June 2010 : New Cabinet sworn-in The Government sailed through censure motion. Tax help for people affected by Red protest NCCC to investigate PM conduct in dissolving Red protest National Committees on Reconciliation, Reformation and Investigation appointed Solutions for loan shark debts Economic measures re-extended until year end Court to rule if Thaksin falsely declared assets BMA by-election GDP increased- Public debt decreased Tax incentives to promote reading New Cabinet Sworn-in On 7th June 2010, His Majesty the King granted an audience to new Cabinet members for their swearing in. He advised them to serve the country honestly, devotedly and with unity. Ministers replaced were: Khunying Kalaya Sophonpanit, Minister of Science and Technology. Mr. Chanchai Chairungruang, Minster of Industy. Mr.Chaiwut Bannawat, Deputy Minister of Education. Mr. Teera Sarakpetch, Minister of Culture. Mr. Pruttichai Dumrongrat, Deputy Minister of Finance. Mr. Paitoon Kaewthong, Minister of Labour. Sub. Lt. Ranongruk Suwanchawee, Minister of Information and Communication Technology. Mr. Veerachai Veeramethikul, Minister Attached to the Prime Minister’s Office. New ministers were: Mr. Chuti Krairiksh, Minister of Information and Communication Technology Mr. Chalermchai Sri-On, Minister of Labour Mr.Chaiwut Bannawat, Minster of Industy Mr. Chaiyos Chirametakorn, Deputy Minister of Education Mr. Nipit Intarasombut, Minister of Culture Mr. Mon Patanotai, Deputy Minister of Finance Mr. Veerachai Veeramethikul, Minister of Science and Technology Mr. Ong-Art Klampaiboon, Minister Attached to the Prime Minister’s Office The Government sailed through censure motion On 2nd June, the Prime Minister and five Cabinet Ministers easily survived a vote of no-confidence, they were: Mr. Abhisit Vejjajiva, Prime Minister: 246 for, 186 against, 11 abstentions and 21 no-votes, Mr. Suthep Thuagsuban, Deputy Prime Minister: 245 for, 187 against, 11 abstentions and 21 no-votes, Mr. Korn Chatikavanij, Minister of Finance: 244 for, 187 against, 12 abstentions and 22 no-votes, Mr. Kasit Piromya, Minister of Foreign Affairs: 239 for, 190 against, 15 abstentions and 21 no-votes, Mr. Chaowarat Chanwerakul, Minister of Interior: 236 for, 194 against, 14 abstentions and 22 no-votes, Mr. Sopon Sarum, Minister of Transport: 234 for, 196 against, 13 abstentions and 22 no-votes. The House of Representatives convened with 475 members, the Government was comprised of a coalition of the following: Democrat 172, Bhumjai Thai 32, Puea Pandin 32, Chart Thai Pattana 25, Ruam Chart Pattana 9, and Social Action 5, total 275. The Opposition was comprised of Pheu Thai 189, Pracharat 8, and Matubhum 3, total 200. The Opposition needed at least 238 votes to dislodge the Government according to Article 158 clause 3 of the Constitution. Neither all 200 Opposition members voted against the Government nor all 275 Government coalition members voted for; there were 11-15 abstentions in addition to the 21 Cabinet no-votes. This gesture of disapproval opened the way for the Prime Minister to reshuffle the Cabinet afterwards. The censure motion was submitted to the House President, Chai Chidchob on 23rd May, but as an extraordinary meeting to consider the budget was already scheduled for 24th-26th May, the no confidence debate was scheduled for 31st May-1st June with voting on 2nd June. The 2011 Budget of 2.07 trillion Baht passed its first reading with 250 to 172 with 2 abstentions and 21 no-votes. The House appointed an extraordinary Committee of 63 members to scrutinize the Bill within 30 days. Tax help for people affected by Red protest On 8th June, the Cabinet approved 4 measures, effective until 31st December 2010, to assist those affected by the political unrest, they are: Tax incentives to stimulate tourism sector: A tax deduction of 15,000 Baht per person for those buying domestic tour packages from registered tour companies. A tax deduction of double the cost for tour companies attending exhibitions, trade fairs, or road shows domestically or abroad. A tax deduction of double the cost for businesses providing on-job trainings/seminars for their employees. A depreciation at 60% of the cost in the first year for tour companies for their purchase of assets, equipments and furniture, excluding vehicles. Increased depreciation for tour companies for purchase or hire-purchase of vehicles or mini-buses for maximum of 10 passengers, from maximum 1 million Baht or 36,000 Baht per month respectively, to actual prices. Tax deduction for insurance companies of payments made to claimants affected by the protest, and tax waiver for claimants of amounts received in excess of actual damages. Increase mortgaged loans for affected entrepreneurs via the SME Bank from 1 to 3 million Baht, with interests at MLR minus 3% for the amount exceeding 1 million Baht. A budget of 88 million Baht payable through Chulalongkorn University, the landlord, to assist shopkeepers in Siam Square. NCCC to investigate PM’s conduct in dissolving Red protest On 2nd June, the National Counter Corruption Commission (NCCC) accepted a petition from Pheu Thai Party, all edging that the Prime Minister Abhisit Vejjajiva, Deputy Prime Minister Suthep Thuagsuban and others violated Article 157 of the Criminal Act, in dissolving the Red Shirt protest on 10th and 28th April and 19th May resulting in casualties and loss of lives. The NCCC will now consider whether this investigation is within their remit. National Committees on Reconciliation, Reformation and Investigation Following proposals set out in the Prime Minister’s Five Point Road Map, the Cabinet, on 29th June, appointed two national committees: the National Reform Committee, chaired by a former Prime Minister, Anand Punyarachun, and the National Reform Assembly, chaired by a respected intellectual, Dr. Prawase Wasi. The two chairpersons are free to appoint their own committees members and they are to complete their missions within three years. The Office of National Health Board has been assigned to assist with administrative functions. Prior to this, the Cabinet appointed former Attorney-General Kanit Na Nakorn as chairperson of the Truth and Reconciliation Committee. Kanit is also authorized to appoint his own committee members. Another committee was also appointed, this one on