Thailand's Constitution Court To Rule On Legality Of Two Executive Decrees

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Constitution Court to rule on legality of two executive decrees

BANGKOK, Feb 22 - Thailand’s Constitution Court is scheduled to rule at 2pm today on the constitutionality of two executive decrees allowing the government to borrow Bt350 billion in loans and to transfer the debt of the Financial Institutions Development Fund (FIDF).

Deputy Prime Minister/Finance Minister Kittiratt Na Ranong represented Prime Minister Yingluck Shinawatra to defend the two decrees in testimony at the Court on February 15 while opposition Democrat party list MP and former finance minister Korn Chatikavanij and Senator Kamnoon Sitthisamarn have given information on their petitions to the Court for the interpretation of the two decrees.

The two executive decrees involve permission for the government to seek a Bt350 billion loan to finance water management and flood rehabilitation projects and the other one is regarding the transfer of the FIDF's debt from the Finance Ministry to the Bank of Thailand.

The government has reiterated that the decrees were needed to restore confidence in Thailand after the flood crisis last year.

Mr Kittiratt earlier said that the Bt350 billion loan would be spent on water management projects along the Chao Phraya river basin and the transfer of the FIDF's debt would help ease the government's fiscal burden.

Meanwhile, the opposition has questioned the urgency of the decrees, as the government has enough budget and time to propose the loan decree through the legislative process to the House of Representatives.

The transfer of FIDF's debt was criticised as government interference with the Bank of Thailand.

Pheu Thai Party spokesman Prompong Nopparit said earlier that the party would accept whatever ruling the court handed down.

In case the court rules that the two decrees are against the country's constitution, he said, the government would push them through standard parliamentary procedures as bills.

However, the process prior to the House's approval is likely to delay the implementation of the government's flood-prevention projects. (MCOT online news)

-- TNA 2012-02-22

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Govt Claims No Responsibility If Borrowing Decrees Deemed Unconstitutional

BANGKOK: -- Interior Minister Yongyuth Wichaidit says the government is not obliged to be liable for anything should the two borrowing decrees fail to receive a nod from the Constitution Court.

Interior Minister Yongyuth Wichaidit said Finance Minister Kittirat Na Ranong have been tasked with providing clarification regarding the Constitution Court's decision on the decrees for water management and national reconstruction and the repayment of debts incurred by the Financial Institution Development Fund.

The Court is slated to hand down its ruling on the constitutionality of the two decrees today.

Yongyuth noted that the government already has a back-up plan in place if the Constitutional Court does not uphold the decrees. He said the provisions will be proposed as acts instead.

In response to the Democrat Party's call that the government must be responsible should the decrees are found to be invalid, the Deputy PM said the government does not have to be held accountable by any means because there is no precedent for it.

-- Tan Network 2012-02-22

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RT @tulsathit: Urgent: Court approves the borrowing executive decree with unanimous vote.

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RT @veen_NT: RT @Biz_TheNation: Constituion Court rules 350bn borrowing decree complies with the Constitution 184 (1) and (2)

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Constitution court rules Bt350-bn borrowing decree constitutional

BANGKOK: -- The Constitution Court Wednesday ruled that the executive decree to allow the government to borrow Bt350 billion for setting up flood prevention system is constitutional.

The Court announced all the judges ruled unanimously to endorse the decree's constitutionality.

-- The Nation 2012-02-22

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RT @tulsathit: The 2nd executive decree awaiting court verdict seeks to transfer FIDF's debt burden to Bank of Thailand.

[sparebox2]

That not fair to Mark.

Not fair to the Thai people at all.

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RT @Aim_NT: Cons Court: Govt can use over BT60bn to invest in infrastructures w/o having to set budget to pay FIDF loan interest.

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RT @TAN_Network: Constitution Court rules 7:2 to find decree to transfer FIDF debt to central bank constitutional

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Constitution Court endorses constitutionality of FIDF debt burden transfer decree

BANGKOK: -- The Constitutional Court Wednesday ruled that it was constitutional for the government to issue an executive decree to transfer the debt burden of the Financial Institutions Development Fund to the central bank.

Constitution Court judges voted 7:2 to endorse the decree's constitutionality.

-- The Nation 2012-02-22

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RT @tulsathit: This is basically the same panel of judges that ruled not to dissolve the Democrat Party.

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EXECUTIVE DECREES

Court's ruling widens Govt's borrowing room

The Nation

BANGKOK: -- The Constitution Court on Wednesday ruled that the two executive decrees comply with the Constitution's Article184, leaving the government several bullets to finance its post-flood investment. Economic stability and unavoidable urgency are cited as the reasons for the ruling.

The borrowing executive decree will allow the government to finance 32 long-term flood-protection plans which require total investment of about Bt360 billion. The decree empowers the Finance Ministry to borrow Bt350 billion in baht or other currencies within June 30, 2013.

The second decree will give a larger room for investment as the government needs not to set aside a budget for principal and interest payment for the Financial Institutions Development Fund (FIDF), starting from the 2013 fiscal year.

