Restore Japan’s industries
HOW CAN industries hit by the latest flood disaster be put back on their feet? The central government and relevant local governments should cooperate in quickly extending them effective assistance.
The torrential rains that recently pummeled western Japan have dealt a major blow to corporate activities over an extensive region.
A number of small and medium-sized companies remain unable to resume operations in disaster-stricken areas.
Due to delays in parts procurement, Mazda Motor Corp’s Hiroshima plant in Hiroshima Prefecture, supported by more than 2,000 subcontracting firms, is suspending nighttime operations through Friday.
This has proved that flood damage occurring in a wide area can affect large corporations’ activities through delays in parts supply services.
Each company needs to swiftly lay down business continuity plans in anticipation of flood damage, not just earthquakes and fire.
Extending policy support is also necessary. The government is set to implement sup- port measures covering disaster-hit small- and medium-sized firms, including deferment of debt repayment. It is necessary to consider finetuned responses suited to the realities of the damage.
The transport of goods has been affected for a long time because parts of transportation networks have been made impassable.
More than a few companies are shifting their means of transportation from railways to trucks and ships. However, they have not been able to transport a sufficient amount of goods.
Corporations are advised to reexamine the transportation methods they would adopt at the time of a major disaster.
The agriculture, forestry and fishing industries in the stricken areas have also suffered enormous damage.
Devastating damage has been caused to many agricultural products, such as Okayama Prefecture grapes, due to floods leaving deposits of earth and sand on farmland as well as destroying agricultural greenhouses.
In the heavy rain, a massive amount of fresh water poured into the sea, leaving many farmed fish dead. This is believed to have been caused by a decline in the salinity of sea water, as well as suffocation due to the gills of fish having been smothered with muddy water.
It must be understood that it will take multiple years for the agricultural and fishing industries to return to fullscale production. Extending assistance from a mediumand long-term perspective is indispensable.
The government has worked out assistance measures to be taken for the time being, which cover the agricultural, forestry and fishing industries.
The main pillar of support is to restore the damaged farmland and irrigation channels at an early date, and extend financial aid for the damaged greenhouses and other equipment. The measures cover a wide range of assistance, such as making disaster-related loans interest-free for five years and extending subsidies for various expenses.
In close cooperation with agricultural cooperatives and local governments, the central government should do its utmost to ensure the benefits of the support measures spread to a wide range of sectors.
There have been a succession of localized torrential rains that have been described as “once in decades.” It is also important to utilize lessons of the past to prevent future damage.