National Broadcast

by General Prayut Chan-o-cha

Head of the National Council for Peace and Order

13 June 2014

Good evening on behalf of the National Council for Peace and Order (NCPO). I would like to inform you of the progress on the NCPO’s operation in all areas as follows:

·        On security, in maintaining peace and order since the declaration of martial law on 20 May 2014, we have seized weapons found nationwide, which includes 88 pieces of war weapons, 1,268 pieces of illegal guns, handgun, shotgun and self-made gun, and more than 7,000 bullets and 300 grenades and explosives.

·        There has been much progress on the monitoring, investigations and arrests of various armed networks, particularly those involved with war weapons. We have found networks and supporters of various groups linked to various political groups and illegal businesses. We could not have carried out such operations as efficiently in normal times. All of this will be brought uunder the judicial process.

·        We have revoked certain provisions of the martial law such as the curfew, which was lifted in 30 areas as per the four announcements No. 52, 54, 56 and 60. In order to promote an atmosphere for tourism, ease up and lessen the impact on the daily life of Thai people, the curfew was lifted in 25 provinces. NCPO is considering whether the curfew could be lifted in other areas.

·        Law enforcement officers are focusing on using normal laws to suppress illegal activities such as crimes, drug trafficking and exploiters of natural resources through combined operations and effective cooperation between security agencies such as police, the Office of Narcotics Control Board, and the Internal Security Operations Command.

·        Nevertheless, our policy is for the authority to enforce normal laws as much as possible, and to apply Martial Law only if necessary. We ask everyone to remain confident in the work of the authority and strictly respect the law. All of us must respect the law and social norms, which are essential in holding society together. We will not use the law as a source of creating conflicts.

·        There is progress on promoting understanding amongst those with conflicting viewpoints. In the summoning of individuals, these people have given cooperation and are willing to contribute to the reconciliation process and the operation of the NCPO. Furthermore, the reconciliation activities were carried out in 56 provinces, with the participation of over one hundred thousand people in 319 villages. They were allowed to talk freely without the interference of core leaders and opinion leaders so that they can obtain the entire facts.

·        For the task of creating reconciliation in phase one, we will start with reducing conflicts and organize activities for people to meet. We will give everyone an opportunity to all to hear out different opinions or obtain complete facts from all angles. In the past, they have been listening to only one-sided information. This is meant to reduce feelings of distrust and suspicions while providing justice and enforcing the law as appropriate. We will build confidence on the judicial procedures, police, public prosecutors, and the court. All this will take some time and needs full cooperation from all sides.

·        On foreign affairs, today friendly countries have started to gain a better understanding of the situation in Thailand. The relations at the government-to-government level continue as usual. Official exchanges at the ministry-level are ongoing, for instance, the acting Permanent Secretary of the Defence Ministry will visit China as per earlier invitation and the Ministry of Justice officials’ visit to Australia according to the existing plan, etc. The business groups from foreign countries such as China and Japan which we have already met had expressed their understanding. We plan to invite businesses from the U.S., Australia and Europe soon so that they have the confidence and will maintain or expand their investments in Thailand.

·        The NCPO will continue the task of building the international image of Thailand to regain confidence from the international community, including the diplomatic, business, industrial segments, and so on.

·        On 11 June 2014, I met with 23 Thai ambassadors and consul-generals posted abroad and requested them to create understanding, explain the rationale and necessity for the NCPO intervention and clarify the approach for reform.

·        On international economic and trade policy, we will continue as before and will further promote its implementation. We will focus on liberal trade and look after the business interests of foreign countries in Thailand.

·        On moving towards reform, we are now in the first phase and have made significant progress. The NCPO expects that the second phase will take one year if there are no disruptions during the first two phases. We should be able to proceed as planned, with the formation of an interim government within September to drive the country forward.  

·        The national legislative council will be set up in parallel to the announcement of a provisional constitution. Questions have been raised about the timing of the implementations. I would like to reiterate that from October onwards there will be a cabinet to administer the country in a way a normal administration would. Efforts toward reform (urgent/short-term/long-term) will lead to a general election in the third phase which is estimated to be done in about one year. At the moment, such tasks have been carried in accordance to the plan since 22 May 2014, thanks to the support we received from the people.

·        For some countries that still maintain their stance of disapproval for this change, I respect their positions and will not counter. The relations with these countries will remain as is and will continue in terms of cooperation and amity between government, economic sectors and the people. It will take some time to allow these countries to understand the Thai social context, our problems and the operation of NCPO.

