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October 2011 : Massive Floods Arrived in Bangkok

  • Massive floods arrived in Bangkok
  • Flood remediation budget approved
  • Corporate tax reduced
  • First house for the less-privileges
  • Bt.300 minimum wage postponed
  • Energy credit cards
  • Flood prevention plan
  • Economy slows in September
  • Propose to amend Defense Law
  • Amsterdam looking for more evidence
  • Government endorsed only 24 draft Bills

    Massive floods arrived in Bangkok

    Accumulated run-offs from four rivers: Chao Phraya, Lopburi, Pa Sak and Menam Noi flooded the central plain where water in some areas reached higher than 2 meters. The Director of the Geo-Informatics and Space Technology Development Agency, Dr. Anond Snidvongs, predicted that it would be the worst ever flooding in Thai history.

    On 4th October, the Prime Minister appointed Justice Minister, Pracha Promnog, as Director of the Flood Rescue Operation Center (FROC), to be situated at Don Muang Airport. Floodwater swept southward causing chaos as hospitals, schools and even prisons had to be evacuated. Seven industrial estates in the flood plain could not be saved and one by one became submerged. Hundreds of thousands of workers fled their home and workplace. Some went back to their provincial hometown, others stayed in refuge centers and many moved to upper floors of buildings surrounded by water.

    In a few hours and despite attempts by the authorities to protect areas with walls of sand bags, massive floods from the north and northeast overran, Nonthaburi and Pathumthani, two populated provinces north of Bangkok. In late October, northern areas of Bangkok were inundated and even FROC office in Don Muang Airport was engulfed by floodwater that reached into central Bangkok.

    Bangkok Metropolitan Authority (BMA) set up refuge centers in school compounds and many Bangkok residents fled to surrounding resort towns. On 17th October, FROC announced it was solving flood problems by:
    1. Repairing damaged water gates;
    2. Repairing highways;
    3. Accelerating water flow into the Chao Phraya River;
    4. Evacuating people from flooded areas; and
    5. Calling on the help of volunteers and the military.

    28th October was expected to be the most critical date in Bangkok, as on that day water level in the Chao Phraya River would be at its highest at 2.59 meter, while flood retaining wall along the river is only at 2.50 meter. Bangkok residents on the western bank were particularly anxious since that side was not completely protected and water did not come from the Chao Phraya River alone. Tha Chine, another big river running north south adjacent to it, was also filled with floodwater from the North.

    Flooding created conflict amongst Bangkok residents. Different water levels on each side of flood retaining walls led to arguments, fighting and even destruction of flood barriers. Involvement of local politicians exacerbated the conflict. On 31st October, the Prime Minister ordered the water gate at Klong Sam Wa lifted hoping to reduce water in that area which is a stronghold of her party. She exercised this authority through the Disaster Prevention and Mitigation Act of 2007, which entitled the Prime Minister to act as Supreme Commander. In Bangkok, floodwater rose to such a critical point that the Prime Minister ordered extra holidays so people could move out of the city. When they returned, residents found that northern Bangkok was submerged and people had to use boats or military trucks to commute to work.

    Flooding in Thailand was reported internationally, particularly about the inept management, which led to speculations that the Yingluck administration might have to go when the flood recedes. His Majesty’s recommendation about flood management made in 1995 was uploaded on to YouTube and re-televised by public television. His prescience provided proof of his expertise especially since he had the longest continuing flood management experience in the country.

    On 8th November, the official death toll was 527 with 3 missing. Flooding affected approximately 2.9 million households or 9.5 million people. Financial loss estimated at Bt.156 billion and 150 million rai of agriculture and built-up areas in 63 provinces were flooded. Estimate initial loss of the seven industrial estates was Bt.140 billion. They had been insured at Bt. 456 billion, equivalent to 4% of the national insurance, 15% insured in the domestic market and 85% re-insured internationally. Tourism Authority of Thailand estimated loss in tourism at Bt. 25 billion. The country was downgraded to 37th among the most at risk country worldwide.

    Flood remedial budget approved

    On 18th October, the Cabinet approved an allocation of Bt. 130 billion to remedy flood damage. Bt. 80 billion will be coming from the 2012 fiscal expenditure and Bt. 50 billion from the deficit; Bt. 120 billion will be allocated to the central and Bt. 10 billion to local agencies.

    The Cabinet meeting on 25th October, approved a further remedial budget of Bt. 325 billion: Bt. 65, Bt. 170 and Bt. 90 for big, medium and small entrepreneurs respectively.

    On 27th October, the Government spokesperson, Thitima Chaisaeng, disclosed that the government had spent Bt. 437,744,560 on flood damage as follow;
    1. Compensation for 356 lives lost at Bt. 50,000 each, and for 138 houses completely damaged at Bt. 240,000 each, making a total of Bt. 50,920,000.
    2. Provision of consumer goods and equipment totaled Bt. 325,824,560.
    3. Provision of financial aids to philanthropic institutions totaled Bt. 61,000,000.

    The media reported that there were aid from 21 foreign countries and 6 international agencies, as of October, reaching Bt. 745 million and donation from Thais living abroad was Bt. 4 million.

