Taiwan clinches N-plant deal

Premier Chang and parliamentary speaker shake hands

The Taiwanese Government in has reached a deal with the opposition-dominated parliament to resume the construction of a controversial nuclear power station project, ending a bitter three-month feud over the issue.

Prime Minister Chang Chun-hsiung signed a draft agreement with the parliamentary speaker to hold negotiations on the future of the $5.5bn project once building resumes.

The decision will upset anti-nuclear activists, who have protested over the issue

Mr Chang told a news conference he had conceded over the issue for the sake of "political stability and economic development".

The government infuriated parliament last October when it suspended work on the project, arguing that the plant - the fourth on the island - would not be a safe source of energy.

The row led to a virtual deadlock between the cabinet and parliament and seriously undermined confidence in the economy, contributing to a 40% drop in share values on the Taipei stock exchange.

Analysts say the government's climbdown will anger its own supporters in the DPP, many of whom have a hardline anti-nuclear stand.

Fight not over

But some legislators in the ruling Democratic Progressive Party (DPP) have said the fight was far from over. They said they might once again shelve the project if the DPP becomes the biggest party in parliament in the elections at the end of the year.

The nuclear power plant is about one-third built

"There is a possibility we will halt construction of the fourth nuclear power plant again after we become Taiwan's biggest political party," DPP legislator Lai Ching-lin told Reuters news agency.

The latest move will have an impact on the DPP itself though, with many supporters feeling betrayed.

Scrapping the plant - which is one third complete - was a campaign promise made by the party which won the election last year.

The BBC's Taiwan correspondent, Damien Grammaticas, says it could lead to resignations of senior figures and could harm the party's chances in this year's legislative elections.

Earthquakes

Mr Chang had argued that with the island prone to earthquakes, Taiwan was ill-equipped to store radioactive waste or to deal with a nuclear accident.

Chang had made a strong appeal to scrap the plant

The project was pushed through in 1986 by the then-ruling Kuomintang, now the main opposition party, despite years of objections from environmentalists and residents.

The KMT was outraged that it had not been consulted about the scrapping of the project.

The island's highest court then ruled the prime minister must win the support of parliament to proceed with his policy and ordered the two sides to negotiate a settlement.