·        On economic, social and psychological dimensions, we put focus on to transparency, fairness and accountability. The NCPO has set up the Monitoring and Auditing Committee on Fiscal Expenditures by inviting concerned governmental agencies to participate. The Committee will inspect and formulate policies to ensure their transparency, value, efficacy and benefit for the general public. The disbursement of funds shall be for the public benefit in order to create understanding among the public unlike in the past. For any projects that are deemed inappropriate, they will be put on hold immediately.

·        In the first stage, the Committee will inspect projects worth more than 1 billion baht to consider their feasibility. These include those projects that are pending implementation and those already approved by the previous government.  To ease the concerns, budgetary disbursements will be executed with prudence to prevent corruption. Of course, any alleged corruption will have to be backed with evidence and confirmation by the concerned government agencies. Rush in disbursement of budgets may result in corruption during the terms of reference formulation and procurement process. This can have damaging effects on the country. The Committee will comprise all parties including Office of the Auditor General of Thailand, Office of the National Economic and Development Board, Budget Bureau and other committees set up by the NCPO. I affirm that we will do our best.  

·        Concerning the weekly economic report by the NCPO, we have received figures from the Office of the National Economic and Development Board. Thailand’s consumer confidence index increased for the first time in 14 months from 57.7 in April to 60.7 in May. As the political tension eased, concern over the situation among consumers has dissipated and the Thai baht appreciated. The total value of investment in stocks and bonds accounted for 8 million baht and 9 million baht respectively, showing that investors have more confidence in the NCPO’s overall economic policies.

·        As for tourism, the number of tourists may have decreased due to the political impasse. I would like you to compare the situation before and after 22 May. Today, the tourist figures have adjusted to the better situation. I refrain from using the word normal situation as yet. Now we have eased restrictions, step up safety and created more confidence. We have consulted with the concerned government agencies in promoting tourism through all channels such as countries which we have economic ties, are trading partners and have joint ventures with Thailand to encourage foreigners to travel to the country. Since 22 May 2014 the number of tourists has increased.

·        There has been much progress on reimbursements to farmers in the rice pledging scheme. So far 674,253 farmers have received the money, amounting to nearly 70 billion baht or 79 percent. The reimbursement is scheduled to be completed by 22 June 2014 as planned.

·        To provide assistance to farmers for the next cultivation season, the NCPO has established a committee on rice policy and management to expedite formulation of assistance measures for farmers. We have continuously informed the farmers of the progress. The details on such measures are being worked out and will include other agricultural products.

·        The issue of water resource management has always been a problem. A meeting of relevant agencies has been called. We focused on the implementation of the water policy as contained in the 11^th National Economic and Social Development Plan. We found that the problem lies in the lack of unity and integrated plans and budgets between the concerned agencies, leading to inefficiency. So we are working on that. If we start the first phase this year, we could work towards an integrated plan in compliance with the 11^th Development Plan.

·        It is not only the water dimension because the 11^th development plan contains many other areas. If we can start this year, we could address the immediate hardship problems of the people. Then we will look at the medium and long term. We should be able to answer how the water problem will be solved in 10 years, what to expect in 5 years and how to go about it annually. So we should begin today by considering the amount of budget required and the   source of investment capital such as public private partnership so as to be in line  with the 11^th  development plan.

·        Providing relief from increasing living costs is a main priority. The NCPO has assigned the Ministry of Commerce to convene a meeting comprising consumer goods businesses to discuss about 205 basic consumer products.  I thank all entrepreneurs for their cooperation in maintaining the prices of 205 basic consumer products for the next six months. I thank all sectors that are helping to address issues relating to monopolistic practices, exploitations by businesses, cost reduction for the transportation sector, and market promotion.

·        The NCPO has also requested relevant agencies with the capabilities to help reduce cost of living by holding sales of low-price goods directly from producers to consumers.

·        To aid small farmers — the majority of the country’s population — and to provide benefits to the farmers community as a whole, the NCPO has directed the Ministry of Agriculture and Cooperatives, the Ministry of Industry, and the Ministry of Commerce to come up with plans or measures to help add value to agricultural products.

·        The Dairy Farming Promotion Organization has been assigned to administer the School Milk project in its entirety, with the focus on the transparent procurement of quality milk for consumption by students nationwide and on solving issues relating to dairy cooperatives to achieve sustainability.

·        On the issue of migrant workers, there are many problems. There are about unregistered 90,000 migrant workers. The Supreme Commander, as chief of security affairs, has been assigned to form a committee comprising relevant agencies to address the issue in an integrated, more efficient and speedy manner. The main issue is to regulate the daily, seasonal and annual labour and nationality verification processes. We need to set up nationality verification centers which requires the cooperation of our neighbours in determining the processes involved which I hope to expedite within one year.

