Kosit appointed chief of new committee

 Nattawat Suthiyothin, assistant government spokesman, said that the Cabinet resolved to set up the committee which will speficy the guidelines and solutions for the problem, as proposed by the Labour Ministry.

 The committee will have assistance from the Finance Mnistry, the Industry Ministry, the Commerce Ministry, the Foreign Affairs Ministry, the Labour Ministry, the National Economic and Social Development Board, the Federation of Thai Industries, Board of Trade, the federation of employer associations and the federation of employee association.

 The establishment followed the brief closure of garment factory Thai Silp South East Asia Import Export last Wednesday. The factory owners cited the strong baht as the cause of such decision.

 Kosit said after the Cabinet meeting that the government sees the urgency in solving the baht problems.

 On July 19, he would discuss with Finance Minister Chalongphob Sussangkarn and Bank of Thailand Governor Tarisa Watanagase on the issue. He would also discuss this issue at the economic steering committee which comprised private associations and academics as members. Suggestions would then be forwarded to the Cabinet on July 24.

 "The prime minister insisted that if any factory has to shut down itself, employees' benefits would be protected. We would be alert and find new measures to ensure no baht fluctuation. The interest rates tend to head downward, but not steeply," Kosit said.

 Chalongphob also said that economic guru Virabongsa Ramankura's request for a 1 percentage cut in policy rate is a good suggestion, but it is not a panacea to stop the baht appreciation.

 "We need more tools as domestic rates are near the bottom levels, while interest rates globally are about to head up," he said.

 He also noted that the Bank of Thailand will announce additional measures, which include the extension of dollar holding period as well as the deposit of foreign currencies at domestic banks.

  "We have sufficient tools, and this would not cause the economic crisis like in 1997," he insisted.

- The Nation