Thai Bankers' Association chairman Apisak Tantivorawong, who is also chairman of the joint committee, said the effect of the severe situation in the three southernmost provinces has widened to involve businesses, especially those in the tourism industry, in some districts of Songkhla and Satun.

The joint committee involves the Thai Bankers' Association, the Thai Chamber of Commerce and the Federation of Thai Industries.

Apisak said many hotel operators have seen a slowdown in business, especially those at Hat Yai, in Songkhla province, which is generally regarded as the main economic centre of the lower south.

"The joint committee has agreed that the government should give a special hand to those who operate businesses in Hat Yai or Satun, on the same basis as those in the three southernmost provinces," he said.

The government should have measures to help enterprises in these areas, possibly including low interest rates or exemption from corporate income tax, which can be applied with close monitoring, he said. Otherwise, business in the lower south may stagnate.

Apisak said the private sector is currently trying to persuade enterprises to invest in such industries as textiles and food in Yala, Pattani and Narathiwat, to create employment and income distribution in the long term. The government should also consider special stimulus measures for the South, such as advancing plans for a Southern Seaboard industrial zone.

Measures to help enterprises in the southern provinces are one of four main topics the committee plans to discuss with Prime Minister Surayud Chulanont later this month. The other three topics are problems of water shortage on the Eastern Seaboard, high fees charged at the Suvarnabhumi Airport's duty-free zone and the United States' priority watch lists.

To prevent future water shortages on the Eastern Seaboard, the committee believes the government has to invest more.

Meanwhile, it wants some resolution to the problem of fees charged on exports from Suvarnabhumi Airport, Apirak said. The fees are much higher than those at Don Muang Airport, and are imposed in addition to value-added taxes. He said the value-added taxes should be exempted automatically.

"The government should resolve these problems within its term," he said, adding the electronics industry is most affected.

Apisak said the joint committee is also concerned about preparing for any after-effects from Thailand being placed on the US priority watch list for intellectual property piracy.

Watcharapong    Thongrung

The Nation