Research report on Lobbying in Thailand by ศูนย์วิจัยและพัฒนากฎหมาย มหาวิทยาลัยเชียงใหม่

Research report on Lobbying in Thailand 关于游说泰国的简要报告

English version prepared by Ass/Prof Dr. Pornchai Wisuttisak PhD in Business Law and Taxation, UNSW, Australia Dean of Faculty of law, Chiang Mai University, Thailand

The research report is supported by China-Thai Legal Center under cooperation between the China ASEAN Legal Center, Southwest University of Political Science & Law and the Faculty of law, Chiang Mai University

Table of Contents Lobbying Law and Policy in Thailand ...................................................................................................... 3 1.

Definition of Lobbying in the report ................................................................................................. 3

Law and Government Administration in Thailand ........................................................................... 5 2.1 Law in Thailand .............................................................................................................................. 5 2.2 Government Administration in Thailand ........................................................................................ 8

Related laws on lobbying in Thailand............................................................................................. 10

3.1 Thai Constitution 2017(BE 2560) ............................................................................................... 10 3.2 The Act on Criteria on Drafting Law and Analysis on Law Effectiveness 2019 (BE2562) (พระราชบัญญัติหลักเกณฑ์การจัดทาร่ างกฎหมายและการประเมินผลสัมฤทธิ์ ของกฎหมาย พ.ศ.

2562) ............... 13

3.3 Government Ordinance on the Public Consolation 1991 (B.E. 2534), (ระเบียบสานักนายกรัฐมนตรี วา่ ด้วยการรับฟังความคิดเห็นของประชาชน พ.ศ. ๒๕๔๘) ................................................................................ 14 3.4 The Political Party Act 2017(BE 2560) (พระราชบัญญัติประกอบรัฐธรรมนูญ ว่าด้วยพรรคการเมือง พ.ศ.

2560)................................................................................................................................................. 15 4.

Practices of Lobbying in Thailand .................................................................................................. 18 4.1 Lobbying with Legislation and Political Cabinet.......................................................................... 18 4.2 Lobbying and registration/permission........................................................................................... 39 4.3 Example cases on lobbying ........................................................................................................... 42

Conclusion ..................................................................................................................................... 46

Lobbying Law and Policy in Thailand 1. Definition of Lobbying in the report In order to clarify the definition of the word “lobbying” in this report, it is important to refer to the international experience and in Thai context. In US, the term lobbying is defined according to the Lobbying Disclosure Act 1995 that “The term “lobbying activities” means lobbying contacts and efforts in support of such contacts, including preparation and planning activities, research and other background work that is intended, at the time it is performed, for use in contacts, and coordination with the lobbying activities of others.”1 In Canada, the Lobbying Act R.S.C., 1985 prescribes that defines the activities which involve with the conducts of lobbying as; “5 (1) An individual shall file with the Commissioner, in the prescribed form and manner, a return setting out the information referred to in subsection (2), if the individual, for payment, on behalf of any person or organization (in this section referred to as the “client”), undertakes to (a) communicate with a public office holder in respect of (i) the development of any legislative proposal by the Government of Canada or by a member of the Senate or the House of Commons, (ii) the introduction of any Bill or resolution in either House of Parliament or the passage, defeat or amendment of any Bill or resolution that is before either House of Parliament, (iii) the making or amendment of any regulation as defined in subsection 2(1) of the Statutory Instruments Act, (iv) the development or amendment of any policy or program of the Government of Canada,

US-Lobbying Disclosure Act 1995 section 3

(v) the awarding of any grant, contribution or other financial benefit by or on behalf of Her Majesty in right of Canada, or (vi) the awarding of any contract by or on behalf of Her Majesty in right of Canada; or (b) arrange a meeting between a public office holder and any other person.â&#x20AC;?2 In Australia, The Australian Government has established the Lobbying Code of Conduct and the program for the Register of Lobbyists.3 The Code provides the Register and sets out the requirements for contact between third-party lobbyists and Government officials.4 The codes points out that there should be publicly available on the Register and outlines the conditions of lobbyists. The codes also define the lobbying as; â&#x20AC;&#x153;communications with a Government representative in an effort to influence Government decision-making, including the making or amendment of legislation, the development or amendment of a Government policy or program, the awarding of a Government contract or grant or the allocation of funding, but does not include: 1. communications with a committee of the Parliament; 2. communications with a Minister or Parliamentary Secretary in his or her capacity as a local Member or Senator in relation to non-ministerial responsibilities; 3. communications in response to a call for submissions; 4. petitions or communications of a grassroots campaign nature in an attempt to influence a Government policy or decision; 5. communications in response to a request for tender; 6. statements made in a public forum; or 7. responses to requests by Government representatives for information.â&#x20AC;?5 From the US, Canada and Australia, the term lobbyists can be defined, in general, as the activities of communication which impact on the changes and reform on policies, law, and administration of governments. In those three jurisdictions, the lobbying activities are under legal governance with a clarity of definition on lobbying activities. With regards to Thailand, there is

Canada- Lobbying Act R.S.C., 1985 section 5(1) Australian Government, 2019, Register of Lobbyists, https://lobbyists.ag.gov.au/home 4 Ibid 5 Australian Government, Lobbying Code of Conduct 3

not legislation applying to lobbying conduct but there are activities in communicating with Thai government as to achieve any kind of objectives. In the Thai contexts without having a law on lobbying, the act of lobbying can be defined similar to the international perspectives by that the lobbying in Thailand is the communication to create a change and/or to enable the smoother of works relating to laws, policies and government administration. As to further clarify, the law is legislations and regulations, having enforceability in Thai jurisdiction. The policies mean the preference of government to act or to conduct their works. The government administration means the works of government officers in making decision according to conferred legal power. The further explanation about the law, policy and administration will be discussed in the next part.

2. Law and Government Administration in Thailand It is vital to make a clear understanding of the law and government administration in Thailand before move to the relates law and practice of lobbying in Thailand. In this second part of the paper thus aims to displays 1) law in Thailand and 2) government administration in Thailand.

2.1 Law in Thailand According to the constitution of Thailand 2017, Thailand is one and indivisible Kingdom and Thailand adopts a democratic regime of government with the King as Head of State.6 The sovereign powers under the King as Head of State are based on three main organic powers of the National Assembly, the Council of Ministers and the Courts. Thus, Thailand has applied the framework of separation of powers as to ensure check and balances of political powers in Thailand.

