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Published on August 22, 2007

He is apparently unhappy with the recent move by labour unions at 66 state enterprise in demanding a 4-per-cent hike, the same increase awarded to state officials for the fiscal year starting in October.

He said his ministry wanted them to boost their efficiency too, as they already earn 40 per cent more than the market rate, according to a study sponsored by the State Enterprise Policy Office.

Meanwhile, the Cabinet yesterday approved the Finance Ministry's proposal for new regulations governing government subsidies for state enterprises.

Chodechai Suwanaporn, deputy government spokesman, said the government would provide financial support to those state enterprises that offer services to people at a price lower than cost.

The state enterprises have to separate their commercial services from public services, and also use best practices in running their business in order to measure operating costs accurately.

Eligible state enterprises have to ask for special budgets from the Finance Ministry and the Cabinet.

Earlier, officials said the State Railway of Thailand, Provincial Waterworks Authority and Bangkok Mass Transit Authority would likely form the first group to get subsidies for their public service operations.

Wichit Chaitrong,

The Nation