·        On the issue of special economic zones, we are focusing on both border checkpoints and surrounding border areas. We have already proposed this to previous governments on how to restrict people from coming into the inner parts of the country, prevent illegal and criminal activities, including those relating to drugs. If we can keep these people around the borders on a daily work basis, then both migrant workers and the local people will benefit from jobs and earn enough income to provide for their families. I think it would help reduce the problems.

·        We need to disseminate information regarding the substitution of agricultural products with inferior quality products from neighboring countries. We are now considering the development and strengthening of cooperative systems in line with royal-initiated concepts in these special economic zones. To promote such areas we will have to consider certain incentives relating to tax and/or other legal aspects. We will also have to tackle issues such as enforcement of different laws by different agencies leading to corruption and other illegal activities. So the incentives and exceptions are meant to minimize the problem of product subrogation. And these imports will not be sold in the country but kept in the special economic zones under local supervision to  improve quality for export. This should automatically reduce the problem of product substitutions. 

·        On the issue of energy price structure. We understand that there have been many concerns from the general public, including those in relation to the transparency of relevant operations and national interest. They may have received conflicting information. I have instructed that communications to the public should be made in less bureaucratic or technical terms. As ineffective or inaccurate communication will create further conflict, all relevant agencies are to address queries from the public in a manner that can be simply understood.

·         Aside from pricing considerations, we will also look at the issue of adequate energy procurement to satisfy the increasing demand for consumption in the future. We will also explore alternative energy and look to domestic sources. As of present, we cannot rely solely upon domestic sources of fuel to satisfy the demand for consumption and thereby cannot take actions to affect energy prices. While we receive certain benefits from these sources—concession fees and taxes in production procedures—we import nearly all energy from abroad. This is a problem that relevant committees will need to address. Also, different portions of the profits from oil and gas exploration, production, and export are currently split amongst the state enterprises and the private and public sectors involved. The public needs to understand this and PTT, which holds the status of both a state enterprise and a public company, will need to contribute.

·        As we cannot forever rely on gas and oil for fuel sources, the use of alternative energy will need to be promoted, and domestic production encouraged, to reduce existing import burden and to preserve limited petroleum resources. Though I have limited information on this, an energy reserve plan will eventually need to be formulated to prepare for the future. This may include the promotion of the use of alternative energy in all sectors in a widespread manner.

·        On energy prices, we need to systematically consider and understand all the related costs and methods of price determination from the perspectives of producers, consumers, and domestic and international market conditions, and ascertain as to whether they are reasonable. The aim in this is not to place excess burden on living costs of the general public nor affect the national income structure.

·        The Fuel Fund, in existence since 1973 to solve problems relating to oil and gas, is another issue in the spotlight. Currently, we have considerable amount of information and will need to study them to effectively communicate to the public to create understanding. These issues may revolve around the effects of any restructuring—such as the collection or non-collection of taxes or fees—that may occur on the market.

·        The NCPO has recently established the Energy Policy Executive Committee, the National Energy Policy Committee, and the Fund for the Promotion of Energy Preservation. The agencies have the responsibility to review information and oversee energy management in order to ensure a just and beneficial outcome for all parties concerned, especially those with low income. In relation to this, there needs to be effective communication amongst all the parties involved.

·        We will also need to address the question of energy security. Today we rely substantially on fuels from neighboring countries. As such we will need to assess the situation and prepare for any problems that may occur. As domestic sources of fuel might not be enough, we will certainly need to promote and strengthen the creation of alternative energy.

·        On investment promotion, an announcement on the appointment of the Board of Investment has been issued on 6 June by including all concerned sectors as Board members. Given opportunity to all groups of entrepreneurs to be involved in driving the economy and investment of the country, for example, the Chairman of SME. The new Board will have the first meeting soon to consider the approval of project applications valued over 200 million baht (excluding land and working capital). The approval process should be completed within two months for the 403 pending applications amounting to 760 billion baht. This should help in the implementation of the investments, build investor confidence and benefit the overall economy of the country.

·        The BOI will also consider the investment promotion strategy for the future. The policy that I have already given includes focusing more on high technology industry and less on labour intensive industry, technology transfer, industry yielding added value and use of local raw materials. Priority will be given to energy saving technologies and promotion of renewable energy such as ethanol, biodiesel, biofuel, wind and solar. Furthermore, non-polluting clean industry will help strengthen the economy and contribute self-reliant for the country to be in the future.

·        For those entrepreneurs who have been given priority and have already obtained licenses to set up factories and have not done so within the stipulated timeframe, for example one year, the NCPO may consider revocation of the license and prohibit the right to transfer the license within the stipulated timeframe, for example two years, to prevent corruption practices from reselling the licenses.

