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2009 January 28 - February 3 [POLITICS]

Fiscal action for smaller corporations is urgent: JCP Ichida

February 3, 2009
At the House of Councilors plenary session on February 2, Japanese Communist Party Secretariat Head Ichida Tadayoshi demanded that the government take substantial measures to support small- and medium-sized corporations amid the unprecedented economic crisis as well as protect workers’ jobs.

“You are called upon to take urgent measures to remake the Japanese economy to effectively encourage and improve people’s living conditions,” Ichida stated.

Ichida cited a manager of a smaller company, whose contract has been cut by major contractor company, screaming, “How can we survive at a 90 percent output cut? This is nothing but bankrupting smaller companies by major corporations!”

Then Ichida proposed that the government take the following three measures to save small- and medium-sized businesses:
(1) Take effective steps to prevent major corporations from bullying subcontractors in such ways as canceling contracts;
(2) Drastically increase government funding for small- and medium-sized businesses;
(3) Force large banks to end their reluctance to lend them money and forcibly collect debts from them.

In order to ensure that money circulate to smaller companies, the government must tighten its control of and guidance to the mega banks, Ichida added.

Despite his remarks that smaller companies are hit hard by the economic crisis, Prime Minister Aso Taro just repeated the government position.

Next, Ichida took up the employment issue, stressing that except for the period of economic devastation just after the end of the Second World War, workers are not only forced out of work but driven out of places to live in.

“How can it be allowed for workers to be dismissed and thrown out in the streets as a result of irresponsible corporate conduct? This should never be allowed to take place,” Ichida emphasized.

“The government is called upon to take relief measures for the unemployed, strictly control the misconduct of business circles and major corporations, and drastically revise the Worker Dispatch Law.

As regards the call for the major companies to release their internal reserves to avoid job cuts, Aso said that it is a matter that should be dealt with by each corporation according to their financial position. The prime minister, however, added that his government will make the utmost efforts so that workers’ jobs and living conditions will be secured during this critical situation.
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