POVERTY
CHATRUDEE THEPARAT & PHUSADEE ARUNMAS
The government has introduced a new 47-billion-baht economic assistance programme, which critics labelled a ploy to lift its popularity ahead of fresh polls.
The six-point plan, announced by Prime Minister Samak Sundaravej and his economic ministers yesterday, includes tax cuts for diesel and gasohol 95, free electricity and water for small households, free buses for Bangkok residents and free third-class train travel.
Excise tax cuts for fuel will take effect from July 25, while the other measures will run from Aug 1 until Jan 31, 2009.
The programme will help Thailand achieve economic growth of up to 6% this year, according to Finance Minister Surapong Suebwonglee.
The programme could cut household expenses by up to 1,000 baht per month, Mr Surapong said.
Mr Samak brushed off comments that the electricity benefits, which apply only to small households using less than 150 units per month, would have little impact.
"If you stay at home and turn on the airconditioner all day, then you should pay," Mr Samak said brusquely.
Authorities estimate that 3.2 million households nationwide will qualify for the breaks on water bills and 6.47 million households for the electricity waiver. Another 9.86 million households using 81 to 150 units of electricity per month will benefit from the 50% discount.
Mr Surapong said authorities have scrapped the coupon programme, which was to give the poor vouchers to exchange for food and consumer goods, because of questions about access and eligibility.
Witthayakorn Chiangkoon, dean of Rangsit University's College of Social Innovation, said the measures implied that a snap election is likely to be called soon, prompting suspicions the programme is a canvassing package rather than a genuine bid to ease the financial difficulties of the poor.
Mr Witthayakorn said suspicions arise because the measures have been introduced while the Samak administration is facing political pressure.
Nipon Puapongsakorn, dean of Thammasat University's economics faculty, said the government has introduced the new package in a rush. It did not even consult the National Economic and Social Development Board.
The six measures will have adverse consequences for state enterprises providing public utilities, bus and train services, said Mr Nipon.
Thanit Sorat, vice-chairman of the Federation of Thai Industries, said the programme would help alleviate some of the suffering.
"They can't solve the problems at the root, but it will give us some breathing space," he said.
Pramon Sutivong, chairman of the Thai Chamber of Commerce, said it was an aid programme rather than a broad stimulus project. Private businesses would see little benefit. Political uncertainty remained a major concern.
-----
New cabinet after July 28
At least 10 cabinet ministers will be changed in a major reshuffle which will be announced after July 28, Prime Minister Samak Sundaravej said yesterday.
The new cabinet line-up was complete, but he was waiting for the decision by the Supreme Court's Criminal Division for Holders of Political Positions on the two- and three-digit lottery case, due on July 28. This would decide the fate of another three cabinet ministers.
If the court accepts the lottery case for consideration, the three ministers who were on the Thaksin Shinawatra cabinet which introduced the scheme - Finance Minister Surapong Suebwonglee, Labour Minister Uraiwan Thienthong and Deputy Transport Minister Anurak Jureemart - must step aside.
Mr Samak said any cabinet which found itself in charge of the country at this time would be in the same situation as his government because of defects in the political system stemming from the 2007 constitution.
"The government is now paralysed and the state of the country has been totally destroyed by a defective system," he said.
Prev
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Next
