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 April 2012 : Prime Minister Calls On Prem
Prime Minister calls on Prem Following the Songkran festivities during 13th-15th April, the Prime Minister and 3 Deputies: General Yuthasak Sasiprapha, Kittirat Na Ranong and Yongyoot Wichaidit, visited General Prem Tinsulanonda, Head of the King’s Privy Council, at his residence on 26th April. Though it is customary for Thai people to pay their respects to their elders during the Songkran festival, the Prime Minister’s visit was viewed as a sign towards reconciliation. Moreover, General Prem and the Prime Minister had a 35 minutes private talk. However, it is noted that the rest of the Cabinet, notably Deputy Agriculture Minister, Nattawut Saikua, was not present. Nattawut was a Red Shirt leader who in his speeches insulted General Prem during political protests. Nithirat opposes amnesty for state officials Worachet Pakeerutt, leader of the Nithirat group announced its 34th declaration that the group supports the Red Shirt campaign to collect signatures to amend Article 112 of the Criminal Code, better known as lese majeste offenses. However, they oppose Phue Thai’s proposal to grant amnesty to all involved in political violence. Nithirat advocate the principle that state officials are liable for their action and must be tried according to the law. Constitutional amendment progressing Following a parliamentary motion to amend Article 291 of the Constitution on 19th April, a joint session was convened to consider Article 291/1. The article concerns the appropriate number of members for the Constitutional Drafting Assembly (CDA). The majority voted for a total of 99 with 77 elected from 77 provinces and 22 appointed from experts. On 20th April, Article 291/2 concerning qualifications of CDA members was considered. Members must be at least 35 years old and been in a Household Registration for at least 5. There is no minimum academic qualification requirement. On 21st April, Article 291/5 concerning the election date was considered. It was decided that election of CDA members must be completed within 75 days after the Constitutional Amendment Act is promulgated. Local administration election regulations will be adopted. The Court of Appeal is empowered to hear cases concerning breaches of electoral regulations. It may order withdrawal of the membership, withholding electoral rights and a new election. Appeal processes must be completed within 30 days after the Court has agreed to hear the appeal. On the same day, the Government, the Opposition and Senate whips discussed with the Constitution Amendment Panel time frame for the amendment process. It was agreed that the third round of voting might be postponed until 8th or 11th May. Government to unveil accomplishments Deputy Spokesperson of Phue Thai Party, Jirayu Huangsub, said that the government is planning to launch a video presentation and radio spots of its accomplishments on 3rd May to review the government’s 7 months in office. Between 20th and 25th April, Bangkok University Research Institute, better known as Bangkok Poll, conducted a survey on the performance of the government. Sixty-three economists in economic-financial-related organizations, including state agencies, financial institutions and universities were asked to choose three implemented policies they found to be “excellent”. Almost 55 percent chose the project to get rid of drugs within 12 months, 33.5 percent chose tax refund for first-time car buyers, and 33.3 percent the universal healthcare project. Twenty-five percent chose tax refund to first homebuyers, and 21.6 percent the issuance of credit cards to farmers to buy supplies. Slightly over one in five of the respondents, or 21.6 percent, did not find any government project to be “excellent”, and the average score in six key economic areas of government’s performance was rated 3.83 out of 10. Democrat Party Spokesperson, Chawanon Intrakomolsut, said that after 8 months in office, the government failed to implement 16 urgent policies as promised. He cited the 300 baht minimum wage which cannot be adopted nationwide, the same for the 15,000 baht minimum salary for bachelor degree graduates. In spite of the failure of these policies, unemployment increases because many small and medium enterprises cannot cope with increased costs, have to lay off employees and close operations. Phue Thai suffers 2 defeats Phue Thai Pathum Thani constituency 5 MP, Sumet Ritthakhani, resigned in order to run for the Provincial Administration Organization (PAO) election on 22nd April. The by-election was held on 21st April and Democrat Party candidate, Kiatisak Songsaeng, beat Phue Thai’s, Somchai Rangsiwatanasak, with 27,981 to 24,119 votes. On 22nd April, Phue Thai again lost when Sumet was unable to defeat Chan Phuangphet the former head of PAO. They received 110,974 and 214,429 votes respectively. Supreme Court disqualifies Thaksin’s niece On 19th April, the Supreme Court’s Criminal Division for Holders of Political Positions disqualified Pheu Thai Chiang Mai MP, Chinnicha Wongsawat, over false declarations of her assets. The Court found that she violated Section 259 and 263 of the Constitution and Section 119 of the Anti-Corruption Act. Ms Chinnicha is the daughter of Somchai Wongsawat and niece of Thaksin Shinawatra both former Prime Ministers. Chinnicha is also banned from taking up any political office or any position in a political party for five years, sentenced to two months jail suspended for one year, and ordered to pay a fine of 4,000 baht. The National Anti-Corruption Commission filed a petition against Chinnicha after it found that she had made false declarations following her election in January 2008. The anti-graft agency said that Chinnicha borrowed 100 million baht from her uncle, Bannapot Damapong, but failed to include the debt in her declaration to the NACC on taking up her seat. Bannapot is a stepbrother of Potjaman na Pombejra, Thaksin's ex-wife. Chinnicha re-filed her asset declaration on 31st Oct 2008, eight months after becoming an MP. She argued that she was unsure whether she should include the debt in her declaration because the (now defunct) Assets Scrutiny Committee had frozen her funds along with other Shinawatra family’s assets. She said that she honestly believed she could not do anything with the money and had to wait until the ASC unfroze her assets. Court rejects allegations of distributing flood-relief bags On 20th April, the Constitutional Court rejected a petition to consider the qualifications of the Opposition leader, Abhisit Vejjajiva, and