Minister Yukio Edano of Ministry of Economy, Trade and Industry said at press interview in night of Thursday the government should make permanent law on duty exemption of oil, coal and coking coal earlier. He emphasized METI tries to improve tax system to encourage domestic industry to keep domestic operations. He secures equal footing to prevent offshore shift of the manufacturing and resources for better competitiveness for the industry.
Mr. Edano said Japanese steel and automobile industry should change business model while Japanese industry had grown through export by utilizing better price competitiveness since Meiji period. He said the industry should seek higher value products while Japanese industry should be severe in low price oriented markets. He said Japanese industry should focus on domestic market as base cargo for Japanese economy when Japanese economic entities have built wealth accumulation for 60 years since World War II. He said Japanese government should encourage better domestic demand in various economic policies while the government improves social security in longer term. Mr. Edano offshore shift is based on each business condition. However, he said equal footing can prevent some of the shift to keep domestic employment. He said Japanese tax system is unreasonable especially on automobile and METI tries to revise the system to prevent offshore shift while he recognizes Japanese corporate tax is handicap for international competitiveness. Mr. Edano Japanese buyers should diversify sources of rare earth to minimize the sourcing risk. He said METI secures own offshore mining rights including iron ore and coal by utilizing higher yen rate. He expects with the captive resource advantage, Japanese industry can secure international competitiveness even with domestic operations. Mr. Edano said Japanese dependence on oil could increase in mid-term when oil price should increase under higher demand by China and emerging countries. He said METI tries to secure stable supply of oil despite of the effort to reduce the oil dependence. Mr. Edano said rebuilding of damaged area by the major earthquake should be managed in balanced functions including energy, food and medical and caring services while the rebuilding is led by the special agency of Japanese government. He said METI also supports the rebuilding activity for better living environment through tie-up with local governments.
