Flood-relief budget gets committee OK

The committee on economic rehabilitation yesterday approved a budget of 11 billion baht to pay 5,000 baht each to 2.28 million flood-affected households.

Kittiratt: Tax cut is still standing policy

Also, an initial 112.8 million baht will be allocated to the Industry Ministry to rehabilitate industrial parks. The ministry had asked for a total of 7 billion baht.

Deputy Prime Minister Kittiratt Na-Ranong said the ad-hoc committee chaired by Areepong Bhoocha-Oom, the permanent secretary of the Finance Ministry, was established to speed screening for projects proposed by state agencies.

He said the screening committee was maintaining the government's policy to cut corporate income tax to 23% next year, in contrast to a proposal by the Joint Standing Committee on Commerce, Industry and Banking to delay the tax cut and spend the amount on flood relief.

However, Mr Kittiratt said the government welcomed the willingness of private companies to support such a relief fund for flood victims.

Phayungsak Chartsutipol, the chairman of the Federation of Thai Industries (FTI), said half of the 112.8-million-baht budget would be allocated to temporarily shelter workers, 22 million to clear out industrial waste, 25 million to check water quality and 15.8 million to drain water from industrial estates.

The FTI is concerned about the threat of damage to over 5,000 small and medium-sized enterprises west of Bangkok. They have begun moving machinery to higher ground.

The cabinet today will consider rehabilitation measures to be fulfilled in a year and covering aid to ordinary people, farmers and entrepreneurs.

Anuttama Amornvivat, a deputy government spokeswoman, said the proposal gives flood victims 30,000 baht for complete damage, 20,000 baht for partial damage and 10,000 baht for asset damage. The amount is expected to total 11 billion baht for 2.28 million households.

The state-run banks will offer 30 billion baht in loans for house repair.

Farmers will be allowed compensation based on previous rules. The Bank for Agriculture and Agricultural Cooperatives is offering 30 billion baht in soft loans for business rehabilitation and debt suspension for three years for farmers.

For SMEs, the government plans 500 million baht to restore factories and 30 billion baht in soft loans.

Suwannee Khamman, the deputy secretary-general of the National Economic and Social Development Board, said the cabinet would also consider measures to help workers.

Entrepreneurs have assured the government that they will retain employment by paying workers 75% of their salary