PM rejects panel on unemployment and recession

Labour Minister Phaithoon Kaeothong raised the proposal at yesterday's Cabinet meeting after the government made clear that a Bt6.9 billion project to empower the unemployed will not be directly supervised by his ministry.

Deputy Prime Minister Korbsak Sabhavasu will oversee the project.

"I have already explained to the labour minister that the Bt6.9 billion is just one of the projects the government will introduce to tackle problems arising from the economic crisis," Abhisit said yesterday. "If the Labour Ministry has any plan that needs additional funding, it can talk with economic ministers."

Abhisit said Phaithoon's focus was on solving problems and the labour minister had no objection if the solution did not come in the form of a national-level committee.

An informed source said the National Economic and Social Development Board had earlier tried to dissuade Phaithoon from pushing his plan to set up a new committee, to no avail.

Meanwhile, Weerachai Thavornthon - an adviser to Phaithoon - yesterday threatened to leave the project to empower unemployed people if a Labour Ministry request for Bt3.4 billion in funds was not approved.

"We need that amount of money to train unemployed people," Weerachai said.

Kanok Wongtra-ngarn, an adviser to Abhisit, has said such a request would be turned down.

The Bank of Thailand has estimated that the number of unemployed could jump to 1.4 million this year, up from 500,000 unemployed last year.