10.08.09 Govt B400bn stimulus bill faces Senate turbulence
The government bill to borrow 400 billion baht
to stimulate the economy is facing possible rejection when it comes
before the Senate on Monday, say senators critical of the legislation.
The senators say the bill encourages lax financial discipline.
Senator Warin Thiamcharas said members of his group who oppose the
mega-loan would vote against the bill. The legislation has already been
passed by the House of Representatives.
His group has about 40 senators.
"I find the bill encourages bad fiscal discipline," Mr Warin said.
The senator said the government was acting with too much haste. More
care was needed before seeking approval for such a big loan, which is
intended for large-scale infrastructure projects.
He said the government had not fleshed out the projects before putting forward the bill.
"Personally, I think the bill runs a high risk of being rejected. If so, the government must face up to the consequences."
If the Senate rejects the bill, it would return to the Lower House.
If the Lower House insists on pushing it through, the bill would be passed into law.
But rejection by the Senate would cast a pall over the bill, bringing its appropriateness into question.
Senate Speaker Prasopsuk Boondej yesterday said 50 senators had
registered an interest in debating the bill. They have 12 minutes to
speak and the vote is expected to be called between 11pm and midnight.
Mr Prasopsuk conceded most of the debaters were opponents of the
bill who question why the government needs more money to spur the
economy.
The cabinet recently put into effect an executive decree to borrow
another 400 billion baht for urgent projects to generate jobs and
revenue.
The decree did not need parliamentary approval but it was halted
briefly in the Constitution Court after the opposition demanded a
constitutionality check. The court cleared the decree.
The government says it needs another 400 billion baht loan for
non-urgent economic revitalisation schemes including mass transit
projects. It agreed to seek parliamentary approval for this second
measure, in the form of the bill which goes before the Senate today.
Political observers said the bill might be accepted in principle
today for vetting. This would present the Senate with the opportunity
to point out the flaws and blow some whistles.
Prime Minister Abhisit Vejjajiva said the Senate should approve the
bill for the sake of the country's economic security. Without the
measure, the economy would continue to contract. The government would
act on the Senate's suggestions on the bill if it is passed.
Prompong Nopparit, spokesman of the opposition Puea Thai Party, said
senators should decide for themselves whether to pass the bill.
Source: Bangkok Post, 10.08.09 http://www.bangkokpost.com/news/politics/21771/govt-b400bn-stimulus-bill-faces-senate-turbulence
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