Concern about policy delays

Prime Minister Abhisit Vejjajiva was yesterday forced to delay his first policy speech in Parliament until today, following a blockade of the entrances into Parliament by anti-government "red shirts".

Parliament President Chai Chidchob had to set back the joint session of the House and Senate - first from 9.30am to 2pm, and then to 5pm - because MPs and senators could not enter the building. It was then put off till 9.30am today.

Abhisit said he hoped the two-day session could begin today and told Parliament staff to prepare for work on New Year's Eve, a public holiday.

Pramon Sutivong, chairman of the Board of Trade of Thailand and the Thai Chamber of Commerce, said pro-Thaksin Shinawatra protesters should give the new administration a chance to do its work and debate the policies before attacking the government.

"Unabated political chaos would harm the Kingdom's economic growth, and that would not bode well for the country as a whole," he said.

"If the policy debate is

postponed by a few days, there should not be any impact on efforts to restore public con-fidence and shore up the

economy. However, if the debate were to be delayed by more than a week, it could harm the government's plans and timetable."

Bank of Thailand Deputy Governor Atchana Waiquam-dee said further political uncertainty could damage the execution of fiscal and monetary policies.

For example, there could

be further delays in state budget disbursement, thus hampering efforts to boost confidence in the government's ability to boost economic growth.

In regard to monetary policy, political uncertainty would hit efforts to boost credit in the financial system via channels such as state-owned banks. In addition, private banks would not boost their lending if such uncertainty remained, she said.

Moreover, the government needed to quickly introduce measures to help those who had lost jobs as a result of the economic slowdown.

Abhisit acknowledged that several urgent tasks awaited the government following the policy speech in Parliament, which is required by the Constitution before the administration can start its official duties.

"Originally, we planned to hold a Cabinet meeting right after the end of the policy debate, so that we could endorse all binding commitments pertinent to the [upcoming] Asean Summit," he said.

"This would allow the government to start work on parliamentary approval of these commitments right after the New Year holidays.

"In addition, we are planning to reduce toll-way and other fees as a New Year's gift for people. This would also require Cabinet approval, which will not be possible until we have already delivered the policy statement.

"Today, we have exhausted all ways and means to negotiate with the protesters [to allow us to make the policy statement], but to no avail.

"However, we will continue to be patient and adhere to peaceful means to resolve the problem," he said, adding that he did not view the postponement of the policy speech as a "loss of face" for the government.

Meanwhile, Jatuporn Promphan, a leader of the red shirts, said government opponents would continue to pressure the premier until the House of Representatives was dissolved.