Damage from Map Ta Phut ruling put at B100bn
Bangkok Post 13 December 2009
The court ruling to uphold the order suspending 65 new industrial projects at Map Ta Phut industrial estate had damaged foreign investor confidence and the damage could be as high as 90 to 100 billion baht, Federation of Thai Industries (FTI) vice chairman Thanit Sorat said on Thursday.
“The investment damage, equivalent to about 45 per cent of the country’s gross domestic product, is huge as some of the projects had recruited staff and workers and were about to start operation," Mr Sorat said.
He called on the government to rapidly pass the necessary organic law required by Section 67 of the 2007 constitution.
The section requires projects affecting the health or environment of a community to conduct impact studies, hold public hearings and seek suggestions from an independent organisation before being allowed to proceed.
Mr Sorat said the government must act to rapidly restore investor confidence, particularly foreign companies that had invested at Map Ta Phut industrial estate, and provide all information about what was happening.
"The foreign investors had complied with the existing law but still face the suspension of their projects. This has undermined their confidence," the FTI vice chairman said.
Finance Minister Korn Chatikavanij said that the future of the frozen projects rests on the setting up of an independent body to oversee and ensure the projects prepare environment and health impact assessment reports as required.
A four-party panel chaired by former prime minister Anand Panyarachun will accelerate the formation of the independent body required by Article 67 of the charter to ensure that each project preapres an environmental impact assessment (EIA) and a health impact assessment (HIA) report.
The finance minister said all procedures need to be clear to find a balance between industrial development and the lives of local residents.
Natural Resources and Environment Minister Suwit Khunkitti conceded the Supreme Administrative Court’s ruling could have a wide impact on the Thai economy. He gave an assurance the government would speed up efforts to fix the problems and get the projects back on track.
Mr Suwit said the government would look into details of the court’s ruling to see what changes needed tobe made to the projects considered a threat to the environment and people's health.
The government would see how much impact they would have and how to reduce those affects. Local residents and industrialists would both be treated fairly.
"Even though the government wants these projects to go ahead, it is duty-bound to ensure that the environment will not be destroyed and local people will be safe from hazardous substances," the minister said.
Prime Minister Abhisit Vejjajiva chaired an urgent afternoon meeting of state officials to find ways to solve the Map Ta Phut impasse, acting government spokesman Panithan Wattanayakorn said.
“The conclusions from this meeting will be forwarded to the four-party Map Ta Phut panel chaired by former prime minister Anand Panyarachun for further action,” Mr Panithan said.