Constitution of the Kingdom of Thailand section 1 and 2

In addition, Thailand is a civil law country with adherence to written law passed by the legislature with the approval by the King as Head of State.7 In relation to the hierarchy of laws, the constitution is the highest law and there must be no subordinate laws conflicting with the constitution. The hierarchy of the laws in Thailand is according to the chart 1 below;

Chart 1: Hierarchy of the laws in Thailand Constitution Organic Acts Acts or Statues Emergency Decree Decree/Ministerial Regulation Rules, Ordinance, Notification

Source: Author

Thus, with the interests to change or to reform national laws for any businesses, the lobbyists have to focus on the changes of â&#x20AC;&#x153;the Acts or Statuesâ&#x20AC;? which has to be passed by the notational assembly consisting of 1) Houses of representatives and 2) House of Senates. Nevertheless, the draft of the new laws or the draft for changes on the existing laws normally come from the government agencies which have their duty to the governance on social, economic and economic consideration. The new law or the changes to any laws also involve with a consideration from the cabinet. The government agencies have to report the new law or the draft of changes on

Melbourne University, 2019, Southeast Asian Legal Research Guide: Introduction to Thailand & its Legal System, http://unimelb.libguides.com/c.php?g=402982&p=4832968#s-lg-box-wrapper-17876812

laws to the cabinet. After the consideration on from the cabinet, the new law or the draft of changes on existing law can be submitted toward the consideration in the house of the representatives. Later if the laws are agreed in the house of representatives, the laws will be passed to the house of senates. In case the house of the senates agreed on the laws, the laws will be sent to the Prime Minister and the Prime Minister would seek the royal consent to the law. Upon having the royal consent, the laws become enforceable legislations. The process of the passing of laws in Thailand are explicated in the flow chart 1 below. Flow Chart 1Passing of Laws in Thailand

Government agencies propose draft

Draft law proposed to Cabinet for preliminary acceptance

Proof reading by the office of the state

Send to House of Representatives for consideration

Transfer the draft to special committee from House of Representatives

Re-Propose to Cabinet for approval

Send to House of Senators

Prime Minister propose the law to the King for approval of Royal consent

The laws passed

Source: Author

From the above flow chart, it can be seen that passing or amending laws in Thailand required various procedures and the lobbyists may contact the government agencies at the first steps as to 7

proposes new laws or to create any law amendment. However, the lobbyists have to works all the ways according to steps in the flows chart in order to achieve the objectives of the lobby. The example is that if the businesses would like to make an amendment to the Plant Varieties Protection Act BE 2542(1999), the lobbyists or the businesses by themselves have to contact the Ministry of Agriculture and Cooperatives which have authoritative power to initiate the amendment to the act. Nevertheless, the lobbyist will have to also follow the process and contact various persons who can facilitate the businesses aims on the amendments to the parliament discussion. The lobbyists would also have to keep contact with the process of cabinet consideration where the cabinet can decide by that to reject, to continue, or to postpone the amendments.

2.2 Government Administration in Thailand According to the public law principle in Thailand, government authority would have to exercise their power according to the given laws. Using authoritative power without underlining laws, the government agencies or officers may subject to judicial control from the Administrative Court and/or the Court of Justices. It means that government agencies have to rely on the rules of law in making decisions or doing any authoritative administration. If there are no relying laws, the courts can overrule any government decision or administration. In some cases, the government officers who do not follow rules of laws are subjected to criminal punishments by the decision of the court of justices.8 In cases, that there are dispute regarding to administrative action, the government agencies and counterparts (organizations or individuals) will refer the case to the Administrative court. Thus, Thailand has the dual court systems where the Court of Justice is the primary judicial body but there are other courts such as the Constitutional Court, the Administrative court, and the Military Courts.9 However, the government agencies play important roles in enforcing applicable

8 9

Thai Penal Codes- Malfeasance in Office (Sections 151-157) Constitution of Thailand 2017, Chapter 10 Section 188-214

laws and make decision based on their conferred authoritative power by laws. The hierarchy of government administration in Thailand are according to the flow chart 2 below.

Flow Chart 2 Government administrative structure

Source: Ministry of Land, Infrastructure, Transport and Tourism of Japan, Thailand Country Profile,<https://www.mlit.go.jp/kokudokeikaku/international/spw/general/thailand/index_e.html>

The lobbying activities in dealing with government would have to deal and communicate with various levels of bureaucracies of the Thai government. The example is that if the businesses or any persons would like to ask for permissions from ministerial regulation, they or their lobbyists will have to communicate and deal with Director of the Departments and the Ministers. In case that the business or any persons aims to have any permissions from the local governments, they or their lobbyists would have to deal with officers or Mayer of the local governments. However, the lobbyists have to ascertain that the government officers or Minister have their authority to make decision or to give permissions. The further details of how the practices of the lobbyists in the levels of government will be further exemplified in the section 4 of this report.

3. Related laws on lobbying in Thailand As mentioned in the first part of the report, Thailand has no direct legislation dealing with the lobbying activities. The lobbying activities tends to be under the gray areas without any practical legal controls. However, there are laws and regulations which relate to or provide a means for lobbying activities. The law includes; 1) Thai Constitution 2017(BE 2560) (รัฐธรรมนูญราชอาณาจักรไทย 2560), 2) The Standard of Law drafting and Analysis on Effectiveness of Law 2017 (พระราชบัญญัติ หลักเกณฑ์การจัดทาร่ างกฎหมายและการประเมินผลสัมฤทธิ์ของกฎหมาย พ.ศ. 2562) 3) The Prime Minister's Office- Ordinance on Public Opinion Act, B.E. 2534 (ระเบียบสานัก นายกรัฐมนตรี ว่าด้วยการรับฟังความคิดเห็นของประชาชน พ.ศ. 2548) 4) The Political party Act 2017 (พระราชบัญญัติประกอบรัฐธรรมนูญ ว่าด้วยพรรคการเมือง พ.ศ. 2560),

3.1 Thai Constitution 2017(BE 2560) In the Thai constitution, there are sections requiring public consultation as to ensure the development process and effectiveness of laws In Thailand. By requirement on public consultation, any lobbying activities can resort to the sections as to derive their desire aims toward Thai government. The section 65 of the Thai constitution 2017 spells out that “The

State

should

set

out

national

strategy

goal

for

sustainable development of the country under the principle of good governance to be used as a framework for formulating consistent and integrated plans in a congruous drive to achieve such goal. The formulation, determination of goals, prescription of time for achieving such goals and contents that should be in the national strategy shall be in accordance with the 10

rules and procedures as provided by law. Such law shall also contain provisions relating to peopleâ&#x20AC;&#x2122;s participation and public consultation throughout every sector. The national strategy shall come into force upon its publication in the Government Gazetteâ&#x20AC;?

The section 65 obligates that in setting out any national strategy or plan, government has to conduct from public consultation throughout every sector. By this, the lobbyists will play important roles in tapping on the public consultation according to the section 65 and to directing any economic, social and political strategies into the national strategy. Nevertheless, the lobbyists have to link with agencies that deals with the aspects of national strategies in order make sure that their desire aims are inserted into the consideration process. For instance, the lobbyist from groups of foreign companies may aims to create a convenient visa process in Thailand. The lobbyists will have to work and connect with the government agencies which are able to draft the national plans on the ease of visa process for foreigners in Thailand. The lobbyists then facilitate the change on the visa process to the agencies via the open of public consultation based on section 65 of the Thai constitution. Of courses, in drafting the national strategies on visa process, lobbyists and other stake holders would join the consultation. In addition, the section 77 of Thai constitution 2017 also obligates government to make a public consultation before legislating any laws and to analyses the impact of the laws in order to build effective legal framework in Thailand. The section 77 spells out as following; â&#x20AC;&#x153;The State should introduce laws

only to

the extent of

necessity,

and repeal or revise laws that are no longer necessary or unsuitable to the circumstances, or are obstacles to livelihoods or engagement in occupations, without delay, so as to abstain from the imposition of burdens upon the public. The State should also undertake to ensure that the public has convenient access to the laws and are able to understand the them easily in order to correctly comply with the laws. Prior to the enactment of every law, the State should conduct consultation with stakeholders, analyse any impacts that may occur from the law thoroughly and systematically, and should also disclose the results of the consultation and analysis to 11

the public, and take them into consideration at every stage of the legislative process. When the law has come into force, the State should undertake an evaluation of the outcomes of the law at every specified period of time, for which consultation with stakeholders shall be conducted, with a view to developing all laws to be suitable to and appropriate for the changing contexts. The State should employ a permit system and a committee system in a law only in cases of necessity, should prescribe rules for the exercise of discretion by State officials and a period of time for carrying out each step provided by the law in a clear manner, and should prescribe criminal penalties only for serious offences.â&#x20AC;?

