Gov't Will Subsidize Replacement Purchase of Home Appliances

Taipei, Dec. 2, 2011 (CENS)--For a three-month period from Jan. 1 next year, the government will subsidize local people for replacement of old air conditioners, refrigerators, and washing machines with new energy-saving models, at NT$2,000 for each item, resolved the Executive Yuan (the Cabinet) yesterday (Dec. 1).

The program, with a total budget of NT$600 million, is expected to trigger home-appliances procurement of 300,000 units, inducing NT$7.9 billion of consumption. There will be a limit on the subsidized purchase for each household. Christina Liu, minister of the Council of Economic Planning and Development (CEPD), reported that LCD TV may be included in the next round of subsidy, in compliance with the inauguration of digitalized broadcast TV next July.

The subsidy program is designed to cope with the European-debt crisis and bolster the economy via stimulation of private consumption. It is applicable only to purchase of Taiwan-made products for replacement of old machines.

Jerry J.R. Ou, director general of the Bureau of Energy, under the Ministry of Economic Affairs (MOEA), remarked that the subsidy program will produce the triple effects of energy saving, bolstering of economy via stimulating consumption, and inducing the development of the domestic industry.

The CEPD pointed out that the best timing for stimulating consumption is Chinese Lunar New Year season, thanks to the issuance of year-end bonus and the promotion of vendors. The program will induce at least NT$7.9 billion of private consumption, which will benefit a wide range of domestic industries, including compressor, motor, steel, and air-conditioner cases.

Only air conditioners with grade 1 or grade 2 of energy efficiency or refrigerators with energy-saving certificate can be entitled to the subsidy. Refrigerators account for 11% of local household power consumption and air conditioners for 45%, both being high energy-consumption home applications. Despite lower power consumption, washing machines are also covered by the program, due to their popularity among local households.