Permit approvals could face court test

       The government is on a legal collision course with environmental and community activists who claim recent approvals of industrial projects broke the law.
       The possibility of a court challenge has left investors concerned about the future of several costly ventures that could be subject to stricter environmental and health impact assessments.
       Protesters rallied in Rayong last week after the Industrial Estate Authority of Thailand (IEAT) and the Industrial Works Department approved operating permits for projects that had already completed environmental impact assessments (EIA).
       The protesters say the permits should be cancelled as they violate Section 67 of the 2007 Constitution, which governs industries deemed harmful to the environment and public health.
       Prime Minister Abhisit Vejjajiva yesterday chaired a meeting with the protesters to seek a solution to the impasse.
       Sorayud Petchtrakul, an adviser to the Industry Minister, said the permit approvals were made in line with a legal opinion of the Council of State. The government's legal adviser said that since guidelines to accommodate Section 67 were still not in place, officials were unable to revoke the permits.
       "For the approved permits, the PM said the public has the right to seek judicial support if they disagree with the officials," said Mr Sorayud, who attended the meeting.
       "We do not have the authority to revoke permits because investors had done everything in accordance with existing laws. If we revoke the permits, the investors will sue us."
       Suthi Atchasai, a leader of the People's Eastern Network, said the group had filed a case with the Administrative Court against the officials responsible for permit approvals, saying the permits should be rescinded and no new ones issued.
       "We believe the approvals were against the law and need to be annulled," he said."As well, new permits need to wait for Section 67 guidelines to ensure maximum rights of villagers are guaranteed."
       Until the guidelines are released and an independent body is formed to enforce them, investors must wait, or protesters would do everything possible to disrupt operations, said Mr Suthi.
       But Mr Sorayud insists that the remaining projects seeking permits would continue to be processed as normal.
       "The PM does not want to see a halt in investment, so we're going ahead with the permits. However, public opinion is welcome in the permit consideration process if people see any projects about which we need to be careful," he said.
       The dispute is worrisome for investors,said Chainoi Puankosoom, chief executive of PTT Aromatics and Refining (PTTAR). Problems have arisen, he said,because of unclear mechanisms for dealing with environmental protection.
       "We are doing everything according to existing law so we should obtain the permits," he said."If there is anything we should do more to live in harmony with communities, we are willing to do it. The government should also accelerate clear guidelines to improve confidence in new investment."
       PTTAR is awaiting a permit for its US$180-million condensate residue upgrade in Map Ta Phut. Construction was completed in March. It says it faces an opportunity loss of $130,000 per day.
       A total of 55 investment projects worth 200 billion baht are awaiting permit approvals. A PTT gas-separation plant is at the top of the list, along with investments by Thai Asahi and Aditya Birla.
       New projects that have yet to obtain EIA approval and fall under the harmful list would have to wait for Section 67 guidelines before seeking permits.
       The Industry Ministry put eight industries on the harmful list in a ministerial announcement released last Monday.They will need EIAs, health impact assessment (HIA) approval and public hearings, to be overseen by a yet-to-be formed independent organisation.
       Mr Sorayud could not give a timeframe for the formation of the new body but said that in any case, any industries creating high emissions would need extra scrutiny in order to control pollution.