By the section 77, the lobbying process can be started from the step on the initiation of public consultation. The groups of people or businesses are able to propose their need toward any draft laws in the consultation process. Normally government will seek the public consultation by establish meeting forum and by posting the draft law on the website of the Law Amendment centerhttp://www.lawamendment.go.th/. The website is under the cooperation among Ministries of Thailand and the Officer of the state in providing transparency and to create method of public consultation. In some cases, the Ministries directly relate to any draft law will organize the meeting of all stake holders for public consultation. Later, the draft law will be publicized on the website and various stakeholders can participate their ideas to the ministries via the website. Thus, the website is to provide a channel for public consultation according to section 77. Therefore, the Thai constitution 2017 contains sections which obligate the public consultation to any draft laws. The lobbying activist would then have to employ the process of the public consultation in order to derive their opinions to be included in draft laws.

3.2 The Act on Criteria on Drafting Law and Analysis on Law Effectiveness 2019 (BE2562) (พระราชบัญญัติหลักเกณฑ์การจัดทาร่ างกฎหมายและการ ประเมินผลสัมฤทธิ์ ของกฎหมาย พ.ศ. 2562) The Criteria on Drafting Law and Analysis on Law Effectiveness 2019(BE2562) is passed to create legal enforcement according to the section 77 of Thai constitution 2017. The Act obligates all government agencies to pass laws when consider appropriate. 10 By the act the government agencies have to remove and reform the outdated laws.11 The government agencies have to also open to public a readily access to all laws as to make a clear understanding to all laws.12 In case that the government agencies aim to pass any laws, the agencies must organize public consultation and to analyses impact of the laws.13 The government agencies also have to open the result of the public consultation and the impact analyses to public.14 The Act further obligation to government agencies that in proposing any draft law the agencies have to ensure that they have impact analyses of drafts. The impacts must elucidate that there is no unnecessary burden to people.15 The agencies have to open public consultation by the methods of 1) “Public consultation by the Information communication technology of governments 2) Established public meeting for consultation 3) Interview or invitation to speak 4) Other methods the agencies consider appropriate”16 The Act also prescribes that the impact analysis of the law must be conducted to the draft law with the consideration on that; 5) “Having laws only needed or removing the outed law

The Criteria on Drafting Law and Analysis on Law Effectiveness 2019(BE2562) section 5 Ibid 12 Ibid 13 Ibid 14 Ibid 15 The Criteria on Drafting Law and Analysis on Law Effectiveness 2019(BE2562) section 12 16 The Criteria on Drafting Law and Analysis on Law Effectiveness 2019(BE2562) section 13 10 11

6) The Law development which adhere to the international standard and to the international binding rules 7) Reduction on the repetition or conflicting laws 8) Reduction on inequality and creation of fair society 9) Increase competitiveness of nation”17 By relying on the act requirement, the lobbying activities are able to send their desired objectives into the process of public consultation on any draft laws. In general, people have no concern over draft law but it is only the groups of people whom may be affected by the laws, in case the draft law is passed. The lobbyists therefore have to communicate with the government agencies which proposes the draft. The lobbyists have to propose their concern or their objectives into the report of the public consultation of the draft laws. In proposing their concern, the lobbyists would have to connected with various government agencies, businesses group, and social groups as ensure that the process of consultation include their objectives into the drafts law. In some cases, by referring to the Act, the lobbyists maybe able to request the government agencies to reform any laws which are a burden to their businesses. The law thus can be an important legal channel for the lobbyists to communicate with government agencies.

3.3 Government Ordinance on the Public Consolation 1991 (B.E. 2534), (ระเบียบสานักนายกรัฐมนตรี วา่ ด้วยการรับฟังความคิดเห็นของประชาชน พ.ศ. ๒๕๔๘) The Government Ordinance on the Public Consolation B.E. 2534 is the subordinate regulation requiring government agencies to build up effective, efficient, and resourceful government works which may impact on people.18 The act is purported to be a legal requirement to create an effective administration and to reduce any troublesome bureaucratic procedures.19 According to the ordinance, the Prime Minister as the leader of the cabinet has the duty to govern as following;

The Criteria on Drafting Law and Analysis on Law Effectiveness 2019(BE2562) section 30 Government Ordinance on the Public Consolation 1991 (B.E. 2534) Section 3/1 19 Ibid 17 18

1) Control the public administration both central and local agencies to create transparency of the government works by opening on the public discussion. The agencies have to report work of the agencies which are not according to the aims to build government transparency 2) Delegate Vice Prime Minister to govern all ministries according to the ordinance with an aim to ensure the public transparency. 3) Give an order to all ministries to perform according to the ordinance 4) Giving order to manage or transfer all government officers to perform as to advance the public consultation20

The ordinance become the main subordinate regulation obligating all government agencies to perform any public discussion and consultation on any projects affecting people. The lobbyists can resort to the ordinance to obligate government agencies to consult with various groups including their lobbyist groups. Throughout many years since the ordinance has been enforced, all government agencies have to establish meeting or any public communication for their works on any projects. By this the lobbyists can utilize the public communication in order to inject their desired objectives into the report of the public communication. The government agencies, in case having close contact with the lobbyists, will direct their works or projects as to serve the desired objectives of the lobbyists.

3.4 The Political Party Act 2017(BE 2560) (พระราชบัญญัติประกอบรัฐธรรมนูญ ว่า ด้วยพรรคการเมือง พ.ศ. 2560)

According to Thai political systems, political parties play important roles in establishing policy, law and social development. The political parties have their role in country election. If the members of the parties are elected to be representative in parliaments, the political parties would be able to be supporting seats to the cabinet or supporting part to the opponent in the parliaments. 20

Government Ordinance on the Public Consolation 1991 (B.E. 2534) Section 13

The parties which are supporting part to the cabinet are able to connect with the Cabinet in proposing any policy and draft law for consideration in the parliament. With connection to the Cabinet, the parties can consult any policy, laws, or authoritative permission with government. In the other hand, the parties that are opponents in the parliament have the duty to check any works of government in order to make sure that any Cabinet works are not corrupted. By this the political parties are important conduit for all policy, laws and works of state in Thailand. The lobbyists thus have connect to various political parties.

