PTT union up in arms over govt sale plan

“We don’t agree with the idea as we need to consider in detail the law, benefits and national energy security, particularly to maintain or subsidise oil prices in any crisis,” Apsorn Krissanasmit, president of the State Enterprise Employees Union, said yesterday. 

With the problems surrounding the four executive decrees for national rehabilitation remaining unsettled, the union insisted that the proposed PTT share sale could open the way for multinational companies to restrain the Kingdom’s energy business and leave it with a lack of authority to supervise the sector.

The sale of PTT and Thai Airways International shares features in the government’s policy to privatise state-owned enterprises. Concern has been re-fuelled over the consequences of private or foreign control, adding to the raging controversy over the four executive decrees that have been strongly questioned by Thirachai Phuvanatna-ranubala, who was removed as finance minister. The union said there has been no information on the impacts.

However, doing business under private management has to come under the Trade Competition Act, with tougher competition expected from rivals. 

The government will lack the authority to control the local energy market and PTT will not enjoy any special privileges like government-to-government deals from its national status. PTT’s rivals are global energy companies that could take over the Thai firm. Control by a multinational company could hurt consumers, as in any crisis it would suspend selling petroleum products to Thailand.

“As a state-run enterprise, PTT’s important duty is to ensure energy supply to the Kingdom. If PTT is no longer a state enterprise and the government cannot control the energy sector, Thailand may risk its energy security in the future,” Apsorn said.

Pitiphan Theppatimakorn, vice president of human resources at PTT, has said the government’s proposal might lead to political intervention and the taking of benefits from the policy.

Apsorn said the Vayupak Fund belongs to the Finance Ministry so after the purchase by the fund, PTT will remain state-owned. After the fund comes to an end in 2013, nobody knows if there will be any change in PTT. 

The full privatisation of PTT has both good and bad points for its staff. 

Staff could enjoy good bonuses from PTT, as the firm would not come under pressure anymore from the government to freeze petrol prices. However, it is not clear if employees will need to resign and reapply for a job, as PTT will lose its state enterprise status and there might be changes in their work and employment conditions, she added.

Abhisit Vejjajiva, leader of the Democrat Party, told Blue Sky Channel that he could not stop thinking that but for the Cabinet reshuffle, people would never have known the views of former finance minister Thirachai, that the four executive decrees were not urgent. 

The government has tried to explain that it has a financial problem with a high debt-service ratio, he said. 

The debt-service ratio is capped at 15 per cent, but Finance Minister Kittiratt Na-Ranong has tried to explain that it was currently at 12 per cent. However, the real figure is only 8-9 per cent. The executive decrees have no effect, so the party has not sought a Constitution Court review of them. 

The ratio of 8-9 per cent means that the government has room for creating more debt if it needs to.