2010-07-26

New Farm Village Restructuring Act Enacted

Taiwan’s Legislative Yuan recently passed the Farm Village Restructuring Act, which calls for the distribution of NT$ 150 billion in restructuring funds to encourage the restructuring of farm villages over the next ten years. However, the passing of the Act has raised concerns among farmers, especially with respect to the issue of possible exploitation by large corporations.

The new Act allows the Central Government to draft restructuring plans for farm villages; and organizations within the communities may also submit restructuring plans voluntarily after receiving training from the Central Government. The training program includes subjects such as public construction and housing and land planning.

In order to manage the public constructions and building and landscape management, representatives of communities will need to sign mutual agreements and the owners of buildings and lands must abide by the terms of these agreements. Communities that have such agreements will have priority in obtaining subsidies for reconstructions. However, parties that breach these agreements will first be advised by the relevant authority to rectify the breach, failing which, the relevant laws will govern the way in which such breaches are dealt.

There are concerns that once a majority of the residents of a farmer village has decided on a particular reconstruction plan, they will hold controlling power in deciding the land planning, which may include the relocation of certain farmers’ houses. Even if the minority farmers are opposed to relocation, they may not have the power to challenge the decision of the majority.

Some scholars are worried that enactment of the new law may provide large corporations opportunities for land speculation. These large corporations may gather the majority of landowners to apply for the restructuring plan, and indirectly control the use and planning of the land.

However, this is not to say that the Act is without benefit. This Act gives the farm villages an opportunity to upgrade their living standards. The reconstruction funds can be used on renovation of historical buildings, to promote attractions of the farm villages, thus helping to boost the images and business opportunities of the villages.

The public should take note that Article 35 of the Act provides that if there are any “unsightly” buildings or areas, and if the owners of such buildings or areas are untraceable or unknown, the Government may, after posting a notice for 3 months, restore or renovate such buildings or areas. Therefore, certain abandoned properties may be renovated by the Government without approval of the owners.
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