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Investors still have confidence

Published on July 19, 2010

The eruption of the Map Ta Phut crisis in September last year turned the spotlight on the Industry Ministry, which is playing a key role in efforts to resolve the problem and restore investor confidence. Industry Minister Chaiwuti Bannawat outlines his goals in an interview with Nalin Viboonchart and Watcharapong Thongrung.

What are you doing to solve both the Map Ta Phut problem and the broader law-enforcement problem?

Chaiwuti: The two problems are inter-related. I believe that if we can enforce the law effectively and help small and medium-sized manufacturing plants to adopt production processes that do not harm the environment, we can reduce [industry-related] environmental and health problems by more than 70 per cent without any amendment of the current law.

I recently had a meeting with heads of the agencies under the ministry's supervision, and ordered them to make efforts to inspect all manufacturing plants nationwide. I do not mean that civil servants have been told to punish manufacturers whose factories' operations are found not to be in compliance with the law.

Not every manufacturer is aware of its obligations. They need guidance from the state agencies. I just want the agencies to guide manufacturers on good production processes, so that they can do the right thing. As a result, the relationship between the ministry as a whole and the manufacturers will be tighter, and this may help close the gap between the two sides. I expect to get feedback on this within one to two months.

Will any laws be amended as part of this effort?

That shouldn't be necessary. If they are enforced effectively, the regulations that exist right now should be sufficient�. If, despite our best efforts, the situation does not improve, we will start thinking about the amending laws.

The National Environment Board still hasn't finalised its list of projects deemed harmful to the environment. Will the delay affect foreign investors' confidence and new investment for the rest of this year?

No, it won't. I still believe that investors have confidence in the investment environment here. The process [required under] the Constitution's Article 67 (2) should be completed in two or three months. And the halted projects should resume activities early next year.

Although the National Environment Board has definite categories for hazardous projects, there is no guarantee that projects not on its lists will not be inspected by authorities.

People concerned that a non-listed project may be harming their health or communities have a right to file a lawsuit in court. This is a problem that the board has to reconsider.

I realise that a degree of uncertainty remains regarding this issue. But I want everybody to keep in mind that no one is exempt from Article 67 (2). If I were a manufacturer, I would conduct an environment impact assessment [EIA] and health impact assessment [HIA] even if not required, to reassure the surrounding communities about the safety of my company's production process.

What will be the Industry Ministry's role in future industrial estate development?

I'm worried about the development of the Eastern Seaboard. This area is getting pretty congested, and will reach full capacity soon - I'm not sure when. As a minister, I've got to think long-term.

I have assigned the Industrial Estate Authority of Thailand [iEAT] to gather data on the development of the Eastern Seaboard, and on its plan for a new industrial estate area. I have my own ideas on that topic, but I want to hear the IEAT out first. If the IEAT decides that the eastern region is full and closed for new investment, I will ask the industrial sector to propose their favourite new locations.

If they want us to develop the Southern Seaboard, how many of them will definitely be there? The new industrial estate has to be developed as a cluster. So, getting opinions from the private sector is very important.

How open are you to the private sector's recommendations?

Since I took office around a month ago, representatives from many companies have come to see me. More than 60 per cent of them have kept the communication lines open. They contact me to inform me of the problems they are facing or how they want the ministry to help. This bodes well for future collaboration between the state and private sectors, and I expect to work closely with them.

As we all know, political circumstances can change quickly. This government's term will end at the end of next year. If everything I plan to do can be completed by then, it will be a strong foundation for industrial development in the future.

How are you coping with this position?

Frankly, I knew [about the appointment] just two hours before Prime Minister Abhisit Vejjajiva announced the new Cabinet line-up.

Fortunately, I played the role of shadow Industry Minister for the Democrat Party during the reigns of Suwit Khunkitti and Pracha Promnok for roughly eight months. Then, the Democrats were in opposition. Thus, I was aware of the ministry's tasks before I took office.

I graduated in the engineering field and have my own ice-manufacturing plant. So I really do understand the problems manufacturers face when it comes to regulation enforcement - and I'm determined to solve them.

{thenation]2010-07-19[/thenation]