 September 2013 : Parliamentary Report Addressed 1 Year Late
Parliamentary report addressed 1 year late On 24th September 2013, Prime Minister Yingluck Shinawatra made the first address to the National Assembly in regards to Section 75 of the Constitution. The Prime Minister reaffirmed three goals to:
The opposition Democrat Party commented that the government failed to retain consumer products to reasonable prices as promised to the parliament. While the cost of living, particularly fuel prices, increased sharply the Commerce Ministry did nothing but fixed prices of consumer goods in the ministry’s grocery stores. Section 75 of the Constitution requires the government to report results of the policies implemented, including problems and obstacles to the National Assembly at least once a year. As the Yingluck administration took office in August 2011, therefore, the report should be addressed one year earlier, on 23rd August 2012. National burden increased from populist policies The Senate Committee on Monetary, Finance, Banking and Financial Institutions disclosed its study on national public debt that after one year in office, the government populist policies has increased Baht 544,300 million to public burden. Those policies are:
The Committee commented the government should oversee economic in macro level and have a strategic plan, such as measures to stimulate household consumption, before implementing these policies. Some economists and media also commented that the populist policies not only created national burden but also increased household debt. The Bank of Thailand reported that household debts rose sharply from 50% to 80% of GDP, equivalent to Baht 8 trillion due to loans from housing, vehicles and consumer goods. The vehicle industry found that after the first car policy ended on December 2012, the sharp increase in eco-cars sell dropped rapidly and both the first and second-hand cars selling was nearly standstill. Consequently, the dealers of brand-new car launched many promotions to boost their sale. There are many hire-purchased first-car buyers who already got the excise tax refund but failed to pay monthly installment. They could not sell their cars since their acquisition were less than 5 years as required by the regulation. These led to court’s ruling so the creditors could take the cars for resell and since the creditors must returned the excise tax, the cars were sold at a higher interest rate. The situation also affected the second-hand car dealers who hardly sell their stocks, too. Bath 2 trillion Bill passed third reading On 21st September, the House of Representatives convened an extraordinary session to read, on the third round, the Baht 2 trillion Bill that allow the government to seek loans for construction of national infrastructure. The Bill passed with 287 to 105 votes. The Finance Minister reassured, before the House members cast their votes, that the government shall manage the loan transparently. Rice pledge lost Baht 400 billion in 2 years On 3rd September, the cabinet approved a Baht 270 billion budget for the 13/14 rice pledging program between 1st October 2013 to 28th February 2014. 16.5 million tons to rice was anticipated to be pledged. The money will be allocated through the Finance Ministry to the responsible agency Bank of Agriculture and Agricultural Cooperatives (BAAC). Deputy Finance permanent- secretary and chairperson to the Rice Pledge Accounting System Sub-committee Supa Piyajitti disclosed since the program started in 2011, a budget of Baht 680 billion has been used and it was estimated that there will be an annual loss of Baht 200 billion approximately, making a total loss of Baht 400 billion in two years. Former deputy prime minister and finance minister MR. Pridiyathorn Devakula has sent an open letter to Prime Minister Yingluck Shinawatra asking her to cancel the rice pledge program. He reasoned the program has caused enormous financial loss while stimulate widely corruptions. Citing his collected data, the farmers only received less than one half of the money spent while more than baht 110 billion was misconducted through various leakages unable to be prevented by state officials. Since the program caused a loss more than baht 425 billion in two years, the government must find alternative measures to help the farmers, particularly those who are really in deficiency. One mean, already applied to rubber growers, is a direct cash subsidiary equivalent to difference between the real cost and selling price. Last but not least, the government now has enormous amount of the rice stock which is a perishable goods. It is estimated that the current government stock is approximately 16 million tons which is equivalent to two years of export. Only three auctions was held and only 240,000 tons was sold. The Commerce Minister Niwatthamrong Boonsongpaisan reassured more than 7-8 million tons will be sold shortly and the Finance Ministry will be reimbursed with baht 200 billion as planned. This money will be used for the next season pledging; designated