In the 2012 fiscal year, Bt68.43 billion was set aside for the purpose. The amount accounted for 2.9 per cent of public expenditures in the year and 16.2 per cent of total investment budget.

According to the World Bank’s preliminary estimate, the fourth-quarter floods caused damage of Bt1.4 trillion to the public and private sectors.

-- The Nation 2012-02-22

[Pib]

Why bother with the Parliament, debates, budget bills, etc? Just issue decrees for whatever feels good...send the Parliament home on vacation...as long as they continue to get paid they probably won't really care.

[Orac]

Why bother with the Parliament, debates, budget bills, etc? Just issue decrees for whatever feels good...send the Parliament home on vacation...as long as they continue to get paid they probably won't really care.

Time for a new constitution maybe????

[CalgaryII]

Govt. Claims No responsibility if Borrowing Decrees Deemed Unconstitutional, #2^

In response to the Democrat Party's call that the government must be responsible should the decrees are found to be invalid, the Deputy PM said the government does not have to be held accountable by any means because there is no precedent for it.

There you have it in black and white, in case any of you were still harbouring illusions what all these treks to the judges are intended to accomplish.

Is it any wonder there is high dilligence by Jatuporn and others about the coup-ists lurking about.

[CalgaryII]

Why bother with the Parliament, debates, budget bills, etc? Just issue decrees for whatever feels good...send the Parliament home on vacation...as long as they continue to get paid they probably won't really care.

Thank God for the Thai Parliamentary System.

Govts. can take action, and be judged election time.

The dam_n USA Govt would have been frozen.

They can try what the Pib says above, but could be problematic next election, so they probably wont.

Edited February 22, 2012 by CalgaryII

[CalgaryII]

Why bother with the Parliament, debates, budget bills, etc? Just issue decrees for whatever feels good...send the Parliament home on vacation...as long as they continue to get paid they probably won't really care.

Time for a new constitution maybe????

That is on the way!

[whybother]

Why bother with the Parliament, debates, budget bills, etc? Just issue decrees for whatever feels good...send the Parliament home on vacation...as long as they continue to get paid they probably won't really care.

Thank God for the Thai Parliamentary System.

Govts. can take action, and be judged election time.

The dam_n USA Govt would have been frozen.

They can try what the Pib says above, but could be problematic next election, so they probably wont.

They PTP are bypassing the parliament. Did you miss that?

[MAN2SIN2BKK]

Hold on, there is jusification in the decrees in this case given the reason. The Democrats are playing games with people's lives by this attempt to block. I am glad the judges saw that. Any delay in funding due to Parliament bitching and whining for 3 of 4 months might lead to new flood defences, dredging projects etc etc not even being started.

We are in the firing line on Khlong Sam, we lost over 500K baht of furniture and fittings add to that the cost of 2 hotel rooms for 15 days and renting a house in Pattaya for a further month.

I don't want to go through that shit again

[sparebox2]

Why bother with the Parliament, debates, budget bills, etc? Just issue decrees for whatever feels good...send the Parliament home on vacation...as long as they continue to get paid they probably won't really care.

Thank God for the Thai Parliamentary System.

Govts. can take action, and be judged election time.

The dam_n USA Govt would have been frozen.

They can try what the Pib says above, but could be problematic next election, so they probably wont.

They PTP are bypassing the parliament. Did you miss that?

Don't worry, the coup will get her first.

[whybother]

Hold on, there is jusification in the decrees in this case given the reason. The Democrats are playing games with people's lives by this attempt to block. I am glad the judges saw that. Any delay in funding due to Parliament bitching and whining for 3 of 4 months might lead to new flood defences, dredging projects etc etc not even being started.

We are in the firing line on Khlong Sam, we lost over 500K baht of furniture and fittings add to that the cost of 2 hotel rooms for 15 days and renting a house in Pattaya for a further month.

I don't want to go through that shit again

You've been saved. Everything will be OK.

Now you'll have to find some other excuses for the flood defences and dredging projects not to have been started.

[CalgaryII]

Why bother with the Parliament, debates, budget bills, etc? Just issue decrees for whatever feels good...send the Parliament home on vacation...as long as they continue to get paid they probably won't really care.

Thank God for the Thai Parliamentary System.

Govts. can take action, and be judged election time.

The dam_n USA Govt would have been frozen.

They can try what the Pib says above, but could be problematic next election, so they probably wont.

They PTP are bypassing the parliament. Did you miss that?

Don't worry, the coup will get her first.

And then people accuse Jatuporn of coup fear mongering.

If a coup gets her, R'song will be small potatoes comparatively.

[whybother]

And then people accuse Jatuporn of coup fear mongering.

If a coup gets her, R'song will be small potatoes comparatively.

Are you trying to compare Sparebox to Jataporn?

[David48]

Hold on, there is jusification in the decrees in this case given the reason. The Democrats are playing games with people's lives by this attempt to block. I am glad the judges saw that. Any delay in funding due to Parliament bitching and whining for 3 of 4 months might lead to new flood defences, dredging projects etc etc not even being started.

