Indonesian Political, Business & Finance News

Thai government faces no-confidence move

Thai government faces no-confidence move

BANGKOK (Reuter): Thai Prime Minister Chuan Leekpai and the leader of the opposition predicted yesterday the government would survive a vote of no-confidence as the debate got under way.

"I am confident the government will pass the no-confidence vote," Chuan, Thailand's longest serving elected prime minister, told reporters as he entered parliament.

If he does lose, Chuan would have to resign but does not have to call new elections. A new coalition could be formed and a new prime minister nominated.

The focus of the opposition assault is a land reform program intended to benefit impoverished farmers but which the opposition alleges in several instances benefited well-off businessmen with connections to Chuan's Democrat party.

Chuan said the debate, expected to last until tomorrow or Saturday, would be a good opportunity to clear up misunderstandings surrounding the land reform controversy.

"The public has not understood the government clearly because of distorted or incomplete information given to the public by people who criticize the government," he said.

"This is a good opportunity for the ministers concerned to tell the truth to the public and provide all the information."

Opposition leader Banharn Silapa-archa of the Chart Thai (Thai Nation) party said he too expected the government to survive the no-confidence vote, but predicted the government would lose public support in the process.

"We have strong evidence of irregularities involving the land scandal," he told reporters on his way in to parliament.

"The government will pass the vote but the opposition will win the support of the public," he said.

Police were on alert for possible rallies by supporters and opponents of political parties outside parliament house.

The debate was expected to hit trade on the Stock Exchange of Thailand with cautious local investors preferring to wait and see, brokers said.

Foreign exchange dealers said they expected the debate to have no impact on the Thai baht even if the government were defeated.

"This is a normal democratic process," a dealer at a foreign bank said.

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