NCPO must focus on Thai rice stocks

[Thait Spot]

If anyone thinks that the NCPO has rice as it's number one issue then they are misguided.

They have done a superb job of sending the 2 warring sides home and stopping conflict so far.

Whilst they dismantle the Thaksin Network and replace it with people who can perform without allegiance - and whilst they clean up on weapons being held by factions - they are putting a reasonably independent "cabinet" in place.

The reconciliation so far has been tentative - like fighting school boys who have had their heads banged together and told to make up - but once the reasons for red and yellow get put down on paper and worked out I think things will calm down.

Then Reform is next on the agenda - and the whole nation is waiting to see what that will enatail because that will be the key to elections.

Rice and other farming issues such as rubber will be a background task. It wouldn't surprise me in the least to see some form of formal "farming landowners companies" formed with workers listed as employees and elligible for social services to bring their income up to the state minimum if their crops fail or the prices are low.

I like your thoughts on what you call "farming landowners' companies". It sounds very much like farming "cooperatives" that we have in the USA, but they are not government sponsored but privately organized.

I'm wondering too about just what kind of "reforms" will be considered and enacted. Certainly there will be at least lip service to curtailing corruption and vote-buying. I hope the reforms focus on being inclusive - providing for and encouraging the maximum number of citizens to vote - rather than exclusive - limiting voter eligibility through qualifications and restrictions.

I don't know much about the US cooperatives but if there's a model that works then it sounds good - and I think much better than having farmers rely on the state. There needs to be a working incentive to get the farmers out of bed and doing something constructive.

Reforms could cover a massive sphere of subjects from outlawing "colour" groups, having an independent court to deal with parliamentary misdemeanours as soon as they happen, outlawing populist policies where they are unfair to certain geographical areas or cost more than say 5% of the GDP, much stricter penalties for corruption, clearer policies on what court handles what, clearer lines on what the DSI is able to take on etc etc.

[monkeycountry]

I believe I am in touch with the rural areas. I live in a rural area and see the Rice Scheme did not defraud the farmers. I see what benefits the Rice Scheme and other programs sponsored by the former governments (roads, dams, hospitals, schools, electricity, water, etc...) has had on the rural areas including local farmers. Is there any wonder why there would be such overwhelming support for these former governments by the rural areas?

Maybe I am out of touch with the urban areas where it seems there is a huge influx of wealth accompanied as usual with graft and corruption. And is there any wonder why the urban areas would oppose former governments who redistributed wealth out to other areas of the country and through the vote also began to redistribute the political power?

The Thai people will indeed foot the bill of this political divide, and will continue to pay and pay until it is resolved politically. I can only hope the current junta and the promised reforms leading up to a future election will help resolve these divides; but it's going to require a realization and an acceptance from the opposition of the former governments that the rural areas are now awake and must be dealt with at least as equals.

Now that they are avake and want to be dealt with as equals, will they then also start paying income tax as equals, or will they continue to not bother even reporting their income - remember, many of them are, according to themselves, claiming several hundreds of thousands from the rice scam? Since you are in touch with the rural areas, then please tell me, how many Thais do you know in your rural area that has ever filed a tax return? I am guessing zero?

MonkeyCountry, All rice farmers I know pay taxes on their land. If they don't it could be seized. They are not required to pay taxes on (or claim losses from) their income from the land from what I've been told. There may be some threshold on this. Maybe someone else on this forum could speak more authoritatively on that.

Of course they are required to pay tax on their income from the land, just like everyone else in Thailand is required to pay tax on their income. When a Thai tells you "I don't need to pay tax", he is telling you the truth. He/she does not feel he/she needs to pay tax, but the revenue department definately needs him/her to pay tax on that income, and he/she is breaking the law. They are just so used to breaking the law, that they don't care anymore.

[waza]

From the article:

"The Government Savings Bank (GSB) yesterday came out top in an auction for a three-year loan worth Bt50 billion, offering the lowest interest rate among 12 participants from both government and commercial banks ... The lending rate offered by GSB is below the government's three-year bond yield of 2.45 per cent per annum currently," said Chularat."

I think it's important to point out that these government-backed loans at lower-than-market interest rates are absolutely no different in principle (pardon the pun) from government-backed purchases of rice at higher-than-market prices. Both are a form of subsidies to support government financial and social policies. The only difference is they are subsidies directly benefitting different segments of the Thai populations. The loans are of benefit to the financiers and the purchases to the farmers.

Bill are you really that out of touch to recognise the difference between a rice scam that was exactly that and defrauded all members of Thai society including the rice farmers? It bears absolutely no comparisons to the government-backed loans at lower-than-market interest rates which are compensating the farmers for their losses. The big winners here are Thaksin and his sycophants, the looser are the Thai people who will foot the bill, its not so smart.

I believe I am in touch with the rural areas. I live in a rural area and see the Rice Scheme did not defraud the farmers. I see what benefits the Rice Scheme and other programs sponsored by the former governments (roads, dams, hospitals, schools, electricity, water, etc...) has had on the rural areas including local farmers. Is there any wonder why there would be such overwhelming support for these former governments by the rural areas?

Maybe I am out of touch with the urban areas where it seems there is a huge influx of wealth accompanied as usual with graft and corruption. And is there any wonder why the urban areas would oppose former governments who redistributed wealth out to other areas of the country and through the vote also began to redistribute the political power?

The Thai people will indeed foot the bill of this political divide, and will continue to pay and pay until it is resolved politically. I can only hope the current junta and the promised reforms leading up to a future election will help resolve these divides; but it's going to require a realization and an acceptance from the opposition of the former governments that the rural areas are now awake and must be dealt with at least as equals.

If you are so in touch Bill, then tell me where did the money come from to pay the farmer, build the infrastructure and other benefits? It cant be from the rice they grew because that's still in storage, nor could it be from the taxes they paid, because they are relying on government subsidies. The only redistribution of wealth that has happened during the Thaksin proxy governments indentures has been from the middle class to the Shinawatras. This golden age for the farmers is just an illusion to fool the simple folks like you, its created from debt. A debt these farmers and all Thai tax payers will have to foot in increase taxes, fees and charges and an increased cost of living. This illusion is over, the house of cards is collapsing, these farmer will be left with a massive surplus of paddy rice which nobody wants and debts they cant service. Eventually they will sell the farm to one of Thaksin's corporations and head to the city to scrounge a living. To the urban life you so despise for its "huge influx of wealth accompanied as usual with graft and corruption."