The Thai Food Processors' Associa-tion has proposed the Industry Ministry deliver a shot in the arm to the battered economy of the three southernmost provinces by providing a low-interest loan of Bt1 billion to establish a fleet of ship-carriers and seiners to catch tuna in Indonesian waters.

Half of the proposed loan would be spent renovating about 100 seiners belonging to local fishermen in Pattani province, and the rest would go towards building 10 ship-carriers for Siam International Fishery, which has a licence from the Indonesian government to fish in its waters.

Deputy Industry Minister Piyabutr Cholvijarn said the proposal was a very good plan for economic recovery in the three southernmost provinces, particularly Pattani.

He has undertaken to negotiate with the Small and Medium Enterprise Development Bank and commercial banks to offer the lowest possible interest rates for the project. At a monthly conference on Friday, he will also propose that it receive Board of Investment tax incentives .

Association vice president Chanintr Chalisarapong said the economy in the three southernmost provinces was growing worse, because no one wanted to tap rubber, plus the tourism sector was facing a slow-down from the ongoing violence. The proposal will help about 2,000 locals earn a living from the high demand for fresh tuna.

Chanintr, who is also an executive at Indo-Thai Fishery Value, a 49:51 joint venture between Siam International Fishery and an Indonesian firm, said Thailand's waters no longer had enough tuna.

"We import more than 8  million tonnes of frozen tuna a year," he said. "This plan will help reduce tuna imports and increase employment in the deep South."

Indo-Thai Fishery Value, which has registered capital of US$10 million ( Bt346 million), is expected to start fishing off Indonesia in August, he said. It plans to use its licence to allow local fishermen to work the waters off Indonesia, then buy the tuna from them.

The Customs Department said the total value of exported tuna was Bt40.41 billion last year, up 11.4 per cent from 2005. It went mainly to the US, Australia, Canada and Japan.

The total value of imported frozen tuna last year was Bt31.35 billion, up 5.05 per cent from the previous year. Most fresh tuna was imported from Taiwan and Japan.

Chalida  Ekvitthayavechnukul

The Nation