Long-stalled retail draft gets new life

       Despite growing scepticism over how long it will manage to stay in the office,the government vows to move ahead with plans to revise the long-delayed Retail and Wholesale Act, vowing to finalise the draft and bring it for parliamentary debate within three months.
       Prime Minister Abhisit Vejjajiva recently directed Kiat Sittheeamorn, head of the Thailand Trade Representative office, to chair the working panel to speed up revising the act.
       The revision, which takes also into account international practices, and public hearings are expected to be completed in October or November and parliamentary debate is likely in December or early next year.
       The Commerce Ministry began public hearings on the new law last Friday and plans to organise eight more hearings over the next two months.The hearings are aimed at ensuring fair conditions for businesses covered under the law and preventing any conflicts following implementation.
       The hearings will focus on four main points: types of businesses to be controlled, the agency authorised to approve new businesses, support for small retailers, and punishment of violators.
       According to Mr Kiat, the new draft would be based on the principles that allow both traditional family shops and large modern-trade operators to coexist.
       New modern-trade stores must be located in suburban areas, while existing operators in crowded areas may be required to close at 5 pm for two or three days a week, he said.
       In a bid to enable small family outlets to stay competitive, the government may provide experts to give them suggestions on how to improve their services, while the new law also needs to set guidelines on the size of moderntrade outlets.
       Mr Kiat, said the law also needed to promote fair dealing between moderntrade operators and suppliers and promote Thai entrepreneurs to develop their own brands.
       A Commerce Ministry source said the act was likely to pass if the Abhisit government remained in office until next year.
       The long-awaited retail industry regulations have moved at a snail's pace despite calls by small operators for the past decade for legislation to regulate the rapid growth of hypermarkets, chain convenience stores and other large operators.
       Critics say that 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.
       The new law did not win support during the Thaksin Shinawatra administration. Even when it was approved by the Surayud Chulanont government,the National Legislative Assembly sent the draft back.
       Under the current draft, which focuses on protecting local retail businesses, existing giant retailers can expand but must comply with new regulations - restricting operating hours,size and proximity to city centres - to leave room for small players.