Cabinet Meeting Synopsis -- October 12, 2010

World News Wednesday October 20, 2010 11:36 —Cabinet Meeting Synopsis (English)

The cabinet meeting on Tuesday 12, October 2003 has come to the following decision:

Request for Borrowing to Repatriate State Enterprise Providing Services Under Phase 3 Expense Reduction Measures for the People

The Cabinet has approved the Provincial Waterworks Authority’s request for borrowing to fund the expenses incurred from providing the service under Phase 3 of the Expense Reduction Measures for the People Programme (January 1-March 31, 2010), within the limit of 809,975,600 Baht. The borrowing would proceed, with the Ministry of Finance as the guarantor and the government as the liable entity, responsible for repaying the principal, interests, and other fees incurred. The decision by the Cabinet is in accordance with the opinion of the Budget Bureau.

Report on the Result of OTOP Midyear 2010

The Cabinet acknowledged the report on the result of OTOP Midyear 2010 “Unite the Hearts to Taste, See, and Shop,” which was organised from August 21 to 29, 2010, at Impact Exhibition and Convention Centre, Muang Thong Thani in Nonthaburi Province. The Ministry of Interior’s bid to organise OTOP City 2010 in December 2010, was approved in principle by the Cabinet as well. The budget for organising the event, the Cabinet resolved, must be made a proposal to the National Committee on One Tambon One Product, which will, next, consider the proposal on the basis on appropriateness and necessity.

The Ministry of Interior Reported:

1. The government has a policy to increase the efficiency in managing One Tambon One Product(OTOP) Project in order to enable the communities to fully utilise the resources and local knowledge available in their community to produce OTOP products. The government is prepared to provide support for the communities to obtain new knowledge, capital, and development in capacity in management and marketing, which can be used to create a link to both the international and domestic markets. The National Committee on OTOP agreed that the Ministry of Interior’s Community Development Department be the organiser of OTOP Midyear 2010 “Unite the Hearts to Taste, See, and Shop” which was held from August 21 to 29, 2010, at Challenger Halls, Impact Exhibition and Convention Centre in Nonthaburi Province, opening up opportunities for OTOP producers and entrepreneurs. The Ministry is confident in the policy and that OTOP products would be continuously supported in terms of marketing as well as accepted by the consumers, putting a confidence in Thai wisdom.

2. The result of OTOP Midyear 2010 is the following:

2.1. There were 774,904 attendees.

2.2. The sales for 7 categories of OTOP product account for 818,004,430 Baht.

Measure to Handle Oversupply of Chicken Eggs

The Cabinet approved 4 measures to handle the oversupply of chicken eggs, as proposed by the Ministry of agriculture and Cooperatives. The proposals ask for cooperation from other government agencies. 1. The Correction Department was has been asked to buy chicken eggs during October-November. 2. The Ministry of Defence and Public Hospitals have been asked to increase their chicken egg purchases. 3. The Ministry of Education has been asked to implement school chicken egg project. 4. The Ministry of Public Health has been asked to campaign on nutrition benefits of chicken eggs.

1. Background

1.1. As the chicken egg producers, including, the Association of Poultry for Egg Farmers and the Association of Chicken Egg Traders, paid a call on the Prime Minister on September 29, 2010, at 10.00 A.M., the Vegetarian Festival and school holidays have raised concerns of oversupply, expected to be a surplus of 50 million eggs, causing a loss for chicken egg producers. The government thus was proposed by the following short-term policies.

  • Allocation of fund for continuous egg consumption campaign.
  • Measures designed to reduce the cost of agricultural production, such as, taxes, feed, and utility bills.
  • Support for chicken egg cooperatives’ leverage and reserve of essential feed.
  • Permission to export eggs during Vegetarian Festival and school holidays.

1.2. Relevant Cabinet resolutions and orders

  • The Cabinet resolution has required the Minister of the Prime Minister Office’s 2006 regulation on the development of chicken egg market and products, which became effective on the next day after the announcement in the Royal Gazette on September 1, 2006. The regulation aims to regulate the chicken egg market as a whole and to promote as well as support the efficient management of the market.
  • The Cabinet resolution on September 6, 2010, on short-term measures to solve the problem of high-price of chicken eggs, imposes a temporary delay on exporters without contractual obligations.
  • The Prime Minister has ordered on September 29, 2010, the Ministry of Agriculture and Cooperatives to accept complaints filed by farmers for further action.

1.3. Past performance

The Ministry of Agriculture and Cooperatives called 7/2010 meeting for the National Committee on Chicken Egg Development and Products on October 1, 2010. The meeting considered urgent agendas, allowing the farmers to propose to the meeting their problems and how they think the government could help. The committee reconsidered both short-term and long-term measures to handle the problem of oversupply.

1.3.1 Short-term measures

1) Short-term measures include asking cooperation from other government agencies. For example, the Corrections Department has been asked to make a procurement of chicken eggs from October to November while the Ministry of Defence and public hospitals have been asked to purchase more chicken eggs. The Ministry of Education, similarly, has been asked to undergo the school chicken egg project, the Ministry of Public Health has been urged to promote the nutrition benefits of chicken eggs.

