PRIVATE SECTOR WANTS RAYONG A SPECIAL ZONE

       The private sector today will propose the government turn Rayong province into a special economic zone to improve budget allocation for its industrialised areas, including Map Ta Phut, as well as the payment of an environment tax to assure further industrial development.
       The first proposal was agreed upon yesterday by the Joint Privaate Committee on Commerce, Industries and Banking.
       At the meeting, Suthi Atchasai, coordinator of a public network on the Eastern Seaboard, which is one of the main forces blocking further industrial development in the province, said there must be a clear definition of what constitutes a special economic zone.
       "Every party, including local communities, should be able to participate in the discussion of this issue. Importantly, this proposal must not have a hidden agenda benefiting any single party and must clearly keep in line with the Constitution's Article 67", he said.
       PTT Aromatics and Refining president and CEO Chainoi Puankosoom said the proposal would allow non-Rayong residents working in the area to register as provincial citizens. Then more budget would go to the province, improving the standard of living as a whole.
       "We believe people today are not so concerned about the polluted environment, but they are worried more about their low standard of living, such as poor management of waste treatment or utilities," he said.
       Federation of Thai Industries chairman Santi Vilassakdanont said the proposal would be tabled at the Public-Private Partnership meeting today.
       Meanwhile, the private sector will also propose collection of an environment tax to its government counterparts, on condition that the money generated go to the areas where plants are located.
       "We want to express that we as concerned about the environment as other parties. We are willing to follow the laws and regulations, as well as set up a Bt17-billion fund to improve the environment from 2007-11," he said.
       He said the private sector would reiterate to the government that it fully supported the idea of an "eco-industrial town" as a long-term goal out of concern from local and foreign investors that industrial development in Thailand could be discontinued.
       "If this conflict continues, it's a great risk. So far, I have not heard about firms moving their investment to other countries, but it may happen soon," said Japanese Chamber of Commerce vice chairman Fukujiro Yamabe.
       He said it was difficult for Japanese companies in Thailand to explain the court's recent injunction against 76 industrial projects to parent companies. Therefore, the government should speed up resolution of the problem, in order to maintain their confidence in running businesses here.
       "It will be too long for investors, should this issue be prolonged until next year," he added.
       Nandor von der Luehe, chairman of the Joint Foreign Chambers of Commerce in Thailand, said investors fully understood the importance of environmemtal protection. He believes Thailand has good environmental-protection laws that meet world-class tandards and that most of the suspended projects could pass those standards.
       Therefore, the government should take the shorted time to move the situation from the current murky state, in order to restore investor confidence.
       "We would like to envourage the government to allocate more money to local communities, in order to improve people's quality of life," von der Luehe added.
       Notably, the conflict has delayed some refiners' investment plans to improve their oil quality to meet Euro IV emission standards.