Pitsanulok MP, Warong Dejkitvikrom. The House Speaker, Somsak Kiatsuranont, submitted a petition accusing the two MPs of breaching Article 266(1) of the Constitution by forcing Pitsanulok Province Governor to give them 500 government flood-relief bags to distribute to flood victims. The Court stated that every sector should cooperate in helping flood victims. There was no evidence that the two MPs misled the public or used their position to interfere in official functions and the distribution was not for their own or their party’s benefits. For the same reason, i.e. it was their duty to help flood victims; the Court also rejected the petition against Justice Minister, Pracha Promnok, and other Phue Thai MPs who were accused of interfering in the distribution of flood-relief bags. Civil servants to get stepped pay-rise The Cabinet resolved on 10th April to postpone civil servants pay-rise and the 15,000 baht monthly salary for graduates until 2014. On 11th April, the Prime Minister explained that the postponement is applicable only to the salary base that will be raised step-by-step in 2013 and 2014. In the mean time, civil servants will get an allowance to make up to 15,000 baht. On 1st January 2013, monthly salary of the bachelor degree graduates, vocational diplomas and certificates holders will be 13,300, 10,200 and 8,300 baht respectively. These will increase to 15,000, 11,500 and 9,400 baht on 1st January 2014. The stepped raise will reduce the burden on the private sector whose salaries are correlated to those in the public sector. The 300 baht minimum wage became effective in 7 provinces on 20th April 2012 and the same level is due to follow shortly in 70 other provinces making an increase of 39.5%. The Chairman of the Federation of Thai Industries (FTI), Payungsak Chartsutipol, stated that this matter is a big concern for the private sector particularly the small and medium size operations in the provinces. Therefore, the FTI is considering asking the government to postpone this increase until 2015. Debt relief for small debtors On 24th April, the Cabinet resolved a debt-restructuring program for small farmers and low-income debtors whose debts do not exceed a total of 500,000 baht. Benefits are that outstanding interests will be reduced to only 3% and debtors can choose whether to take a grace period of 3 years on the principal, paying only interests, or continue repayments paying the new interest rate. Moreover, debtors in this restructuring program can apply for more loans, depending on eligibility. The program will operate between 1st September 2012 and 31st August 2015. It is estimated that 3,75 million accounts with accumulated debt of more than 459 billion baht will benefit. The government anticipates that the program will boost economic growth by 0.4-0.7 percent per annum, or equivalent to 44-77 billion baht. On the same day, the Cabinet also approved the Small and Medium Enterprise Development Bank of Thailand (SMEs Bank) to give loans total 20 billion baht at a special interest rate for 7 years. The Thai Credit Guarantee Corporation (TCG) is also to guarantee loans total 24 billion baht for maximum period of 5 years. Maximum guarantee per person is 40 million baht and the fee is 1.75 % per annum. There are also tax incentives to promote small and medium enterprises such as an exemption of corporate income tax on the sale of old machinery which is being replaced. Diesel tax reduction re-extended On 24th April, the Cabinet approved the extension of diesel excise tax reduction for another month or until 31st May 2012. Economy recovering-reserves increase The Bank of Thailand Senior Director of the Domestic Economy Department, Methee Supapong, said that in March the economy is recovering, many industries are at 68.1% of their normal capacity before the floods. However, the value of the export sector has shrunk particularly agricultural products. The Bank of Thailand reported that national reserves on 20th April 2012 have increased by USD 100 million or 3.080 billion baht from the previous week to a total of USD 1.787 billion or 5.525 trillion baht. Previously, reserves were USD 1.786 billion or 5.500 trillion baht. Public debt 41% of GDP The Director of the Public Debt Management Office, Chakkrit Parapantakul, announced that as of 31st January 2012, public debt is 4,362,186.74 million baht or 41.06 per cent of GDP. Out of which 3,117,186.74 million belong to the government, 1,077,900.35 million to non-finance state enterprises, and the balance of 167,270.23 million to finance state enterprises (government guaranteed). In one month, public debt increased by 64,460.24 million baht with increases in the government, non-finance state enterprises, and finance state enterprises (government guaranteed) at 28,665.38, 16,888.72 and 18,906.14 million baht respectively. PM met people in the South On 29th April, the Prime Minister, Deputy Prime Minister, General Yuthasak Sasaprapa, and Head of the Army, General Prayuth Chan-ochar, flew south to attend a security meeting. Before the meeting, the Prime Minister told people meeting her that the government is trying to solve problems of the south and to bring happiness and prosperity to the area. Drought spread across 48 provinces The Department of Disaster Prevention and Mitigation announced that 48 provinces, 470 districts, 3,202 sub-districts and 34,551 villages have been declared drought-affected areas. Of these 17 are in the north, 19 northeast, 5 central, 6 east and 1 south. Transport fares to rise The Ministry of Transport Deputy Permanent Secretary, Sorasak Sansombat, said that a ministerial meeting has resolved to raise fares on all public transport starting from 15th May 2012 because of increases in fuel. The new fares are:
However, the Cabinet has extended free bus and rail transport for 5 months until 30th September 2012. This policy costs the state 1,208 million baht for the bus and 458 million baht for the train. There are 300 buses and 164 trains with free 3rd class seats daily. Cost of electricity to go up The Chairman of the Energy Regulation Commission, Direk Lawansiri, announced that due to increases in fuel, the commission has approved a raise of .30 baht per unit or 7-8 percent for the cost of FT electricity starting from May. Currently, the cost is 3.23 baht per unit. More cases assigned to DSI The Department of Special Investigation (DSI) Director-General, Tarit Pengdit, announced that the Minister of Justice has endorsed regulations empowering DSI to investigate 9 more types of cases. These are crimes concerning:
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