Industries Seek Reduction in Groundwater Charges
By Vichaya Pitsuwan, Bangkok Post, Thailand
Aug. 2–Local industrialists have called for a groundwater surcharge reduction in order to increase the industrial sector’s competitiveness.
An appropriate rate for the surcharge would be four baht per cubic metre, said Santi Vilassakdanont, the chairman of the The Federation of Thai Industries (FTI).
Mr Santi said that industries in high-consumption areas were currently paying 8.50 baht per cubic metre, while those in non-crisis areas were charged 3.50 baht.
Officials define crisis areas as those at risk of subsidence and in need of costly maintenance and conservation, hence the higher surcharges.
The FTI says a reduction of the surcharge would help members deal with challenges at a time of high production costs driven mainly by fuel and energy.
The FTI has submitted a formal request to the Ministry of Natural Resources and Environment.
“We hope to get good news as it will help cushion the effects from production cost increases,” Mr Santi said at the opening yesterday of the Institute of Industrial Water Resources and Supplies (IIW), which was established to support private-sector water management.
Generally, the government sets policy for the industrial sector to use groundwater for production, while inland water pipelines are developed for household usage.
Authorities have identified Bangkok, Ayutthaya, Samut Prakan, Samut Sakhon, Pathum Thani, Nakhon Pathom and Nonthaburi as crisis areas.
Groundwater usage is about one trillion cubic metres yearly and is relative to rainfall rates.
Sompong Tancharoenphol, an FTI vice-chairman, said industries had become much more aware in recent years of prudent water usage, and a surcharge reduction would be appropriate as everyone was now committed to conserving natural resources.
Industries use 7 percent of all available water and demand rises with industrial growth, Mr Sonpong said.
The industrial sector was worth five trillion baht last year or 60 percent to the country’s GDP. Food and drinks, bleaching, tanning and petrochemicals are among the industries that demand a lot of water.
Industries in the eastern provinces have better managed water this year and no shortage has been reported yet, while the petrochemical sector has also showed improvements in management, Mr Sonpong said.
He suggested that the National Economic and Social Development Board also study water resources and management for the proposed Southern Seaboard industrial area to ensure problems do not arise once it is operating.
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