Pay rises among govt's first-year priorities

"In light of the global economic volatility, my government will put more emphasis on the domestic economy than exports," Prime Minister Yingluck Shinawatra said yesterday.

The Cabinet at its first regular meeting has approved the government's policy statement to be delivered for debate in Parliament next week, she said.

In revitalising the economy, the government will focus on increasing individual incomes and reducing household expenses, she said.

The government will outline the steps to boost the economy when it presents the Budget Bill next month.

According to the draft policies, wages and salaries will be hiked in line with productivity improvements. Businesses will be eligible for government assistance to cope with higher labour costs.

The government plans to raise the standard of living by suspending debt payments for three years by small farmers and low-income earners with less than Bt500,000 in debt. It will restructure the debts of those who owe more than that.

The elderly will receive a monthly stipend based on their age, such as Bt600 for those 60-69 and Bt1,000 for citizens over 90.

Tax benefits would help people purchase their first home or car.

The rest of the 16 issues on the priority agenda are as follows:

- Achieve national reconciliation and democratic revival by fostering a common understanding among citizens so it leads to unity. The new government says it will adhere to the democratic system with His Majesty the King as head of state and is ready to support the Truth for Reconciliation Commission to work independently and enable it to discover the truth behind the political violence. Compensation and rehabilitation will be provided for deaths and injuries during the civil strife in April and May last year.

- Crack down on drug traffickers, influential figures, vice and other social ills. Provide rehabilitation that can turn former addicts into quality people so they can return to society.

- Prevent and suppress corruption in the public sector by improving laws to prevent conflicts of interest, covering all important government authorities and high-ranking officials.

- Restore peace in the deep South by injecting resources and introducing a wide-ranging and holistic administration in line with the King's guidance to ensure understanding, accessibility and development that is in sync with the diversity of identities and religions in each area, and ensure equal justice for all.

- Restore good relations with neighbouring countries, based on international treaties and related laws, as well as ease border tension through diplomatic means. Promote regional economic development.

- Address people's economic problems caused by inflation, particularly for fuel. Delay collecting contributions to the Oil Fund for some particular kinds of fuel to reduce fuel prices immediately. Restructure the whole fuel-pricing system so that it reflects real energy costs. Provide fuel credit cards for taxi drivers and mass-transport service providers.

- Solve the high cost of living and high consumer-product prices as well as stop direct and indirect monopolies.

- Cut the corporate income tax to 23 per cent in 2012 and 20 per cent in 2013 to enhance competitiveness and expand the tax-collection base as the country prepares for the Asean Economic Community by 2015.

- Strengthen the product management of handicrafts and community products to promote uniqueness and local production, including the One Tambon One Product scheme. Make it sustainable through the use of local wisdom and resources in combination with modern practices in order to raise quality standards, prices and management skills. Set up product distribution and exhibition centres in the region, linked with exporters and tourist spots.

- Improve the quality of agricultural produce and help farmers access capital. Rely on the market mechanism to ensure price stability for agricultural goods and fair prices for farmers. Adopt the agricultural-product pledging scheme to provide a stable income to farmers. Issue credit cards to farmers, and launch futures trading of agricultural commodities.

- Promote integrated water management as well as expedite the expansion of irrigated areas.

- Promote domestic and inbound tourism by designating 2011 and 2012 as "Miracle Thailand" Years. Encourage foreign visitors to join the special celebrations hosted in honour of His Majesty the King during those years.

- Improve the Bt30 medical system and integrated healthcare system by enhancing information technology. Reduce health risks that lead to chronic diseases and accidents.

- Allocate tablet computers to students, starting with first-graders in the 2012 school year, and develop suitable curriculum content for them. Provide free Wi-Fi spots in public areas and at educational institutions.

- Introduce and facilitate political reform so that it is widely participatory. Set up a constitution-drafting council as an independent body to draft a new charter that introduces the exercise of democratic power under the principle of the rule of law and accountability. Hold a national referendum to decide on the fate of the draft.