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ขององค์กรปกครองส่วนท้องถิ่น

= Limit to Compete with Private Sectors

The Constitution 2540 B.E section 87 and the Constitution 2550 B.E Section

84 (1) require the government to support liberal economy in the market forces
and the government must not compete with private sectors. The operation of
any types, competitive with the private sector to seek profits or to compete with

private sectors already operated in the area, cannot be implemented by local
governments according to the interpretation by the Council of State 2001.
Council of State saw the action of competing with the private sector not

possible because it was contrary to the Constitution 2540 B.E, Section 87,
except for the conduct of local government to serve the needs of local people,
but not for Local Public Enterprise profits despite its competition with the private

sectors under section 87 of the Constitution. This interpretation has become
the basis for consideration of the Department of Local Administration and other
government agencies that provide local services to oversee the operations of
Local Public Enterprises whether they are contrary to the provisions of the

Constitution or not.

= Limit on the Choices of Local Public Enterprise and Social Enterprise

The forms of Local Public Enterprise established local governments are limited
by law on two aspects: 1) the forms of Local Public Enterprises depend only
on the types of local governments regardless of other factors including their

availabilities, local budget, personnel, etc. For example, municipalities were
authorized to establish 4 forms of enterprises (independently operating and
establishing or holding more than 50 % of the total shares). In contrast,

Tambon Administrative Organizations (TAOs) are only allowed to conduct only
2 forms of establishment: independently operating and joint venture.
2) Unreasonable limit on the choices of the Local Public Enterprise. For
example, the Pattaya City Administration Act 2542 B.E, Section 64 and

Section 70 (4) does not allow the city to establish a Local Public Enterprise
despite its promptness of the population and fiscal potential.

= Limit on Establishment and Shareholding of the Company

Although the law allows local governments such as Bangkok, Provincial
Administrative Organization, and Municipality to establish and hold the shares of

Local Public Enterprises, the local governments avoid putting it into practice due
to: