Small businesses rally in favour of retail law

Small retailers nationwide yesterday urged the Commerce Ministry to hasten the progress of the country's first-ever retail business law for Cabinet approval, because they fear that any delay would prompt the government to reverse its policy and favour foreign operators instead.

Some 300 small retailers launched their third rally at Government House, the Parliament building and the ministry in an effort they said was to save their businesses from being destroyed by multinational retail giants.

They also threatened to start a new round of protests if they see no progress within two weeks.

Recently, foreign investors had threatened to withdraw from Thailand if the retail business law imposed stringent restrictions on multinational retailers. This could cause the government to reconsider the draft law to maintain foreign investment, so as to balance the country's economy as a whole.

On the other hand, foreign retailers are asking Thai consumers to press the government for retail-business liberalisation.

Tesco has provided a filled-in postcard that states the government should allow retail businesses to open freely for the benefit of consumers, with space for customers to express their own opinion on liberalising the retail industry in the Kingdom. The postcards have been preaddressed to Prime Minister Surayud Chulanont.

However, the Opposition to Multinational Business Union has questioned whether Tesco was genuinely concerned about customers or its business income.

Nirut Vacharapichart, coordinator of the union, said Tesco was using customers as a tool to threaten the government. He said this was unfair, since there must be regulations to control expansion by the retail giants.

He said Tesco had sent a request to the local administration office in Nakhon Sawan's Takhli district for permission to establish a supermarket and warehouse there.

In a letter dated January 16, Tesco asked the municipal authorities to give the permission within 15 days or else it would go ahed with the construction anyway, since the government had no law against their operation.

Commerce Minister Krirk-krai Jirapaet promised the union that the ministry would back implementation of the retail law, in order to create fair conditions for both small and large retailers.

However, he refused to specify when the ministry would pass the draft to the Cabinet. The ministry had to consider the matter based on fairness to all concerned, including consumers, foreign investors and local enterprises, he said.

He also encouraged small retail owners to develop their operations and improve their standards, so as to raise their competitiveness against the multinational operators.

Union president Panthep Suleesatira said the government had to implement the law urgently to protect small firms from being driven under by multinationals.

Petchanet Pratruangkrai

Thailand News
The Nation Thailand
Friday January 26, 2007