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| Thai court favors industry in pollution case |
| 03/Sep/2010 Intellasia | BusinessWeek |
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| 3 Sep, 2010 - 8:59:35 AM |
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A Thai court issued a ruling on Thursday that could allow 74 projects at an industrial estate to resume operation, effectively lifting an injunction on all but two companies accused of activities that harm the environment.
The injunction was granted last September after an alliance of environmental groups and residents sued the government, saying it had put the public at risk and violated the constitution when it gave the companies licenses. A clause in the country's charter says projects deemed harmful to the environment or public health must be subject to public hearings before approval.
But the Central Administrative Court ruled Thursday that projects at the Map Ta Phut industrial estate, 115 miles (185 kilometers) southeast of Bangkok, that met new guidelines approved Tuesday by the Cabinet do not violate the law.
Eleven activities deemed to have a severe impact on the environment and local community were banned under the new guidelines, leaving just two companies at risk of having their operating licenses revoked, according to Banyat Wisuddhimark, senior state attorney, speaking to reporters after the court's ruling.
However, Sutti Atchasai, an activist who helped launch the lawsuit against the industrial estate, said eight of the companies would could have their licenses revoked. The court ruling itself did not refer to specific projects.
The case had attracted wide attention from Thai and foreign businessmen, who regarded it as an impediment to investment. Thai Finance Minister Korn Chatikavanij claimed in May that the ban on construction and production could reduce Thailand's GDP growth by as much as 0.4 of a percentage point.
Already in February this year, the Supreme Administrative Court overturned the injunction on 11 projects, allowing them to resume their operation, saying they were unlikely to cause any effect to people's health and livelihoods.
Thursday's court ruling was critical of the government actions that sparked the lawsuit, and seemed to say that the new regulations would have to be closely observed.
The estate, which houses several large petrochemical complexes, employs about 100,000 people. Some of Thailand's biggest companies operate there, including oil and gas conglomerate PTT and industrial conglomerate Siam Cement.
"In terms of the ruling, it is tremendously beneficial to the public," said activist Sutti, explaining the upside of the ruling. "But in reality, in Map Ta Phut and Rayong areas, it barely yield any benefits, since construction of most projects can still go on. But this will set a standard for other communities to protect themselves in the future."
http://www.businessweek.com/ap/financialnews/D9HVPCB00.htm
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