business

Gov't maps out steps to enable smaller firms to transfer costs to bigger companies

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Such a practice, which goes against the country's law...

So, here's a weird idea: How about enforcing the law, including penalizing violators under that law? It would be quicker, easier and more effective than this Byzantine "package of steps" proposal. But, hey, this is Japan, right?

9 ( +17 / -8 )

There is sure to a plethora of forms involved which will take hours to fill in making the game not worth the candle…

3 ( +8 / -5 )

A very convoluted and complicated series of steps that might in a year ofter consultation result in an expanded government department with no real power to do anything but compile reports and tell large companies which smaller complained.

7 ( +10 / -3 )

..... because "the Government" is replete with business experts.....

5 ( +8 / -3 )

This will be another of jgovs failures.

0 ( +9 / -9 )

Yeah and in the long run those costs will be paid by the consumer.

0 ( +3 / -3 )

Why in the world would the government make a "package of steps" for this?

The world would be better off if governments took a sabbatical. Just go fishing for a year.

5 ( +8 / -3 )

So, are we going to see a price hike for Uniqlo?

1 ( +2 / -1 )

The quickest way to increase “wages” is to abolish the 10% consumption tax. It’s that simple. Why can’t Kishida see that?

2 ( +4 / -2 )

I’m actually starting to like this PM, I hope they don’t kill him off…

-4 ( +2 / -6 )

The quickest way to increase “wages” is to abolish the 10% consumption tax. 

Good point. But that would require actually doing something rather than just talking and promising while they milk the hard-working public.

-2 ( +3 / -5 )

They could always tax the rich and powerful companies a lot more and stop kissing their rears.

Or help smaller businesses with better subsidiaries and tax breaks.

They could also help promote smaller prefectures into tourism, and definitely lower costs on the JR Lines.

Nah…….those things would be logical. Efficient moves and good decisions aren’t allowed in Japan.

-3 ( +3 / -6 )

I fail to see the significance of increasing the 120 ineffectual inspectors to 248 ineffectual inspectors. The current 120 have changed nothing, (their reports compiled data drawn up). Then either ignored or twisted to make the ruling party look good. I wait with bated breath for the apologies to flow for data leaks, and failure to make one company comply.

1 ( +4 / -3 )

corporations have been riding on the backs of small businesses since the bubble at least (think just-in-time... pressure on the little guy, big business gets the plaudits).... and still are. call me cynical, but i doubt this new 'plan' will have a beneficial effect on "small and midsize companies". after all, if 'we' start paying decent wages, and support our suppliers, how are we going to find the money for our 'perks'?

4 ( +4 / -0 )

Right. Pass the cost up, and then how are you going to enforce the SMBs to share the cost savings with their own employees? And on the upper end of the spectrum the larger companies will whine and say that they can't increase wages due to higher cost and lower profits. Kishida's new Abenomics is DOA.

4 ( +4 / -0 )

Hey at least extra 120 folks will get a government job! That is something!

3 ( +4 / -1 )

meeting was good,kampai speech was good and sushi were good as well.

outcome as usual,few empty words as every time this part of year.

gambatte ne and thats all.

classsic bonenkai paid by taxpayers money.

1 ( +5 / -4 )

A lot of smoke and mirrors. Increased costs due to any increase in expenses are ultimately born by the end consumer. Adding more bureaucrats is another expense to be borne by taxpayers.

Inflation is inevitable.

1 ( +3 / -2 )

So, here's a weird idea: How about enforcing the law, including penalizing violators under that law? It would be quicker, easier and more effective than this Byzantine "package of steps" proposal. But, hey, this is Japan, right?

If you actually examine the content of the “package of steps” outlined in the article you’ll notice that what they mostly amount to is a plan to increase enforcement of the law.

1 ( +2 / -1 )

@P.Smith

To enforce a law, it needs to be monitored.

