Cabinet Meeting Synopsis -- November 24, 2009

World News Wednesday December 2, 2009 11:02 —Cabinet Meeting Synopsis (English)

The cabinet meeting on Tuesday 24, November 2009 has come to the following decision:

Topic: Ministry of Commerce's Draft on Ministry Announcement on Tapioca Starch Export to European Union A.D. ... ( Tapioca Starch Export to European Union Quota Management)

The cabinet approved in principle the Ministry of Commerce's draft on the ministry announcement on tapioca export to European Union A.D.... (Tapioca Starch Export to European Union Quota Management), as proposed by the Ministry of Commerce, and the cabinet has forwarded it to the cabinet draft legislation and draft proposal audit committee to consider and carry on the issue.

Background Fact

The Ministry of Commerce proposed:

1. The European Commission's Directorate-General for Agriculture and Rural Development (DG AGRI) has notified that the European Union will transfer the DG AGRI's quota for tapioca export to European Commission's Taxation and Customs Union (DG TAXUD); consequently, it has requested adjustment to quota management H.S. Category 1108.1400, which previously gave the management authority to Thailand by issuance of Export Certificate: EC. The changes are that the European Union will now manage the quota on First Come First Serve basis, and that Thailand will will be the issuer of Certificate of Origin: C/O. These changes will become effective on January 1, 2010.

2. The Ministry of Commerce has inquired tapioca trade-related associations and has been notified that the changes will not affect Thai tapioca starch trade in the European Union.

3. To comply with custom ceiling of category 1108.1400 and to receive tax rights in accordance to the adjustment of quota management, the Ministry of Commerce has to cancel the ministry announcement on export no.74 A.D.1996 and issue a new announcement to comply with quota management H.S. Category 1108.1400 in which exporters are required to show C/O from Department of Foreign Trade, instead of EC, to the European Union.

Content of the Draft Announcement

1. This announcement will become effective from January 1, 2010, onward.

2. The ministry announcement on export no. 74 A.D.1996, signed on June 6, 1996, will no longer be in effect from January 1, 2010 onward.

3. Tapioca starch exporters, to receive tax right, need to declare Certificate of Origin issued by the Department of Foreign Trade to the European Union. However, the principles, procedure, and terms and conditions, will be in accordance with the Ministry of Commerce's regulations (draft no.4 and no.6).

Temporary Allowance Increase for Officials and Employees of State Enterprises

The cabinet endorsed the resolution of the 7th/2009 State Enterprise Labour Relation Committee meeting on August 31, 2009, that agrees with the increase in temporary allowance for officials and employees of state enterprises who, with allowance included, earn less that 15,000 Baht per month, worth 2,000, for 6 months. The resolution will be effective on the day cabinet has approved the resolution. The budget will come from the budget of state enterprises under the discretion of each state enterprise's committee within the frame of article 13 (2) of State Enterprise Labour Relation Act 2000. It must be noted that the allowance is temporary and is not considered to be a wage nor a basis for any benefit formula, as proposed by the Ministry of Labour.

Content

The Ministry of Labour reported:

1. 7 State Enterprises, namely, Government Pharmaceutical Organisation, Port Authority of Thailand, Provincial Electricity, Electricity Generating Authority of Thailand, Expressway Authority of Thailand, Tourism Authority of Thailand, and Government Housing Bank, have requested for temporary allowances, ranging from 1,500-2,000 Baht per person per month.

2. The State Enterprise Labour Relation Committee in its 7th meeting in the year 2009 on August 31, 2009, has considered the proposal and resolved to approved temporary allowance for officials and employees of state enterprises who, with allowance included, earn less that 15,000 Baht per month, worth 2,000, for 6 months, effectively on the day the cabinet approved the resolution. The budget will come from the budget of state enterprises and under the discretion of each enterprise's committee within the frame of article 13 (2) of State Enterprise Labour Relation Act 2000. It must be noted that the allowance is temporary and is not considered to be a wage nor a basis for any benefit formula. The requesting 7 state enterprises, under the article 13(2) of State Enterprise Labour Relation Act 2000, must act in accordance with cabinet resolution.

3. Though the matter is considered the authority on employment of each state enterprise, the state enterprise may need a cabinet approval before certain action under article 13(2) of State Enterprise Labour Relation Act 2000.

Measures and Directions to Speed Up Spending Under "Thailand: Investing from Strength to Strength" 2012 Programme

The cabinet approved measures and directions to speed up and monitor the spending under the "Thailand: Investing from Strength to Strength" 2012 Programme, as proposed by the Ministry of Finance.

1. Setting the target of minimum 100% spending of the approved 2009 budget.

2. Assigning agencies designated for budget under 2009 programme of "Thailand: Investing from Strength to Strength" Programme to sign contracts by the first quarter of 2010 and to document and report all the information, work plan, work phase, and payment by the system the Ministry of Finance determined, corresponding to the achievement and quarter so that the information that calls for speeding up will be available and ensures the objective of the project.

3. Using cabinet's target as the benchmark for agencies' spending requests under "Thailand: Investing from Strength to Strength" Programme.

