EGAT PRIVATISATION / OPPOSITION FLARES AGAIN

Senators join bids to derail scheme

 

http://www.bangkokpost.com/News/21Jun2005_news08.php

MONGKOL BANGPRAPA ACHARA ASHAYAGACHAT

 

The Senate yesterday voted to forward to the government its report opposing the planned privatisation of the Electricity Generating Authority of Thailand (Egat).

The senators took turns attacking the privatisation plan, already approved by the cabinet, before voting 50:3 to send the report to the government.

The report was prepared by the Senate committee on reforms of electricity authorities, led by Sophon Suphapong.

Kaewsun Atibodhi, a panel member, said Egat's objectives would be changed completely once it was privatised. Its top priority would be to protect the interests of its shareholders, not the public's, said the Bangkok senator.

The country's power distribution system must be excluded from privatisation plans because it was too important to be decided ! by the market, Mr Kaewsun said.

The senator accused the government of using a pay rise freeze and suspension of a new power plant project to pressure Egat workers into accepting the privatisation plan.

Ubon Ratchathani Senator Nirand Pitakwatchara said the privatisation of Egat would allow some 10 wealthy families to ``own'' the country's most profitable state enterprise.

Phare Senator Nirat Yupakdi disagreed, saying Egat would still remain a state enterprise after corporatisation since over 50% of its stake would be held by the government.

Mr Nirat, who is widely believed to have close ties with the government, said several assets of Egat including land and dams would be transferred to the Finance Ministry after privatisation. Also, the privatised Egat would be required to pay rent.

He suggested that some of Egat's shares be offered via the Civil Service Retirement Fund to ensure they would reach the general public.

Meanwhile, the interna! tional trade union ICEM yesterday reaffirmed its support for Egat workers opposing the privatisation plan. It also called on the government to hold a national referendum and let the public have their say on the issue.

Fred Higgs, general-secretary of the Brussels-based International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM), said although the government called its on-going move a corporatisation of the public utility agency, gradually Egat would be privatised the way things are going.

In most cases of privatisation of energy utilities, he said, high prices and inconsistency of supply follow.

He cited as an example a power agency in California, the United States, which after the corporatisation had seen power cut within two years and millions of dollars had to be spent to upgrade the power network.

He still hoped the government would have a balanced energy policy and state ownership control.

``Instead of raising effi! ciency, the Thai authorities think only of turning the agency into a new source of revenue. I hope the government will not also blackmail the workers who run the anti-privatisation campaign,'' Mr Higgs said.

Eak Tonprasert, Egat trade union treasurer, said the union would never give up its fight against privatisation and would not get disheartened by the dirty tactics being used against the unionists by Egat executives to make them give up their fight.

The ICEM, with 20 million members worldwide, held its Asia-Pacific chapter meeting in Bangkok yesterday to map their future plans for the next two years that focus on campaigning against contract and agency workers in key multinational companies, as well as to maintain its support to the long-term campaign against Egat privatisation.

The ICEM would express its concern in a letter to Prime Minister Thaksin Shinawatra this week, Mr Higgs said after the two-day meeting.

Rawai Pupaga, chairman of the ICEM Thai! Council, said the listing of PTT Exploration and Production on the Stock Exchange of Thailand was a classic example of objectives being obscured along the corporatisation process as the PTTEP profit had tripled while the Oil Fund remained in the red, and without help from the state petroleum company.

Mr Rawai said Egat still had other sources it could also depend on to raise funds, if it wanted to, and not just by listing on the stock market. The government should seek public consent first in line with article 214 of the constitution.

 

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