Central body to oversee retailers : Local commissions to lose oversight power

Central body to oversee retailers : Local commissions to lose oversight power.

PHUSADEE ARUNMAS

A new body will take over the regulation of the retail business nationwide from local administrations under the draft retail law now being prepared, according to a senior Commerce Ministry official.

Commerce Minister Krirk-krai Jirapaet has received a copy of the draft, which was prepared by a committee chaired by Sompob Amartayakul, vice-president of the Thai Chamber of Commerce.

The draft calls for a Central Commission on Retail Trade, which would be responsible for setting rules and criteria for the establishment of all types of retail ventures, as well as outlet expansion, said Vadhari Vimooktayon, deputy director-general of the ministry's Internal Trade Department.

Under the current practice, local administrations in each province can give permission for new store openings and set conditions such as business hours and locations. They have exercised power under the zoning laws drafted by the Public Works and Town and Country Planning Department.

But Mrs Vadhari noted that the practice had some loopholes, resulting in the rapid expansion of big foreign-owned chains in many provinces with an adverse effect on smaller local retailers.

During the past three years in which zoning laws have been used to regulate the retail business, the number of foreign retail stores, including chain convenience stores, has soared to 4,500 outlets, from around 1,000, and local operators have put pressure on the government to set more effective regulations.

According to Mrs Vadhari, the new central commission would be chaired by the commerce minister with 19 members including civil servants and business representatives such as retailers, suppliers and small shop operators.

The commission would consider store size, zoning and operating hours to suit individual communities. The regulations would be reviewed every year in line with changes in community development patterns such as population density and economy.

The retail law is one priority Mr Krirk-krai promised to address during his term.

The draft law, with 60 articles, has been based on the previous version that was completed in 2003 but scrapped on the instructions of deposed prime minister Thaksin Shinawatra. Mr Thaksin preferred to use the town-planning law as he felt that enacting a new law was too time-consuming.

The draft is expected to be submitted to the cabinet early next month.

Nipon Poapongsakorn, dean of the Faculty of Economics of Thammasat University and a member of the drafting committee, said the new law would help lessen conflicts between local shops and foreign retailers.

He said the drafting committee had also proposed options for the commerce minister to manage the retail business more effectively. He said the size issue should be clarified to determine the difference between a hypermart and a convenience store.

He said this would prevent possible conflicts between members of the new commission as they might be lobbied by the affected parties. The commerce minister, as chairman of the commission, would likely seek local opinions on criteria for modern retail stores, he added.

Bangkok Post
Monday January 15, 2007