Cabinet

Representative under Political parties which support Cabinet

Lobbyists

Representatives under Political parties in opponent position

Nevertheless, there is the Political Party Act 2017 which govern the political parties in Thailand in undertaking their duty of political institution. The parties have to be a combination of people who share same political values with minimum members no less than 500 people.21 The political parties have to register their entities with political registrar and become the non-profit entities.22

21 22

The Political Party Act 2017(BE 2560) section 9 The Political Party Act 2017(BE 2560) section 20

In conducting the work of the political parties, the parties must set up their committee responsible for managing the parties in order to make sure that all members act according to the partiesâ&#x20AC;&#x2122; rules and procedures.23 No person outside the political parties is able to influence or control the parties.24 The political parties have their financial support from the membership fees from the members or donation funds from public.25 In receiving, any funds from publics the parties must declare the funds in a transparent manners to the publics.26 Nevertheless, there is a prohibition that any person or juristic person must not donate to any political parties more than 10 million TH Baht per year. In reality, the political parties are the institution for all interest parties including lobbyists to combine their political group together. The group then can create influential opinions toward the government policies. The lobbyists, at this point, can be members or political parties or be person who can contact with members of the political parties. The lobbyist may offer donation or support to the political parties, if their desires objective can be delivered to Cabinet or any Ministers. Thus, the lobbyists rely on the legal frameworks of the Political Party Act 2017(BE 2560) to pay a funds support with their aims to request political parties to deliver their objectives to the Cabinet and to the parliaments. In some cases, the lobbyists may offer significant benefits to the political parties in order to satisfy the partiesâ&#x20AC;&#x2122; needs.

The Political Party Act 2017(BE 2560) section 21-22 The Political Party Act 2017(BE 2560) section 29 25 The Political Party Act 2017(BE 2560) section 62 26 The Political Party Act 2017(BE 2560) section 64-65 24

4. Practices of Lobbying in Thailand 4.1 Lobbying on Legislation and Political Cabinet As show in part two of the report, there are various procedures in passing laws through the parliament of Thailand. The lobbyists who have connection with networks of political parties will be able to influence Cabinet, representatives, and senators to consider passing any laws that benefit both public and interest groups of the lobbyists. The lobbyists have to maintain connection with potential officials who can decide to initiate the reform on law. The officials then create an initiative by reporting to higher authorities with concern to reform on any laws. The lobbyists will then interact with the officials plus the higher authorities in order to move the consideration to the cabinet level. If the consideration to reform on the laws can be sent to the cabinet levels, it means that the lobbyists achieve important step of putting the reform to high government level. The Cabinet as the highest government institution will submit their draft for reform on any laws to the parliaments. Thus, the lobbying activities, in practice, concern most on connection and how the lobbyists can explain the benefits to public and interest groups.

4.1.1

Government cabinet with interest groups in legislation

All ministers will have various meetings as to give decision for all matter submitted by the sub-ordinate agencies. The decision of the Cabinet committee give raise to all national administration which is essential to drive Thailand. However, the Ministers in each ministry have their authority to manage and to decide the matters under their authoritative power in the ministries. The Cabinet are selected by Prime Minister basing on the quota of representatives under political parties in the parliament. Thus, in normal situation the Ministers will have connection with political parties which are the underling influence of the Cabinet in the parliament. By the connection, the Prime Minister and Ministers will have to communicate with political parties and representatives. The lobbyists normally are the representatives in the parliament or the persons who have close relationships with the representatives. The lobbyists may sometime connect directly with Ministries. The lobbyists can also be the influencers who give a support political 18

parties in election. The support can be finances and the people movements. The lobbyists always work on behalf of large corporates, business associations, and large groups of people. The larges corporates, in aiming to changes any law affecting them, gain access to discuss with the cabinet by connecting with political parties. In another way, the corporatesâ&#x20AC;&#x2122; lobbyists will be a connector who can discuss with cabinet. By this it can be seen that, corporates with their financial support to political parties can obliges the political parties to control the ministerial decisions in favor of their businesses. The business associations also can have their voice to the Cabinets level. In setting up, industrial and business policies and laws in Thailand. Various economic committees are consisted of representatives from industrial and business associations. The example is the Federation of Thai Industries27 which plays a key role in influencing the government industrial committees in establishing national policies and law on various industries. The Federation sends their representatives to sit in the committees and to influence the draft law for their industrial developments. By this, the Federation can communicate and influence the Cabinets in directing industrial polices but they may have to discuss in many meetings as to deliver the aims of the Federation. The Cabinet, in directing the industrial policies and laws, have to make sure that the policies and laws can create benefits to the Federation and industrial developments. The Cabinet also making sure that the policies and laws can be displayed as serving people interests. Another example of the business association having political connection to Cabinet is the Thai Chamber of Commerce.28 The chambers of commerce connects to Cabinets for influencing business policies and laws. The representatives of the Chamber of Commerce normally sit with various committees deciding development policies and law reform for the businesses. The committees are consisted of the ministers, government officers, and business representatives, from the Chamber of Commerce. In submitting any draft laws from the committees, the Chamber of commerce would be able to voice their ideas in the draft laws. The Cabinet in Thailand may communicate and involve with interest groups. The interest groups in this regard means groups of people who aims to push the government in enacting laws or policy for their benefits. The interest groups are such as civic group, farmers association, fishing

27 28

Federation of Thai Industries- https://www.fti.or.th/2016/eng/ Thai Chamber of Commerce-https://www.thaichamber.org/en/home/homepage

association, and etc. All those groups will be acting on behalf of their members in order to submit their needs to government in order to direct the government for passing laws and policy for the benefits of their groups. The example is that the government may like to generate consumer demands to encourage economic growth. The government chosen the tourism sectors and retail sectors to generate demand by giving the tax incentives and subsidies. In the tourism sectors, government issued taxation regulation to give tax benefits for Thai people who travels and spend money during the period of time.29 By this the government issues laws and policies for interestsâ&#x20AC;&#x2122; groups in tourisms industries. The interest groups in tourism such as hotel, food, and tours services would communicate with government as to issues such a laws and policies. In the case of subsidies, government will spread government funds to poor families as to serve their basic needs but all the given money has to be spent through retailers or convenient stores connecting to government banking systems. The case validates the government provide subsidies to poor people who are the main interest groups in political election. In addition, by the laws and policies, the government also provides benefits to the retailersâ&#x20AC;&#x2122; groups which has connected systems with government.

