May 18, 2012
Municipalities hosting large assembly plants are one after another regaining a part of the subsidies given to electrical manufacturers which proceeded with their plant closures and production cutbacks.
Questioning the efficacy of the subsidy system as “it had little impact on activating local economies” despite using large amounts of tax money, Japanese Communist Party local assemblypersons are pushing affected local governments to demand the return of subsidies.
Panasonic’s Mobara factory
In May 2006, Panasonic began operating a factory to produce panels for liquid crystal display TVs in Mobara City in Chiba Prefecture. In March 2012, however, the maker closed the factory due to a drop in sales.
As a result, Panasonic forced many workers to voluntarily leave and unfairly terminated job contracts with its temporary workers, turning the local community’s shopping street into a street lined with many empty stores. A Mobara City official admitted that the withdrawal of Panasonic “will adversely affect the city’s finance.”
The Chiba Prefectural government and the Mobara City government already provided 2.03 billion yen and 1.35 billion yen, respectively, to Panasonic under the assumption of a “promotion of local economy” and “job security”.
JCP members of the assemblies of Chiba Prefecture and Mobara City pushed the two local governments to demand that Panasonic maintain local employment and pay back the subsidies.
Urged by the JCP assemblypersons, the Chiba prefectural government demanded the return of 340 million yen of the subsidies it had already released. Panasonic in response paid the money back. However, the Mobara city government has so far stopped short of asking the maker to refund the subsidies it had previously received.
Panasonic’s Amagasaki factories
Panasonic has had 3 factories to assemble its plasma display panels in Amagasaki City in Hyogo Prefecture since 2005. In March this year, however, the company suspended production at the 2 factories due to “declining profitability”.
The prefecture already spent a total of 8.1 billion yen in subsidies to Panasonic. However, these handouts ended up being used to increase the number of non-regular workers and did not contribute to local job security.
JCP members of the Hyogo Prefectural Assembly advised the prefecture to make a substantial review of its subsidy program to attract large corporations, and the prefectural government eventually got back 1.26 billion yen, though just a small portion of the total, from Panasonic.
NEC subsidiary factory
In Ina City in Nagano Prefecture, an NEC subsidiary closed a factory producing fluorescent lamps for liquid crystal display TVs. NEC Lighting Ltd. started operating in the city in June 2005. The lighting equipment maker, however, shut down its factory in November 2011 and dismissed 140 workers because of poor business conditions and a production transfer to China.
The maker received 300 million yen in subsidies from the prefecture and 160 million yen from the city. Ina City also spent 670 million yen, at the request of this company for land development to build another factory. Nevertheless, the NEC subsidiary ended up not buying the land.
JCP assembypersons of Ina City pressed the city mayor to demand that NEC Lighting return all the subsidies it has so far received, compensate for damages, and maintain employment.
Following the JCP’s push, the city administration demanded a full refund but brought this issue to the civil mediation process because the company refused to return the money. As a result, the city succeeded in getting 10 million yen back and NEC Lighting paid 39.18 million yen back to the prefecture.
Questioning the efficacy of the subsidy system as “it had little impact on activating local economies” despite using large amounts of tax money, Japanese Communist Party local assemblypersons are pushing affected local governments to demand the return of subsidies.
Panasonic’s Mobara factory
In May 2006, Panasonic began operating a factory to produce panels for liquid crystal display TVs in Mobara City in Chiba Prefecture. In March 2012, however, the maker closed the factory due to a drop in sales.
As a result, Panasonic forced many workers to voluntarily leave and unfairly terminated job contracts with its temporary workers, turning the local community’s shopping street into a street lined with many empty stores. A Mobara City official admitted that the withdrawal of Panasonic “will adversely affect the city’s finance.”
The Chiba Prefectural government and the Mobara City government already provided 2.03 billion yen and 1.35 billion yen, respectively, to Panasonic under the assumption of a “promotion of local economy” and “job security”.
JCP members of the assemblies of Chiba Prefecture and Mobara City pushed the two local governments to demand that Panasonic maintain local employment and pay back the subsidies.
Urged by the JCP assemblypersons, the Chiba prefectural government demanded the return of 340 million yen of the subsidies it had already released. Panasonic in response paid the money back. However, the Mobara city government has so far stopped short of asking the maker to refund the subsidies it had previously received.
Panasonic’s Amagasaki factories
Panasonic has had 3 factories to assemble its plasma display panels in Amagasaki City in Hyogo Prefecture since 2005. In March this year, however, the company suspended production at the 2 factories due to “declining profitability”.
The prefecture already spent a total of 8.1 billion yen in subsidies to Panasonic. However, these handouts ended up being used to increase the number of non-regular workers and did not contribute to local job security.
JCP members of the Hyogo Prefectural Assembly advised the prefecture to make a substantial review of its subsidy program to attract large corporations, and the prefectural government eventually got back 1.26 billion yen, though just a small portion of the total, from Panasonic.
NEC subsidiary factory
In Ina City in Nagano Prefecture, an NEC subsidiary closed a factory producing fluorescent lamps for liquid crystal display TVs. NEC Lighting Ltd. started operating in the city in June 2005. The lighting equipment maker, however, shut down its factory in November 2011 and dismissed 140 workers because of poor business conditions and a production transfer to China.
The maker received 300 million yen in subsidies from the prefecture and 160 million yen from the city. Ina City also spent 670 million yen, at the request of this company for land development to build another factory. Nevertheless, the NEC subsidiary ended up not buying the land.
JCP assembypersons of Ina City pressed the city mayor to demand that NEC Lighting return all the subsidies it has so far received, compensate for damages, and maintain employment.
Following the JCP’s push, the city administration demanded a full refund but brought this issue to the civil mediation process because the company refused to return the money. As a result, the city succeeded in getting 10 million yen back and NEC Lighting paid 39.18 million yen back to the prefecture.
