Japan Press Weekly

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2009 June 3 - 9 [TOKYO]

JCP in Tokyo issues policy on SMEs

The Japanese Communist Party Tokyo Metropolitan Committee on June 8 issued a policy statement to help reinvigorate small- and medium-sized enterprises (SMEs) in Tokyo.

In Tokyo, small- and medium-sized enterprises are the core force of Tokyo’s economy because SMEs account for 99 percent of all business establishments in Tokyo and 68 percent of workers are employed by SMEs.

Under the economic crisis, as the national statistics show, SME bankruptcies in Tokyo account for 20 percent of all Japanese business failures. SMEs in Tokyo are experiencing serious financial hardships.

The JCP pointed out that the key to solving this problem is change in the government economic policy, and criticized Governor Ishihara Shintaro for cutting expenditures for the SME budget by 60 percent.

Stating that the JCP offers broad measures to solve SMEs’ hardships in individual categories such as manufacturing, construction, and local shopping districts, the party stressed that its proposals can be realized by using a mere fraction of Tokyo’s 6 trillion yen annual budget.

Regarding the manufacturing industry, in order to solve the problem of declines in orders, the JCP called for establishing a new system of contracting out research for developing new products and technologies and an emergency finance system for firms that are forced to temporarily close their businesses. Large corporations will be required to contribute funds for them.

For the construction industry, the JCP emphasized the need to expand demand by increasing the amount of subsidy to install anti-quake reinforcements on wooden houses and for shifting the priority on public works projects improve the quality of life of residents.

In its policy, the JCP estimated that 2.4 million jobs will be created if the Tokyo Metropolitan Government builds 3,000 public houses, 150 registered day-care centers, and 100 nursing care facilities within three years.

Local shopping districts are feeling deep negative impacts from the economic recession. JCP policy stressed that shopping districts should be placed as a center of developing towns and called for the support of a ‘No consumption tax day’ throughout the metropolitan area which will be effective in expanding consumer spending.