4.1.2

Government cabinet, public outcry and, legislation from

In some cases, the public outcry via the media leads to Cabinet reaction to make decision in draft law or on any policy affecting to the public. Cabinet in proposing any draft laws to the parliaments have to make sure that there is less public opposition. The people, these days, use their internet connectivity and all online-contents to spread their concern over any draft laws or policies. The example is that people use their face book contents to share their concern over any laws and policies. With the increasing of the Facebook-shared contents, it become overall concern of the public. The cabinet thus have to react and satisfy the public concerns. The example is the case of public outcry on the the draft cybersecurity law that may affects individual privacy.30 By the large amount of Facebook contents and sharing on the concern over the draft cybersecurity law, the

Thai Revenue Departments, 2018, Incentives to reduce Tax, http://www.rd.go.th/saraburi/hotcolumn/2561/October_2018.pdf 30 Bangkok Post, 18 October 2018, Cyberbill outcry puts PM on defensive, https://www.bangkokpost.com/tech/1559758/cyberbill-outcry-puts-pm-on-defensive

Cabinet under Prime Minister Prayut Chan-o-cha have to retreat and order a review on the draft law. Another example is on the Cabinetâ&#x20AC;&#x2122;s regulation to create single gateway of internet in Thailand in 2015. The aim to create regulation on single gateway is to screen all internet content toward and outward Thailand. The Cabinetâ&#x20AC;&#x2122; regulation was reacted by public outcry and create cyber protesters. The protest conducts blocked access to several Thai government websites as to show the disagreement to the government aims to control internet traffic under single gateway, which would make it easier government to monitor and censor communications.31 The government then reacted by postponing the issuance of the regulation on the single gateway. However, it has to be noted that the public concern is not an effective way to lobby government. The public outcry may present to that public concern on any laws and policy but the government may response in different approaches from the public concerns. There is a bargaining situation between the lobbyists from influential interest groups and public groups over Cabinet decisions to put law and policy forward or backward. Within the period of 2014-2019, Cabinet react to the both groups on the law and policy. Nevertheless, in the overall, the influential interest groups seem to have higher bargaining power in lobbying the government on the law and policy.

4.1.3

Thai National Election 2019 and interest groups

In the recent political election in Thailand in 24 March 2019, many political parties propose their campaigns to the public as to win the election. The parties focus on how to with the election for their benefits of being able to influence government of their desired aims. In order to make it clearer about the political election and political campaigns with lobbing activities, there are main points of 1) the Political campaigns of political parties to win election, 2) the Combination of political parties in perusing their political aims, 3) the Dividend of benefits for political parties after the election.

VOA, 2015, https://www.voanews.com/east-asia/protesters-block-thai-websites-over-plan-single-gateway

4.1.3.1 Political campaigns of political parties to win election In order to win the election, all registered political parties have to presents their political campaigns to public in order to attract the people to elect them. By the winning over the election, the political parties will be part of parliament. However, after the election, the winning political parties may do or not to do according to their proposed campaigns. In many cases, the wining political parties that becomes parties connecting with Cabinet tend not to follow what they promise with the people before the election. The political campaign in the election seems to be a prior promise to people but, in many situations, the political parties do not follow what they promise in their campaign. The examples of the political campaigns, proposed by major political parties are in the following table. Future

Forward

Party(Anakot

Mai

Party)

Palang

Pracharath

Party

Pue Thai Party

Democrat Party

Bhumjai Thai Party

The table above shows that in the political campaigns for election, there are many other small political parties which have to propose their campaign as to win the election. According to the registration information of the political parties from the Election Commission of Thailand, 23

there are 104 parties which has been registered as to run the political campaign for election.32 The political parties have to propose the campaign that benefits to people. Then, the people will choose the political parties in the election ballots with their beliefs that the political parties will do according to the campaigns. For instance, Palang Pracharath Party proposed in the election competition that if the party becomes the Cabinet the party will set government policy for people benefits of -

â&#x20AC;&#x153;Maternity welfare of ThB 3,000 per month for each new born baby until 6 years old

Discount for buying new electric car

Public economy for helping well-being of people

and etcâ&#x20AC;?33

The other parties with their aim to win election would have to offer better or similar policies to draw attention from people. In case any parties earn their seats of representatives in the election, the partiers will try to put their campaign toward a government policy. Some campaigns are just to mislead people to believe on the campaign benefits. The campaigns are not really implemented, even the parties have won the seat of representatives in the election competition. The clarification about the representative seats will be further explained below.

4.1.3.2 The combination of political parties in perusing their political aims According to Thai Constitution 2560, the Thai parliament having national legislative power are consist of 2 houses- house of senator and house of representative. Both houses will combinedly elect the Prime Minister of Thailand. The house of senators has 250 senators, selected by National Council for Peace and Order (NCPO). Thus, the NCPO can select senators whom the NCPO think they can control. The senators have power to consider legislations and to check the Cabinet government. Thus, in this senator

32 Kaosod News, 17 January 2019, https://www.khaosod.co.th/bbc-thai/news_2098582 33 Work Point News, 6 June 2019, https://workpointnews.com/2019/06/06/pprp-policies-look-back1/ 24

system, some political researchers consider that the house of senators by the selection do not reflect the full democracy system but rather only half-democracy with dictatorship control. The house of representatives has 500 representatives which have to be elected by people. The representatives have to be registered with political parties. The political parties then had to propose their campaign as to draw the attraction from people who have right to vote in the election. In case the people elect the person in the political parties, the persons then become the representatives in Thailand. The election system is divided into national party lists and provincial lists. The national party lists contain 150 representative seats and the provincial lists contain 350 representative seats. Thus, the parliament of Thailand according to the Thai Constitution 2016 can be briefly presented according to the table below.

House of Senators

House of representatives

➢ 250 seats ➢ From

the

✓ 500 seats selection

✓ From the people election

National Council for Peace and Order (NCPO) ➢ Not

registered

political parties

with

any

✓ 150 seats from national party lists and the 350 seats are from provincial lists ✓ Be registered with political parties

In the recent election on 24 March 2019, the Thai election commission took almost 2 months to declare the exact numbers of the representatives in the house of representatives. The information about the representatives with the political parties are in the table below;

