JCP makes proposal for emergency measures to help small construction firms

Amidst the deepening recession in the nation's construction industry (which accounts for 30 percent of the nation's total business failures), the Japanese Communist Party has proposed measures to help small- and medium-sized construction companies and their workers.

On June 1, at a news conference in the Diet building, JCP House of Councilors member Daimon Mikishi explained the JCP Dietmembers' group proposal.

He noted that 40 percent of banks' non-performing loans, which banks are asked to write off as early as possible, are in the construction and real state industries.

The JCP proposal covers measures for the creation of projects to be undertaken by small construction companies; prohibition of harsh loan collection activities; prevention of chain business failures and delayed wage payments; and the provision for fair unit prices.

In particular, the JCP calls for the extension of the target range applicable to the existing law for business failure to second-layer subcontractors. It also demands that assets belonging to subcontractors and employees be prioritized over other creditors in case of business liquidations so as to stem further business failures. (end)

May 30-June 5 Contents