The cabinet meeting on Tuesday 22, February 2011 has come to the following decision:
The Cabinet has endorsed the draft Royal Decree on the Establishment of Professional Qualification Institution (Public Organization), which had previously been reviewed by the Office of the Council of State. The Cabinet resolved to retain all provisions pertaining to the Professional Qualification Institute (PQI) Management Committee as originally proposed and has instructed relevant agencies to proceed with further actions.
The Cabinet has agreed to the State Railway of Thailand’s request for a one-year extension on its Baht 800 million loan from Krungthai Bank Public Limited Company. The Ministry of Finance (MOF) will act as SRT’s guarantor under the loan agreement as recommended by the Ministry of Transportation, while the latter will accept MOF’s recommendations to improve SRT’s organization structure as well as to increase its operating revenues from commercial transportation, rail freight and improved asset management. In particular, the Bureau of the Budget and the Office of the National Economic and Social Development Board suggested that the SRT employ more effective land management practices for commercial purposes and control and reduce operating costs .
1) Acknowledge the evaluation results of the ministry’s implementation of the Cabinet resolution on 21 December B.E. 2553 (2010)
2) Agree to the extension of the government’s subsidy measures to relief the living costs until 30 June B.E. 2554 (2011) along with the proposed funding sources and budget allocation
3) Approves in the principle to assign the Bureau of the Budget to consider increasing the expenditure budget to support the subsidy extension during 1 January B.E. 2554 (2011) — 30 June B.E. 2554 (2011) according to actual expenditure and to thereafter inform the relevant state enterprises of the Bureau’s decision.
A. Ministry of Finance’s Implementation of Cabinet Resolution
According to the Cabinet resolution on 21 December B.E. 2553 (2010) which calls for the MOF to accept the Office of the National Economic and Social Development Board’s recommendations that the ministry should accelerate its evaluation to discern the necessity of the government subsidy measures and to incorporate measures that are considered social services into the Public Service Obligation (PSO) system.
B. Extension of Government Subsidies to Relieve Cost of LivingThe implementation of the government subsidies aimed at relieving the cost of living has proven to be effective and has had direct benefits on a large number of Thai citizens. This has in turn stimulated the Thai economy and relieved the hardship of low-income citizens during the economy slowdown. And in hope to spur the Thai economy on a continual basis, the government has agreed to extend its subsidy measures until 30 June B.E. 2554 (2011). The fundamental operating principles for the subsidy measures will be in accordance to the Cabinet Resolution on 21 December B.E. 2553 (2010):
1. The free electricity for households usage scheme will be implemented by the Electricity Generating Authority of Thailand (EGAT). Under this scheme, the government will provide free electricity for households using 90 units or less per month.
2. The free public bus scheme will be implemented by Bangkok Mass Transit Authority (BMTA). Under this scheme, 800 public buses covering 73 routes will offer free rides to citizens in Bangkok and peripheral areas each day.
3. The free third-class train scheme will be implemented by the State Railway of Thailand (SRT). Under this scheme, 164 third-class social trains and 8 long-distance commercial trains will offer free rides to passengers each day.
The Cabinet has endorsed the following resolutions of the 1/2554 National Energy Policy Committee (Meeting No.134) held on 11 February B.E. 2554 (2011) to consider solutions to the rising oil prices:
1. To replace the diesel B3 formula with the B2 formula until the end of March 2011.
2. To extend the period of diesel subsidy to the end of April. The government is currently using the Oil Fund to subsidize the price of diesel at below Baht 30/liter. The Oil Fund’s current balance of Baht 23 billion will be reduced to approximately Baht 10 billion in order to support the diesel subsidy for the extended period.
The Cabinet has approved in principle to increase the budget allocation for the implementation of the Riot Insurance Policy for Foreigners as proposed by the Ministry of Tourism and Sports.
The Cabinet also calls for the Ministry of Tourism and Sports to accept the recommendations made by the Office of the National Economic and Social Development Board. The ministry also reported on the implementation of the Riot Insurance Policy for Foreigners as follows:
1. The Insurance Commission has endorsed the Riot Insurance Policy for Foreigners while only members of the General Insurance Association are licensed to collect the US$1/person/day premium. The Ministry of Tourism and Sports will be the policyholder for the Riot Insurance Policy for Foreigners.
2. Total number of foreign tourists to Thailand that were covered by non-life insurance policies: 14,037,853. This figure can be broken down into:
2.1) 1st Period: Between 1 May — 30 October B.E. 2552 (2009) 6,372,028 foreign tourists visited Thailand. Insurance premium is charged at US$1/person/day and a total of Baht 216,548,700 of was collected.
2.2) 2nd Period: During 1 November B.E. 2552 (2009) — 31 March B.E. 2553 (2010) 7,665,825 foreign tourists visited Thailand. Insurance premium is charged at US$0.85/person/day and a total of Baht 216,175,300 was collected.
3. Number of non-life insurance companies that joined the project:
3.1) 1st Period: Between 1 May — 30 October B.E. 2552 (2009) 28 non-life insurance companies joined the program
3.2) 2nd Period: During 1 November B.E. 2552 (2009) — 31 March B.E. 2553 (2010) 27 non-life insurance companies joined the program
4. No foreign tourists received insurance claims during these two periods.
--Cabinet Meeting (Abhisit Vejjajiva) February 22, 2011--