    Corporate Tax reduced

    On 11th October, the Cabinet resolved to introduce a tax reduction scheme to boost the country’s global competitiveness and in the ASEAN community due in 2015 as follows:
    1. A reduction of corporate income tax from 23% to 20%, effective from 1st January 2013;
    2. A reduction of corporate income tax, for small and medium entrepreneurs having maximum Bt. 5 million paid-up capital and maximum Bt. 30 million annual income. A 15% rate will be applied to profit not exceed than Bt. 150,000 and 23% between Bt. 150,000 and Bt. 1 million. This is to be effective for the accounting year ending on 31st December 2012 and after 1st January 2013, 20% will be applicable for the whole.

    First house for the less-privileged

    On 4th October, the Cabinet resolved additional loan conditions for the first home scheme provided by the Government Housing Bank to those without home ownership as follow:
    1. Borrowers must not own or be registered in the Household Register as an owner and must have been registered as resident in the Household Register for more than 3 years.
    2. Loans will be applicable to buyers of brand new or second hand units. Single houses, detached houses, townhouses, condominium and commercial row houses are all eligible.
    3. Maximum payback period is 30 years. Maximum loan is Bt. 1 million with no interest payable in the first 3 years.
    4. Borrowers’ maximum age is 65 years.
    5. Applications for the loans must be submitted between 11th October 2011 and 30th September 2012 or when the total credit line reaches Bt. 20 billion. Loan contracts must be made before 31st December 2012.

    The Government Housing Bank will be exempted from paying Bt. 2.4 billion to the Finance Ministry between 2011 and 2014.

    Bt.300 minimum wage postponed

    In reference to the Central Wage Committee resolution on 17th October to raise the minimum wage in 7 provinces by 40% to Bt. 300 starting on 1st January 2012, due to widespread flood damage, starting date is postponed to 1st April 2012.

    Energy credit cards

    Following the government’s policy, the PTT Public Company Limited disclosed its plan to issue energy credit cards to 58,000 NGV taxi drivers and 5,000-6,000 NGV public mini-vans. The cards can be used to buy NGV on credit, special discounts will apply on payments and there will be a credit line of between Bt. 2,000 and Bt. 4,000 per month. PTT will allocate a monthly provision of Bt. 128-256 million for this scheme.

    Flood prevention plan

    Energy Minister Pichai Naripthaphan disclosed after a meeting with Prime Minister Yingluck and other ministers that there is a consensus that Thailand should have a long-term comprehensive flood prevention plan, called the “New Thailand Model”. He anticipates a budget of Bt.600-800 billion to be allocated for this plan, although there is no detail at the moment.

    Economy slows in September

    On 31st October, The Bank of Thailand revealed that in September, the economy was slowing because many industrial sectors, such as hard drives, textile and electronics were badly affected by the floods. Other sectors, such as consumer goods, agriculture and export were partially affected, but food and beverage and vehicles were doing well.

    Proposal to amend Defense law

    The United Front for Democracy against Dictatorship and Phue Thai MPs proposed that the Defense Act of 2007 be amended because the Defense Minister and the Deputy Minister were only two politicians out of 7 Defense Councilors who have final say in the appointment and transfer of arm forces senior personnel. The others are the three arm forces chiefs, the Chief of Staff and the Permanent Secretary of Defense.

    The proposal follows Pheu Thai party list MP, Chatuporn Prompan’s comment on 9th October that the Defense Act is one among 177 laws in force unconstitutionally because it was passed when Parliament was convened with less than the legally required 125 members. He cited the Constitutional Court ruling that such law shall be void. Moreover, the Defense Law was enacted during the Surayut Chulanont government, appointed after the coup by the Council for Democratic Reform under the Constitutional Monarchy. Chatuporn said he did not intend that politicians should interfere with the appointment and transfer of arm forces lower positions.

    Amsterdam looking for more evidence

    Lawyer to former Prime Minister Thaksin Shinawatra, Robert Amsterdam, was in Thailand in October to look for more evidence on the 91 people killed during the April-May 2010 political unrest following the rejection of his previous complaint to the International Criminal Court.

    Mr. Amsterdam visited the prisoners and complained that the condition in Thai jail is below international standard. He commented the Thai prosecution tried to discourage inmates and to make them confess. He said that an amendment to article 112 on lese-majesty offences is impossible due to ‘the invisible hand’. To him, Thailand is only in the first stage of democracy.

    Amsterdam’s comments were widely criticized in that, as a foreigner he interfered in Thai politics, obviously supporting one party against another. There were concerns about Thailand’s sovereignty, if in future the country has to obtain consent from an outsider in matters concerning its internal affairs. One of the issues raised is that if a non-Thai were to be a member of a political party and acted for the benefit of the party, would the executive members of the party still be responsible for his acts?

    Government endorsed only 24 draft Bills

    On 28th September, the Cabinet resolved to endorse 24 draft Bills pending in Parliament after the House was dissolved for the last election. Among those are the Thai Nationality Bill, the Human Rights Bill and the Public Health Profession Bill. The endorsed Bills will be submitted to the House Speaker for further process.

    Under the Constitution, a new government must, within 60 days after Parliament is convened, endorse pending draft bills. Otherwise, these draft bills would be dropped and need to be re-started, if required.

    A total of 295 draft bills are pending at different legislative stages but only 24 have been endorsed for enactment.

    From : http://www.fpps.or.th


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