·        As for the implementation of other issues, the NCPO has given priority to the issue of basic needs and has instructed the implementation of numerous assistance programmes for the Thai people, such as temporary delaying the increase in price of cooking gas, until there has been an adjustment of the nation’s energy policy.

·        Reviewing the transparency and effectiveness of the various state enterprise boards, with emphasis on selecting members with expertise, moral character, and a track record of good governance, while reducing extravagant membership rewards in accordance with existing laws and regulations.

·        Expedite remaining expenditures for the 2014 Budget with transparency and monitoring done by the Budget Oversight Committee (which will conclude by the end of September 2014) with the intended target of completing 95% of expenditures of the total budget worth 2.5 trillion baht, so as to stimulate the economy by delivering due income to the public (most recent payment was on 31 May 2014 which amounted to 62% of the budget or 1.565 trillion baht)

·        Any project that has been reviewed and found not to be in the public interest or not providing any major benefit will have their budgets transferred to other useful projects that are ready for implementation but still requires additional funding. This budget transfer will only take place based on necessity, except in cases for international travel or procurement of transportation vehicles. Any items that are not currently necessary will not be purchased.

·        Regarding the Thailand Tobacco Monopoly, we will continue to proceed with the original plan of relocating in 2015. The present location will be used as a public park and recreation area for the people and also an oasis for those living in Bangkok.

·        Accelerate the urgent and necessary basic infrastructure projects which have undergone transparency inspection, for example the dual track train and the extended train routes, so that they can commence before the end of this year.

·        Reshuffle of government officials will be conducted on a necessary basis to create conducive conditions within the organization to push forward the work and resolve major public problems. The routine reshuffle in October will be under the consideration of the next government.

·        There will be free screening of the movie "King Naresuan" in more than 160 movie theatres nationwide.

·        The whole education system must be improved. We will focus on contents that aim to create pride of Thai history, discipline, moral, ethic, public interest and duty of the citizen. Education management should focus on individuals – teachers and students – and are student-oriented rather than material development. Vocational education must be developed in order to produce competent students who will become an effective labour force of the country. This will help eradicate the problem of loan repayments since these newly graduates will be able to find good job and earn their living. The Ministry of Education and related agencies have been instructed to carry out the task which must be achieved in due course. We can take examples from other countries such as Germany who has a strong economy and quality labour.  I would like put focus on developing vocational training so that it will in turn develop our labour force. With greater investments we can retain our workforce from leaving the country.

-        On energy, I have already mentioned about the proposed reform on the entire energy price system and the structure of the boards of state enterprises to achieve more efficient management.

·        On foreign relations, there will be continuity and further fostered in order to build confidence and equitable trust among our friendly countries for the benefit of  cooperation and mutual interest at the bilateral, multilateral and regional levels  such as in ASEAN/AEC..

·        We will tackle the improvement in national administration system and resolve the corruption on mega projects that have affected many people during the reform phase. At the moment, we are still in Phase 1 so we have only presented some ideas for consultation with relevant stakeholders Detailed discussions will take place in Phase 2 when an interim government is in place from October onwards. Nevertheless, there are still urgent issues that are damaging to the state and the public that requires immediate action such as the amendments of laws related to governmental organizations and state enterprises such as the National Broadcasting and Telecommunications Commission (NBTC) and Telephone Organization of Thailand. My intention is not to single out these organizations but just to give examples that cooperation is needed from such organizations to solve the conditions which are prone to corruption practices through policies and overpriced acquisitions. If we can eliminate corruption, we can save 10 - 30% of the state budget. However, there may be some proposals which cannot be reduced and some which are fair. If we look at everyone else with distrust, then we cannot move forward. So we therefore need to work with reason and backed by facts and credible information.

·        My speech today has been lengthy but the reason is because I believe in that in past you have received information by way of a formal and official sounding language. I have asked public officials to use a language that is simple and not too technical so that the people can clearly understand all relevant information.

·        Today we are under pressure from domestic and international elements and from public expectations and trust to resolve longstanding problems in a limited time. We will not do anything hastily which may lead to long-term negative effect. We will work for the interest the nation and for the benefit of the people in building a spirit of cooperation under the guidance of His Majesty the King, especially on sufficiency economy, being rational, moderate, immunity. All this must go together with knowledge and virtue.

·        Thank you again, and I hope everyone will continue giving us support. Much progress has been made in the past 20 days in solving the problems, but we need to carefully move forward step by step. We will try to act as fast as possible in an integrated manner for the benefit of the people. Should you have any questions, feel free to contact the NCPO or other relevant governmental agencies.

Thank you and good night.