4. Ministers overseeing agencies with projects under "Thailand: Investing from Strength to Strength" Programme must strictly follow work plan and spending plan.

5. Assigning provincial governors to increase the role of provincial treasury in speeding up spending for projects under "Thailand: Investing from Strength to Strength" Programme in order to achieve target.

It should be noted that although agencies are required to send reports to the budget bureau by Monday November 30, 2009, the deadline is impossible in practice and should be waived. Fiscal year crossing obligations would be allocated by Wednesday December 30, 2009, and those that could meet the deadline would be approved case by case by overseeing minister but based on the opinion of the budget bureau.

Background Fact

Spending under "Thailand: Investing from Strength to Strength" Programme, on November 13, 2009, stood at 17,352.22 million Baht, or at 27.16% of allocated 63,890.68 million Baht. There are 8 objectives that were approved by the cabinet, 3 of which have requested for spending.

1. Food and energy Security, ecological and environmental conservation, and increase in agricultural and industrial production capacity, such as, irrigation and agriculture: 7.74 million Baht or 0.11% of allocated 6,758.81 million Baht has been spent.

2. Improvements in basic economic, social and environmental infrastructure that are needed to increase competitiveness and the quality of life of the people: 2,844.48 million Baht or 9.84% of allocated 28,917.74 million Baht has been spent.

3. Jobs and income creation to lift the people's quality of life on community level, such as, community investments: 14,500 million Baht or 84.41% of allocated 17,177.32 million Baht has been spent since September 2009 to increase capital to financial institutions under the Ministry of Finance.

Meeting of the Second Review Conference of the Mine Ban Convention

The cabinet endorsed and approved as proposed by the Ministry of Foreign Affairs.

1. 4 documents were approved

1.1 The 2009 Cartagena Declaration

1.2 Cartagena Action Plan 2010-2014

1.3 Review of the Operation and Status of the Convention, 2005 — 2009

1.4 Draft Decisions on Future Meetings

2. The chief of Thai delegates is authorised to ratify the Cartagena Declaration

Content

The Ministry of Foreign Affairs reported:

1. The government of the Republic of Colombia will host The Cartagena Summit on a Mine Free World/the Second Review Conference of the Mine Ban Convention from November 28 to December 4, 2009, in Cartagena, Republic of Colombia. It has invited the Thailand, a ally of the declaration, to send delegates to the summit.

2. The Ministry of Foreign Affairs, seeing that the four documents are not legally binding nor require additional obligations from the existing declaration that Thailand has ratified, resolved that they are not treaties and not fall under the article 190 paragraph two of the Constitution.

Draft on the 2010-2014 Joint Plan of Action on Bilateral Cooperation Between the Kingdom of Thailand and Federation of Russia

The cabinet endorsed the draft of the 2010-2014 Joint Plan of Action on Bilateral Cooperation Between the Kingdom of Thailand and Federation of Russia and authorised the Ministry of Foreign Affairs to alter the wordings in parts that do not affect the essence of the Joint Plan of Action without submitting the changes to the cabinet. The Ministry of Foreign Affairs will also have the authority to ratify the Joint Plan of Action, as proposed by the Ministry of Foreign Affairs.

Content

The Ministry of Foreign Affairs reported:

1. In 2005, Thailand and Russia agreed on compiling a joint plan of action and twice negotiated on the matter on February 20, 2006 in Moscow and again in December 23, 2006, in Bangkok. Both parties agreed on all issues and that both parties are going to request approval from their governments so that it can be ratified during the fourth meeting of Thai-Russia Joint Commission on Bilateral Cooperation (JC) which was set to take place in mid-2007 in Bangkok but was postponed due to changes of personnel and chairman of both parties. Hence, it has not been ratified until today.

2. Because of fast-pace development of Thai-Russian bilateral relation, the Ministry of Foreign Affairs has organised a meeting for related agencies to review the content of Joint Plan of Action on March 15, 2008, and then both parties have corresponded the draft of joint plan of action. The Ministry of Foreign Affairs has circulated the Russian draft to 19 related agencies before both Thailand and Russia have resolved on the draft.

3. Both Thailand and Russia agreed that it should be ratified during the 4th meeting of Joint Commission on Bilateral Cooperation which is set on November 27, 2009, in Bangkok, with the Minister of Foreign Affairs and Russian Deputy Prime Minister and Government's Chief of Staff Sergey S. Sobyanin presiding over.

4. The Joint Plan of Action has a 5-year frame, from 2010 to 2014, and is in 3 languages, Thai, Russian, and English. English version will be based on when there is a dispute in interpretation.

5. There are 9 categories in joint action plan

5.1. Strategic Cooperation

5.2. Other Cooperations

6. The content of the joint plan of action is a declaration of both parties' intention regarding the frame of bilateral cooperation and unlike to alter the boundaries of the kingdom or extra territorial areas, nor does it require any act regarding treaty, action with general economic impact, or commercial, investment or budget obligations. Hence, it is unlikely to fall under article 190 paragraph 2 that requires the approval from the National Assembly.

--Cabinet Meeting (Abhisit Vejjajiva) November 24, 2009--

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