constitutional reform, to be chaired by Dr. Sombat Thamrongthanyawong. He stated that his committee would reconsider 6 issues raised by the Reconciliation Committee under the chairmanship of Derek Tungfung. In the meantime, the public can express views through TV11 program and website http://www.thaiporeform.go.th. The Constitutional Reform Committee is expected to complete its job and submit conclusions to the Government within 6 months. The six issues for consideration are: Treaties between Thailand and foreign countries must have the consent of parliament: Article 190. The prohibition of MPs from holding political positions, such as secretary or advisor to ministers: Article 265. The prohibition of MPs and Senators from being involved in a government official’s functions since this prevented them from following-up their constituents’ problems: Article 266. Changing the number of MP in each constituency from 1-3 to only one. Senators should all be elected and not elected and appointed: Articles 111-121. The penalty of dissolving the political party and stripping executive members of political rights for breach of electoral laws. In addition, the Government also appointed Pol. Gen. Vasit Deikunjorn to chair a Police Reform Committee to monitor and to investigate police functions as well as to promote cooperation between police and the public. Solution to loan shark debts To update on the Government’s scheme to resolve farmers’ irregular or “loan shark” debts through the Bank for Agriculture and Agricultural Co-Operatives, the Bank reported that there were 608,468 persons registered under the scheme with a total debt of 64,450 million Baht. Of these 355,797 or 58.47% have reached settlement, 33,448 or 5.66% failed for various reasons, including that the parties did not appear at the meetings, and 116,030 or 19.07 % withdrew from the scheme because they thought that their debts would be repaid by the Government. The rest, 102,193 or 16.80% are waiting for negotiations. Amongst those who settled and whose debts totaled 42,266 million Baht, 120,581 have now been re-financed by the Bank. These have been given loans totaled 8,427 million Baht. The Bank is considering whether the rest would be capable of servicing bank loans by analysing their sources of income, guarantees and contractual details. Economic measures re-extended until year end On 29th June, the Cabinet re-extended economic alleviation measures for another 6 months or until 31st December 2010. They are: Full subsidy for the cost of electricity for households not using more than 90 units per month, Free non-air-conditioned buses within BMA area, Free non-air-conditioned or 3rd class train fare. After six months, the Cabinet would consider which measures should be permanently implemented in a social security scheme to be provided for by state enterprises. In addition, the Cabinet approved maintaining LPG and NGV gas prices until the end of February 2011. It is expecting that the Government would use more than 30,874 million Baht to subsidize cooking and fuel gas. Court to rule if Thaksin declared false assets On 23rd June, the Supreme Court’s Criminal Division for Persons Holding Political Position accepted a petition, filed by the National Counter Corruption Commission, alleging that Thaksin Shinawatra submitted false lists of assets and liabilities. This followed on from the recent Constitutional Court’s ruling to seize Thaksin’s 46 billion Baht and in which it was apparent that Thaksin did not properly declared his assets. BMA by-election The Election Commission called a by-election in BMA Constituency 6 on 25th June to replace the late Democrat MP, Tiva Ngernyaung. Former Vice Minister of Foreign Affairs, Panit Vikitset, represented the Democrat Party, while Pheu Thai Party sent Korkaew Phikulthong. Korkaew is presently being detained in Bangkok Special Jail as he was one of the Red Shirt leaders. He had been in custody since 19th May after giving himself up after the protest ended. The Court temporary released him to submit an application for his candidacy, as his case was only under an investigation, and not actually on trial. Article 102(4) of the Constitution bars prison inmates from running in an election and Article 100 (3) states that they are not eligible to cast ballots. GDP increased - Public debt decreased According to the Bank of Thailand, GDP in the second quarter is growing at the rate of more than 4% as the economy is improving from increased export. At the same time, the Public Debt Management Office disclosed that, as of 30th April 2010, public debt is at 4,108,982 million Baht which is equal to 42.23% of GDP. Of this amount 2,773,936 million Baht are direct government loans, 1,083,725 million Baht loans to non-financial state enterprises, 189,159 million Baht to state enterprises guaranteed by the Government, and the rest, 62,112 million Baht, are revitalization and development loans to financial institutions. Compared to the previous month, public debt is reduced by 15,730 million Baht. Tax incentives to promote reading On 15th June, the Cabinet approved the Finance Ministry’s proposal to launch tax measures to stimulate reading, they are: The cost of books and educational media donated to state agencies, educational institutes and charitable institutions are tax deductible. Individuals can claim tax deductions of up to twice the amount but not exceeding 30% of their annual income after deductions of expenditures and allowances. Self-improvement books purchased by individuals, families and institutions are tax deductible. Individuals could claim deductions for the total amount but not more than 10,000 Baht annually while juristic persons could claim up to twice the amount spent. To reduce VAT on books and publications to 0%. It is expected that costs and selling price on these items would reduce. Previously in February 2010, the Office of the Basic Education Commission revealed a benchmark study titled “The Ability to Read, Write and Calculate”, done on 502,469 students in grade 3 public primary schools nationwide. Results are: 37,813 or 7.22% of the students are below the benchmark for reading out aloud, 93,880 or 17.74% of the students are below the benchmark for writing, 119.374 or 22.29% of the students are below the benchmark for making calculations.