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Draft law needs more fine-tuning
Bangkok Post – 4 November 2008
PHUSADEE ARUNMAS
Long-awaited changes to retail regulations remain stalled as Commerce Minister Chaiya Sasomsab is still at odds with Deputy Prime Minister Olarn Chaipravat over the draft. The Retail and Wholesale Business Act had been scheduled for consideration at two previous cabinet meetings but was shelved by Dr Olarn, who oversees economic policy. He asked the Commerce Ministry to provide more detail as to how the 42-article Act would address the problems of small-scale retailers.
Mr Chaiya said yesterday that he was not sure whether the draft would make it onto today's cabinet agenda. ''But we think we still have time for another three weeks (for resubmission) before the House of Representatives session ends late this month.''
He admitted that even if the cabinet approved the draft before the House session ended, a lengthy hearing process by MPs would still be required.
To cut short the process, the minister plans to propose at today's cabinet meeting the possibility of issuing ministerial regulations to curb the expansion of new outlets by giant retailers.
Mr Chaiya last month asked the Interior Ministry for its help to strictly enforce city planning regulations to limit the construction of superstores and curb their expansion into smaller communities.
Today he will send letters to all provincial governors asking them to suspend approval for new modern trade outlets pending new regulations.
The reforms have moved at a snail's pace despite years of calls by operators of small stores for legislation to regulate the rapid growth of hypermarkets, chain convenience stores and other large operators.
According to Mr Chaiya, since 2001, modern-trade retail operators have expanded from 1,800 branches to more than 7,000, of which more than 4,000 are 7-Eleven convenience stores.
Critics say the Interior Ministry's current urban planning and building codes are not adequate for the changed business environment, in which chains are squeezing out family businesses.
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