Act now or investors' trust will be lost

LAST WEEK, the ruling of the Administrative Court to suspend all permits for 76 industrial projects, many in the Map Ta Phut Industrial Estate, led to absolute panic in the industrial communities - especially among investors in these 76 projects, which had been granted approval by the state authorities.

This court injunction had various negative effects. No less than 100,000 potential employees waiting to be enrolled in these 76 projects have to wait still longer. Ongoing construction work has to stop pending the court order, which affects the income of many construction workers. Investment is affected the most. During the current economic recession, private investment is most valuable as it effectively moves the economic wheel. Besides, this group of investors still has confidence in Thailand and dares to expand its investment in spite of the recession. Failing those who have the most faith in Thailand would cause severe negative effects

I am not trying to find fault with anyone in this matter. It is understandable that everyone is trying to perform their duty. The plaintiff in this court case wanted to ensure the proposed factories did not cause harm to the health of those in their neighbourhoods. The Administrative Court decided according to the facts shown before it. Concerned authorities want the projects to move ahead to provide more jobs to the unemployed and to mobilise the economy, without causing negative effects on the health of people in these surroundings. I believe we should help each other to move this matter forward as soon as possible, so that various factories can start operating soon [and provide job opportunities] without any negative health effects.

The decision of the government and concerned authorities to appeal the court verdict rapidly is a good move. However, there are many things the government needs to do so this matter can end by satisfying all parties concerned without further confrontation.

Article 67 of the current Constitution requires a study on the health impact of industrial projects must be made and submitted for approval, and an independent body established to ensure neutrality of the health-impact study. I was told by businessmen investing in the pending projects that, up to now, there has been neither an announcement on the guidelines and scope of the health impact study, nor the qualifications of a consultant to conduct the study. No independent body has been established for this purpose, and not even a decision on who will act as the approval body.

Article 67 does not specify the name of a government agency to take care of the article, and so it is the duty of the government to assign a proper agency. The Surayud government, the first government since the introduction of the current Constitution, did not make any move on this issue - whether because it overlooked it or through simple ignorance is beyond my knowledge. Succeeding governments have also done nothing to implement this article. In the present government, according to news reports, the prime minister recently instructed the Industry Ministry to draw a list of industries that could pose a high risk to health. However, there have not been any reports showing the government has yet assigned any ministry or agency to set up the qualifications of experts on a health-impact study, including the guidelines and scope of the study, or has determined the approval body for this issue or set up the independent body as required by Article 67.

Whatever way the appeal on the Administrative Court verdict on project suspension goes, it is necessary for the government to enable all projects to finalise preparations to successfully start operations without further confrontation. If the appeal results in a further suspension, as in the previous verdict, it is essential for the government to implement the requirements so that investors would have leeway to move forward. At this moment, many new investment projects, which are almost ready to start operation, are willing to go through the health impact assessment to comply with the Constitution. Some have even contracted foreign experts to study the health impact in preparation for the submission to the approval body. Nevertheless, the government has not yet determined the approval body and the independent body to ensure neutrality of the study. It is therefore not possible for any investor to make any move to comply with Article 67.

I would like to draw the attention of the government to this issue to make a move right away. The appointment of a body to do the approval job should not be difficult - a committee similar to that for environment impact, or a brand new one. There are many experts in Thailand and the formation of an independent body would not take up much time. With fair-minded and no-nonsense members, the work could progress further and get accomplished. Ministries should now be ready to decide the parameters of the health-impact study as well as the qualifications of those conducting the study. The only missing piece is the government decision on which agency is assigned to take care of Article 67. Qualifications of those who conduct the study should be wide open to include those from foreign countries, so that we have enough companies or individuals with expertise to handle the awaiting projects. If the specification is narrowed to only a few qualified local individuals, there would not be sufficient experts to conduct the study, causing a delay. Should there be enough companies or individuals, it will take no more than two months to finish the study on all projects in hand. The government could help by urging the independent body to read the completed health-impact study and submit its opinion promptly to the assigned approval body, meaning all 76 plants should be able to start operating in not too long a period.

The government could ask the Administrative Court to show forebearance in allowing these projects to continue without a need to comply with Article 67, as they were approved before the subordinate law came into effect. However, the government should not totally lean on the mercy of the Administrative Court as, sometimes, the Constitution will not allow the court to deviate. The government should have other back-up procedures for investors in case its clemency is not granted. The impression that the only hope for projects is the Administrative Court's support can have much impact on investors' confidence. However, if back-up procedures are in place, investors would feel there is still another road, even though it may take a bit longer.

I write this with absolute good wishes, not that I would like to teach the government but simply to propose a possible way out. What I propose here are the acts that should have been implemented by several previous governments to comply with Article 67. Please take prompt action - the sooner the better. It would not cause any harm. On the contrary, if nothing at all is done, the last faith of investors in Thailand will be gone.