So illegal activities weren't monitored before? If there is already a law in place and 120 inspectors, then why the need for a new extensive initiative now? Presumably because the law was being ignored, provisions were violated, while the inspectors sat on their hands?

The sensible approach is simply to enforce the existing law and penalize violators with steep fines, etc. That's um, how the system is supposed to work.

Methinks this is little more than an awareness exercise by a government that wants to be seen by the public as concerned and effective.

-3 ( +1 / -4 )

MeiyouwentiToday  07:47 am JST

The quickest way to increase “wages” is to abolish the 10% consumption tax. It’s that simple. Why can’t Kishida see that?

I myself doesn't see it.

The consumption tax is not the cause of the ultra low pay in this country and abolishing the consumption tax won't change that.

Increasing the hourly rate to 1500yen will greatly help to lift the country from the lower end of the big mark index.

-1 ( +1 / -2 )

The distinction between big firms and smaller firms working subordinate to them reminds me of the fiefdoms of the Edo period.

As a customer, I don’t like it when I see some big fish bring along their subcontractors to do the actual work.

The government would do better to establish the causes of such relationships and enact reforms to level the playing field, essentially undermining the basis for them.

0 ( +1 / -1 )

Great news also!

Japan is changing.

-3 ( +1 / -4 )

So illegal activities weren't monitored before? If there is already a law in place and 120 inspectors, then why the need for a new extensive initiative now? Presumably because the law was being ignored, provisions were violated, while the inspectors sat on their hands?

You are presuming a lot there. I’ve met people in the JFTC enforcement division, they don’t just sit on their hands. This is an area where monitoring compliance is insanely difficult - there are more than a million businesses in Japan and the nature of the activity (unfair trade practices) is such that uncovering a violation is almost impossible unless they can get an insider to cooperate. 120 people just isn’t enough.

The sensible approach is simply to enforce the existing law and penalize violators with steep fines, etc. That's um, how the system is supposed to work.

Your argument is completely contradictory and makes no sense. You can only penalize violators if you catch them in the first place, which requires investigators which you….don’t want for some reason. You really don’t know how the anti monopoly system is supposed to work - it requires people.

2 ( +3 / -1 )

@rainyday

investigators which you….don’t want for some reason. 

I didn't say that. I'm happy with the existing 120 inspectors and the fact they have legal teeth. I'm questioning what they've been doing until now, as the activity they are in charge of containing appears to be rampant. A team of 120 full time inspectors is a lot of manpower,, despite what you think. If it's not, they could have proceeded one case, or a small number of cases, at a time, based on complaints received.

-3 ( +1 / -4 )

I didn't say that. I'm happy with the existing 120 inspectors and the fact they have legal teeth. I'm questioning what they've been doing until now, as the activity they are in charge of containing appears to be rampant. A team of 120 full time inspectors is a lot of manpower,, despite what you think. If it's not, they could have proceeded one case, or a small number of cases, at a time, based on complaints received.

Hey, if you want full enforcement then in an economy this size with millions of businesses who could potentially be in violation of the Anti Monoply Act and no way of detecting such violations that is not labor and time intensive then 120 people are not going to accomplish much. These suggestions you are throwing out off the top of your head are not actually proposing anything that gets around that fundamental problem, which is not unique to Japan but a feature of anti monopoly (or anti trust in the US, Competition law in Europe) enforcement everywhere.

2 ( +2 / -0 )

That is not going to happen because the big companies will pressure politicians. It is all a media show. Kishida is still competing with Abe. The companies will push it on the customers, and "shrinkflation" will continue.

5 ( +5 / -0 )

End with the shareholding structure and shareholders, this system only favors Wall Street banker and the Chinese Communists CCP.

It doesn't matter how much company gets a profit because all the gold is taken away by these leeches.

1 ( +1 / -0 )

Japan is a middleman country. The goal in Japan is to get so big that you can separate yourself from all the problems, thus, the blame that comes with any business. All the fault and responsibility falls on the middleman aka buffer.

4 ( +4 / -0 )

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