The Thai National Election 2019- Representative seats Popular votes

Seats

Party Votes

Provincial lists

Party list

Total

Palang Pracharath Party

8,441,274

23.74

116

Pheu Thai Party

7,881,006

22.16

136

Future Forward Party

6,330,617

17.80

Democrat Party

3,959,358

11.13

Bhumjaithai Party

3,734,459

10.50

Thai Liberal Party

824,284

2.32

Chartthaipattana Party

783,689

2.20

New Economics Party

486,273

1.37

Prachachart Party

481,490

1.35

Puea Chat Party

421,412

1.19

Action Coalition for Thailand

415,585

1.17

Chart Pattana Party

244,770

0.69

Thai Local Power Party

214,189

0.60

Thai Forest Conservation Party

134,816

0.38

Thai People Power Party

80,186

0.23

Thai Nation Power Party

73,421

0.21

People Progressive Party

69,431

0.19

Palang Thai Rak Thai Party

60,434

0.17

Thai Civilized Party

60,354

0.17

Thai Teachers for People Party

56,633

0.16

Prachaniyom Party

56,264

0.16

Thai People Justice Party

48,037

0.14

People Reform Party

45,420

0.13

Thai Citizens Power Party

44,961

0.13

New Democracy Party

39,260

0.11

New Palangdharma Party

35,099

0.10

Thairaktham Party

33,787

0.10

Puea Pandin Party

30,936

0.09

Paradonphab Party

30,253

0.09

New Alternative Party

29,219

0.08

Democratic Force Party

26,693

0.08

Pheu Khon Thai Party

26,559

0.07

Thai Power Builds the Nation Party

23,094

0.06

Green Party

22,568

0.06

The Land of Dharma Party

21,212

0.06

Mahachon Party

17,882

0.05

Social Power Party

17,563

0.05

The Farmer Network of Thailand Party

17,261

0.05

Thaen Khun Phaendin Party

17,205

0.05

Siam Development Party

17,075

0.05

Phuea Tham Party

15,130

0.04

Ruam Jai Thai Party

13,332

0.04

Klong Thai Party

12,732

0.04

Phungluang Party

12,589

0.04

Thai Network Party

12,256

0.03

Thai Citizen Party

11,434

0.03

Thai Population Party

10,984

0.03

Thai Ethnic Party

9,913

0.03

Palang Thai Rak Chart Party

9,643

0.03

Power of Faith Party

9,564

0.03

New Aspiration Party

9,046

0.03

Phuea Thai Pattana Party

8,063

0.02

Thinkakhao Party

6,814

0.02

Thai Teacher Power Party

6,390

0.02

Thai Morality Party

5,811

0.02

Glang Party

5,459

0.02

Thai Social Democratic Party

5,347

0.02

Commoners' Party

5,291

0.01

Foundational Party

4,838

0.01

Palang Pandinthong Party

4,586

0.01

Powerful Love Party

4,410

0.01

Thai Rung Rueng Party

4,152

0.01

Bhumphalangkasettrakonthai Party

3,577

0.01

Thai Power Labour Party

2,940

0.01

Commoner Party of Thailand

2,606

0.01

Thai Dee Power Party

2,535

0.01

Cooperative Power Party

2,357

0.01

Phue Cheevitmai Party

1,599

0.00

Thailand Development Party

1,093

0.00

Phue Sahagon Thai Party

902

0.00

People Vote Party

789

0.00

Thai Rubber Party

610

0.00

Democracy for People Party

553

0.00

Kasikornthai Party

182

0.00

35,561,556

100

350

150

500

Total

Source: https://en.wikipedia.org/wiki/2019_Thai_general_election#cite_note-70 and Thai Election Commission, https://www.ect.go.th/ewt/ewt/ect_th/download/article/article_20190508184334.pdf

After the national election, the house of senators(upper house) and the house of representative (lower house) will jointly elect the Prime Minister. The 250 senators and 500 representatives will vote as to choose the Prime Minister. Thus, it is important that the Prime Minister have large support from senators and representatives, who have to be under political parties. The picture below shows how the votes lead to the election of Prime Minister of Thailand will be.

Source: BBC, 24 March 2019, Thailand votes in first post-coup election, https://www.bbc.com/news/world-asia-47664201

In normal election the chairman of the political party which win the most seats of representatives will be voted to become Prime Minister. However, in vote on 6 June 2019 in the joint parliament, the votes are in support of General Prayut chan-o-cha who are not the chairman of any political party to be the 30th Prime Minister of Thailand. General Prayut chan-o-cha has close link with the Palang Pracharath Party which has influential support from military and various rich interest groups. The Palang Pracharath Party is able to communicate with other political parties to support General Prayut chan-o-cha to become the Prime Minister. Nevertheless, having to rely on votes from other political parties to support General Prayut chano-cha, the Prime Minister position seems to be under the challenging point because the Prime Minister has to satisfy various interests and needs from various political parties. It is because all General Prayut chan-o-chaâ&#x20AC;&#x2122;s supporting parties would requests for Ministerial positions in order to gain benefits from Ministriesâ&#x20AC;&#x2122; high amount of budgets and from being able to set ministerial policy in favors of their interest groups.

4.1.3.3 The dividend of benefits for political parties after the election The political parties gain benefits from their votes for Prime Minister. After the votes in the parliaments then there will be entablement of Prime Minister. The political parties will fiercely bargain among them in order to have Ministerial positions which can create benefits for their interest groups who support the parties. The example is that one party that votes helping General Prayut chan-o-cha to be Prime Minister will negotiate with General Prayut chan-o-cha to appoint its person to become Minister. In being Minister, the person will then giver benefit back to the party and interest groups who support the party. In the recent political situation in Thailand, the Prime Minister General Prayut chan-o-cha is voted by various political parties. General Prayut chan-o-cha, therefore, has to give Minister positions to all political parties who support his Prime Minister position. The picture below shows how the ministers are chosen by the Prime Minister.

Source, Bangkok Post, 10 July, 2019, New cabinet ministers appointed https://www.bangkokpost.com/thailand/politics/1710151/new-cabinet-ministers-appointed

Thus, the political parties gain the dividend of benefits from the possibility to have Ministerial positions having political power to use budgets and to govern relates sectors under the minister. The ministers then form the Cabinet of Thailand. The Cabinet is the highest government agency in Thailand. The Cabinet decides and plans all national law, policies and strategies on social, political, economic and legal development. The Cabinet consists of 36 Ministers working for governance on 20 Ministries. The list below presents the Ministries Thailand.

Ministers in Thailand Cabinet of Thailand 1. Prime Minister 2. Deputy Prime Minister (3-4 persons) 3. The Office of the Prime Minister â&#x20AC;&#x201C; Ministry level 4. Ministry of Interior 5. Deputy Ministry of Interior 6. Ministry of Justice 7. Ministry of Defense 8. Deputy Ministry of Defense 9. Ministry of Finance 10. Ministry of Foreign Affairs 11. Ministry of Social Development and Human Security 12. Ministry of Agriculture and Cooperatives 13. Deputy Ministry of Agriculture and Cooperatives

36 14. Ministry of Transport 15. Deputy Ministry of Transport 16. Ministry of Natural Resource and Environment 17. Ministry of Energy 18. Ministry of Commerce 19. Deputy Ministry of Commerce 20. Ministry of Labour 21. Ministry of Culture 22. Ministry of Education 23. Deputy Ministry of Education 24. Ministry of Public Health 25. Ministry of Industry 26. Ministry of Tourism and Sports 27. Ministry of Digital Economy and Society 28. Ministry of Higher Education, Science, Research and Innovation

Source: Cabinet of Thailand-https://en.wikipedia.org/wiki/Cabinet_of_Thailand

All the minister would then have their authoritative power to utilize the budget for the public benefits or to embezzle budgets for their benefits. The table below present the example of national budget for each ministry in 2018.

