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Published on August 27, 2007

Without these acts, there will be no practical tools for both the government and business to "drive the economy" and resist attacks on the currency through foreign inflow, he asserted.

"There are only four to five months left for this government. I'm part of the assembly and I've witnessed its current atmosphere and believe it will be difficult for these acts to pass," Narongchai said.

"The Council for National Security needs to do something. Given the fact there are partisans among the assembly, and the incapability of understanding of how useful the four acts could be economically, financially speaking the country cannot move forward if they remain blocked.

"The acts have been an issue since the economic crisis a decade ago, but nothing serious has been done."

The four pieces of legislation are the draft Bank of Thailand, Currency, Deposit Insurance and Financial Institution Business laws.

Narongchai was among 40 businessmen and academics at a brainstorming session with the central bank a week ago to generate economic-stabilisation guidelines.

He said no matter how many similar sessions the bank called for, nothing would be achieved until the acts were passed.

"Six solutions initiated by the bank recently are not the cure for our economy. Whatever happens - whether it be incredible baht appreciation or something else - there's no one to be blame. It's our system that does not have sufficient tools for both the government and the private sector to effectively handle money management," he said.

Narongchai said a new Bank of Thailand Act would allow it to separate the short-term and reserve accounts, similar to the Bank of Japan.

The law will unlock restrictions, he added. For instance, the Finance Ministry could issue bonds, regardless of a budget deficit or surplus.

"Now, the baht has not over-appreciated, thanks to the United States sub-prime woes and the slowdown of our exports.

"But, if these acts do not pass, our economy will not be able to go anywhere," Narongchai said.

Piyarat Setthasiriphaiboon

 The Nation