at baht 270 billion. Deputy Finance Minister Tanusak Lekuthai said there is no conclusion where the Baht 270 billion budget whould come. The BAAC has already spent more than baht 680 billion in which Baht 90 billion was taken from its revolving loan fund and the rest was from the government guaranteed loan. The budget spent has surpassed baht 500 billion, allotted by the cabinet, at the end of 2013. On 21st august 2013, Krung Thai Bank informed the Public Warehouse Organization that it has found 9 letter of guaranteed, of a total of baht 18.84 million, submitted by a surveyor, were forgery. This surveyor is one of the four acquired by a rice mill. The law required surveyor to change name upon changing of owners to prevent them being a nominee. This is a way to control rice quality the mill bought. If the quality is lower than the surveyor’s certified, the mills could gain more Baht 4,000 from the cheaper rice. The government has to pay a monthly fee of 2 Baht per ton to the warehouse. A surveyor Asia Pest Control and Inspection Co. Ltd. asked the Department of Agriculture to revise the restriction on import of Aluminum Phosphide from the current 24 ton per transaction reasoning the material shortage was a cause of rice degrading. Aluminum Phosphide was widely used to fume rice in warehouse and previously it was imported up to 300 ton per transaction. To resolve the high cost of rice stock, the government had lowered the pledging to baht 12,000 per ton but was opposed by the farmers and was shortly revised back to baht 15,000 again. However, pledging budget was limited to Baht 350,000 and Baht 300,000 per household according to paddy rice quality. Constitution amendment on the senate approved On 28th September, the Parliament voted on the third round with 358 to 2 and 30 abstentions to amend sections of the Constitution on the Senate. Since the votes were cast by more than half of its members as required by the law, the Prime Minister shall submit the bill for royal endorsement. The amendment was that 200 senators should come from election and lifted a bar on senator candidates of following qualifications:
The amendment was widely opposed in and outside the parliament due to fearing the parliament will return to “family business” as it was before the promulgation of the 2007 Constitution. Before the third reading, senator Gen. Somjate Boonthanom and Songkla MP Wirat Kalyasiri petitioned the Constitutional Court on allegation that the House Speaker Somsak Kiatsuranond and 309 associates has undermined the constitution monarchy and the amendment was approved by the wrong procedure. The Constitution judges voted with 5 to 2 to accept the petition but rejected the petition asking for a temporary suspension. A minority voter Constitution Court judge Chat Cholaworn referred Section 68, on the rights to protect the Constitution, that only the Prosecutor General can submit a motion to the Constitution Court while another judge Udomsak Nitimontri said there is no evidence that the amendment is an act to overthrow the monarchy constitution. State officials to get baht 37 billion bonus On 24th September, the cabinet resolved to allocate a budget of Baht 3,745 million from the 2012 fiscal budget for bonus for state officials in central and provincial agencies, and educational institutes. Supreme Court ruling on BMA fire vehicles purchase On 10th September, the Supreme Court’s Criminal Division for Holders of Political Positions read a verdict on the Bangkok Metropolitan Authority (BMA) procurement of fire- vehicles. The Court sentenced former deputy Interior Minister Preecha Maleenont and former director of the BMA Fire and Rescue Department Pol. Maj. Gen. Athirak Tanchookiat to a 12 and 10 years jail term respectively without suspended while acquitted former interior minister Pokin Balakula, former commerce minister Wattana Muangsuk and former BMA governor Apirak Kosayothin. The case was brought to Court on 24th August 2011 when the National Anti-Corruption Commission filed a complaint against those five defendants over the purchasing of Baht 6,687 million fire trucks and ships from Steyr-Daimler-Puch Spazialfahrzeug AG in an extra-regulations method. The agreement was settled in 2009 on the very last day former BMA governor Samak Sundaravej office term terminated. The Court found Samak, Pracha and Athirak guilty of breaching regulations, making BMA losing Baht 2,195 million. Samak was acquitted upon his deceased. The verdict reading was postponed from 6th August 2013 due to Pracha was then absent. He now is under the Court’s arrest warrant and did not present at court again. Athirak was represented by his lawyer. Flood swept across 30 provinces Director-General of the Department of Disaster Prevention and Mitigation Chatchai Promlert reported that since 17th September 2013 flood swept through 210 districts in 30 provinces a total of more than 2 million people was affected. Among those, 26 provinces were submerged by heavy rain and the rest, 4 from overflow rivers. Some 2011 flooded farmers