Ministries and budget in 2018 Cabinet of Thailand

Budgets( Million ThB)

1. Prime Minister and Deputy Prime

General Centralized budgets of 49,8032

Minister (3-4 persons) 2. The Office of the Prime Minister â&#x20AC;&#x201C;

39,554.7

Ministry level 3. Ministry of Interior

373,519.7

4. Ministry of Justice

24,993.2

5. Ministry of Defense

227,671.4

6. Ministry of Finance

242,846.0

7. Ministry of Foreign Affairs

9,241.8

8. Ministry of Social Development and

12,863.5

Human Security 9. Ministry

Agriculture

and

108,539.3

Cooperatives 10. Ministry of Transport

183,732.5

11. Ministry of Natural Resource and

31,586.1

Environment 12. Ministry of Energy

2,318.9

13. Ministry of Commerce

7,182.5

14. Ministry of Labour

52,641.2

15. Ministry of Culture

8,209.4

16. Ministry of Education

489,798.6

17. Ministry of Public Health

135,827.6

18. Ministry of Industry

5,311.5

38 19. Ministry of Tourism and Sports

6,413.9

20. Ministry of Digital Economy and Society

7,122.9

21. Ministry of Higher Education, Science,

14,885.4

Research and Innovation Source: Work Point News, 7 June 2018Work Point https://workpointnews.com/ 2018/06/07/นายกฯ-แจง ร่ างกฎหมายงบปี /

What can be seen from the lists of budgets are that the political parties which support the Prime Minister would be able to secure the Ministerial seats and be able to do in favors for their interest groups who supports their political parties. However, not only the government budgets the Ministers would be able to manage but it is also the economic interests of each ministries which give significant benefits to political parties and interest groups. The example is that the political parties may ask Prime Minister the position of Minister of energy. While each year the Ministry of energy has very small amount of budget comparing to other Ministries, the Ministry of energy has authoritative power to decide and manage national energy sectors in Thailand. The energy sectors in Thailand worth trillion US dollars. Political parties which have connection with the Minister of energy would then be able to influence energy policies and projects in Thailand. In practical, various energy companies will have to connect with political parties which has their party member be the Minister of the energy. By this, the energy companies can make an insider communication with Ministry of Energy in order to protect and promote the interests of energy companies. Likewise, in all ministries, there would be a connection with political parties in order to make sure that all ministerial policy are set in benefits to interest groups.

4.2 Lobbying and registration/permission In practicality of doing businesses in Thailand, the lobbying activities do not only focus on change, amend or create a new law and policy. The lobbying activists normally have to deal with seeking permission and approval for related ministries licenses, Board of Investment (BOI), provincial authorities, and local authorities. In setting up the foreign business in Thailand, the business may consider tax incentives for foreign investment. Thai government aims to attract foreign investments toward Thailand and the government enacted the Investment Promotion Act BE 2520(1977) which enable tax exemption and incentives for local and foreign investments in Thailand. The investments are able to request the Thailand Board of Investment(BOI) to approve the tax incentives and other supportive measures.34 The example of BOIâ&#x20AC;&#x2122; approvals for invectives are measure for improvement of roduction efficiency, investment promotion for industrial development in Southern Thailand, investment promotion for special economic zone, and investment promotion measure in the eastern economic corridors.35 The investment promotion and incentives are according to the picture 1 below. Picture 1: Incentive under the Investment Promotion Act

Source: BOI, 2019 Incentive under the Investment Promotion Act, https://www.boi.go.th/index.php?page=incentive

34 35

BOI Thailand, https://www.boi.go.th/un/eligible_activities Ibid

In order to attain the incentives and support both local and foreign investors have to follow the procedures for applying approvals from the BOI. The BOI has issued procedures for applying and implementing promotion privileges by the BOI announcement No.1/2553 regarding the â&#x20AC;&#x153;Time Frame for Investment Promotion Proceduresâ&#x20AC;?. The various procedures are according to picture 2 below.

Source: BOI, 2019, Procedures for Utilization of Promotional Privileges of BOI Promoted Projects, https://www.boi.go.th/index.php?page=procedures

Thus, it is difficult for the businesses to apply and request the BOI approvals by themselves. In practical situation, the businesses would ask the lobbyists who have knowledges and connection 40

with BOI to pursue all the approval procedures. The lobbyists would contact closely with the office of BOI and to facilitate all process as to make sure that the businessesâ&#x20AC;&#x2122; requests for BOI approvals are completed. Usually, businesses have to pay professional fees to the lobbyists to work throughout the processes toward final approvals from BOI. With regard to provincial and local authorities, businesses normally have to deal with permission to do businesses from the provincial and local authorities.36 The example is that if the businesses would like to build a large retail stores in city areas, the businesses have to requests for approval from provincial agencies such as 1) provincial department of public works and town & country planning, 2) provincial department of pollution controls, 3) provincial department of industrial works, and etc. By many permissions required for establishing large retail stores, the businesses would ask the lobbyists to contact and to process with various government agencies in order to ask for permission to do the large retail stores in city areas. The other businesses in provincial and local communities would have to face similar complicated processes. Thus, the lobbyists as the middle man who can contact with government authorities would be the important methods for businesses for obtain their business permissions. Therefore, the lobbying activities are not only based on the level of national legislation and policy setting, but the lobbying activities involve with the provincial and local authorities who have their authorities for giving business approvals or permissions. In addition, it is not only the businesses but also, in many cases, any activities which are required approvals or permissions from government agencies whether national, provincial, local levels would have to rely on lobbyists to operate their contact with those government agencies.

Michael Ramirez, 2017, Thailand: anti-corruption compliance, https://globalinvestigationsreview.com/insight/the-

asia-pacific-investigations-review-2017/1068608/thailand-anti-corruption-compliance 41

4.3 Example cases on lobbying In this part the report aims to reflect some practical examples about lobbying in Thailand. The examples include the cases of 1) National regulation on importation of paraquat, 2) Establishing housing projects in provincial area of Thailand, and 3) Establishing factories in Thailand. 4.3.1 National regulation and policy on importation of paraquat The paraquat chemical, a pesticide contributing to Parkinson’s disease and other disease, is banned in China and the European Union37. The US companies are the main producers and exporters of the paraquat. In Thailand there is a public outcry to issue the ban on the paraquat import. The public inducing NGO, academics and civic groups are referring the dangerous of the paraquat to the National Committee on Hazardous Substances(NCHS), linked with the Ministry of Agricultures. However, the NCHS on 14 February 2019, decided not to ban paraquat over the next two years.38 The decision of the committees was assumed that there are lobbying activities from interest groups who have to maintain their benefits from the importation of the paraquat both from the groups of agriculture companies and chemical companies. At this point, the lobbyists are assumed to have closely linked with the Ministry of agriculture and with the members of the committees which could facilitate the decision to continue the importation of the paraquat in two more years.39 In this case, the decision of the committees must be based on the needs of the agriculture sectors with the reference to the impact on agriculture investments. The decision may consider the effects to the public health of farmers but the interests of the agriculture investments has been

Danny Hakim, Dec. 20, 2016, This Pesticide Is Prohibited in Britain. Why Is It Still Being Exported?, https://www.nytimes.com/2016/12/20/business/paraquat-weed-killer-pesticide.html 38

The Momentum, https://themomentum.co/paraquat-comes-back-in-thailand/ Kritsada Boonchai, 2019, Dust, Paraquat, and forest the reflection on fake government in Thai society(ฝุ่ นควัน พาราควอต พันธุ์ข้าว และป่ าไม้ บทสะท้ อนภาวะรัฐเทียมของสั งคมไทย), https://thaipublica.org/2019/02/kritsada-boonchai-02/ 39

considered as the more important factor. The committee provide the reasons to continue the import of the paraquat by that that the ban was not possible as there were no other chemicals in the market that â&#x20AC;&#x153;work as effectively as paraquat.40 The Ministry of the agriculture later stated that it will provide training courses to farmers to appropriately use the paraquat.41 What can be seen from the case is that the lobbyists, if there is, must have connection with the Ministry level, especially under the close connection with the NCHS. This report expressly provides that there is no valid evidence of the lobbying activities. It is purely an assumption that the committees may have connected with lobbying groups who support the continuity of the use and import of the paraquat. The vital point show, in this case, is that if there is needs to lobby on any national issues on law, regulation and policies, the lobbyists have to contact ministry levels and the specific committees, having authorities to pass laws, regulations and policy.

