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Wed, June 20, 2007 : Last updated 20:01 pm (Thai local time)



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Home > Politics > CDA 'green light' for privatisations





CDA 'green light' for privatisations

The Constitution Drafting Assembly (CDA) gave the green light for future privatisation of state enterprises yesterday and insisted a free-market economy would continue to be adhered to.

No CDA member spoke against the policy of privatisation of public utilities. And a call by a minority group of the Constitution Drafting Committee to have Parliament give the final approval for future privatisation was rejected.

Charter drafter Choochai Suphawongse urged the assembly to put into Article 83 (11) that it was imperative that the Parliament - whose members are chosen by the people - should have oversight and be the final decision-maker on such issues.

"I can't accept it if the process lacks parliamentary approval or

a transparent public hearing process," Choochai told his peers. "The last administration divided the state's assets in a most shameful way, so what guarantee do we have that the Thaksin Shinawatra order will not return, albeit under a different name? Public properties are now in your hands and I believe you are all public minded and will protect it for your children and grandchildren."

Speaking on behalf of the drafting committee, secretary of the committee Somkid Lertpaitoon warned: "No signal should be sent that privatisation is prohibited."

The article prohibits basic public utilities from becoming a private monopoly to the detriment of the state.

To the surprise of some CDA members, Choochai failed to call for a vote to decide the matter of whether parliamentary approval was needed or not, and so the draft remained the same and permits future privatisation by the executive branch without the approval of the House of Representatives.

Another big issue discussed yesterday was a failed attempt by some CDA members to have the word "free [market] economy" removed from Article 83 (1). A compromise was struck with the addition of the word "just".

The state shall therefore "promote and encourage a free and just economy, relying on market mechanism, and to encourage sustainable economic development by abolishing and refraining from unnecessary rules and regulations on businesses unless economic necessity dictates otherwise."

Pisit Lee-artham, speaking on behalf of the drafting committee defended the principle of a free market economy said that removing the words would send a wrong signal to the world.

"The issue is important for investment directions and future trade," he said, adding the current state of the Thai economy was worse than the Philippines, Vietnam and Indonesia due to the coup d'etat and the freezing of Thaksin's bank accounts.

"This year is really bad for the economy as a result of political uncertainty," he said.

CDA member Chirmsak Pinthong supported the retention of the words although some CDA members said the principle was contradictory to Article 82, approved on Monday evening, which stated that: "The State shall promote and encourage implementation of the philosophy of Sufficiency Economy."

The assembly also approved the inclusion under Article 83 (9) that the state shall support the forming of a farmers' council.

However, CDA member Chirmsak warned that such a council may be distorted and manipulated by big agro-businesses and some bureaucrats if they collude with big businesses to the detriment of small-scale farmers.

Fierce debate took place on whether under the same Article 83 - which contains a dozen sub-articles - should guarantee "equitable" wages to people of the same profession and experience in various areas of the Kingdom or not.

Those opposing it say the word "fair" wage in Article 83 (8) is good enough, however, the state can-

not control varying fringe benefits and even the salary offered by the private sector. The motion was dropped eventually and the word "fair" remains.

CDA member Pichian Amnaj-voraprasert complained to the assembly that he wasn't given the time to discuss words "missing" from the first draft that touch upon the issue of labour standards and job security.

He was not permitted to speak further, however.

Pravit Rojanaphruk

 

The Nation








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