ECONOMIC AID PACKAGE
WICHIT CHANTANUSORNSIRI
Labour unions are demanding that the government explain how it plans to financially cushion the state enterprises providing free water and electricity under the latest economic aid package.
The Provincial Electricity Authority of Thailand (PEA) union will meet other state enterprise unions on July 24 to look at the ramifications on state enterprises of the package which was announced on Tuesday.
Highlights of the package the government says will help offset the soaring cost of living for low-income people include free electricity for households using less than 80 units (kWh) per month and a subsidy for those using 81-150 units.
Tap water will also be free for homes using less than 50 cu m per month.
The free electricity and water measures will be effective from Aug 1 to Jan 31 next year. The entire package, which also offers excise tax cuts and free travel on state-operated Bangkok buses and free rides on third-class trains, will cost taxpayers around 47 billion baht.
PEA union leader Sudcharoen Somchom said the fear was that if the government collapsed before the package expired, state enterprises would have to continue shouldering the financial burdens of the policy.
"If the House is dissolved in the next few months and the politicians tell us later that they issued bonds to clean up the debts from the package, we'll storm the (Government) House," he said.
The government should now give serious consideration to setting up a Government Social Obligation fund to compensate state enterprises for providing utilities to people for free.
Mr Sudcharoen said a better option would be for the government to negotiate with the Electricity Generating Authority of Thailand to sell electricity to the PEA at a discount to ease the PEA's burden.
He voiced concern the package would encourage homes which previously did not use much electricity to increase consumption of up to 80 units a month.
The Provincial Waterworks Authority of Thailand union also cried foul. The free water would cost the authority 2.4 billion baht in revenue and force the curtailment of tap water network expansion to rural areas, said Monthienthong Thanaset, PWA union president.
He added the policy would also put on hold PWA's medium-term investments in projects to increase its competitiveness against private water production companies.
Mr Monthienthong slammed the government for failing to explain how it would make up for the loss of revenue resulting from the aid package.
Finance Minister Surapong Suebwonglee said an economic stimulus package to boost people's income would be unveiled in the next two months.
It will be the second package after the first announced March 4 giving tax incentives to consumers and businesses.
Mr Surapong did not elaborate on details of the package but said the government's financial standing was solid enough to accommodate the project as there was still room for the government to run a budget deficit.
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