2) The delay measures for exporters are to be revoked.

1.3.2 Long-term measures

The promotion of egg consumption is to be implemented by the Egg Board, through appointed campaigning committee.

Nonetheless, the proposal to revoke the export delay measures from the Ministry of Agriculture and Cooperatives may have undesired by-products on several aspects, so the Cabinet resolved to consider the matter further in more detail. At this stage, the Cabinet sees that it is appropriate to proceed with cooperation with other government agencies and campaign programmes first. The decision for export measure, this, should be in the next stage if necessary.

Promotion of Ethics and Honesty to Counter Corruption Committed by Thais and to Prevent Corruption in Government Procurement as National Agenda

The Cabinet agreed with the resolution of the meeting of the relevant agencies considering the promotion of ethics and honesty to counter corruption committed by Thais and to prevent the corruption in government procurement, which is a national agenda, according to the Cabinet resolution on June 2, 2010. The meeting approved the integration of the plan in accordance with the national agenda. The plan according to the national agenda is also a plan of the overall plan, concurrent with the plan of the Transparency Thailand Project, the plan of which is specific and committed to three urgent matters. The proposal was sent to the Cabinet by the Office of Civil Service Commission, and OCSC has been assigned to consider suggestions and opinions of the Ministry of Finance and Ministry of Culture.

Preparation for Entering the World Trade Organisation's Government Procurement Agreement

The Cabinet agreed in principle the studies for the preparation for Thailand to enter into the Government Procurement Agreement (GPA) of the World Trade Organisation (WTO). The Prime Minister or a Deputy Prime Minister is to be appointed to chair the committee leading the studies. The Minister of Finance, the Minister of Commerce, and the Minister of Foreign Affairs are to be appointed deputy chairs also while the committee members would be from all relevant agencies. These agencies are the Office of the Secretariat of the Prime Minister, the Office of Cabinet Secretariat, the Budget Bureau, the Office of National Economic and Social Development, the Office of the Council of State, the Prime Minister’s Office, the Ministry of Finance, the Ministry of Foreign Affairs, the Ministry of Interior, the Department of Export Promotion, The Office of Attorney General, the Office of National Counter Corruption Commission, the Office of SMEs Promotion, the Department of Treaties and Legal Affairs, the Department of Trade Negotiations, The Comptroller General’s Department, Thai Chamber of Commerce, and the Federation of Thai Industries. The committee has been tasked with setting a strategy and direction for Thailand’s entry to WTO’s GPA as well as lay down a work plan in detail with specific timetable, budget needed, and the list of responsible agencies. The committee is to forward the proposal to the Cabinet within 6 months, and it will also consider the frame of negotiation and position in trading with other signatories of the WTO’s GPA as well as consider amendment to the regulations related to government procurement, making them in accordance with WTO’s GPA. The committee will also set a direction for relief to the impacts caused from the entry. The Cabinet has also assigned the committee to report to the Cabinet monthly and to appoint sub-committee or working committee to proceed with necessary work, as proposed by the Ministry of Finance. In addition, the Ministry of Finance has been assigned to take into consideration the opinions of the Office of National Economic and Social Development Board, the Office of the Council of State, the Ministry of Foreign Affairs, and the Ministry of Commerce.

Report on the Result of the Visit to Montenegro by Minister of Foreign Affairs

The Cabinet acknowledged the report on the visit to Montenegro by the Minister of Foreign Affairs, as proposed by the Ministry of Foreign Affairs. The Cabinet has assigned relevant agencies to coordinate and following the development of the result from the visit.

Synopsis

The Ministry of Foreign Affairs reported that the Minister of Foreign Affairs has visited the Republic of Montenegro from August 30 to 31, 2010. The following is the result of the visit.

1. The Objective of the Visit

1.1. To familiarise with the Republic of Montenegro, which could be the future gateway for opportunities in trade with the Balkan countries and the Eastern Europe.

1.2. To lay down foundation for the bilateral cooperation on several aspects in the future.

2. The Result from the Discussion

2.1. During the meeting to discuss official matters with the President Felip Vulanovic, the Foreign Minister Milan Rocen, and the Economic Minister Branko Vujovic, Thailand has disc cussed 4 issues, which are, promotion of bilateral relations, multilateral cooperation, promotion of economic ties, and logistics cooperation.

2.2. Montenegro brought up the issue of naturalisation process and the Montenegro passport of Police Lieutenant Col Thaksin Shinawatra, stating that the decision was apolitical and that Montenegro has not had any intention to intervene in Thailand’s domestic matters. Montenegro also stated that Thaksin does not stay in Montenegro longer than 15 days and told him that any anti-government activity would force the government of Montenegro to immediately react. Thailand, thus, notified Montenegro that the issue must not be an obstacle to the bilateral relations between Thailand and Montenegro.

--Cabinet Meeting (Abhisit Vejjajiva) October 12, 2010--

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