce the KMT caucus's version of the "Act on the Development and Procurement of Domestic Unmanned Vehicle Technology."

Lin Pei-hsiang pointed out three key aspects of the draft: "Returning procurement systems to normalcy," "Establishing a complete unmanned combat system," and "Raising specifications to prevent corruption." The KMT does not oppose national defense, but opposes national defense without supervision; it does not oppose procurement, but opposes procurement without a system.

He stated that the drone ordinance draft proposed by the KMT caucus would total NT$240 billion over the next six years, to be allocated annually from the regular government budget at NT$40 billion per year, with annual review and supervision by the Legislative Yuan. As national defense construction is a long-term endeavor, special budgets should not be used repeatedly to evade supervision.

Lin Pei-hsiang indicated that the budget can only be used for the procurement, production, maintenance, training, testing grounds, and industrial cluster development of military unmanned vehicles. Furthermore, any single procurement exceeding NT$100 million must be reported to the Legislative Yuan, and annual execution results must also be submitted.

Lin Pei-hsiang added that the draft prohibits critical components such as flight control systems, navigation chips, and communication modules from high-risk supply chains. It establishes a "Supply Chain Security Certification System," requiring all businesses applying for government subsidies and procurement to pass cybersecurity and supply chain security certifications.

He said that if anyone provides false information, secretly uses uncertified components, their qualifications will be revoked, subsidies will be recovered, and they will be heavily fined. If the circumstances involve major issues, criminal responsibility will be pursued.

Hsu Yu-chen pointed out that the KMT caucus's drone ordinance draft has five major highlights: dispersed deployment and resilient defense, with production bases spanning three counties and cities to avoid concentrated deployment and production; domestic production targets to drive industry, requiring domestic production ratios to reach 50% within two years and 80% within four years; prohibition of high-risk areas for five core components, pioneering safety certification; NT$240 billion over six years returning to the general budget; and anti-corruption clauses with heavy fines and recovery of subsidies for violations. For major offenses such as leaks or hacking, the maximum sentence is 10 years imprisonment.

Regarding whether the caucus consulted with the party central leadership on the proposed drone ordinance draft, Lin Pei-hsiang stated that the version proposed by the caucus was primarily decided through discussions with think tanks and party legislators. Currently, everyone's attitude is highly affirmative, including Taichung Mayor Lu Shiow-yen, because this is not just about simple procurement but also industrial development.

Luo Ting-wei pointed out that Lu Shiow-yen is very concerned about the drone ordinance and respects the caucus's autonomy, giving them more room to maneuver. The drone ordinance draft presented today will ultimately be further discussed and decided by the caucus, and will not be based on the version of any city mayor; the caucus has its own subjectivity.

In addition, KMT Culture and Communications Committee Chairman Chen Yi-hsin stated today in a press release that the KMT has always supported enhancing national defense capabilities and developing the domestic drone industry. However, supporting national defense does not equate to supporting the DPP government's excessive allocation of special budgets. According to Article 83 of the Budget Act, special national defense budgets are an emergency exception system for responding to "war or national defense emergency facilities" and should not become a common tool for the DPP to evade normal budget procedures, escape congressional oversight, and undermine fiscal discipline. (Editor: Hsieh Chia-chen) 1150630

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