We are in the firing line on Khlong Sam, we lost over 500K baht of furniture and fittings add to that the cost of 2 hotel rooms for 15 days and renting a house in Pattaya for a further month.

I don't want to go through that shit again

Quite an understandable sentiment

... and you think that the Thai Government, having promising the world to win their past election, by their excessive popularist policies are now going to deliver their promises within Budget.

THE ANSWER IS NO

See past the 'credit card spending'. Understand ALL things are possible ... but not all at the same time.

What this government is trying to do is to ignore previous commitments which they have inherited (and were well documented before this and the previous election) by transferring debt from their balance books to the National Banks' books.

So they are living on the credit card ... understand this.

What are they promising? A flood free Thailand. Is it possible ... a resounding NO.

Do they need to do something about this major problem ... a resounding YES.

Whose money are they spending ... the future generations.

It's not fiscal management ... it's a fiscal pregnancy ... and the debt will be born to the future generations.

Remember ... you work, you save and you spend.

It's a closed loop system.

This government is spending more then they earn.

Can they afford to do this ... the flood mitigation program ... absoloutly.

Does Thailand desperately need this ... again ... absolutely.

Can they afford to pay for it ... along with their popularist policies ... NOOOOOOOOOOO

Ditch the rice price pledging scheme, same with the wage increases.

Become a fiscally prudent government ...

Edited February 22, 2012 by David48

[CalgaryII]

Hold on, there is jusification in the decrees in this case given the reason. The Democrats are playing games with people's lives by this attempt to block. I am glad the judges saw that. Any delay in funding due to Parliament bitching and whining for 3 of 4 months might lead to new flood defences, dredging projects etc etc not even being started.

We are in the firing line on Khlong Sam, we lost over 500K baht of furniture and fittings add to that the cost of 2 hotel rooms for 15 days and renting a house in Pattaya for a further month.

I don't want to go through that shit again

Quite an understandable sentiment

... and you think that the Thai Government, having promising the world to win their past election, by their excessive popularist policies are now going to deliver their promises within Budget.

THE ANSWER IS NO

See past the 'credit card spending'. Understand ALL things are possible ... but not all at the same time.

What this government is trying to do is to ignore previous commitments which they have inherited (and were well documented before this and the previous election) by transferring debt from their balance books to the National Banks' books.

So they are living on the credit card ... understand this.

What are they promising? A flood free Thailand. Is it possible ... a resounding NO.

Do they need to do something about this major problem ... a resounding YES.

Whose money are they spending ... the future generations.

It's not fiscal management ... it's a fiscal pregnancy ... and the debt will be born to the future generations.

Remember ... you work, you save and you spend.

It's a closed loop system.

This government is spending more then they earn.

Can they afford to do this ... the flood mitigation program ... absoloutly.

Does Thailand desperately need this ... again ... absolutely.

Can they afford to pay for it ... along with their popularist policies ... NOOOOOOOOOOO

Ditch the rice price pledging scheme, same with the wage increases.

Become a fiscally prudent government ...

If it is all that bad, Bye bye Ms. Y next election.

I know it is not, and she will be re-elected with an increased majority.

We shall see.

[phiphidon]

Why bother with the Parliament, debates, budget bills, etc? Just issue decrees for whatever feels good...send the Parliament home on vacation...as long as they continue to get paid they probably won't really care.

Thank God for the Thai Parliamentary System.

Govts. can take action, and be judged election time.

The dam_n USA Govt would have been frozen.

They can try what the Pib says above, but could be problematic next election, so they probably wont.

They PTP are bypassing the parliament. Did you miss that?

The checks and balances were and are provided by the constitutional court. Did you miss that? The same court you were all lauding for their dilligence in turning down the dissolution of the democrats. Are they the "baddies" now?

[philw]

Why bother with the Parliament, debates, budget bills, etc? Just issue decrees for whatever feels good...send the Parliament home on vacation...as long as they continue to get paid they probably won't really care.

Thank God for the Thai Parliamentary System.

Govts. can take action, and be judged election time.

The dam_n USA Govt would have been frozen.

They can try what the Pib says above, but could be problematic next election, so they probably wont.

They PTP are bypassing the parliament. Did you miss that?

The checks and balances were and are provided by the constitutional court. Did you miss that? The same court you were all lauding for their dilligence in turning down the dissolution of the democrats. Are they the "baddies" now?

Succinctly put.

[rubl]

Personally I'm a bit surprised about the ruling on the THB 1.4 billion which are moved aside to allow the government a better borrowing margin. Probably that's just me, I never qualified for higher economics involving numbers with lots of zeroes at the end

BTW the court judged both emergency decrees legal, they didn't say anything about it being wise or economically sound

Edited February 22, 2012 by rubl

[animatic]

Within legal constitutional bounds is one thing.

But it doesn't make these decisions fiscally prudent,

nor morally solid by a long stretch.

It just means the long reach into the cookie jar

for latter day mega-project graft will be paided off

for decades longer than originally expected.

Edited February 22, 2012 by animatic

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please continue:

Decrees Get Thai Constitution Court Approval

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