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dam-l LS: ADB supports charges for water
Asian Development Bank
Support for irrigation charges but collections seen as a problem area
The Asian Development Bank yesterday backed plans to charge farmers for use
of water in irrigation but said implementation would be difficult.
Yoshihiro Iwasaki, director of the bank's programme development division,
said the plan conformed with an international campaign to raise global
awareness of water problems.
For Thailand, he said, the government in talks with the bank said it
intended to use the tax for "fiscal purposes" and to ensure more effective
use of water by farmers.
The proposed tax had been discussed as Thailand was seeking a
US$600-million (22.8 billion baht) loan from the bank to boost farm
competitiveness.
The loan, half of which comes from the Overseas Economic Co-operation Fund
of Japan, was approved in September last year for the Agriculture and
Co-operatives Ministry.
Mr Iwasaki indicated implementation would not be easy if the government saw
it as undue burden on farmers.
Officials said the tax would not be levied if it was not acceptable to the
public and increased rural costs.
But the officials did not convince non-governmental organisations and
small-scale farmers, who have argued that the tax would be levied as part
of a loan condition. The tax would add to their production costs and force
them to struggle harder just to compete with large enterprises.
The issue is expected to figure high on the protest agenda of pressure
groups during the ADB meeting in Chiang Mai on May 6-8. Myoung Ho-shin, the
ADB vice-president, said loans were focusing on projects to benefit the
needy. "We are targeting poor people and poverty more than in the past."-
Prime Minister Chuan Leekpai yesterday expressed concern over possible
unrest during the ADB conference.
Mr Chuan said while chairing talks on national terrorism that particular
attention should be given to certain pressure groups.
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