4.3.2 Establishing housing projects in provincial area of Thailand In establishing housing or property projects, investors must seek permissions from various government authorities such as the department of estate in provincial areas of the projects, the department of environments and local authorities. The investors of the housing projects have to firstly request permission from the department of lands as to approve the projects before conducting any construction and sell of the housing. The investors have to submits at least 13 copies of the project details to the department of estates for consideration.42 The department can take period of time and may involve the requirement to consulting with the provincial committee of land and properties in make any decision to approve or to reject the submitted projects. In addition, the investors also have to conduct Environment Impact Assessments (EIA) and must request an approval from the department of environments, if their housing projects are considered as following

Bangkok Post, 16 FEB 2019, Paraquat must be banned, https://www.bangkokpost.com/opinion/opinion/1629962 Thairath, 17 June 2019, The Ministry of Agriculture and Cooperatives require 98 Million for training course on Paraquat, https://www.thairath.co.th/news/local/bangkok/1593316 42 Department of estate, Ministry of Land, https://www.dol.go.th/Knowledge/estate_flow_permittion.pdf 41

1) “The housing projects which are larger than 100 rai or dividend of properties more than 500 houses 2) The condominiums which have more than 80 unit or the areas are larger than 4000 square meters 3) Hotels which have more than 80 units 4) Buildings which are adjacent to river, lake, and beaches”43 From the above, the investors have to deal with the EIA and approvals from the department of environments. The approval processes can take shorter or longer period basing on the department discretion. Moreover, the investors on property projects have to seek approval from local community and local authorities. The investors have to submit the details to local authorities to consider on infrastructure connectivity, transportation and environment and pollution impacts. Without the permission from the local authorities, the projects cannot be initiated. Thus, as the investors in property businesses, it is difficult for them to deals with various approvals from various authorities. The investors have to resort to lobbyists who have connection with the authorities and who are able to prepare all required documents for submission to the authorities. By this regard, the investors have to pay the lobbyists to deal with authorities. The lobbyists will work through the approvals processes and lead to the start of the housing projects. The lobbyists, in many events, may have to bribe the authorities as to make sure the approval processes work all the way toward completion. The bribes actually from the investors who pay to the lobbyists. The lobbyists then pass the money to the authorities. The lobbyists may obtain the premium of the bribes during payments to the authorities.44

4.3.3 Establishing factories in Thailand

Act Promoting and preserving the national environmental quality, BE 2535 (1992) section 46

Letter to Asawin ( Bangkok Mayor) aim to reform on corruption by permission for housing and building projects (จม.เปิ ดผนึก ACT ถึง อัศวิน จี้ปฏิรูประบบขอใบอนุญาตสร้างบ้าน-อาคาร ตัดตอนทุจริ ตเรี ยกสิ นบน), https://www.isranews.org/isranews/77924open-77924.html?fbclid=IwAR2GDiFIL-cGHIeadovGO-EwVSz5nr5spM5CdahaDvGz9w1QbzcDvSDSZek

In establishing industrial sites or factories in Thailand, investors must seek permissions from Ministry of Industry. The investors have to follow the steps of 1) â&#x20AC;&#x153;Identify their factory sizes according to 3 categories of 1) the factories with machines having 5-20 horse powers, 2) the factories with machines having 20-50 horse powers, 3) the factories with machines having more than 50 horse powers. 2) Submit a document for public hearing before applying for a license in the licensing authority in the locality where the factory is to be located for staff to listen to the public before the permission. At this stage it will take no more than 35 days. 3) Applying for a license by submitting required documents and evidence of the public hearing to the Department of Industrial Works in Bangkok or to provincial office, Depending on the location of the factory within 45 days from the date of the announcement of the public hearing. 4) Authority considers documents and make a cite visit in order to check the location of the plant, the factory operation, production process, and measure to prevent any pollution and effect to surrounding areas. 5) Authority announce the decision to approve or disapprove the license to establish the factoryâ&#x20AC;?. 45 From the process above, as the investors in industrial projects has to face various steps of application from the Ministry of Industry. The investors may have to deal with difference preference from officials who consider their application. With various processes on permission, there are also potential steps for corruption on approval of the permissions. According to the sources, the bribe payments are required by to officials before issuing any permission relating to setting up industrial factories in Thailand.46 Thus in requesting and applying for industrial permission, it is difficult for investors to face with such tardy processes with a chance having to pay the bribe to officers. By this, the investors resort to lobbyists who have connection with officials from the Ministry. The lobbyists who always contacts and deals with the officials would be able to smoothing the approval process and would be able to negotiate the period for the

Ministry of Industry, Thailand, Process for Factory Approvals, http://www.industry.go.th/industry/images/permission_process/factory-en.pdf 46 Bangkokbiznews, Reform on Factory Permission to Tackle on Corruption, 2018, https://www.bangkokbiznews.com/news/detail/816663

issuances on the factory permission. What the investors have to do is to pay fee to lobbyists then the lobbyists can manage the permission within the fixed period of time. This make the investors be released from having to deal with the officials from the Ministry by themselves.

Conclusion The report displays lobbying law and policy in Thailand. In the first part, the report starts

with the clarification on the definition in the report by referring to the definition of lobbying in legislations in US, Canada, and Australia. The report, in the second part, lays the background of the law and government in Thailand. The background provides broader pictures on law and government which relates to the lobbying conducts in Thailand. The report points out that the hierarchy of law in Thailand are the main factor determining lobbying on any legislation in Thailand. The report also states that the government administration which connects with policy are prone to the lobbying activities. The report, in the third part, focuses on relevant legislation which can be a legal mechanism for lobbying activities in Thailand. The part presents that there is no specific legislation supporting or governing lobbying activities. The constitution and other relates legislation of The Act on Criteria on Drafting Law and Analysis on Law Effectiveness 2019, Government Ordinance on the Public Consolation 1991 (B.E. 2534), and The Political Party Act 2017(BE 2560) are important laws relating to lobbying and lobbyists in Thailand. The report in the fourth part presents the practices of lobbying in Thailand by that there is lobbying activities in the legislation levels and in the regulation/permission levels. The lobbying activities in Thailand are typically done with interest groups of people who are able to connect with politicians, officials and business persons. The lobbyists would communicate with the government authority as to ensure that their set goals of any businesses person who hired the lobbyists have been reached. Some cases example on regulation and permission are also presented in order to portray some practical conducts on lobbying in Thailand. In summary, in Thailand there are lobbying activities in a shadow between government and businesses. The lobbyists will aim to match needs between businesses and 46

government. In most cases, the lobbyists involve with corruption conducts. However, there is no precise law that prohibits or controls the lobbying conducts in Thailand.