Flood Rehabilitation Budget and Measures to Raise Investor Confidence

(14/12/2011)

Affected people, workplaces, and workers in the agricultural and industrial sectors will be given priority to benefit from the Government’s initial massive fund approved for the flood rehabilitation program. The Cabinet, during its special meeting on 12 December 2011, approved the initial fund of 20 billion baht for the program, which would be allocated to various projects ready to be carried out in January 2012. The Ministry of Labor and the Ministry of Industry were assigned to follow up on the workplaces which would receive the Government’s flood assistance to ensure that they would be able to resume operations as soon as possible. The 20-billion-baht fund is part of the 60-billion-baht budget approved by the Cabinet on December 6 for flood relief, recovery, and rehabilitation. The Cabinet resolved that other projects to be covered by the remaining 40 billion baht should be reviewed to make sue that they are necessary for implementation and should be submitted to three relevant committees for consideration first. The three committees appointed by the Prime Minister in November 2011 include the Flood Recovery and Restoration Committee on Economy, Industry, and Livelihood, the Flood Recovery and Restoration Committee on Quality of Life, and the Flood Recovery and Restoration Committee on Infrastructure. Meanwhile, Deputy Prime Minister and Commerce Minister Kittiratt Na-Ranong said that, in order to restore international investor confidence, he would explain at the eighth WTO Ministerial Conference the Thai government’s measures to help those affected by the recent severe flooding in Thailand. Mr. Kittiratt is leading a Thai delegation to attend the conference in Geneva from December 14 to 17. He said that 153 member countries of the World Trade Organization, including 37 observer countries and representatives from 76 international organizations, would participate in the WTO Ministerial Conference. So it should be a good opportunity for Thailand to raise international investor confidence in the country’s post-flood rehabilitation, after some countries stated that Thailand’s floods would affect the global production chains and lead to higher food prices in the world market. Thailand is regarded as one of the major food producers in the world. Chairman of the Strategic Committee for Reconstruction and Future Development Virabongsa Ramangkura said that both short- and long-term flood prevention plans had been prepared to protect Thailand from potentially severe floods in the future. A drill on the opening and closing of flood gates would be carried out at least twice a year. A computerized system would be used to handle sluice gates, which would be improved to accepted standards. The Government would also invest in the management of the country’s 25 river basins to create better conditions in the long run.