to get special reimbursement On 24th September, the cabinet approved an extra budget of Baht 57,146,917 to remedy 227 farmers in 5 provinces; Bangkok, Nonthaburi, Nakorn Pathom, Lopburi and Ayudhya. They were those who had higher cost in planting and were affected by the 2011 flood. A Baht 1,203,917 will come from the 2012 fiscal budget and Baht 55,943,000 from the money reserved for emergency. The Department of Agriculture was assigned to distribute the money properly. More Baht 8,860 million for Village Fund The Village and Community Fund committee chaired by deputy Prime Minister and Commerce Minister Niwathamrong Boonsongpaisan resolved to allocate another Baht 8,860 million to 8,860 village funds. The resolution was retroactive in May to September 2013. The Village Fund Act of 2004 has a principle to develop 86,000 rural villages nationwide. Village development ranges from boosting income, knowledge, creativity, economic stimulation and community strengthening. Each village must set up a committee to manage the fund according to planned. Funding unit was increased to Baht 1 million shortly, therefore the currently 53,590 Village Funds are will be allocated with a total of Baht 53,590 million. It was anticipated that 80% of the money will be transferred before December 2013 ends. The Committee has revised funding regulations to allow community of more than 100 households including real estate, condos and office buildings to be entitled to receive village funds. A Baht 1,300 million and Baht 1,700 million will be allocated in the 2013 and 2014 fiscal year respectively. Communities must submit their development plan within a budget of Baht 500,000 to 2 million. 362 communities has submitted and 36 were approved by the committee. NHSS to include LAO personals On 17th September, the cabinet resolved a draft royal decree on the rights of local government officials and employees in the National Health Security System according Section 9 of the 2002 National Health Security Act. Section 9 states the official or employee of local government organizations shall enjoy the rights of health service as prescribed in the royal decree. After the Royal Decree comes into force, local government organizations shall allocate the budget of medical care services to the Fund pursuant to regulations, procedures, and period under the agreement they make with the Board of National Health Security. BMTA to get Baht 3,615 million loan for debt refinance On 10th September, the cabinet resolved Bangkok Mass Transit Authority (BMTA) to seek another Baht 3,615 million loan to refinance its current debt; Bath 2,665 million from fuel and Baht 1,350 million from overhauling, up-keeping and maintenance of vehicles. Senate endorsed Bill on Community Health Personal On 9th September the Senate voted with 116 to 4 to pass the Community Health Services draft bill with principle to legitimize a community health profession or personals. It is estimated that there are approximately 40,000 officials of level 4-7, so-called “health doctor”, working in sub-district hospitals nationwide. Regardless to they are to promote community health, prevent and control diseases, diagnose, prescribe and provide first stage treatment, they are not included in the 7 legalized public health professions; medical doctor, dentist, nurse, pharmacist, medical technician, physical-therapist and veterinarian. An organization to protect consumer On 9th September, the Senate passed a bill on the establishment of an independent agency on consumer protection which duty is to monitor and report negligence of consumers’ rights. The agency finance shall come from the state at a minimum rate of Baht 3 per capita per year and shall be revised every three years to reflect the living cost index. Economic growth target reduced The Fiscal Policy Office reduced the 2013 GDP growth from 3.7% to 3.5-4.0% and this is another reduction in 2013 since the 3.7% rate was a reduced from the previous one, 4.5%. The Bank of Thailand senior director Methee Supapong also disclosed that the Bank shall revise its economic projection and anticipated that it should be lowered than the estimated 4.2% growth. Education reform restarted. On 22nd September Education Minister Chaturon Chaisang announced that another education reform shall be started since 1st October 2013 with main missions to:
On 6th September, Chaturon said educational reform is to make the learners to be able to think rationally and analytically. Everyone should be a life-long learner. On 4th September, assistant to the Education Minister Dr. Pavich Thongrote disclosed the World Economic Forum’s Global Competitive Report of 2012-2013 that Thailand education ranked eighth, and last, among 8 ASEAN countries. According to WEF ranking Singapore comes first followed by Malaysia, Brunei, Philippines, Indonesia, Cambodia, Vietnam and Thailand. The Education Ministry report also unveiled that among the 1.6 million grade 3 students nationwide, 80,000 are unable to read or could not read fluently. From : http://www.fpps.or.th |