June 2009 : 4,000 Billion Baht Decree Approved Senate approved 4000 billion baht decree Petroleum and cigarette tax rejected Election Commission found 16 Senators guilty Additional 4.4 billion for tourism and children’s centers Further extension on NGV bus project Security Law for Phuket during ASEAN Summit Police restructure bill approved Relocation budget for new Parliament site Buying anti-riot weapons Reduce low cost housing Tax incentive for political donations More money for Southern development Senate approved 4000 billion baht decree Following a constitutional ruling on 3rd June, the Senate, on 22nd June, voted 69 to 48, with 11 abstentions, to pass an executive decree authorizing the Ministry of Finance to raise a loan of 4000 billion baht to revitalize the economy. Shortly after the voting, the Senate was prorogated without the decree being considered. Petroleum and cigarette tax rejected On 22nd June, the Senate voted 58 to 33 with 10 abstentions to reject an ordinance to increase excise tax on petroleum and cigarette in spite of its prior approval by the House of Representatives. If the ordinance is approved by the House by a simple majority again, it would become law without the Senate. Election Commission found 16 Senators guilty On 19th June, the Election Commission resolved that 16 Senators have shares in companies that hold State’s concessions; therefore, they are acting illegally under article 265 of the Constitution. The complaint was made by the Opposition, Puae Thai Party’s spokesman, Supachai Jaisamud. Twenty other Senators were found not to be holding such illegal shares, while a resolution on 28 Representatives on similar charges was postponed, because of the absence of the EC’s executive member, Praphan Naikowit. The Constitutional Court remains the final arbiter on the legality of the Senators’ shares. Additional 4.4 billion for tourism and children’s centers On 15th June, the Cabinet approved two additional projects, at a total cost 4,409 million baht, for the Ministry of Tourism and Sports and the Ministry of Interior. The former is to receive 2,459 million baht for tourism development, while the latter 1,950 million baht for young children’s centers in the provinces. Further extension on NGV bus project On 30th June, the Cabinet approved the National Economic and Social Development Board’s (NESDB) request to extend time to study the NGV bus project for another 30 days on condition that this is the final extension. NESDB stated that it had inadequate information from the Ministry of Transport on a number of issues, including bus routes, numbers of passengers and the amount to be shared with private operators. Security Law for Phuket during ASEAN Summit On 30th June, the Cabinet approved, in principle, to enforce the Security Law in Phuket Province and its 5 km radius during 10th-24th July for the ASEAN Summit. However, the responsible agency, Internal Security Operation Command, must consider details of the enforcement with the Office of the Council of State. Two months previously, on 11th April, the ASEAN Summit in Pattaya, had to be cancelled because Red Shirt mobs broke into the hotel where the meeting was being held. Police restructure bill approved On 23rd June, the Cabinet approved two draft Bills, proposed by the National Police Agency, for its re-organization and revocation of current officers’ salaries and position benefits. The drafts are to be approved by the Office of the Council of State prior to submission to Parliament. Police restructuring was started during the Samak’s Administration and continued by this government. Relocation budget for new Parliament site The Cabinet approved a budget of 1,266 million baht for the relocation of a school and two communities from military land at Kiak Kai where the new Parliament is being located. A budget 1,000 million baht will be for the construction of Yodhin Burana School at its new 16 rai site in Soi Wat Soie Thong while the balance will be for new town houses, in Soi Wat Kaew Fha, for the residents of Trakoondit and Weaving Organization communities. Buying anti-riot weapons On 16th June, the Cabinet approved a budget of 189 million baht for the Ministry of Defense to make extraordinary purchases of anti-riot weapons and vehicles, costing 66,236,800 and 122,800,000 baht respectively. The weapons will be provided to seven platoons responsible for crowd control and vehicles to the National Security Center. Reduce low cost housing On 30th June, the Cabinet approved the Ministry of Interior’s proposal to reduce the number of low-cost housing, from 300,504 to 281,556 units and to allocate a budget of 3,587 million baht to compensate the National Housing Agency (NHA), for interest payments on unsold houses. Since there is a current oversupply of NHA housing stock, the Cabinet also advised it to readjust projects, reduce the number of units and be more selective on sites. The agency has severe cash flow problems because of interest payments and continuing running costs on the unsold units. Tax incentive for political donations On 9th June, the Cabinet approved, on the Ministry of Finance’s proposal, the Taxation Amendment Bill to allow before tax deductions for donations made to political parties at the following maximum amounts: for individuals, 5,000 baht but not exceeding 10 percent of taxable income, and for companies, 20,000 baht but not exceeding 2 percent of net profits. More money for Southern development A special Cabinet meeting considered 300 projects, costing a total of 5400 million baht, to develop 5 Southern Provinces in the next 3 years (B.E 2553-2555). They are: Projects to boost the economy by developing rubber, palm oil, tourism, Halal food industries and fishery. Projects to set up 1,440 volunteer guards in local communities to improve security and understanding between locals and officials.