Legislature to fast track retail bill in govt's term

Legislature to fast track retail bill in govt's term
The Nation (20 October 2007)

To ensure that the long-awaited Retail Business Act is enacted by this interim government, lawmakers plan to complete vetting the bill by the end of January.

"The [scrutiny] committee will accelerate its consideration of the act within a few months. This is to make sure that the act will be implemented in the current term to regulate the retail industry, which is torn by conflicts between small and giant retailers," Jit Siratranont, a member of the National Legislative Assembly, said yesterday.

The draft bill won Cabinet approval on Tuesday and will be tabled with the NLA early next month.

After a meeting with the Commerce Ministry, which is seeking to encourage the act's implementation, Jit said the NLA representatives now supported the government-sponsored draft, which would create a level playing field for all retailers.

Despite disagreement from some giant retail operators, the act offers advantages for both small and giant retailers, he said.

For example, existing giant retailers could continue to operate, but they would have to comply with new regulations, such as those on operating hours, in order to make room for small players.

Amid fears that large retailers will keep building during the wait for the act, a ministry source said that they could not control or order a suspension of branch expansion.

Retail giants would still have the right to construct new outlets but the stores might not be allowed to open once the law has been implemented because the new legislation will allow operations only for retail businesses existing at a certain date..

If any retailers want to open new units, they must conform to the new conditions, which the central retailing committee to be formed by the act will issue as ministry regulations.

The restrictions and requirements include operating hours, distances between shops and their sizes in each community and the ability to provide "trade facilitators" for consumers.

Korsak Chairasmisak, chief executive officer of CP 7-Eleven, said it was too soon

to comment on the draft but the new law should foster

harmony between mom-and-pop shops and the modern trade.

It must definitely not hurt consumers, who deserve access to the best products and services, he said.

"If consumers still want 7-Eleven, I believe that the new draft will not bridle our expansion," he said.